PRIOR PRINTER'S NOS. 1196, 1247, 1460, 1464, 1468, 1544, 1545

PRINTER'S NO.  1561

  

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, PILEGGI, ARGALL, ORIE, RAFFERTY, STACK AND COSTA, JUNE 22, 2009

  

  

SENATE AMENDMENTS TO HOUSE AMENDMENTS, DECEMBER 15, 2009   

  

  

  

AN ACT

  

1

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

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2

Quasi-Public Corporations) Title 4 (Amusements) of the

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3

Pennsylvania Consolidated Statutes, making extensive

4

revisions to provisions on gaming, in the areas of

5

legislative intent, definitions, the Pennsylvania Gaming

6

Control Board, applicability of other statutes, powers of the

7

board, code of conduct, expenses of regulatory agencies,

8

licensed gaming entity application appeals from board,

9

license or permit application hearing process and public

10

hearings, board minutes and records, regulatory authority,

11

collection of fees and fines, slot machine license fee,

12

number of slot machines, reports of board, diversity goals of

13

board, license or permit prohibition, specific authority to

14

suspend slot machine license, Category 2 slot machine

15

license, Category 3 slot machine license, number of slot

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16

machine licenses, applications for license or permit, slot

17

machine license application, slot machine license application

18

character requirements, supplier licenses, manufacturer

19

licenses, gaming service provider, occupation permit

20

application, alternative manufacturer licensing standards,

21

alternative supplier licensing standards, additional licenses

22

and permits and approval of agreements, license renewals,

23

change in ownership or control of slot machine licensee,

24

nonportability of slot machine license, appointment of

25

trustee, table games, slot machine licensee deposits, gross

26

terminal revenue deductions, itemized budget reporting,

 


1

establishment of State Gaming Fund and net slot machine

2

revenue distribution, distributions from Pennsylvania Race

3

Horse Development Fund, Pennsylvania Gaming Economic

4

Development and Tourism Fund, transfers from State Gaming

5

Fund, responsibility and authority of Department of Revenue,

6

wagering on credit, eminent domain authority, compulsive and

7

problem gambling program, drug and alcohol treatment, labor

8

hiring preferences, declaration of exemption from Federal

9

laws prohibiting slot machines, financial and employment

10

interests, additional restrictions, political influence,

11

regulation requiring exclusion of certain persons,

12

prosecutorial and adjudicative functions, investigations and

13

enforcement, conduct of public officials and employees,

14

prohibited acts and penalties, report of suspicious

15

transactions, additional authority, applicability of Clean

16

Indoor Air Act, liquor licenses at licensed facilities,

17

interception of oral communications, electronic funds

18

transfer terminals, junkets, gaming schools and, 

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19

appropriations and Commonwealth Financing Authority; further

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20

providing for powers and duties of the Commonwealth Financing

21

Authority; and making related repeals.

22

The General Assembly of the Commonwealth of Pennsylvania

23

hereby enacts as follows:

24

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

25

Consolidated Statutes is amended and the section is amended by

26

adding paragraphs to read:

27

§ 1102.  Legislative intent.

28

The General Assembly recognizes the following public policy

29

purposes and declares that the following objectives of the

30

Commonwealth are to be served by this part:

31

* * *

32

(2.1)  The authorization of table games in this part is

33

intended to supplement slot machine gaming by increasing

34

revenues to the Commonwealth and providing new employment

35

opportunities by creating skilled jobs for individuals

36

related to the conduct of table games at licensed facilities

37

in this Commonwealth.

38

* * *

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1

(10.1)  The General Assembly has a compelling interest in

2

protecting the integrity of both the electoral process and

3

the legislative process by preventing corruption and the

4

appearance of corruption which may arise through permitting

5

any type of political campaign contributions by certain

6

persons involved in the gaming industry and regulated under

7

this part.

8

(10.2)  Banning all types of political campaign

9

contributions by certain persons subject to this part is

10

necessary to prevent corruption and the appearance of

11

corruption, that may arise when political campaign

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12

contributions and gaming regulated under this part are

13

intermingled.

14

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

15

regulatory control and legislative oversight over the

16

operation and play of slot machines and table games in this

17

Commonwealth; to [prevent the actual or appearance of

18

corruption that may result from large campaign

19

contributions;] ensure the bipartisan administration of this

20

part; and avoid actions that may erode public confidence in

21

the system of representative government.

22

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

23

authorize the operation and play of slot machines and table

24

games under a single slot machine license issued to a slot

25

machine licensee under this part.

26

(13)  The authorization of limited gaming in this

27

Commonwealth requires the Commonwealth to take steps to

28

increase awareness of compulsive and problem gambling and to

29

develop and implement effective strategies for prevention,

30

assessment and treatment of this behavioral disorder.

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1

(14)  Research indicates that for some individuals

2

compulsive and problem gambling and drug and alcohol

3

addiction are related. Therefore, the General Assembly

4

intends to establish an approach to compulsive and problem

5

gambling prevention, assessment and treatment that will

6

ensure the provision of adequate resources to identify,

7

assess and treat both compulsive and problem gambling and

8

drug and alcohol addiction.

9

Section 2.  The definitions of "associated equipment,"

10

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

11

"gross terminal revenue," "key employee," "licensed facility,"

12

"manufacturer," "manufacturer license," "slot machine,"

13

"supplier" and "supplier license" in section 1103 of Title 4 are

14

amended and the section is amended by adding definitions to

15

read:

16

§ 1103.  Definitions.

17

The following words and phrases when used in this part shall

18

have the meanings given to them in this section unless the

19

context clearly indicates otherwise:

20

* * *

21

"Associated equipment."  Any equipment or mechanical,

22

electromechanical or electronic contrivance, component or

23

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

24

games, including linking devices which connect to progressive

25

slot machines or slot machines, replacement parts, equipment

26

which affects the proper reporting and counting of gross

27

terminal revenue and gross table game revenue, computerized

28

systems for controlling and monitoring slot machines or table

29

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

30

computer to which all slot machines communicate and devices for

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1

weighing or counting money.

2

* * *

3

"Banking game."  Any table game in which a player competes

4

against a certificate holder rather than against another player.

5

* * *

6

"Cash."  United States currency and coin.

7

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

8

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

9

(1)  Chips or tokens.

10

(2)  Travelers checks.

11

(3)  Foreign currency and coin.

12

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

13

(5)  Personal checks or drafts.

14

(6)  A negotiable instrument applied against credit

15

extended by a certificate holder or a financial institution.

16

(7)  Any other instrument or representation of value that

17

the Pennsylvania Gaming Control Board deems a cash

18

equivalent.

19

* * *

20

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

21

table game operation certificate awarded by the Pennsylvania

22

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

23

table games).

24

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

25

from any player, slot machine licensee or the Commonwealth while

26

operating or playing a slot machine or table game, including

27

causing, aiding, abetting or conspiring with another person to

28

do so. The term shall also mean to alter or causing, aiding,

29

abetting or conspiring with another person to alter the elements

30

of chance, method of selection or criteria which determine:

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1

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

2

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

3

game or table game.

4

(3)  The value of a wagering instrument.

5

(4)  The value of a wagering credit.

6

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

7

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

8

or repair with the approval of a slot machine licensee.

9

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

10

with the intent to be used to cheat during the operation or play

11

of any slot machine or table game. The term shall also include

12

any device used to alter a slot machine or a table game device

13

without the slot machine licensee's approval.

14

"Chip."  A representation of value, including a plaque,

15

issued by a certificate holder for use in playing a table game

16

at the certificate holder's licensed facility and redeemable

17

with the issuing certificate holder for cash or cash equivalent.

18

* * *

19

"Conduct of gaming."  The licensed placement [and], operation

20

and play of [games of chance] slot machines and table games 

21

under this part, as authorized and approved by the Pennsylvania

22

Gaming Control Board [at a licensed facility].

23

"Contest."  A table game competition among players for cash,

24

cash equivalents or prizes.

25

* * *

26

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

27

contendere, whether or not a judgment of sentence has been

28

imposed as determined by the law of the jurisdiction in which

29

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

30

that has been expunged or overturned or for which an individual

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1

has been pardoned or had an order of Accelerated Rehabilitative

2

Disposition entered.

3

* * *

4

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

5

designated for the counting, wrapping and recording of slot

6

machine and table game receipts.

7

"Counterfeit chip."  Any object that is:

8

(1)  used or intended to be used to play a table game at

9

a certificate holder's licensed facility and which was not

10

issued by that certificate holder for such use; or

11

(2)  presented to a certificate holder for redemption if

12

the object was not issued by the certificate holder.

13

* * *

14

"Electronic gaming table."  A gaming table approved by the

15

Pennsylvania Gaming Control Board that is a mechanical,

16

electrical or computerized contrivance, terminal, machine or

17

other device which, upon insertion or placement of cash or cash

18

equivalents therein or thereon, or upon a wager or payment of

19

any consideration whatsoever, is available for play or operation

20

by one or more players as a table game. The term shall include

21

any gaming table where a wager or payment is made using an

22

electronic or computerized wagering or payment system. The term

23

shall not include a slot machine.

24

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

25

the following:

26

(1)  Deputy Secretaries of the Commonwealth and the

27

Governor's Office executive staff.

28

(2)  An employee of the executive branch whose duties

29

substantially involve licensing or enforcement under this

30

part, who has discretionary power which may affect or

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1

influence the outcome of a Commonwealth agency's action or

2

decision or who is involved in the development of regulations

3

or policies relating to a licensed entity. The term shall

4

include an employee with law enforcement authority.

5

(3)  An employee of a county or municipality with

6

discretionary powers which may affect or influence the

7

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

8

related to this part or who is involved in the development of

9

law, regulation or policy relating to matters regulated under

10

this part. The term shall include an employee with law

11

enforcement authority.

12

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

13

commission, authority or other governmental body not included

14

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

15

may affect or influence the outcome of the governmental

16

body's action or decision related to this part or who is

17

involved in the development of regulation or policy relating

18

to matters regulated under this part. The term shall include

19

an employee with law enforcement authority.

20

* * *

21

"Fully automated electronic gaming table."  An electronic

22

gaming table determined by the Pennsylvania Gaming Control Board

23

to be playable or operable as a table game without the

24

assistance or participation of a person acting on behalf of a

25

certificate holder.

26

* * *

27

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

28

including, but not limited to:

29

(1)  Cashiers.

30

(2)  Change personnel.

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1

(3)  [Counting] Count room personnel.

2

(4)  Slot attendants.

3

(5)  Hosts or other [persons] individuals authorized to

4

extend complimentary services, including employees performing

5

functions similar to those performed by a gaming junket

6

representative.

7

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

8

or table game device technicians.

9

(7)  Security personnel.

10

(8)  Surveillance personnel.

11

(9)  [Supervisors] Promotional play supervisors, credit

12

supervisors, pit supervisors, cashier supervisors, shift

13

supervisors, table game managers and assistant managers and

14

other supervisors and managers, except for those specifically

15

identified in this part as key employees.

16

(10)  Boxmen.

17

(11)  Dealers or croupiers.

18

(12)  Floormen.

19

(13)  Personnel authorized to issue promotional play.

20

(14)  Personnel authorized to issue credit.

21

The term [includes] shall include employees of a person holding

22

a supplier's license whose duties are directly involved with the

23

repair or distribution of slot machines [and], table game

24

devices or associated equipment sold or provided to [the] a 

25

licensed facility within this Commonwealth as determined by the

26

Pennsylvania Gaming Control Board. The term does not include

27

bartenders, cocktail servers or other persons engaged solely in

28

preparing or serving food or beverages, clerical or secretarial

29

personnel, parking attendants, janitorial, stage, sound and

30

light technicians and other nongaming personnel as determined by

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1

the board.

2

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

3

junket enterprise or a gaming junket representative for an

4

individual who:

5

(1)  Is selected or approved for participation in the

6

arrangement based on the individual's ability to satisfy

7

specific financial qualifications and the likelihood that the

8

individual will participate in playing slot machines or table

9

games and patronize a licensed facility for the purpose of

10

gaming.

11

(2)  Receives complimentary services or gifts from a slot

12

machine licensee for participation in the arrangement

13

including the costs of transportation, food, lodging or

14

entertainment.

15

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

16

machine licensee, who employs or otherwise engages the services

17

of a gaming junket representative to arrange gaming junkets to a

18

licensed facility, regardless of whether the activities of the

19

person or the gaming junket representative occur within this

20

Commonwealth.

21

"Gaming junket representative."  An individual, other than an

22

employee of a slot machine licensee, who arranges and negotiates

23

the terms of a gaming junket or selects individuals to

24

participate in a gaming junket to a licensed facility,

25

regardless of whether the activities of the individual occur

26

within this Commonwealth.

27

"Gaming school."  Any educational institution approved by the

28

Department of Education as an accredited college or university,

29

community college, Pennsylvania private licensed school or its

30

equivalent and whose curriculum guidelines are approved by the

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1

Department of Labor and Industry to provide education and job

2

training related to employment opportunities associated with

3

slot machines or table games, including slot machine, table game

4

device and associated equipment maintenance and repair.

5

"Gaming service provider."  A person that is not required to

6

be licensed as a manufacturer, supplier, management company or

7

gaming junket enterprise and:

8

(1)  provides goods or services to a slot machine

9

licensee or an applicant for a slot machine license for use

10

in the operation of a licensed facility; or

11

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

12

"Gross table game revenue."  The total of:

13

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

14

a table game minus the total of:

15

(i)  Cash or cash equivalents paid to players as a

16

result of playing a table game.

17

(ii)  Cash or cash equivalents paid to purchase

18

annuities to fund prizes payable to players over a period

19

of time as a result of playing a table game.

20

(iii)  The actual cost paid by the certificate holder

21

for any personal property distributed to a player as a

22

result of playing a table game. This does not include

23

travel expenses, food, refreshments, lodging or services.

24

(2)  Contest or tournament fees or payments, including

25

entry fees, buy-ins, re-buys and administrative fees, imposed

26

by a certificate holder to participate in a table game

27

contest or tournament, less cash paid or actual cost paid by

28

a certificate holder for prizes awarded to the contest or

29

tournament winners.

30

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

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1

certificate holder.

2

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

3

currency of other countries received in the playing of a table

4

game, except to the extent that the coins or currency are

5

readily convertible to cash; or cash taken in a fraudulent act

6

perpetrated against a certificate holder for which the

7

certificate holder is not reimbursed.

8

"Gross terminal revenue."  The total of cash or cash

9

equivalent wagers received by a slot machine minus the total of:

10

(1)  Cash or cash equivalents paid out to [patrons] 

11

players as a result of playing a slot machine [which are paid

12

to patrons either manually], whether paid manually or or paid

<--

13

out by the slot machine.

14

(2)  Cash or cash equivalents paid to purchase annuities

15

to fund prizes payable to [patrons] players over a period of

16

time as a result of playing a slot machine.

17

(3)  Any personal property distributed to a [patron as

18

the] player as a result of playing a slot machine. This does

19

not include travel expenses, food, refreshments, lodging or

20

services.

21

(4)  Cash received as entry fees for slot machine

22

contests or tournaments in which players compete for prizes.

23

The term does not include counterfeit [money] cash or tokens[,]; 

24

coins or currency of other countries [which are] received in

25

slot machines, except to the extent that [they] the coins or

26

currency are readily convertible to [United States currency,] 

27

cash; or cash taken in a fraudulent [acts] act perpetrated

28

against a slot machine licensee for which the licensee is not

29

reimbursed [or cash received as entry fees for contests or

30

tournaments in which the patrons compete for prizes].

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1

* * *

2

"Hotel."  As follows:

<--

3

(1)  Except as provided under paragraph (2), one or more

4

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

<--

5

certificate holder which is attached to, physically connected to

6

or adjacent to the certificate holder's licensed facility in

7

which members of the public may, for a consideration, obtain

8

sleeping accommodations.

9

(2)  When the term is used in section 1305 (relating to

<--

10

Category 3 slot machine license), a building or buildings in

11

which members of the public may, for a consideration, obtain

12

sleeping accommodations.

13

* * *

14

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

15

or department head capacity and who is empowered to make

16

discretionary decisions that regulate slot machine or table game

17

operations, including the general manager and assistant manager

18

of the licensed facility, director of slot operations, director

19

of table game operations, director of cage and/or credit

20

operations, director of surveillance, director of marketing,

21

director of management information systems, director of

22

security, comptroller and any employee who is not otherwise

23

designated as a gaming employee and who supervises the

24

operations of these departments or to whom these department

25

directors or department heads report and such other positions

26

not otherwise designated or defined under this part which the

27

Pennsylvania Gaming Control Board shall determine based on

28

detailed analyses of job descriptions as provided in the

29

internal controls of the licensee as approved by the

30

Pennsylvania Gaming Control Board. All other gaming employees

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1

unless otherwise designated by the Pennsylvania Gaming Control

2

Board shall be classified as non-key employees.

3

"Law enforcement authority."  The power to conduct

4

investigations of or to make arrests for criminal offenses.

5

* * *

6

"Licensed entity representative."  A person, including an

7

attorney, agent or lobbyist, acting on behalf of or authorized

8

to represent the interest of any applicant, licensee, permittee

9

or other person authorized by the Pennsylvania Gaming Control

10

Board to engage in any act or activity which is regulated under

11

the provisions of this part regarding any matter before, or

12

which may reasonably be expected to come before, the

13

Pennsylvania Gaming Control Board.

14

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

15

which a licensed gaming entity is authorized to place and

16

operate slot machines and, if authorized by the Pennsylvania

17

Gaming Control Board under Chapter 13A (relating to table

18

games), to conduct table games. The term includes any:

19

(1) area of a licensed racetrack at which a slot machine

<--

20

licensee was previously authorized pursuant to section

21

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

22

operate slot machines prior to the effective date of this

<--

23

paragraph;

24

(2)  board-approved interim facility or temporary

25

facility; and

26

(3)  area of a hotel which the Pennsylvania Gaming

27

Control Board determines is suitable to conduct table games.

28

* * *

29

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

30

fabricates, assembles, produces, programs, designs or otherwise

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1

makes modifications to any slot machine, table game device or

2

associated equipment for use or play of slot machines or table 

3

games in this Commonwealth for gaming purposes.

4

"Manufacturer license."  A license issued by the Pennsylvania

5

Gaming Control Board authorizing a manufacturer to manufacture

6

or produce slot machines, table game devices or associated

7

equipment for use in this Commonwealth for gaming purposes.

8

* * *

9

"Municipal authority."  A body politic and corporate created

10

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

11

as the Municipality Authorities Act of one thousand nine hundred

12

and thirty-five, the former act of May 2, 1945 (P.L.382,

13

No.164), known as the Municipality Authorities Act of 1945, the

14

act of July 29, 1953 (P.L.1034, No.270), known as the Public

15

Auditorium Authorities Law or 53 Pa.C.S. Ch. 56 (relating to

16

municipal authorities).

17

* * *

18

"Nonbanking game."  Any table game in which a player competes

19

against another player and in which the certificate holder

20

collects a rake.

21

* * *

22

"Party."  The Bureau of Investigations and Enforcement of the

23

Pennsylvania Gaming Control Board or any applicant, licensee,

24

permittee, registrant or other person appearing of record in any

25

proceeding before the Pennsylvania Gaming Control Board.

26

* * *

27

"Player."  An individual wagering cash, a cash equivalent or

<--

28

other thing of value in the play or operation of a slot machine

29

or table game, including during a contest or tournament, the

<--

30

play or operation of which may deliver or entitle the individual  

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1

playing or operating the slot machine or table game to receive

2

cash, a cash equivalent or other thing of value from another

<--

3

player or a slot machine licensee.

4

* * *

5

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

6

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

7

location, for playing to allow the play or operation of any

<--

8

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.

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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 A transaction between a slot

<--

16

machine licensee or an employee of a slot machine licensee that

17

involves the acceptance or redemption by a person of cash or a

18

cash equivalent involving or aggregating $5,000 or more which a

19

slot machine licensee or employee of a slot machine licensee

20

knows, suspects or has reason to believe:

21

(1)  involves funds derived from illegal activities or is

22

intended or conducted in order to conceal or disguise funds

23

or assets derived from illegal activities;

24

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

25

regulation or to avoid any transaction reporting requirement

26

under the laws or regulations of this Commonwealth or the

27

United States, including a plan to structure a series of

28

transactions to avoid any transaction reporting requirement

29

under the laws or regulations of this Commonwealth or the

30

United States; or

- 17 -

 


1

(3)  has no lawful business or other apparent lawful

<--

2

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

3

would normally be expected to engage and the slot machine

4

licensee or employee knows of no reasonable explanation for

5

the transaction after examining the available facts,

6

including the background and possible purpose of the

7

transaction.

8

"Table game."  Any banking or nonbanking game approved by the

9

Pennsylvania Gaming Control Board. The term includes roulette,

10

baccarat, blackjack, poker, craps, big six wheel, mini-baccarat,

11

red dog, pai gow, twenty-one, casino war, acey-ducey, sic bo,

12

chuck-a-luck, fan-tail, panguingui, chemin de fer, Panguingue,

<--

13

Fan-tan, Asia poker, Boston 5 stud poker, Caribbean stud poker,

14

Colorado hold 'em poker, double attack blackjack, double cross

15

poker, double down stud poker, fast action hold 'em, flop poker,

16

four card poker, let it ride poker, mini-craps, mini-dice, pai

17

gow poker, pokette, Spanish 21, Texas hold 'em bonus poker,

18

three card poker, two card joker poker, ultimate Texas hold 'em,

19

winner's pot poker and any other banking or nonbanking game. The

20

term shall not include:

21

(1)  Lottery games of the Pennsylvania State Lottery as

22

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

23

known as the State Lottery Law.

24

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

25

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

26

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

27

or harness horse racing as authorized under the act of

28

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

29

Industry Reform Act.

30

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

- 18 -

 


1

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

2

Option Small Games of Chance Act.

3

(5)  Slot machine gaming and progressive slot machine

4

gaming as defined and authorized under this part.

5

(6)  Keno.

6

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

7

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

8

mechanical, electrical or computerized contrivance, terminal,

9

machine or other device, apparatus, equipment or supplies

10

approved by the Pennsylvania Gaming Control Board and used to

11

conduct a table game.

12

"Table game operation certificate."  A certificate awarded by

13

the Pennsylvania Gaming Control Board under Chapter 13A

14

(relating to table games) that authorizes a slot machine

15

licensee to conduct table games in accordance with this part.

16

"Tournament."  An organized series of contests approved by

17

the Pennsylvania Gaming Control Board in which an overall winner

18

is ultimately determined.

19

"Trustee."  A person appointed by the Pennsylvania Gaming

20

Control Board under section 1332 (relating to appointment of

21

trustee) to manage and control the operations of a licensed

22

facility and who has the fiduciary responsibility to make

23

decisions to preserve the viability of a licensed facility and

24

the integrity of gaming in this Commonwealth.

25

* * *

26

Section 3.  Section 1201(f)(3), (h)(5), (7.1), (10), (11),

27

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

28

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

29

by adding a subsection to read:

30

§ 1201.  Pennsylvania Gaming Control Board established.

- 19 -

 


1

* * *

2

(f)  Qualified majority vote.--

3

* * *

4

(3)  Notwithstanding any other provision of this part or

5

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

6

member shall disclose the nature of his disqualifying

7

interest, disqualify himself and abstain from voting in a

8

hearing or proceeding under this part in which his

9

objectivity, impartiality, integrity or independence of

10

judgment may be reasonably questioned, as provided in

11

subsection (h)(6) or section 1202.1(c)(3) (relating to code

12

of conduct). If a legislative appointee has disqualified

13

himself, the qualified majority shall consist of all of the

14

remaining legislative appointees and at least two

15

gubernatorial appointees.

16

* * *

17

(h)  Qualifications and restrictions.--

18

* * *

19

(4.1)  No member shall engage in any business, employment

20

or vocation for which the member receives a salary,

21

compensation or fee for services rendered which is in excess

22

of 15% of the member's gross annual salary as a member of the

23

board. For purposes of this paragraph, the terms "salary,"

24

"compensation" and "fee" do not include any of the following:

25

(i)  Passive or unearned income, including interest,

26

dividends or capital gains from the sale of assets or

27

securities held for investment purposes.

28

(ii)  Health care benefits or retirement, pension or

29

annuity payments.

30

(iii)  Amounts received from a family-controlled

- 20 -

 


1

trade or business in which both personal services and

2

capital are income-producing factors, provided that the

3

personal services actually rendered by the member do not

4

generate a significant amount of income.

5

(iv)  Director's fees attributable to board

6

membership of a corporate or nonprofit body or board or

7

reimbursement for expenses incurred in connection with

8

board membership.

9

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

10

compensation for any activity related to the duties or

11

authority of the board other than salary and expenses

12

provided by law [for any activity related to the duties or

13

authority of the board. Nothing in this part shall prohibit a

14

member from engaging in any employment or receiving any

15

compensation for such employment that is not connected to or

16

incompatible with his service as a member of the board].

17

* * *

18

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

19

his immediate family shall divest any financial interest in

20

any applicant, licensed facility or licensed entity and in an

21

affiliate, intermediary, subsidiary or holding company

22

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

23

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

24

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

25

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

26

financial interest in any applicant, licensed facility or

27

licensed entity or in an affiliate, intermediary, subsidiary

28

or holding company [thereof] of an applicant, licensed

29

facility or licensed entity. For purposes of this paragraph,

30

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

- 21 -

 


1

or unemancipated child.

2

* * *

3

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

4

hearing or proceeding or participate in any other activity on

5

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

6

intermediary, subsidiary or holding company [thereof] of an

7

applicant or licensed entity, or any other licensee or

8

permittee, for a period of two years from the termination of

9

term of office.

10

(11)  No member, employee of the board or independent

11

contractor [of the board] shall accept a complimentary

12

service, wager or be paid any prize from any wager at any

13

licensed facility within this Commonwealth or at any other

14

facility outside this Commonwealth which is owned or operated

15

by a licensed gaming entity or any of its affiliates,

16

intermediaries, subsidiaries or holding companies [thereof]  

17

for the duration of their term of office, employment or

18

contract with the board and for a period of [one year] two

<--

19

years from the termination of term of office, employment or

20

contract with the board. The provisions of this paragraph

21

prohibiting wagering during the term of employment shall not

22

apply to employees [who utilize] or independent contractors

23

while utilizing slot machines or table game devices for

24

testing purposes or [to verify] while verifying the

25

performance of a slot machine or table game as part of an

26

enforcement investigation.

27

* * *

28

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

29

an independent contractor of the board] whose duties

30

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

- 22 -

 


1

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

2

adoption of regulations or policy related to gaming under

3

this part or who has other discretionary authority which may

4

affect or influence the outcome of an action, proceeding or

<--

5

decision under this part, including the executive director,

6

bureau directors and attorneys, shall do any of the

7

following:

8

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

9

by an applicant or licensed entity, or an affiliate,

10

intermediary, subsidiary or holding company [thereof] of

11

an applicant or licensed entity, for a period of [one

12

year after] two years following the termination of [the] 

13

employment [relating to the conduct of gaming or contract

14

with the board; or].

15

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

16

or proceeding or participate in any other activity on

17

behalf of any applicant, licensee, permittee or licensed

18

entity, or an affiliate, intermediary, subsidiary or

19

holding company [thereof] of an applicant, licensee or

20

licensed entity, for a period of two years after

21

termination of [the] employment [or contract with the

22

board].

23

As a condition of employment, an individual subject to this

<--

24

paragraph shall sign an affidavit that the individual will

25

not accept employment with or be retained by any applicant or

26

licensed entity, or an affiliate, intermediary, subsidiary or

27

holding company of an applicant or licensed entity, for a

28

period of two years following the termination of employment.

29

If an employee of the board refuses or otherwise fails to

30

sign the affidavit, the board shall terminate the employment.

- 23 -

 


1

An applicant or licensed entity, or an affiliate,

2

intermediary, subsidiary or holding company of an applicant

3

or licensed entity, shall not employ or retain an individual

4

who signed an affidavit required by this paragraph until the

5

expiration of the two-year period required by this paragraph

6

for the acceptance of employment. An applicant or licensed

7

entity, or an affiliate, intermediary, subsidiary or holding

8

company of an applicant or licensed entity, that knowingly

9

employs or retains an individual in violation of this

10

paragraph shall terminate the employment of the individual

11

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

12

to prohibited acts; penalties).

13

(13.1)  No independent contractor or employee of an

14

independent contractor whose duties substantially involve

15

consultation relating to licensing, enforcement or the

16

development or adoption of regulations or policy related to

17

gaming under this part shall:

18

(i)  Accept employment with or be retained by an

19

applicant or licensed entity, or an affiliate,

20

intermediary, subsidiary or holding company of an

21

applicant or licensed entity, for a period of one year

22

after the termination of the contract with the board.

23

(ii)  Appear before the board in any hearing or

24

proceeding or participate in any other activity on behalf

25

of an applicant, licensee, permittee or licensed entity,

26

or an affiliate, intermediary, subsidiary or holding

27

company of an applicant, licensee or licensed entity, for

28

a period of two years after termination of employment

29

with the independent contractor or termination of the

30

contract with the board.

- 24 -

 


1

Each contract between the board and an independent contractor

2

shall contain a provision requiring the independent

3

contractor and each employee of the independent contractor

4

subject to this paragraph to sign an affidavit to not accept

5

employment with or be retained by any applicant or licensed

6

entity, or an affiliate, intermediary, subsidiary or holding

7

company of an applicant or licensed entity, for a period of

8

one year following the termination of the contract with the

9

board or one year following termination of employment with

10

the independent contractor, as the case may be. If an

11

independent contractor or an employee of an independent

12

contractor refuses or otherwise fails to sign the affidavit,

13

the board shall terminate the contract. An applicant or

14

licensed entity, or an affiliate, intermediary, subsidiary or

15

holding company of an applicant or licensed entity, shall not

16

employ or retain an individual who signed an affidavit

17

required by this paragraph until the expiration of the one-

18

year period required by this paragraph for the acceptance of

19

employment. An applicant or licensed entity, or an affiliate,

20

intermediary, subsidiary or holding company of an applicant

21

or licensed entity, that knowingly employs or retains an

22

individual in violation of this paragraph shall terminate the

23

employment of the individual and be subject to a penalty

24

under section 1518(c).

25

As a condition of employment with the board, a prospective

<--

26

employee shall sign an affidavit that the individual will not

27

violate subparagraph (i) or (ii) upon termination of the

28

individual's employment with the board. If an individual

29

refuses or otherwise fails to sign the affidavit, the board

30

shall rescind the offer of employment and may not employ the

- 25 -

 


1

individual. An applicant or licensed entity, or an affiliate,

2

intermediary, subsidiary or holding company of an applicant

3

or licensed entity, may not employ or retain a former board

4

employee subject to subparagraph (i) until the expiration of

5

the two-year period. An applicant or licensed entity, or an

6

affiliate, intermediary, subsidiary or holding company of an

7

applicant or licensed entity, that employs or retains an

8

individual in violation of this paragraph shall terminate the

9

individual's employment and shall be subject to a penalty

10

under section 1518(c) (relating to prohibited acts;

11

penalties).

12

(13.1)  The following shall apply to independent

13

contractors and employees of independent contractors whose

14

duties substantially involve consultation relating to

15

licensing, enforcement or the development or adoption of

16

regulations or policy related to gaming under this part:

17

(i)  No independent contractor may:

18

(A)  Be retained by an applicant or licensed

19

entity, or an affiliate, intermediary, subsidiary, or

20

holding company of a licensed entity, for a period of

21

one year after the expiration of the contract with

22

the board.

23

(B)  Appear before the board in any hearing or

24

proceeding or participate in any other activity on

25

behalf of an applicant, licensee, permittee or

26

licensed entity, or an affiliate, intermediary,

27

subsidiary or holding company of an applicant,

28

licensee or licensed entity, for a period of two

29

years after termination of the contract with the

30

board.

- 26 -

 


1

(ii)  No employee of an independent contractor shall

2

engage in any activity prohibited under clause (A) for a

3

period of one year following the date the employee

4

terminates his employment.

5

(iii)  No employee of an independent contractor shall

6

engage in any activity prohibited under clause (B) for a

7

period of two years following the date the employee

8

terminates his employment.

9

Each contract between the board and an independent contractor

10

subject to this paragraph shall contain a provision requiring

11

the independent contractor to sign an affidavit that the

12

independent contractor will not violate subparagraph (i)(A)

13

or (B), upon expiration of the independent contractor's

14

contract with the board. If an independent contractor refuses

15

or otherwise fails to sign the affidavit, the board shall not

16

execute the contract. As a condition of employment with an

17

independent contractor, an individual who would be subject to

18

this paragraph as an employee of the independent contractor

19

shall sign an affidavit that the individual will not violate

20

subparagraph (i)(A) or (B) upon termination of the

21

individual's employment with the independent contractor. If

22

an individual refuses or otherwise fails to sign the

23

affidavit, the independent contractor shall rescind the offer

24

of employment and may not employ the individual. An applicant

25

or licensed entity, or an affiliate, intermediary, subsidiary

26

or holding company of an applicant or licensed entity, may

27

not employ or retain a former employee of an independent

28

contractor subject to subparagraph (i) until the expiration

29

of the one-year period set forth under subparagraph (i). An

30

applicant of a licensed entity, or an affiliate,

- 27 -

 


1

intermediary, subsidiary or holding company of an applicant

2

or licensed entity, that knowingly employs or retains an

3

individual in violation of this paragraph shall terminate the

4

individual's employment and shall be subject to a penalty

5

under section 1518(c).

6

(13.2)  Nothing under paragraph (13) or (13.1) shall

7

prevent a current or former employee of the board, a current

8

or former independent contractor or a current or former

9

employee of an independent contractor from appearing before

10

the board in any hearing or proceeding as a witness or

11

testifying as to any fact or information.

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

18

regulations or policy, licensing or enforcement under this

19

part and shall provide a written determination to the

20

employee to include any prohibition under this paragraph. An

21

individual who] The State Ethics Commission shall issue a

22

written determination of whether a person is subject to

23

paragraph (13) or (13.1) upon the written request of the

24

person or the person's employer or potential employer. A

25

person that relies in good faith on a determination issued 

26

under this paragraph shall not be subject to any penalty for

27

an action taken, provided that all material facts set forth

28

in the request for [a] the determination are correct.

29

(14.1)  The State Ethics Commission shall publish a list

30

of all employment positions within the board and employment

- 28 -

 


1

positions within independent contractors whose duties would

2

subject the individuals in those positions to the provisions

3

of paragraphs (13) and (13.1). The board and each independent

4

contractor shall assist the State Ethics Commission in the

5

development of the list, which shall be published by the

6

State Ethics Commission in the Pennsylvania Bulletin

7

biennially and posted by the board on the board's Internet

8

website. Upon request, employees of the board and each

9

independent contractor shall have a duty to provide the State

10

Ethics Commission with adequate information to accurately

11

develop and maintain the list. The State Ethics Commission

12

may impose a civil penalty under 65 Pa.C.S. § 1109(f)

13

(relating to penalties) upon an individual who fails to

14

cooperate with the State Ethics Commission under this

15

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

16

published by the State Ethics Commission shall not be subject

17

to any penalty for a violation of paragraph (13) or (13.1).

18

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

19

of the board violates any provision of this section, the

20

appointing authority [or the board may, upon notice and

21

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

22

appointment or terminate the employment or contract, and the

23

person shall be ineligible for future appointment, employment

24

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

25

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

26

A member removed under this paragraph shall, for a period of

27

five years following removal, be prohibited from future

28

appointment to the board and shall be prohibited from

29

applying for a license, permit or other authorization under

30

this part and from becoming an independent contractor or

- 29 -

 


1

registering as a licensed entity representative.

2

* * *

3

(k)  Appointments.--The appointing authorities shall make

4

their initial appointments within 60 days of the effective date

5

of this part. Appointments to fill a vacancy shall be made

6

within 60 days of the creation of the vacancy. No appointment

7

shall be final until receipt by the appointing authority of the

8

required background investigation of the appointee by the

9

Pennsylvania State Police which shall be completed within 30

10

days. No person who has been convicted in any domestic or

11

foreign jurisdiction of a felony, infamous crime or gaming

12

offense shall be appointed to the board.

13

* * *

14

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

15

other fiscal crisis, the Governor orders the furlough of

16

Commonwealth employees, the board and its employees and all

17

employees of the department and the Pennsylvania State Police

18

whose duties involve the regulation and oversight of gaming

19

under this part shall not be subject to furlough and shall

20

continue to perform their duties of employment.

21

* * *

22

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

23

read:

24

§ 1201.1.  Applicability of other statutes.

25

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

26

board:

27

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

28

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

29

Right-to-Know Law.

30

* * *

- 30 -

 


1

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

2

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

3

adding paragraphs to read:

4

§ 1202.  General and specific powers.

5

(a)  General powers.--

6

(1)  The board shall have general and sole regulatory

7

authority over the conduct of gaming or related activities as

8

described in this part. The board shall ensure the integrity

9

of the acquisition and operation of slot machines, table

10

games, table game devices and associated equipment and shall

11

have sole regulatory authority over every aspect of the

12

authorization [and], operation and play of slot machines and

13

table games.

14

(2)  The board shall employ individuals as necessary to

15

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

16

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

17

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

18

XXV (relating to retirement for State employees and

19

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

20

shall not be considered an executive or independent agency

21

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

22

the Commonwealth Attorneys Act. The board shall not take

23

final action to fill any vacancy in the position of executive

24

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

25

of the board or director of the Office of Enforcement Counsel

26

until receipt and review of the results of the individual's

27

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

28

to investigations and enforcement).

29

* * *

30

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

- 31 -

 


1

power and duty:

2

* * *

3

(7)  To administer oaths, examine witnesses and issue

4

subpoenas compelling the attendance of witnesses or the

5

production of documents and records or other evidence[. The

6

provisions of this paragraph shall apply to designated

7

officers and employees.], or to designate officers or

8

employees to perform these duties.

9

* * *

10

(12.1)  At its discretion, to award, revoke, suspend,

11

condition or deny a table game operation certificate to a

12

slot machine licensee in accordance with Chapter 13A

13

(relating to table games).

14

* * *

15

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

16

license and permit applicants, to determine at its discretion

17

the suitability of any person who furnishes or seeks to

18

furnish to a slot machine licensee directly or indirectly any

19

goods, services or property related to slot machines, table

20

games, table game devices or associated equipment or through

21

any arrangements under which that person receives payment

22

based directly or indirectly on earnings, profits or receipts

23

from the slot machines, table games, table game devices and

24

associated equipment. The board may require any such person

25

to comply with the requirements of this part and the

26

regulations of the board and may prohibit the person from

27

furnishing the services or property.

28

* * *

29

(23)  The board shall not approve an application for or 

30

issue or renew a license, certificate, registration or permit

- 32 -

 


1

unless it is satisfied that the applicant has demonstrated by

2

clear and convincing evidence that the applicant is a person

3

of good character, honesty and integrity and is a person

4

whose prior activities, criminal record, if any, reputation,

5

habits and associations do not pose a threat to the public

6

interest or the effective regulation and control of slot

7

machine or table game operations or create or enhance the

8

danger of unsuitable, unfair or illegal practices, methods

9

and activities in the conduct of slot machine or table game 

10

operations or the carrying on of the business and financial

11

arrangements incidental thereto.

12

* * *

13

(27.1)  To publish each January in the Pennsylvania

14

Bulletin and on the Pennsylvania Gaming Control Board's

15

Internet website a complete list of all slot machine

16

licensees who filed a petition seeking authorization to

17

conduct table games and the status of each petition or table

18

game operation certificate.

19

* * *

20

(31)  To collect and post information on its Internet

21

website with sufficient detail to inform the public of each

22

person with a controlling interest or ownership interest in

23

an applicant for a slot machine license or a licensed gaming

24

entity, or affiliate, intermediary, subsidiary or holding

25

company of an applicant or licensed gaming entity. The

26

posting shall include:

27

(i)  If the applicant or licensed gaming entity, or

28

any affiliate, intermediary, subsidiary or holding

29

company of the applicant or licensed gaming entity, is a

30

publicly traded domestic or foreign corporation,

- 33 -

 


1

partnership, limited liability company or other legal

2

entity, the names of all persons with a controlling

3

interest.

4

(ii)  If the applicant or licensed gaming entity, or

5

any affiliate, intermediary, subsidiary or holding

6

company of the applicant or licensed gaming entity, is a

7

privately held domestic or foreign corporation,

8

partnership, limited liability company or other legal

9

entity, the names of all persons with an ownership

10

interest equal to or greater than 1%.

11

(iii)  The name of any person entitled to cast the

12

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

13

(iv)  The names of all officers, directors and

14

principals of the applicant or licensed gaming entity.

15

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

16

(relating to appointment of trustee).

17

(33)  To adopt regulations governing the postemployment

18

limitations and restrictions applicable to members and to

19

employees of the board subject to section 1201(h)(13)

20

(relating to Pennsylvania Gaming Control Board established).

21

In developing these regulations, the board may consult with

22

the State Ethics Commission, other governmental agencies and

23

the disciplinary board of the Supreme Court of Pennsylvania

24

regarding postemployment limitations and restrictions on

25

members and employees of the board who are members of the

26

Pennsylvania Bar.

27

(34)  To review detailed site plans identifying a

28

petitioner's proposed table game area within a licensed

29

facility to determine the adequacy of the proposed internal

30

and external security and proposed surveillance measures.

- 34 -

 


1

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

2

§ 1202.1.  Code of conduct.

3

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

4

conduct prior to the consideration of any license, permit or

5

registration application. The code of conduct shall supplement

6

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

7

(relating to accountability) and shall provide guidelines

8

applicable to members, employees of the board, independent

9

contractors [of the board] and the immediate [families] family 

10

of the members, employees and independent contractors to enable

11

them to avoid any perceived or actual conflict of interest and

12

to promote public confidence in the integrity and impartiality

13

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

14

this section shall include registration of licensed entity

15

representatives under subsection (b) and the restrictions under

16

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

17

(b)  Registration.--

18

(1)  A licensed entity representative shall register with

19

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

20

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

21

business telephone number of both the licensed entity

22

representative and [the] any licensed entity, applicant for

23

licensure or other person being represented.

24

(2)  A licensed entity representative shall have an

25

[ongoing] affirmative duty to update its registration

26

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

27

punishable by the board.

28

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

29

registration list which shall contain the information

30

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

- 35 -

 


1

public inspection at the offices of the board and on the

2

board's Internet website.

3

(c)  Restrictions.--[A] In addition to the other prohibitions

4

contained in this part, a member [of the board] shall:

5

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

6

person.] (Reserved).

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; affiliate, subsidiary, or intermediary of an

11

applicant or a licensed entity; permittee[,]; registrant; or

12

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

- 36 -

 


1

from [an] any applicant, licensed entity, party, permittee,

2

registrant or licensed entity representative, or from any 

3

affiliate, subsidiary, intermediary or holding company of [a] 

4

any applicant, licensed entity, [interested] party or

5

licensed entity representative. [A board] Subject to the

6

provisions of section 1201(h)(4.1), a member may serve as an

7

officer, employee or member of the governing body of a

8

nonprofit entity and may attend, make personal contributions

9

to and plan or preside over the entity's fundraising events.

10

A [board] member may permit his name to appear on the

11

letterhead used for fundraising events if the letterhead

12

contains only the [board] member's name and position with the

13

nonprofit entity.

14

(7)  Not meet or engage in discussions with any

15

applicant, [person licensed under this part or a] licensed

16

entity, permittee, registrant, licensed entity

17

representative, person who provides goods, property or

18

services to a slot machine licensee or any other person or

19

entity under the jurisdiction of the board unless the meeting

20

or discussion occurs on the business premises of the board

21

and is recorded in a log [maintained for this purpose]. The

22

log shall be available for public inspection during the

23

regular business hours of the board and shall be posted on

24

the board's Internet website. The log shall include the date

25

and time of the meeting or discussion, the names of the

26

participants and the subject discussed. The provisions of

27

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

28

consider matters requiring the physical inspection of the

29

equipment or premises of an applicant or a licensed entity

30

[at their location] provided the meeting is entered in the

- 37 -

 


1

log.

2

(8)  Avoid impropriety and the appearance of impropriety

3

at all times and observe standards and conduct that promote

4

public confidence in the oversight of gaming.

5

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

6

relating to the conduct of a member.

7

(c.1)  Ex parte communications.--

8

(1)  No member or hearing officer of the board shall

9

engage in any ex parte communication with any person. No

10

attorney of the Office of Chief Counsel advising the board on

11

a particular licensing issue or proceeding shall engage in

12

any ex parte communication with any person.

13

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

14

Enforcement Counsel or an applicant, licensee or permittee in

15

any proceeding, shall engage in an ex parte communication

16

with a member, an attorney of the Office of Chief Counsel who

17

is advising the board on a proceeding or a hearing officer of

18

the board.

19

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

20

Enforcement Counsel shall engage in an ex parte communication

21

with a member, an attorney of the Office of Chief Counsel who

22

is advising the board on a proceeding or a hearing officer of

23

the board.

24

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

25

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

26

a member or hearing officer shall be recorded in a log. The

27

log shall be available for public inspection during the

28

regular business hours of the board and shall be posted on

29

the board's Internet website. The log shall include:

30

(i)  The name of the individual documenting the ex

- 38 -

 


1

parte communication.

2

(ii)  The date and time of the ex parte

3

communication.

4

(iii)  The names of all individuals involved in the

5

ex parte communication.

6

(iv)  The subject discussed.

7

(2)  In addition to documenting an ex parte communication

8

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

9

communication and an opportunity to respond shall be provided

10

to all parties to a hearing or other proceeding directly

11

affected by the anticipated vote or action of the hearing

12

officer or board related to the ex parte communication.

13

(3)  (i)  A member or hearing officer who engaged in or

14

received an ex parte communication shall recuse himself

15

from any hearing or other proceeding related to the ex

16

parte communication if the context and substance of the

17

ex parte communication creates substantial reasonable

18

doubt as to the individual's ability to act objectively,

19

independently or impartially.

20

(ii)  A member or hearing officer who engaged in or

21

received an ex parte communication who elects not to

22

recuse himself from a hearing or other proceeding shall

23

state his reasons for not recusing himself on the record

24

prior to the commencement of the hearing or proceeding.

25

(iii)  If a legislative appointee recuses himself

26

from any hearing or other proceeding under this section,

27

any qualified majority vote required under this part

28

shall consist of all of the remaining legislative

29

appointees and at least two gubernatorial appointees.

30

(iv)  Failure of a hearing officer who engaged in or

- 39 -

 


1

received an ex parte communication to recuse himself from

2

a hearing or other proceeding when required under

3

subparagraph (i) shall be grounds for appeal to the

4

board.

5

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

6

an ex parte communication to recuse himself from a

7

hearing or other proceeding when required under

8

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

9

of competent jurisdiction if the board action being

10

appealed could not have occurred without the

11

participation of the member.

12

(4)  This subsection shall not preclude a member from

13

consulting with other members individually if the

14

consultation complies with 65 Pa.C.S. Ch. 7 (relating to

15

open meetings) or with employees or independent

16

contractors whose functions are to assist the board in

17

carrying out its adjudicative functions.

18

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

19

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

20

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

21

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

22

subsection:

23

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

24

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

25

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

26

relating to a pending matter before the board or hearing officer

27

or which may reasonably be expected to come before the board or

28

hearing officer in a contested on-the-record proceeding. The

29

term shall not include off-the-record communications by or

30

between a member or [employee] hearing officer of the board,

- 40 -

 


1

[Department of Revenue] department, Pennsylvania State Police,

2

Attorney General or other law enforcement official prior to the

3

beginning of the proceeding solely for the purpose of seeking

4

clarification or correction to evidentiary materials intended

5

for use in the proceedings. The term shall also not include

6

communications between the board or a member and the office of

7

chief counsel.

8

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

9

of or representing the interest of any applicant, licensee,

10

permittee or registrant, including an attorney, agent or

11

lobbyist, regarding any matter which may reasonably be expected

12

to come before the board.]

13

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

14

§ 1202.2.  Expenses of regulatory agencies.

15

(a)  Reimbursement.--Members and employees of the board,

16

employees of the department and the Office of Attorney General,

17

and troopers and employees of the Pennsylvania State Police,

18

whose duties involve the regulation or enforcement of gaming

19

under this part who are seeking reimbursement from funds which

20

are or will be paid by an applicant for a slot machine license

21

or a slot machine licensee or from the assessments made by the

22

department under section 1402(a)(relating to gross terminal

23

revenue deductions) may be reimbursed only for actual and

24

reasonable expenses incurred during the performance of their

25

duties under this part.

26

(b)  Receipts.--In order to receive reimbursement for an

27

expense under subsection (a), the individual seeking

28

reimbursement must submit a receipt to the appropriate agency

29

documenting the expense incurred. Receipts and requests for

30

reimbursement shall be financial records for purposes of, and

- 41 -

 


1

subject to redaction under, the act of February 14, 2008 (P.L.6,

2

No.3), known as the Right-to-Know Law.

3

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

4

§ 1204.  Licensed gaming entity application appeals from board.

5

The Supreme Court of Pennsylvania shall be vested with

6

exclusive appellate jurisdiction to consider appeals of any

7

final order, determination or decision of the board involving

8

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

9

license or the award, denial or conditioning of a table game

10

operation certificate. Notwithstanding the provisions of 2

11

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

12

Commonwealth agency action) and 42 Pa.C.S. § 763 (relating to

13

direct appeals from government agencies), the Supreme Court

14

shall affirm all final orders, determinations or decisions of

15

the board involving the approval, issuance, denial or

16

conditioning of a slot machine license or the award, denial or

17

conditioning of a table game operation certificate unless it

18

shall find that the board committed an error of law or that the

19

order, determination or decision of the board was arbitrary and

20

there was a capricious disregard of the evidence.

21

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

22

amended and the subsection is amended by adding a paragraph to

23

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

- 42 -

 


1

hearing prior to:

2

(i)  Approving a slot machine license application or

3

renewing a slot machine license.

4

(ii)  Approving the structural redesign of a licensed

5

facility located in a city of the first class.

6

(2)  All public input hearings [relating to an

7

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

8

shall be held in the municipality where the licensed facility

9

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

10

with the municipality.

11

* * *

12

(4)  In addition to any witnesses scheduled to testify

13

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

14

comment period during which time members of the public may

15

address the board regarding the application, license or

16

proposed structural redesign. The board, in its discretion,

17

may place reasonable time limits on an individual's comments.

18

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

19

§ 1206.  Board minutes and records.

20

* * *

21

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

22

(1)  The following information submitted by an applicant,

23

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

24

to slot machine license application character requirements)

25

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

26

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

27

background or other investigation from any source shall be

28

[considered] confidential[.] and withheld from public

29

disclosure:

30

(i)  All information relating to character, honesty

- 43 -

 


1

and integrity, including family, habits, reputation,

2

history of criminal activity, business activities,

3

financial affairs and business, professional and personal

4

associations submitted under section 1310(a) or 1308(a.1)

5

or otherwise obtained by the board or the bureau.

6

(ii)  Nonpublic personal information, including home

7

addresses, telephone numbers and other personal contact

8

information, Social Security numbers, educational

9

records, memberships, medical records, tax returns and

10

declarations, actual or proposed compensation, financial

11

account records, creditworthiness or financial condition

12

relating to an applicant, licensee or permittee or the

13

immediate family thereof.

14

(iii) Information relating to proprietary

15

information, trade secrets, patents or exclusive

16

licenses, architectural and engineering plans and

17

information relating to competitive marketing materials

18

and strategies, which may include customer-identifying

19

information or customer prospects for services subject to

20

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.

- 44 -

 


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 criminal history record information that is available to

17

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

18

regulations).

19

(3)  No claim of confidentiality shall be made regarding

20

any record in possession of the board that is otherwise

21

publicly available from a Commonwealth agency, local agency

22

or another jurisdiction.

23

(3.1)  Notwithstanding paragraph (1)(iii), for purposes

24

of a public input hearing under this part, the board may

25

release architectural renderings or models depicting a

26

proposed structural design or redesign of the licensed

27

facility that is the subject of the hearing.

28

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

29

[investigation] investigations and enforcement), the

30

information made confidential pursuant to this section shall

- 45 -

 


1

be withheld from public disclosure in whole or in part,

2

except that any confidential information shall be released

3

upon the [lawful] order of a court of competent jurisdiction

4

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

5

authorized law enforcement agency or shall be released to the

6

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

7

is requested by an applicant or licensee and does not

8

otherwise contain confidential information about another

9

person.

10

(5)  The board may seek a voluntary waiver of

11

confidentiality from an applicant or licensee but may not

12

require any applicant or licensee to waive any

13

confidentiality provided for in this subsection as a

14

condition for the approval of an application, renewal of a

15

license or any other action of the board. [Any person who

16

violates this subsection shall]

17

(6)  No current or former member and no current or former

18

employee, agent or independent contractor of the board, the

19

department, the Pennsylvania State Police, the Office of

20

Attorney General or any other Executive-branch office who has

21

obtained confidential information in the performance of

22

duties under this part, shall intentionally and publicly

23

disclose the information to any person, knowing that the

24

information being disclosed is confidential under this

25

subsection, unless the person is authorized by law to receive

26

it. A violation of this subsection constitutes a misdemeanor

27

of the third degree. In addition, an employee, agent or

28

independent contractor who violates this subsection shall be

29

administratively disciplined by discharge, suspension,

30

termination of contract or other formal disciplinary action

- 46 -

 


1

as [the board deems] appropriate. If a current member

2

violates this paragraph, the other members shall refer the

3

matter to the current member's appointing authority.

4

* * *

5

Section 8.1.  Section 1207(4), (5), (8), (9), (14) and (17)

6

of Title 4 are amended and the section is amended by adding

7

paragraphs to read:

8

§ 1207.  Regulatory authority of board.

9

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

10

* * *

11

(4)  Require that each licensed entity provide to the

12

board its audited annual financial statements, with such

13

additional detail as the board from time to time shall

14

require, which information shall be submitted not later than

15

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

16

(5)  Prescribe the procedures to be followed by slot

17

machine licensees for any financial event that occurs in the

18

operation and play of slot machines or table games.

19

* * *

20

(7.1)  Enforce prescribed hours for the operation of

21

table games so that a certificate holder may conduct table

22

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

23

of patrons or to meet competition.

24

(8)  Require that each licensed gaming entity prohibit

25

persons under 21 years of age from operating or using slot

26

machines or playing table games.

27

(9)  Establish procedures for the inspection and

28

certification of compliance of each slot machine, table game,

29

table game device and associated equipment prior to being

30

placed into use by a slot machine licensee.

- 47 -

 


1

* * *

2

(14)  Consult with members of the Pennsylvania State

3

Police, the Office of Attorney General, the department and

4

such other persons it deems necessary for advice regarding

5

the various aspects of the powers and duties imposed on it

6

under this part and its jurisdiction over the authorization, 

7

[and] operation and play of slot machines, table games and

8

licensed facilities.

9

* * *

10

(17)  Permit, in its discretion and upon application or

11

petition, the use of a temporary facility within which slot

12

machines and table games may be available for play or

13

operation at a licensed [gaming] facility, for a period not

14

to exceed 24 months, provided that, upon good cause shown,

15

the board may extend permission to operate a temporary

16

facility for an additional [12-month] 24-month period.

17

(18)  In consultation with the department, establish a

<--

18

procedure and method for determining the daily gross table

19

game revenue from play at gaming tables, including electronic

20

gaming tables and fully automated electronic gaming tables.

21

(18)  (Reserved).

<--

22

(19)  Authorize an employee of the board to approve, deny

23

or condition a certificate holder's request to decrease the

24

number of slot machines in operation at its licensed

25

facility. An employee may not approve a requested decrease in

26

the number of slot machines under this paragraph if the

27

requested decrease exceeds 2% of the total number of slot

28

machines in operation at the certificate holder's licensed

29

facility. At Except as provided under paragraph (20), at no

<--

30

time shall the number of slot machines in operation at a

- 48 -

 


1

Category 1 or Category 2 licensed facility be less than 1,500 

2

or less than 500 slot machines at a Category 3 licensed

<--

3

facility.

4

(20)  Approve, in its discretion, a Approve or authorize

<--

5

an employee of the board to approve, a temporary reduction in

6

the number of slot machines in operation at a licensed

7

facility under the following circumstances:

8

(i)  For the duration of any renovation, remodeling

9

or modification of an area of a licensed facility where

10

slot machines are located.

11

(ii)  To enable the licensed facility to respond to

12

an emergency.

13

(iii)  In response to market conditions.

<--

14

At no time shall the number of slot machines in operation at

15

a Category 1 or Category 2 licensed facility be less than

16

1,500.

17

(21)  Authorize, in its discretion, a slot machine

<--

18

licensee to conduct slot machine tournaments and adopt

19

regulations governing the conduct of such tournaments.

20

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

21

Title 4 are amended to read:

22

§ 1208.  Collection of fees and fines.

23

The board has the following powers and duties:

24

(1)  To levy and collect fees from the various

25

applicants, licensees and permittees to fund the operations

26

of the board. [The] Unless otherwise provided in this part,

27

the fees shall be deposited into the State Gaming Fund as

28

established in section 1403 (relating to establishment of

29

State Gaming Fund and net slot machine revenue distribution)

30

and distributed to the board upon appropriation by the

- 49 -

 


1

General Assembly. In addition to the fees set forth in

2

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

3

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

4

shall assess and collect fees as follows:

5

(i)  [Supplier] Subject to subparagraph (i.1),

<--

6

supplier licensees shall pay [a]:

7

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

8

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

9

supplier license.] to supply slot machines or

10

associated equipment used in connection with slot

11

machines.

12

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

13

license to supply table game devices or associated

14

equipment used in connection with table games or

15

table game devices.

16

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

17

the appropriate supplier license. Upon the extension

18

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

19

(relating to supplier licenses), the fee shall be

20

$45,000 for the renewal.

21

(D)  Notwithstanding the fees established under

<--

22

clauses (B) and (C), the board may modify the fees

23

upon the board's determination that the fees will

24

unreasonably limit the availability of table game

25

devices or associated equipment used in connection

26

with table games or table game devices in this

27

Commonwealth.

28

(ii)  [Manufacturer] Subject to subparagraph (ii.1),

<--

29

manufacturer licensees shall pay [a]:

30

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

- 50 -

 


1

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

2

manufacturer license.] to manufacture slot machines

3

and associated equipment used in connection with slot

4

machines.

5

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

6

license to manufacture table game devices or

7

associated equipment used in connection with table

8

games or table game devices.

9

(C)  A fee of $30,000 for the annual renewal of

10

the appropriate manufacturer license. Upon the

11

extension of the renewal period under section

12

1317.1(c)(1) (relating to manufacturer licenses), the

13

fee shall be $90,000 for the renewal.

14

(D)  Notwithstanding the fees established under

<--

15

clauses (B) and (C), the board may modify the fees

16

upon the board's determination that the fees will

17

unreasonably limit the availability of table game

18

devices or associated equipment used in connection

19

with table games or table game devices in this

20

Commonwealth.

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

* * *

- 51 -

 


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] every

10

three years. Nothing in this subsection shall relieve a licensee

11

of the affirmative duty to notify the board of any changes

12

relating to the status of its license or to any other

13

information contained in the application materials on file with

14

the board. As to the renewal of a license, except as required in

15

subsection (f)(1) (f)(3), no additional license fee pursuant to

<--

16

subsection (a) shall be required.

17

* * *

18

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

19

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

20

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

21

license shall be returned to each licensee in the event

22

section 1201 (relating to Pennsylvania Gaming Control Board

23

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

24

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

25

amended or otherwise altered by an act of the General

26

Assembly, within five years following the [initial issuance

27

of any slot machine licenses pursuant to section 1301

28

(relating to authorized slot machine licenses)] date

29

established by the board as the deadline for the initial

30

submission of Category 1 and Category 2 slot machine license

- 52 -

 


1

applications, to change:

2

(i)  the composition of the board;

3

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

4

board;

5

(iii)  the manner in which members are nominated or

6

appointed to the board;

7

(iv)  the length of term for which each member

8

serves;

9

(v)  the general jurisdiction of the board in a

10

manner that impairs or otherwise reduces the board's

11

licensing authority; or

12

(vi)  section [1307] 1307(a) to increase the

<--

13

statutory maximum number of permissible Category 1 or

<--

14

Category 2 licensed facilities.

15

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

16

altered by an act of] the General Assembly [as] acts in the

17

manner described [pursuant to] in paragraph (1):

18

(i)  In the sixth year following the [initial

19

issuance of any slot machine licenses pursuant to section

20

1301] date established by the board as the deadline for

21

the initial submission of Category 1 and Category 2 slot

22

machine license applications, a Category 1 and Category 2

23

slot machine licensee shall be entitled to a partial

24

return of the one-time slot machine license fee in the

25

amount of $41,666,667.

26

(ii)  In the seventh year, [the] each Category 1 and

27

Category 2 slot machine licensee shall be entitled to a

28

partial return of the one-time slot machine license fee

29

in the amount of $33,333,334.

30

(iii)  In the eighth year, [the] each Category 1 and

- 53 -

 


1

Category 2 slot machine licensee shall be entitled to a

2

partial return of the one-time slot machine license fee

3

in the amount of $25,000,000.

4

(iv)  In the ninth year, [the] each Category 1 and

5

Category 2 slot machine licensee shall be entitled to a

6

partial return of the one-time slot machine license fee

7

in the amount of $16,666,668.

8

(v)  In the tenth year, [the] each Category 1 and

9

Category 2 slot machine licensee shall be entitled to a

10

partial return of the one-time machine license fee in the

11

amount of $8,333,334.

12

(2.1)  In the event that the [action] General Assembly

13

acts in the manner described in paragraph (1) [occurs] after

14

the expiration of ten years, [the licensee] Category 1 and

15

Category 2 slot machine licensees shall not be entitled to a

16

return of any portion of the one-time slot machine license

17

fee. Notwithstanding the foregoing, no slot machine licensee

18

shall be entitled to the return of any portion of the fee as

19

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

20

implements a recommendation made by the board pursuant to a

21

qualified majority vote. In the event a full or partial

22

return of the slot machine license fee imposed pursuant to

23

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

24

amount to be returned to any slot machine licensee shall be

25

reduced on a dollar-for-dollar basis by the total accumulated

26

tax credits granted to such licensee pursuant to subsection

27

(c). In no event shall the total amount of the slot machine

28

license fee returned to a Category 1 or Category 2 licensee,

29

combined with the total tax credits granted, exceed the

30

amounts set forth in this subsection for any licensee. The

- 54 -

 


1

total or partial return of the slot machine license fee shall

2

extinguish a licensee's right to claim any further tax

3

credits pursuant to subsection (c) and to make any future

4

claim for the return of the slot machine license fee.

5

(3)    Within ten days following a determination that a

6

slot machine licensee is entitled to the return of any

7

portion of the slot machine license fee paid by the slot

8

machine licensee based on the provisions of this section or

9

based on a the contract executed by a slot machine licensee

<--

10

and the department under subsection (c), the board shall

11

immediately assess a one-time slot machine license renewal

12

fee on each the slot machine licensee in an amount equal to

<--

13

the amount of the fee returned to the slot machine licensee.

14

The renewal fee shall be paid by each the slot machine

<--

15

licensee within two business days following the return of the

16

initial fee.

17

§ 1210.  Number of slot machines.

18

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

19

slot machine licensees under section 1305 (relating to Category

20

3 slot machine license), [all] the following apply:

21

(1)  All slot machine licensees shall be permitted to

22

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

23

facility [and].

24

(2)  Each slot machine licensee shall be required to

25

operate and make available to play a minimum of 1,500 slot 

26

machines at [any one] its licensed facility within one year

27

of the issuance by the board of a slot machine license

28

[unless otherwise extended by the] to the slot machine

29

licensee. The board, upon application and for good cause

30

shown, may grant an extension for an additional period [not

- 55 -

 


1

to exceed 24 months] ending on the later of no later than 36

<--

2

months from the end of the initial one-year period or

3

December 31, 2012.

4

(3)  Upon expiration of the applicable time period under

<--

5

paragraph (2) and at all times thereafter, a slot machine

6

licensee shall be required to operate and make available to

7

play a minimum of 1,500 slot machines at its licensed

8

facility.

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] permitted under

15

subsection (a), upon application by the slot machine licensee.

16

The board, in considering such an application, shall take into

17

account the appropriateness of the physical space where the

18

additional slot machines will be located and the convenience of

19

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

20

account the potential benefit to economic development,

21

employment and tourism, enhanced revenues to the Commonwealth

22

and other economic indicators it deems applicable in making its

23

decision.

24

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

25

the beginning of slot machine operations at the licensed

26

facility, no licensed gaming entity may make available for play

27

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

28

machines from the same manufacturer or its affiliate,

29

intermediary, subsidiary or holding company. The provisions of

30

this subsection shall not apply to machines purchased pursuant

- 56 -

 


1

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

2

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

3

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

4

section is amended by adding subsections to read:

5

§ 1211.  Reports of board.

6

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

7

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

8

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

9

the General Assembly on the general operation of the board and

10

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

11

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

12

terminal revenue at each licensed [facilities] facility during

13

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

14

collected and, where appropriate, disbursed, the costs of

15

operation of the board, all hearings conducted and the results

16

of the hearings and other information that the board deems

17

necessary and appropriate.

18

(a.1)  Additional reporting requirements.--No later than 12

19

months after the effective date of Chapter 13A (relating to

20

table games) and every year thereafter, the annual report

21

submitted by the board shall include information on the conduct

22

of table games as follows:

23

(1)  Total gross table game revenue.

24

(2)  The number and win by type of table game at each

25

licensed facility during the previous year.

26

(3)  All taxes, fees, fines and other revenue collected

27

and where appropriate revenue disbursed during the previous

28

year. The department shall collaborate with the board to

29

carry out the requirements of this paragraph.

30

(4)  Other information related to the conduct of table

- 57 -

 


1

games.

2

The board may require certificate holders to provide information

3

to the board to assist in the preparation of the report.

4

(a.2)  Facility responsibility.--Each Category 1 licensed

5

facility shall provide:

6

(1)  An annual report to the board and to the respective

7

racing commission summarizing how the introduction and

8

expansion of gaming has fulfilled the intent of this part to

9

enhance live racing at the licensed racetrack.

10

(2)  Plans to promote live racing and increase live

11

handle and daily attendance at the licensed racetrack in the

12

upcoming year.

13

(a.3)  Expenses.--Beginning 30 days after the effective date

14

of this subsection, the board shall post within 45 days after

15

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

16

itemized expenses of employees and members for that month that

17

were or are to be reimbursed from the assessments made by the

18

department under section 1402(a) (relating to gross terminal

19

revenue deductions) and all itemized expenses of employees of

20

the department and the Office of Attorney General and troopers

21

and employees of the Pennsylvania State Police for the preceding

22

month that were or are to be reimbursed from such assessments.

23

The list shall identify the nature of the expense, the employee,

24

member or the agency and employee of the agency to which an

25

expense is attributable. If the expense is directly attributable

26

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

27

the licensed gaming entity and if the expense was charged to the

28

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

29

report of all expenses described in this subsection for the

30

preceding fiscal year shall be posted on the board's Internet

- 58 -

 


1

website and shall be submitted to the Appropriations Committee

2

of the Senate, the Community, Economic and Recreational

3

Development Committee of the Senate, the Appropriations

4

Committee of the House of Representatives and the Gaming

5

Oversight Committee of the House of Representatives. Information

6

posted on the Internet website pursuant to this subsection shall

7

be financial records for the purposes of and subject to

8

redaction under the act of February 14, 2008 (P.L.6, No.3),

9

known as the Right-to-Know Law. The board, the department, the

10

Office of Attorney General and the Pennsylvania State Police

11

shall collaborate to develop a uniform system that will enable

12

the board to carry out the requirements of this subsection.

13

* * *

14

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

15

provision of this part, all annual reports or studies of the

16

board required to be submitted to the General Assembly under

17

this part after the effective date of this subsection shall be

18

submitted by October 1, 2010, and by October 1 of each year

19

thereafter.

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].

- 59 -

 


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

4

of goods and services utilized by slot machine licensees

5

under this part.

6

(3)  The operation of licensed entities and the conduct

7

of gaming in this Commonwealth by ensuring licensed entities

8

promote the participation of diverse groups by affording

9

equal access to employment opportunities, including key

10

employee, gaming employee, and nongaming employee positions.

11

(4)  The operation of business enterprises associated

12

with or utilized by licensed entities, including business

13

enterprises that provide goods, property and services

14

utilized by slot machine licensees in this Commonwealth by

15

ensuring these business enterprises promote the participation

16

of diverse groups by affording equal access to employment

17

opportunities.

18

(5)  The construction, renovation or reconstruction of a

19

licensed facility by ensuring that all contracts and

20

subcontracts to be awarded relating to the construction,

21

renovation or reconstruction of a licensed facility contain

22

adequate provisions ensuring all contractors or

23

subcontractors and assignees, will promote the participation

24

of diverse groups in any proposed construction, renovation or

25

reconstruction project by affording equal access to

26

employment opportunities.

27

(6)  The rendering of professional services to licensed

28

entities by ensuring licensed entities promote the

29

participation of diverse groups by affording equal access to

30

professional service contractual opportunities.

- 60 -

 


1

(a.1)  Reports by licensees.--Each slot machine licensee

2

shall submit a quarterly report to the board describing

3

activities undertaken at its licensed facility related to the

4

development and implementation of its diversity plan in

5

accordance with section 1325 (relating to license or permit

6

issuance) during the prior quarter. At a minimum, the quarterly

7

reports shall contain a summary of:

8

(1)    All employee recruitment and retention efforts

9

undertaken to ensure the participation of diverse groups in

10

employment with the slot machine licensee.

11

(2)  The total number of hires and employment offers

12

made, including data relating to the race, gender and

13

residence of those hired or offered employment.

14

(3)    All contracting and subcontracting data involving

15

the slot machine licensee and minority-owned business

16

enterprises and women-owned business enterprises.

17

(4)    Any other information deemed relevant or necessary

18

by the board to assess the slot machine licensee's diversity

19

plan.

20

(b)  [Investigations] Annual review.--The board [is

21

authorized to investigate and] shall conduct an annual [study to

22

ascertain] review of each slot machine licensee's activities

23

related to the implementation of its diversity plan in order to

24

evaluate whether the slot machine licensee has taken effective

25

and meaningful action [has been taken or will be taken to

26

enhance the] to implement a diversity plan and whether the

27

licensee's plan and any other actions taken have achieved or

28

will achieve the Commonwealth's goal of enhanced representation

29

of diverse groups in the [ownership, participation and operation

30

of licensed facilities in this Commonwealth, through the

- 61 -

 


1

ownership and operation of business enterprises associated with

2

or utilized by slot machine licensees, through the provision of

3

goods and services utilized by slot machine licensees and

4

through employment opportunities] gaming industry as set forth

5

in subsection (a).

6

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

7

required under subsection (b) shall be completed six months

8

following the effective date of this [part] section, if

9

practically possible, and annually thereafter and shall contain

10

recommendations which the board determines appropriate. Each

11

review shall contain, at a minimum, a descriptive summary of the

12

following relating to each slot machine licensee's licensed

13

facility:

14

(1)  Employee recruitment and retention programs designed

15

to ensure the participation of diverse groups.

16

(2)  The total number of hires and employment offers

17

made, including data relating to the race, gender and

18

residence of individuals hired or offered employment.

19

(3)  Minority-owned business enterprise and women-owned

20

business enterprise contracting and subcontracting data.

21

(d)  Facility responsibility.--Each slot machine licensee

22

shall provide information as required by the board to enable the

23

board to complete the reviews required under subsection (b).

24

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

25

"professional services" means those services rendered to a slot

26

machine licensee which relate to a licensed facility in this

27

Commonwealth, including, but not limited to:

28

(1)  Legal services.

29

(2)  Advertising or public relations services.

30

(3)  Engineering services.

- 62 -

 


1

(4)  Architectural, landscaping or surveying services.

2

(5)  Accounting, auditing or actuarial services.

3

(6)  Security consultant services.

4

(7)  Computer and information technology services, except

5

telephone service.

6

(8)  Insurance underwriting services.

<--

7

§ 1213.  License or permit prohibition.

8

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

9

including principals and key employees,] The following apply:

10

(1)  The board shall be prohibited from granting a

11

principal license or a key employee license to an individual

12

who has been convicted of a felony [or gambling] offense in

13

any jurisdiction [shall be issued a license or permit unless

14

15 years has elapsed from the date of expiration of the

15

sentence for the offense].

16

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

17

permit to an applicant who has been convicted in any

18

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

19

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

20

prohibited from granting the following:

21

(i)  A principal license or key employee license to

22

an individual who has been convicted in any jurisdiction

23

of a misdemeanor gambling offense, unless 15 years have

24

elapsed from the date of conviction for the offense.

25

(ii)  A gaming employee permit or a license other

26

than a principal license or key employee license to an

27

individual who has been convicted in any jurisdiction of

28

a felony offense or of a misdemeanor gambling offense,

29

unless 15 years have elapsed from the date of conviction

30

for the offense.

- 63 -

 


1

(3)  Following the expiration of any prohibition period

2

applicable to an applicant under paragraph (2), in

3

determining whether to issue a license or permit, the board

4

shall consider the following factors:

5

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

6

position with the licensed entity.

7

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

8

or conduct.

9

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

10

offense or conduct occurred.

11

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

12

or conduct was committed.

13

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

14

isolated or a repeated incident.

15

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

16

good conduct in the community, counseling or psychiatric

17

treatment received and the recommendation of persons who

18

have substantial contact with the applicant.

19

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

20

any of the following:

21

(i)  An offense punishable under the laws of this

22

Commonwealth by imprisonment for more than five years.

23

(ii)  An offense which, under the laws of another

24

jurisdiction, is:

25

(A)  classified as a felony; or

26

(B)  punishable by imprisonment for more than

27

five years.

28

(iii)  An offense under the laws of another

29

jurisdiction which, if committed in this Commonwealth,

30

would be subject to imprisonment for more than five

- 64 -

 


1

years.

2

Section 10.1.  Title 4 is amended by adding a section to

3

read:

4

§ 1214.  Specific authority to suspend slot machine license.

5

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

6

as a condition of licensure to make payments to a municipality,

7

municipal authority or other entity for an economic development

8

project, including any project enumerated in the act of July 25,

9

2007 (P.L.342, No.53), known as Pennsylvania Gaming Economic

10

Development and Tourism Fund Capital Budget Itemization Act of

11

2007, shall, within 30 days of the effective date of this

12

section or within 30 days following licensure, whichever is

13

later, enter into a written agreement with the municipality,

14

municipal authority or other entity. The written agreement shall

15

establish and govern the terms of the required payments,

16

including the amounts of each payment, the date on which each

17

payment shall be made and the duration of the payments.

18

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

19

fails to enter into a written agreement as 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 has

23

entered into the written agreement required by subsection (a).

24

(c)  Failure to comply with written agreement.--If a slot

25

machine licensee is in default with respect to a payment

26

obligation contained in a written agreement required by

27

subsection (a), the board may take any action it deems

28

necessary. An action taken by the board shall remain in effect

29

until the slot machine licensee satisfies the board that it is

30

in compliance with the terms of the written agreement.

- 65 -

 


1

(d)  Other remedies applicable.--Nothing in this section

2

shall prohibit the board from taking any additional action,

3

including suspension or revocation of the slot machine

4

licensee's license, appointing a trustee under section 1332, or

5

imposing any other sanction permitted by this part against a

6

slot machine licensee who violates the provisions of this

7

section.

8

Section 10.2.  Sections 1304(b), and 1305(a)(1), (b)(1), (c),

<--

9

(d) and (e) and 1307 of Title 4 are amended to read:

<--

10

§ 1304.  Category 2 slot machine license.

11

* * *

12

(b)  Location.--

13

(1)  Two Category 2 licensed facilities and no more shall

14

be located by the board within a city of the first class, and

15

one Category 2 licensed facility and no more shall be located

16

by the board within a city of the second class. No Category 2

17

licensed facility located by the board within a city of the

18

first class shall be within ten linear miles of a Category 1

19

licensed facility regardless of the municipality where the

20

Category 1 licensed facility is located. Except for any

21

Category 2 licensed facility located by the board within a

22

city of the first class or a city of the second class, no

23

Category 2 licensed facility shall be located within 30

24

linear miles of any Category 1 licensed facility that has

25

conducted over 200 racing days per year for the two calendar

26

years immediately preceding the effective date of this part

27

and not within 20 linear miles of any other Category 1

28

licensed facility. Except for any Category 2 licensed

29

facility located by the board within a city of the first

30

class, no Category 2 licensed facility shall be located

- 66 -

 


1

within 20 linear miles of another Category 2 licensed

2

facility.

3

(2)  Within five days of approving a license for an

4

applicant with a proposed licensed facility consisting of

5

land designated a subzone, an expansion subzone or an

6

improvement subzone under the Keystone Opportunity Zone,

7

Keystone Opportunity Expansion Zone and Keystone Opportunity

8

Improvement Zone Act for a slot machine license under this

9

section, the board shall notify the Department of Community

10

and Economic Development. The notice shall include a

11

description of the land of the proposed licensed facility

12

which is designated a subzone, an expansion subzone or an

13

improvement subzone. Within five days of receiving the notice

14

required by this paragraph, the Secretary of Community and

15

Economic Development shall decertify the land of the proposed

16

licensed facility as being a subzone, an expansion subzone or

17

an improvement subzone. Upon decertification in accordance

18

with this paragraph and notwithstanding Chapter 3 of the

19

Keystone Opportunity Zone, Keystone Opportunity Expansion

20

Zone and Keystone Opportunity Improvement Zone Act, a

21

political subdivision may amend the ordinance, resolution or

22

other required action which granted the exemptions,

23

deductions, abatements or credits required by the Keystone

24

Opportunity Zone, Keystone Opportunity Expansion Zone and

25

Keystone Opportunity Improvement Zone Act to repeal the

26

exemptions, deductions, abatements or credits for the land

27

decertified.

28

(3)    Notwithstanding any other provision of law, the

29

governing body of a city of the first class shall not exempt

30

from real property taxation or provide any real property tax

- 67 -

 


1

abatement under the act of December 1, 1977 (P.L.237, No.76),

2

known as the Local Economic Revitalization Tax Assistance

3

Act, to a Category 2 licensed facility located within the

4

city, or any improvements to such facility, unless the owner

5

of the licensed facility enters into or has entered into a

6

tax settlement agreement or payment in lieu of taxes

7

agreement with the city, including any amendments,

8

supplements or modifications of such agreements.

9

§ 1305.  Category 3 slot machine license.

10

(a)  Eligibility.--

<--

11

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

12

Category 3 slot machine license if the applicant, its

13

affiliate, intermediary, subsidiary or holding company

14

has not applied for or been approved or issued a Category

15

1 or 2 slot machine license and the person is seeking to

16

locate a Category 3 licensed facility in a well-

17

established resort hotel having no fewer than 275 guest

18

rooms under common ownership and having substantial year-

19

round [recreational guest] amenities. The applicant for a

20

Category 3 license shall be the owner or be a wholly

21

owned subsidiary of the owner of the established resort

22

hotel. [A Category 3 license may only be granted upon the

23

express condition that an individual may not enter a

24

gaming area of the licensee if the individual is not a

25

registered overnight guest of the established resort

26

hotel or if the individual is not a patron of one or more

27

of the amenities provided by the established resort

28

hotel.] In addition to any other individual prohibited

29

under this part from entering the gaming area of a

30

licensed facility, an individual who does not meet at

- 68 -

 


1

least one of the following criteria shall also be

2

prohibited from entering the gaming area of an

3

established resort hotel for which a Category 3 license

4

has been issued:

5

(A)  The individual is a registered overnight

6

guest of the established resort hotel.

7

(B)  The individual is a patron of the amenities

8

provided by the established resort hotel.

9

(C)  The individual possesses a membership to the

10

established resort hotel or is a guest of an

11

individual who possesses such a membership. The guest

12

must be accompanied by the individual who possesses

13

the membership when entering or remaining in the

14

gaming area of the hotel. The owner of the

15

established resort hotel may issue memberships that

16

allow for up to four guests of the membership owner

17

to enter the gaming area.

18

(ii)  Nothing in this paragraph shall be deemed to

19

prohibit an individual 18 years of age or older from

20

entering and remaining in the gaming area of an

21

established resort hotel while in the performance of

22

employment duties performed on behalf of the resort

23

hotel.

24

* * *

25

(b)  Location.--

26

(1)  Mileage requirements are as follows:

27

(i)  No Category 3 license which was authorized by

28

this part prior to December 1, 2009, regardless of when

29

issued, shall be located by the board within 15 linear

30

miles of another licensed facility.

- 69 -

 


1

(ii)  No Category 3 license which was authorized by

2

this part after November 30, 2009, shall be located by

3

the board within 30 linear miles of another licensed

4

facility.

5

* * *

6

(a)  Eligibility.--

<--

7

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

8

slot machine license if the applicant, its affiliate,

9

intermediary, subsidiary or holding company has not applied

10

for or been approved or issued a Category 1 or 2 slot machine

11

license and the person is seeking to locate a Category 3

12

licensed facility in a well-established resort hotel [having

13

no fewer than 275 guest rooms under common ownership and

14

having substantial year-round recreational guest amenities].

15

The applicant for a Category 3 license shall be the owner or

16

be a wholly owned subsidiary of the owner of the

17

[established] well-established resort hotel. A Category 3

18

license may only be granted upon the express condition that

19

an individual may not enter a gaming area of the licensee if

20

the individual is not [a registered overnight guest of the

21

established resort hotel or if the individual is not a patron

22

of one or more of the amenities provided by the established

23

resort hotel.] any of the following:

24

(i)  A registered overnight guest of the well-

25

established resort hotel.

26

(ii)  A patron of one or more of the amenities

27

provided by the well-established resort hotel.

28

(iii)  An authorized employee.

29

(iv)  An individual holding a valid membership

30

approved in accordance with paragraph (1.1).

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1

(1.1)  The board may approve a seasonal or year-round

2

membership that allows an individual to use one or more of

3

the amenities provided by the well-established resort hotel

4

holding a Category 3 slot machine license. The membership

5

shall allow the member and one guest to enter the gaming

6

floor at any time. The board shall base its approval of a

7

membership on all of the following:

8

(i)  The duration of the membership.

9

(ii)  The amenity covered by the membership.

10

(iii)  Whether the fee charged for the membership

11

represents the fair market value for the use of the

12

amenity.

13

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

14

permissible slot machines as set forth in section 1210 (relating

15

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

16

the provisions of this section shall entitle the licensed entity

17

to operate no more than 500 slot machines at the licensed

18

facility, provided, however, a Category 3 slot machine licensee

19

holding a table game operation certificate shall be entitled to

20

operate no more than 600 slot machines at its licensed facility.

21

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

22

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

23

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

24

time Category 3 license fee to be paid by each successful

25

applicant in the amount of $5,000,000 to be deposited in the

26

State Gaming Fund. The provisions of section [1209 relating to

27

term, credit against tax for slot machine licensees, deposit of

28

license fee and change of ownership or control of a license

29

shall be applicable] 1209(b), (c), (d) and (e) shall apply to a

30

Category 3 [license fee] licensee.

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1

(e)  Definitions.--For the purpose of subsection (a), the

2

following words and phrases shall have the meaning given to them

3

in this subsection:

4

"Amenities."  Any ancillary activities, services or

5

facilities in which a registered guest or the transient public,

6

in return for non-de minimis consideration as defined by board

7

regulation, may participate at a well-established resort hotel,

<--

8

including, but not limited to, sports and recreational

9

activities and facilities such as a golf course or golf driving

10

range, tennis courts or swimming pool; health spa; convention,

11

meeting and banquet facilities; entertainment facilities; and

12

restaurant facilities.

13

"Patron of the amenities."  Any individual who is a

14

registered attendee of a convention, meeting or banquet event or

15

a participant in a sport or recreational event or any other

16

social, cultural or business event held at a resort hotel or who

17

participates in one or more of the amenities provided to

18

registered guests of the well-established resort hotel.

<--

19

"Well-established resort hotel."  A hotel that has at least

<--

20

275 guest rooms under common ownership and has substantial year-

21

round recreational guest amenities.

22

§ 1307.  Number of slot machine licenses.

<--

23

(a)  Category 1 and Category 2 slot machine licenses.--The

24

board may license no more than seven Category 1 licensed

25

facilities and no more than five Category 2 licensed facilities,

26

as it may deem appropriate, as long as two, and not more,

27

Category 2 [licenses] licensed facilities are located by the

28

board within the city of the first class and that one, and not

29

more, Category 2 licensed facility is located by the board

30

within the city of the second class. The board may at its

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1

discretion increase the total number of Category 2 licensed

2

facilities permitted to be licensed by the board by an amount

3

not to exceed the total number of Category 1 licenses not

4

applied for within five years following the effective date of

5

this part. Except as permitted by section 1328 (relating to

6

change in ownership or control of slot machine licensee), any

7

Category 1 license may be reissued by the board at its

8

discretion as a Category 2 license if an application for

9

issuance of such license has not been made to the board. 

10

(b)  Category 3 slot machine licenses.--

11

(1)    The board may license no more than two Category 3

12

licensed facilities that shall be subject to the mileage

13

restriction under section 1305(b)(1)(i)(relating to Category

14

3 slot machine license).

15

(2)  The board may license no more than one Category 3

16

licensed facility that shall be subject to the mileage

17

restriction under section 1305(b)(1)(ii). Within ten days

18

following the effective date of this paragraph, the board

19

shall establish an application period not to exceed 90 days

20

for the acceptance of applications for this Category 3

21

license.

22

Section 10.3.  Sections 1308 and 1309 of Title 4 are amended

23

by adding subsections to read:

24

§ 1308.  Applications for license or permit.

25

* * *

26

(a.1)  Submission of information.--An applicant for a license

27

or permit under this part shall disclose in the application all

28

arrests of the applicant and all citations issued to the

29

applicant for summary gambling non-traffic summary offenses. The

<--

30

information shall include:

- 73 -

 


1

(1)  A brief description of the circumstances surrounding

2

the arrest or issuance of the citation.

3

(2)  The specific offense charged.

4

(3)  The ultimate disposition of the charge, including

5

the details of any dismissal, plea bargain, conviction,

6

sentence, pardon, expungement or order of Accelerated

7

Rehabilitative Disposition.

8

No applicant shall be required to provide documentation relating

9

to any summary offense. Failure of the bureau to recover records

10

of a summary offense shall not be grounds for denying an

11

application.

12

* * *

13

§ 1309.  Slot machine license application.

14

* * *

15

(a.1)  Table games information.--

16

(1)    An applicant for a slot machine license may submit

17

with its application all information required under Chapter

18

13A (relating to table games) and request that the board

19

consider its application for a slot machine license and a

20

table game operation certificate concurrently. All fees for a

21

table game operation certificate shall be paid by the

22

applicant in accordance with section 1361A (relating to table

23

game authorization fee).

24

(2)  The board shall permit any applicant for a slot

25

machine license that has an application pending before the

26

board on the effective date of this subsection to supplement

27

its application with all information required under Chapter

28

13A and to request that the board consider its application

29

for a slot machine license and a table game operation

30

certificate concurrently. All fees for a table game operation

- 74 -

 


1

certificate shall be paid by the applicant in accordance with

2

section 1361A.

3

* * *

4

Section 10.4.  Section 1310 of Title 4 is amended to read:

5

§ 1310.  Slot machine license application character

6

requirements.

7

(a)  Application.--

8

(1)  Every application for a slot machine license shall

9

include such information, documentation and assurances as may

10

be required to establish by clear and convincing evidence the

11

applicant's suitability, including good character, honesty

12

and integrity. Information shall include, without limitation,

13

information pertaining to family, habits, character,

14

reputation, criminal history background, business activities,

15

financial affairs and business, professional and personal

16

associates, covering at least the ten-year period immediately

17

preceding the filing date of the application.

18

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

19

use of records by licensing agencies), in addition to the

20

information submitted under section 1308(a.1) (relating to

21

applications for license or permit), a conviction for a

<--

22

felony offense or a misdemeanor gambling offense that has

23

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

24

pardoned or an order of Accelerated Rehabilitative

25

Disposition has been issued, shall be included with an

26

application and considered by the board as part of the review

27

of the applicant's suitability under paragraph (1).

28

(b)  Civil judgments and law enforcement agency

29

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

30

judgments obtained against the applicant pertaining to antitrust

- 75 -

 


1

or security regulation laws of the Federal Government, this

2

Commonwealth or any other state, jurisdiction, province or

3

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

4

reference from law enforcement agencies having jurisdiction in

5

the applicant's place of residence and principal place of

6

business, which letter of reference shall indicate that the law

7

enforcement agencies do not have any pertinent information

8

concerning the applicant or, if the law enforcement agency does

9

have information pertaining to the applicant, shall specify the

10

nature and content of that information. If no letters are

11

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

12

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

13

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

14

that the applicant is or was during the period the activities

15

were conducted in good standing with the gaming or casino

16

enforcement or control agency.

17

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

18

applicant has held a gaming license in a jurisdiction where

19

gaming activities are permitted, the applicant shall produce a

20

letter of reference from the gaming or casino enforcement or

21

control agency which shall specify the experiences of that

22

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

23

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

24

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

25

under oath which is subject to the penalty for false swearing

26

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

27

period the activities were conducted in good standing with the

28

gaming or casino enforcement or control agency.

29

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

30

license, principal license or key employee license shall be

- 76 -

 


1

required to apply to each Federal agency deemed appropriate by

2

the board or bureau for agency records under the Freedom of

3

Information Act (Public Law 89-554, 5 U.S.C. § 552) pertaining

4

to the applicant and provide the bureau with the complete record

5

received from the Federal agency. The board may issue a license

6

to the applicant prior to the receipt of information under this

7

subsection.

8

Section 10.5.  Sections 1317(a) and (c)(1) and 1317.1(a), (b)

9

(5), (c), (d), (d.1) and (e) of Title 4 are amended and the

10

sections are amended by adding subsections to read:

11

§ 1317.  Supplier licenses.

12

(a)  Application.--A manufacturer that elects to contract

13

with a supplier under section 1317.1(d.1) (relating to

14

manufacturer licenses) shall ensure that the supplier is

15

appropriately licensed under this section. A person seeking to

16

provide slot machines, table game devices or associated

17

equipment to a slot machine licensee within this Commonwealth

18

through a contract with a licensed manufacturer shall apply to

19

the board for [a] the appropriate supplier license.

20

* * *

21

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

22

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

23

approve the application and issue the applicant a supplier

24

license consistent with all of the following:

25

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

26

expiration, the license may be renewed in accordance with

27

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

28

one year and if renewed under subsection (d), the license

29

shall be for a period of three years. Nothing in this

30

paragraph shall relieve a licensee of the affirmative duty to

- 77 -

 


1

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

2

license or to any information contained in the application

3

materials on file with the board.

4

* * *

5

(c.1)  Abbreviated process.--In the event an applicant for a

6

supplier license to supply table game devices or associated

7

equipment used in connection with table games is licensed by the

8

board under this section to supply slot machines or associated

9

equipment used in connection with slot machines, the board may

10

determine to use an abbreviated process requiring only that

11

information determined by the board to be necessary to consider

12

the issuance of a license to supply table game devices or

13

associated equipment used in connection with table games,

14

including financial viability of the applicant. Nothing in this

15

section shall be construed to waive any fees associated with

16

obtaining a license through the normal application process. The

17

board may only use the abbreviated process if all of the

18

following apply:

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, in its sole discretion, that

27

there has been no material change in circumstances relating

28

to the licensee that necessitates that the abbreviated

29

process not be used.

30

* * *

- 78 -

 


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, the board may

14

approve the application and grant the applicant a manufacturer

15

license consistent with all of the following:

16

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

17

expiration, a license may be renewed in accordance with

18

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

19

one year and if renewed under subsection (d), the license

20

shall be for a period of three years. Nothing in this

21

paragraph shall relieve the licensee of the affirmative duty

22

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

23

its license or to any other information contained in

24

application materials on file with the board.

25

(2)  The license shall be nontransferable.

26

(3)  Any other condition established by the board.

27

(c.1)  Abbreviated process.--In the event an applicant for a

28

manufacturer license to manufacture table game devices or

29

associated equipment used in connection with table games is

30

licensed by the board under this section to manufacture slot

- 79 -

 


1

machines or associated equipment used in connection with slot

2

machines, the board may determine to use an abbreviated process

3

requiring only that information determined by the board to be

4

necessary to consider the issuance of a license to manufacture

5

table game devices or associated equipment used in connection

6

with table games, including financial viability of the

7

applicant. Nothing in this section shall be construed to waive

8

any fees associated with obtaining a license through the normal

9

application process. The board may only use the abbreviated

10

process if all of the following apply:

11

(1)  The manufacturer license was issued by the board

12

within a 36-month period immediately preceding the date the

13

manufacturer licensee files an application to manufacture

14

table game devices or associated equipment.

15

(2)  The person to whom the manufacturer license was

16

issued affirms there has been no material change in

17

circumstances relating to the license.

18

(3)  The board determines, in its sole discretion, that

19

there has been no material change in circumstances relating

20

to the licensee that necessitates that the abbreviated

21

process not be used.

22

(d)  Renewal.--

23

(1)  [Six] Two months prior to expiration of a

24

manufacturer license, the manufacturer licensee seeking

25

renewal of its license shall submit a renewal application

26

accompanied by the renewal fee to the board.

27

(2)  If the renewal application satisfies the

28

requirements of subsection (b), the board may renew the

29

licensee's manufacturer license.

30

(3)  If the board receives a complete renewal application

- 80 -

 


1

but fails to act upon the renewal application prior to the

2

expiration of the manufacturer license, the manufacturer

3

license shall continue in effect for an additional six-month

4

period or until acted upon by the board, whichever occurs

5

first.

6

(d.1)  Authority.--The following shall apply to a licensed

7

manufacturer:

8

(1)  A [licensed] manufacturer or its designee, as

9

licensed by the board, may supply or repair any slot machine,

10

table game device or associated equipment manufactured by the

11

[licensed] manufacturer, provided the manufacturer holds the

12

appropriate manufacturer license.

13

(2)  A manufacturer of slot machines may contract with a

14

supplier under section 1317 (relating to supplier licenses)

15

to provide slot machines or associated equipment to a slot

16

machine licensee within this Commonwealth, provided the

17

supplier is licensed to supply slot machines or associated

18

equipment used in connection with slot machines.

19

(3)  A manufacturer may contract with a supplier under

20

section 1317 to provide table game devices or associated

21

equipment to a certificate holder, provided the supplier is

22

licensed to supply table game devices or associated equipment

23

used in connection with table games.

24

(e)  Prohibitions.--

25

(1)  No person may manufacture slot machines, table game

26

devices or associated equipment for use within this

27

Commonwealth by a slot machine licensee unless the person has

28

been issued [a] the appropriate manufacturer license under

29

this section.

30

(2)  [No] Except as permitted in section 1323.1A

- 81 -

 


1

(relating to training equipment), no slot machine licensee

2

may use slot machines, table game devices or associated

3

equipment unless the slot machines, table game devices or

4

associated equipment were manufactured by a person that has

5

been issued [a] the appropriate manufacturer license under

6

this section.

7

(3)  No person issued a license under this section shall

8

apply for or be issued a license under section 1317.

9

(4)  No limitation shall be placed on the number of

10

manufacturer licenses issued or the time period to submit

11

applications for licensure, except as required to comply with

12

section 1306 (relating to order of initial license issuance).

13

Section 10.6.  Title 4 is amended by adding a section to

14

read:

15

§ 1317.2.  Gaming service provider.

16

(a)  Development of classification system.--The board shall

17

develop a classification system governing the certification,

18

registration and regulation of gaming service providers and

19

individuals and entities associated with them. The

20

classification system shall be based upon the following:

21

(1)  The monetary value or amount of business conducted

22

or expected to be conducted by the gaming service provider

23

with an applicant for a slot machine licensee or a slot

24

machine licensee in any consecutive 12-month period.

25

(2)  Whether the employees of the gaming service provider

26

will have access to the gaming floor or any gaming-related

27

restricted area of a licensed facility.

28

(3)  The board's analysis of the goods or services

29

provided or to be provided by the gaming service provider.

30

(b)  Authority to exempt.--The board may exempt any person or

- 82 -

 


1

type of business from the requirements of this section if the

2

board determines:

3

(1)  the person or type of business is regulated by an

4

agency of the Federal Government, an agency of the

5

Commonwealth or the Pennsylvania Supreme Court; or

6

(2)  the regulation of the person or type of business is

7

determined not to be necessary in order to protect the public

8

interest or the integrity of gaming.

9

(c)  Duties of gaming service providers.--Each gaming service

10

provider shall have a continuing duty to:

11

(1)  Provide all information, documentation and

12

assurances as the board may require.

13

(2)  Cooperate with the board in investigations, hearings

14

and enforcement and disciplinary actions.

15

(3)  Comply with all conditions, restrictions,

16

requirements, orders and rulings of the board in accordance

17

with this part.

18

(4)  Report any change in circumstances that may render

19

the gaming service provider ineligible, unqualified or

20

unsuitable for continued registration or certification.

21

(d)  Requirement for permit.--The board may require employees

22

of a gaming service provider to obtain a permit or other

23

authorization if, after an analysis of duties, responsibilities

24

and functions, the board determines that a permit or other

25

authorization is necessary to protect the integrity of gaming.

26

(e)  Interim authorization.--The board or a designated

27

employee of the board may permit a gaming service provider

28

applicant to engage in business with an applicant for a slot

29

machine license or a slot machine licensee prior to approval of

30

the gaming service provider application if the following

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1

criteria have been satisfied:

2

(1)  A completed application has been filed with the

3

board by the gaming service provider.

4

(2)  The slot machine applicant or slot machine licensee

5

contracting or doing business with the gaming service

6

provider certifies that it has performed due diligence on the

7

gaming service provider and believes that the applicant meets

8

the qualification to be a gaming service provider pursuant to

9

this section.

10

(3)  The gaming service provider applicant agrees in

11

writing that the grant of interim authorization to conduct

12

business prior to board approval of its application does not

13

create a right to continue to engage in business if the board

14

determines that the applicant is not suitable or continued

15

authorization is not in the public interest.

16

(f)  Construction.--Nothing in this section shall be

17

construed to prohibit the board from rescinding a grant of

18

interim authorization if, at any time, the suitability of the

19

person subject to interim authorization is at issue or if the

20

person fails to cooperate with the board, the bureau or an agent

21

of the board or bureau.

22

(g)  Gaming service provider lists.--The board shall:

23

(1)  Develop and maintain a list of approved gaming

24

service providers who are authorized to provide goods or

25

services whether under a grant of interim or continued

26

authorization.

27

(2)  Develop and maintain a list of prohibited gaming

28

service providers. An applicant for a slot machine license or

29

a slot machine licensee may not enter into an agreement or

30

engage in business with a gaming service provider listed on

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1

the prohibited gaming service provider list.

2

(h)  Emergency authorization.--A slot machine licensee may

3

utilize a gaming service provider that has not been approved by

4

the board when a threat to public health, welfare or safety

5

exists or circumstances outside the control of the slot machine

6

licensee require immediate action to mitigate damage or loss to

7

the licensee's licensed facility or to the Commonwealth. The

8

board shall promulgate regulations to govern the use of gaming

9

service providers under emergency circumstances. The regulations

10

shall include a requirement that the slot machine licensee

11

contact the board immediately upon utilizing a gaming service

12

provider that has not been approved by the board.

13

(i)  Criminal history record information.--If the

14

classification system developed by the board in accordance with

15

subsection (a) requires a gaming service provider or an

16

individual or entity associated with the gaming service provider

17

to submit to or provide the bureau with criminal history record

18

information under 18 Pa.C.S. Ch. 91 (relating to criminal

19

history record information), the bureau shall notify a slot

20

machine licensee that submitted a certification under subsection

21

(e)(2) whether the applicant has been convicted of a felony or

22

misdemeanor gambling offense.

23

Section 10.7.  Sections 1318(c) and 1319 of Title 4 are

24

amended to read:

25

§ 1318.  Occupation permit application.

26

* * *

27

(c)  Prohibition.--No slot machine licensee may employ or

28

permit any person under 18 years of age to render any service

29

whatsoever in any area of its licensed facility [at which] where 

30

slot machines or table games are physically located.

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1

§ 1319.  Alternative manufacturer licensing standards.

2

(a)  General rule.--The board may determine whether the

3

licensing standards of another jurisdiction within the United

4

States in which an applicant for a manufacturer license is

5

similarly licensed are comprehensive and thorough and provide

6

similar adequate safeguards as those required by this part. If

7

the board makes that determination, it may issue a manufacturer

8

license to an applicant who holds a similar manufacturer license

9

in such other jurisdiction after conducting an evaluation of the

10

information relating to the applicant from such other

11

jurisdictions, as updated by the board, and evaluating other

12

information related to the applicant received from that

13

jurisdiction and other jurisdictions where the applicant may be

14

licensed, the board may incorporate such information in whole or

15

in part into its evaluation of the applicant.

16

(b)  Abbreviated process.--In the event an applicant for a

17

[slot machine] manufacturer license is licensed in another

18

jurisdiction, the board may determine to use an [alternate] 

19

abbreviated process requiring only that information determined

20

by the board to be necessary to consider the issuance of a

21

license, including financial viability of the [licensee, to such

22

an] applicant. Nothing in this section shall be construed to

23

waive any fees associated with obtaining a license through the

24

normal application process.

25

Section 10.8.  Title 4 is amended by adding a section to

26

read:

27

§ 1319.1.  Alternative supplier licensing standards.

28

(a)  General rule.--The board may determine whether the

29

licensing standards of another jurisdiction within the United

30

States in which an applicant for a supplier's license is

- 86 -

 


1

similarly licensed are comprehensive and thorough and provide

2

similar adequate safeguards as required by this part. If the

3

board makes that determination, it may issue a supplier license

4

to an applicant who holds a similar supplier license in another

5

jurisdiction after conducting an evaluation of the information

6

relating to the applicant from the other jurisdictions, as

7

updated by the board, and evaluating other information related

8

to the applicant received from that jurisdiction and other

9

jurisdictions where the applicant may be licensed, the board may

10

incorporate the information in whole or in part into its

11

evaluation of the applicant.

12

(b)  Abbreviated process.--In the event an applicant for a

13

supplier license is licensed in another jurisdiction, the board

14

may determine to use an abbreviated process requiring only that

15

information determined by the board to be necessary to consider

16

the issuance of a license, including financial viability of the

17

applicant. Nothing in this section shall be construed to waive

18

any fees associated with obtaining a license through the normal

19

application process.

20

Section 10.9.  Sections 1321, 1326(a), 1328(a)(1) and (b) and

21

1329 of Title 4 are amended to read:

22

§ 1321.  Additional licenses and permits and approval of

23

agreements.

24

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

25

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

26

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

27

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

28

or any person who satisfies any of the following criteria:

29

(1)  The person transacts business within this

30

Commonwealth with a slot machine licensee as a ticket

- 87 -

 


1

purveyor, tour operator, operator of a bus trip program or

2

operator of any other type of travel program or promotional

3

business related to slot machines or table games. The board

4

may also review, deny, order modification or approve, at its

5

discretion, proposed tours, bus routes and travel programs.

6

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

7

be licensed or permitted under this part and provides any

8

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

9

management [contracts] services for compensation to a slot

10

machine licensee at the licensed facility.

11

(b)  Agreement.--Any agreement to conduct business within

12

this Commonwealth between a person and a slot machine licensee

13

relating to slot machines, table games, table game devices or

14

associated equipment is subject to the approval of the board in

15

accordance with rules and regulations promulgated by the board.

16

Every agreement shall be in writing and shall include a

17

provision for its termination without liability on the part of

18

the slot machine licensee upon a finding by the board that the

19

agreement is not approved or that it is terminated. Failure to

20

expressly include this condition in the agreement is not a

21

defense in any action brought under this section relating to the

22

termination of the agreement.

23

§ 1326.  License renewals.

24

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

25

part unless otherwise provided shall be subject to renewal [on

26

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

27

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

28

expiration of the permit or license] every three years. Nothing

29

in this subsection shall relieve a licensee of the affirmative

30

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

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1

of its license or to any other information contained in the

2

application materials on file with the board. The application

3

for renewal shall be submitted at least 60 days prior to the

4

expiration of the permit or license and shall include an update

5

of the information contained in the initial and any prior

6

renewal applications and the payment of any renewal fee required

7

by this part. Unless otherwise specifically provided in this

8

part, the amount of any renewal fee shall be calculated by the

9

board to reflect the longer renewal period. A permit or license

10

for which a completed renewal application and fee, if required,

11

has been received by the board will continue in effect unless

12

and until the board sends written notification to the holder of

13

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

14

such permit or license.

15

* * *

16

§ 1328.  Change in ownership or control of slot machine

17

licensee.

18

(a)  Notification and approval.--

19

(1)  A slot machine licensee shall notify the board

20

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

21

or contemplated change of ownership of the slot machine

22

licensee by a person or group of persons acting in concert

23

which involves any of the following:

24

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

25

securities or other ownership interests.

26

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

27

ownership interests of a corporation or other form of

28

business entity that owns directly or indirectly at least

29

20% of the voting or other securities or other ownership

30

interests of the licensee.

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1

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

2

business of a licensee's assets.

3

(iv)  Any other transaction or occurrence deemed by

4

the board to be relevant to license qualifications.

5

(b)  Qualification of purchaser of slot machine licensee;

6

change of control.--The purchaser of the assets, other than in

7

the ordinary course of business, of any slot machine licensee

8

shall independently qualify for a license in accordance with

9

this part and shall pay the license fee as required by section

10

1209 (relating to slot machine license fee). A change in control

11

of any slot machine licensee shall require that the slot machine

12

licensee independently qualify for a license in accordance with

13

this part, and the slot machine licensee shall pay a new license

14

fee as required by section 1209, except as otherwise required by

15

the board pursuant to this section. The new license fee shall be

16

paid upon the assignment and actual change of control or

17

ownership of the slot machine license.

18

* * *

19

§ 1329.  [Nonportability] Portability and relocation of slot

20

machine license.

21

(a)  General rule.--[Each] Except as otherwise provided in

22

this section, each slot machine license shall only be valid for

23

the specific physical location within the municipality and

24

county for which it was originally granted. [No]

25

(b)  Petition.--An applicant for a slot machine license or a

26

slot machine licensee may petition the board to relocate its

27

facility. In determining whether to grant a petition to

28

relocate, the board shall:

29

(1)  Evaluate the proposed new location and the reason

30

for the relocation.

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1

(2)  Conduct an analysis comparing estimated gross

2

terminal revenues and estimated gross table game revenues at

3

the proposed new location with estimated or actual gross

4

terminal revenues and estimated or actual gross table game

5

revenues at the approved current location.

6

(3)  Conduct an analysis comparing the economic impact of

7

the licensed facility at the proposed new location with the

8

estimated or actual economic impact at the approved current

9

location. The comparative analysis shall include the total

10

cost of the project and projected direct and indirect

11

employment figures.

12

(4)  Commission a comprehensive traffic study for the

13

proposed new location.

14

(5)  Evaluate community support or opposition.

15

(6)  Consider any other information submitted by the

16

petitioner or requested by the board.

17

(c)  Relocation.--A slot machine licensee [shall be permitted

18

to] may move or relocate [the physical location of] the licensed

19

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

20

shown if the relocation of the licensed facility:

21

(1)  remains within the same county as when it was

22

originally licensed;

23

(2)  will facilitate the timely commencement or the

24

continued conduct of gaming operations;

25

(3)  complies with all other provisions of this part

26

related to the siting and location of a licensed facility;

27

and

28

(4)  is in the best interests of the Commonwealth.

29

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

30

public input hearing in the municipality where the licensed

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1

facility will be located prior to ruling on the petition.

2

(e)  Restriction.--No grant or loan from the Commonwealth may

3

be awarded for the purpose of relocating or developing the

4

relocated licensed facility to comply with any conditions of

5

approval of the relocation.

6

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

7

§ 1332.  Appointment of trustee.

8

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

9

Counsel, the board may appoint a trustee from the list required

10

under subsection (j) to act on behalf of the interests of the

11

Commonwealth and the board to ensure compliance with this part

12

and any conditions imposed upon the slot machine license. A

13

trustee may be appointed only in the following circumstances:

14

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

15

slot machine license or a principal license if the principal

16

licensee is the only principal who exercises operational

17

control of the licensed facility.

18

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

19

a principal license if the principal licensee is the only

20

principal who exercises operational control of the licensed

21

facility.

22

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

23

Commonwealth.

24

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

25

(1)  A trustee shall be required to qualify as a

26

principal and obtain a principal license. The board may

27

appoint a trustee and award the trustee a temporary principal

28

license as prescribed in board regulations.

29

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

30

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

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1

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

2

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

3

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

4

licensee.

5

(3)  A trustee shall be a resident of this Commonwealth.

6

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

7

exercise only those powers, duties and responsibilities

8

expressly conferred upon the trustee by the board. The board's

9

order appointing the trustee shall set forth the powers, duties

10

and responsibilities of the trustee which may include:

11

(1)  Maintaining and operating the licensed facility in a

12

manner that complies with this part and any conditions

13

imposed by the board.

14

(2)  Maintaining and operating the licensed facility

15

consistent with the measures generally taken in the ordinary

16

course of business including:

17

(i)  Entering into contracts.

18

(ii)  Borrowing money.

19

(iii)  Pledging, mortgaging or otherwise encumbering

20

the licensed facility or property thereof as security for

21

the repayment of loans subject to any provisions and

22

restrictions in any existing credit documents.

23

(iv)  Hiring, firing and disciplining employees.

24

(3)  Exercising the rights and obligations of the former

25

or suspended licensee.

26

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

27

machine licensee, including its books, records and papers.

28

(5)  Establishing accounts with financial institutions.

29

An account may not be established with a financial

30

institution in which the licensee, an affiliate of the former

- 93 -

 


1

or suspended licensee, the trustee, or an immediate family

2

member of the trustee, has a controlling interest.

3

(6)  Meeting with the former or suspended licensee.

4

(7)  Meeting with principals and key employees at the

5

licensed facility.

6

(8)  Meeting with the independent audit committee.

7

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

8

keeping the board's executive director apprised of actions

9

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

10

(10)  Hiring legal counsel, accountants or other

11

consultants or assistants, with prior approval of the board,

12

as necessary to carry out the trustee's duties and

13

responsibilities.

14

(11)  Settling or compromising with any debtor or

15

creditor of the former or suspended licensee, including any

16

taxing authority.

17

(12)  Reviewing outstanding agreements to which the

18

former or suspended licensee is a party and advising the

19

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

20

subject of scrutiny, examination or investigation by the

21

board.

22

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

23

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

24

restructuring, transfer of assets or execution of a contract

25

or any other action taken outside of the ordinary course of

26

business.

27

(14)  Obtaining board approval for any payments outside

28

of those made in the ordinary course of business.

29

Notwithstanding any provision contained in this subsection to

30

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

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1

preserve the assets of the licensed gaming entity.

2

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

3

compensation of a trustee and shall review and approve actual

4

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

5

accountants or other consultants or assistants hired by the

6

trustee. The compensation, costs and expenses shall be paid by

7

the former or suspended licensee. Total compensation for the

8

trustee and all persons hired or retained by the trustee under

9

subsection (c)(10) shall not exceed $600 per hour in the

10

aggregate unless otherwise increased by the board pursuant to

11

subsection (d.2).

12

(d.1)  Calculation of compensation.--In determining the

13

aggregate hourly rate of compensation to be paid to the trustee

14

and all other persons hired or retained by the trustee, the

15

board shall consider:

16

(1)  The time and labor required, the difficulty of the

17

questions involved and the skill required to properly perform

18

the required services.

19

(2)  Whether the acceptance of the position by the

20

trustee or other person will preclude the trustee or other

21

person from other employment.

22

(3)  The fee customarily charged for similar services.

23

(4)  The nature and potential length of the duties.

24

(5)  The experience, reputation and ability of the

25

trustee or other person selected to perform the services.

26

(d.2)  Compensation exceptions.--

27

(1)  On January 1 of each year, the board may adjust the

28

aggregate hourly rate of compensation authorized under

29

subsection (d) for inflation. The adjustment shall not exceed

30

the percentage change in the Consumer Price Index for All

- 95 -

 


1

Urban Consumers for the Pennsylvania, New Jersey, Delaware

2

and Maryland area for the most recent 12-month period for

3

which figures have been officially reported by the United

4

States Department of Labor, Bureau of Labor Statistics. When

5

adjusted, the board shall publish the adjusted aggregate

6

hourly rate of compensation in the Pennsylvania Bulletin.

7

(2)  Upon petition by the Director of the Office of

8

Enforcement Counsel, the board may increase the total hourly

9

rate of compensation above the limitation contained in

10

subsection (d) for good cause shown. The board shall consider

11

the factors under subsection (d.1) when calculating any

12

increase requested by the office.

13

(e)  Reports.--A trustee shall file reports relating to the

14

administration of the trusteeship with the board in the form and

15

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

16

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

17

creditors or other parties in interest and make summaries of the

18

reports available to the public and shall post them on the

19

board's Internet website.

20

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

21

interest aggrieved by any alleged breach of a delegated power or

22

duty or responsibility of a trustee in the discharge of the

23

trustee's duties may request a review of the trustee's action or

24

inaction by filing a petition in accordance with board

25

regulations. The petition must set forth in detail the pertinent

26

facts and the reasons why the facts constitute the alleged

27

breach. The board shall review any petition filed under this

28

section and take whatever action, if any, it deems appropriate.

29

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

30

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

- 96 -

 


1

machine licensee may not exercise any of its privileges, collect

2

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

3

its assets to anyone without prior approval of the appointed

4

trustee and the board.

5

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

6

trusteeship, net income from the licensed facility shall be

7

deposited in an escrow account maintained for that purpose.

8

Payments from the escrow account during the period of

9

trusteeship may not be made without the prior approval of the

10

board. A suspended or former principal or slot machine licensee

11

may request distribution of all or a portion of the funds in the

12

escrow account during the period of trusteeship by filing a

13

petition in accordance with board regulation. The suspended or

14

former principal or slot machine licensee shall have the burden

15

of demonstrating good cause for the distribution of the funds

16

requested.

17

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

18

discontinue a trusteeship when:

19

(1)  the board determines that circumstances requiring

20

the appointment of the trustee no longer exist; or

21

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

22

board, consummated the sale, assignment, conveyance or other

23

disposition of all the assets or interest of the former

24

principal or slot machine licensee relating to the slot

25

machine license.

26

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

27

regulations governing establishment of a list of persons

28

approved by the board and qualified to serve as a trustee. At a

29

minimum, the regulations shall provide for the following:

30

(1)  The minimum qualifications a person must possess to

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1

be approved as a trustee, which shall include the

2

qualifications set forth in subsection (b).

3

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

4

approved trustee list.

5

(3)  Any other information the board deems necessary to

6

carry out the intent of this section.

7

Section 11.1.  Title 4 is amended by adding a chapter to

8

read:

9

CHAPTER 13A

10

TABLE GAMES

11

Subchapter

12

A.  General Provisions

13

B.  Table Games Authorized

14

C.  Conduct of Table Games

15

D.  (Reserved)

16

E.  Table Game Testing and Certification

17

F.  (Reserved)

18

G.  Table Game Taxes and Fees

19

SUBCHAPTER A

20

GENERAL PROVISIONS

21

Sec.

22

1301A.  (Reserved).

23

1302A.  Regulatory authority.

24

1303A.  Temporary table game regulations.

25

1304A.  Commonwealth resident employment goals.

26

§ 1301A.  (Reserved).

27

§ 1302A.  Regulatory authority.

28

The board shall promulgate regulations:

29

(1)  Establishing standards and procedures for table

30

games and table game devices or associated equipment,

- 98 -

 


1

including standards distinguishing electronic gaming tables,

2

fully automated electronic gaming tables and traditional

3

gaming tables. The standards and procedures shall provide for

4

any new table games or gaming tables and variations or

5

composites of approved table games or gaming tables, provided

6

the board determines that the new table game, gaming table or

7

any variations or composites or other approved table games or

8

gaming tables are suitable for use after a test or

9

experimental period under the terms and conditions as the

10

board may deem appropriate.

11

(2)  Establishing standards and rules to govern the

12

conduct of table games and the system of wagering associated

13

with table games, including the conduct of table games and

14

the system of wagering on electronic gaming tables and fully

15

automated electronic gaming tables.

16

(2.1)  Establishing the method for calculating gross

17

table game revenue and standards for the daily counting and

18

recording of cash and cash equivalents received in the

19

conduct of table games, including the conduct of table games

20

on electronic gaming tables and fully automated electronic

21

gaming tables, and ensuring that internal controls are

22

followed, including observation by employees of the board of

23

that process, the maintenance of financial books and records

24

and the conduct of audits. The board shall consult with the

<--

25

department in establishing these regulations.

26

(3)  Establishing notice requirements pertaining to

27

minimum and maximum wagers on table games. Minimum and

28

maximum wagers may be adjusted by the certificate holder in

29

the normal course of conducting table games, except that

30

changes in minimum wagers at any given gaming table shall not

- 99 -

 


1

apply to players already engaged in wagering at that gaming

2

table when the minimum wager is changed, unless 30 minutes

3

notice is provided at that gaming table.

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 as the board may require.

8

(ii)  Provide specifications approved by the board

9

under section 1207(11) (relating to regulatory authority

10

of board) to integrate and update the licensed facility's

11

surveillance system to cover all areas where table games

12

are conducted. The specifications shall include

13

provisions providing the board and other persons

14

authorized by the board with onsite access to the system

15

or its signal.

16

(iii)  Designate one or more locations within the

17

licensed facility to conduct table games.

18

(iv)  Ensure that visibility in a licensed facility

19

is not obstructed in any way that could interfere with

20

the ability of the certificate holder, the board and

21

other persons authorized under this part or by the board

22

to oversee the surveillance of the conduct of table

23

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 and cash

27

equivalents.

28

(vi)  Equip each operational gaming table with a sign

29

indicating the permissible minimum and maximum wagers at

30

the gaming table.

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1

(vii)  Adopt policies or procedures to prohibit any

2

table game device or associated equipment from being

3

possessed, maintained or exhibited by any person on the

4

premises of a licensed facility except in the areas of a

5

licensed facility where the conduct of table games is

6

authorized or in a restricted area designated to be used

7

for the inspection, service, repair or storage of table

8

game devices or associated equipment by the certificate

9

holder or in an area used for employee training and

10

instruction by the certificate holder.

11

(viii)  Equip all drop boxes in which cash, cash

12

equivalents, fill slips, credit slips or inventory slips

13

are deposited at the gaming tables, and all areas where

14

drop boxes are kept while in use, with two locking

15

devices or keys, of which one locking device or key shall

16

be under the exclusive control of the board, and the

17

second locking device or key shall be under the exclusive

18

control of the certificate holder's designated employees.

19

The drop boxes shall be brought into or removed from an

20

area where table games are conducted or locked or

21

unlocked in accordance with procedures established by the

22

board.

23

(ix)  Designate secure locations for the inspection

24

and storage of table game devices and associated

25

equipment as may be approved by the board.

26

(5)  Establishing the size and uniform color by

27

denomination of all chips used in the conduct of table games,

28

including contests and tournaments, and a policy for the use

<--

29

of promotional or commemorative chips used in the conduct of

30

table games. All types of chips shall be approved by the

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1

board prior to being used for play at a table game at a

2

licensed facility.

3

(5.1)  Establishing the procedure to be used by a

4

certificate holder to determine and extract a rake for the

5

purposes of generating gross table game revenue from

6

nonbanking games. The rake may be calculated as using a

<--

7

percentage or a flat fee methodology.

<--

8

(6)  Establishing minimum standards relating to the

9

acceptance of tips or gratuities by dealers and croupiers at

10

a table game, which shall include:

11

(i)  The requirement that tips or gratuities accepted

12

by dealers and croupiers at banking games be placed in a

13

common pool for complete distribution pro rata among all

14

dealers and croupiers.

15

(ii)  The right of the certificate holder to

16

establish policies under which tips or gratuities

17

accepted by dealers and croupiers at nonbanking games are

18

not required to be pooled and may be retained by the

19

dealers and croupiers.

20

Nothing in this paragraph shall prohibit a certificate holder

21

from adopting a formal policy relating to acceptance of tips

22

and gratuities, provided that the policy meets the minimum

23

standards established by the board under this paragraph.

24

(7)  Establishing the minimal proficiency requirements

25

for individuals to successfully complete a course of training

26

at a gaming school. The regulations shall not prohibit a slot

27

machine licensee from establishing a course of training for

28

its employees or potential employees or prohibit a

29

certificate holder from offering employment to an individual

30

who has not attended or completed a course of instruction at

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1

a gaming school and shall require a slot machine licensee

2

that elects to train its gaming employees or potential table

3

game employees to submit a detailed summary of the training

4

program to the board and to demonstrate the adequacy of the

5

training. The regulations shall prohibit a slot machine

6

licensee from charging its employees or potential employees a

7

fee to complete a course of training.

8

(8)  Permitting certificate holders to request

<--

9

authorization to conduct, and to conduct, tournaments and

10

establishing the practices and procedures governing the

11

conduct of the tournaments. The number of gaming tables used

12

during a contest or tournament shall not be counted toward

13

the maximum number of gaming tables authorized by the

14

certificate holder's table game operation certificate.

15

(8)  Establishing the practices and procedures governing

<--

16

the conduct of tournaments under this chapter.

17

(9)  Establishing minimum standards relating to the

18

extension of credit to a player by a certificate holder.

19

Prior to extending credit, the certificate holder shall

20

consider an individual's financial fitness, including annual

21

income, debt-to-income ratio, prior credit history, average

22

monthly bank balance or level of play.

23

§ 1303A.  Temporary table game regulations.

24

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

25

implementation of this chapter, regulations promulgated by the

26

board shall be deemed temporary regulations which shall expire

27

not later than two years following the publication of the

28

temporary regulation. The board may promulgate temporary

29

regulations not subject to:

30

(1)  Sections 201, 202, 203, 204 and 205 of the act of

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1

July 31, 1968 (P.L.769, No.240), referred to as the

2

Commonwealth Documents Law.

3

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

4

the Regulatory Review Act.

5

(3)  Sections 204(b) and 301(10) of the act of October

6

15, 1980 (P.L.950, No.164), known as the Commonwealth

7

Attorneys Act.

8

(b)  Expiration.--Except for temporary regulations governing

9

the rules of new table games approved by the board, the board's

10

authority to adopt temporary regulations under subsection (a)

11

shall expire two years after the effective date of this section.

12

Regulations adopted after this period shall be promulgated as

13

provided by law.

14

(c)  Temporary regulations.--The board shall begin publishing

15

temporary regulations governing table game rules, licensing of

16

manufacturers and suppliers and surveillance standards in the

17

Pennsylvania Bulletin no later than February 1, 2010.

18

§ 1304A.  Commonwealth resident employment goals.

19

(a)  Employment opportunities.--It is the goal of the General

20

Assembly that the board promote and ensure the availability of

21

employment opportunities for Commonwealth residents in table

22

games and table game-related operations as authorized in this

23

chapter. The board shall work with each certificate holder to

24

ensure that a significant number of Commonwealth residents are

25

employed by a certificate holder relating to table games. It is

26

also the goal of the General Assembly that Commonwealth

27

residents comprise at least 85% of each certificate holder's

28

table game-related employees by the end of the third year

29

following commencement of the conduct of table games at each

30

certificate holder's licensed facility.

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1

(b)  Review.--The board shall conduct an annual review to

2

ascertain each certificate holder's progress in achieving the

3

goals of this section and whether each certificate holder has

4

taken effective and meaningful action to employ Commonwealth

5

residents in table game-related positions at licensed

6

facilities. The first review shall be completed one year

7

following the award of the first table game operation

8

certificate. Each annual review shall contain recommendations

9

which the board determines appropriate and may be combined with

10

any other review or study required by the board under this part.

11

The review shall be submitted to the chairman and minority

12

chairman of the standing committees of the Senate and of the

13

House of Representatives with jurisdiction over this part.

14

SUBCHAPTER B

15

TABLE GAMES AUTHORIZED

16

Sec.

17

1311A.  Authorization to conduct table games.

18

1312A.  Petition requirements.

19

1313A.  Prohibitions.

20

1314A.  Table game authorization hearing process; public input

21

hearings.

22

1315A.  Standard for review of petitions.

23

1316A.  Award of certificate.

24

1316.1A.  Amendment of statement of conditions.

25

1317A.    Table game operation certificate.

26

1318A.    Timing of initial table game authorizations.

27

§ 1311A.  Authorization to conduct table games.

28

(a)  Authorization.--The board may authorize a slot machine

29

licensee to conduct table games, including table game contests

30

and tournaments, and to operate a system of wagering associated

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1

with the conduct of table games at the slot machine licensee's

2

licensed facility. Authorization shall be contingent upon the

3

slot machine licensee's agreement to ensure that slot machine

4

and table game operations will be conducted in accordance with

5

this part and any other conditions established by the board.

6

Nothing in this part shall be construed to create a separate

7

license governing the conduct of table games by licensed

8

entities within this Commonwealth.

9

(b)  Number of authorized gaming tables.--

10

(1)  A Category 1 and Category 2 slot machine licensee

11

awarded a table game operation certificate may operate up to

12

250 gaming tables at any one time at its licensed facility.

13

No more than 75 30% of these gaming tables may be used to

<--

14

play nonbanking games at any one time. Six months following

<--

15

the date of commencement of table game operations, the board

16

may permit a Category 1 or Category 2 certificate holder to

17

increase the number of gaming tables for banking or

18

nonbanking games above the number authorized under this

19

paragraph. The certificate holder shall petition the board

20

for the increase at its licensed facility. The board, in

21

considering the petition, shall take into account the

22

appropriateness of the physical space where the gaming tables

23

will be located and the convenience of the public attending

24

the facility. The board may also take into account the

25

potential benefit to the Commonwealth.

26

(2)  A Category 3 slot machine licensee awarded a table

27

game operation certificate may operate up to 50 gaming tables

28

at any one time at its licensed facility. No more than 15 of

29

these gaming tables may be used to play nonbanking games at

30

any one time.

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1

(3)  Nonbanking gaming tables shall seat a maximum of ten

<--

2

players.

3

(c)  Additional authorization.--Notwithstanding subsection

<--

4

(b), the board and, if authorized by the board under section

5

1321A (relating to authorized locations for operation), the

6

executive director may authorize the certificate holder to

7

exceed the total number of gaming tables authorized in

8

subsection (b) and its table game operation certificate for the

9

purpose of conducting contests or tournaments in accordance with

10

section 1321A.

11

§ 1312A.  Petition requirements.

12

(a)  General rule.--Unless otherwise prohibited under section

13

1313A (relating to prohibitions), a slot machine licensee may

14

seek approval to conduct table games by filing a petition with

15

the board.

16

(b)  Petition contents.--A petition seeking authorization to

17

conduct table games shall include the following:

18

(1)  The name, business address and contact information

19

of the petitioner.

20

(2)  The name and business address, job title and a

21

photograph of each principal and key employee of the

22

petitioner who will be involved in the conduct of table games

23

and who is not currently licensed by the board, if known.

24

(3)  An itemized list of the number of gaming tables and

25

types of table games for which authorization is being sought.

26

(4)  The estimated number of full-time and part-time

27

employment positions that will be created at the licensed

28

facility if table games are authorized and an updated hiring

29

plan pursuant to section 1510(a) (relating to labor hiring

30

preferences) which outlines the petitioner's plan to promote

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1

the representation of diverse groups and Commonwealth

2

residents in the employment positions.

3

(5)  A brief description of the economic benefits

4

expected to be realized by the Commonwealth, its

5

municipalities and its residents if table games are

6

authorized at the petitioner's licensed facility.

7

(6)  The details of any financing obtained or that will

8

be obtained to fund an expansion or modification of the

9

licensed facility to accommodate table games and to otherwise

10

fund the cost of commencing table game operations.

11

(7)  Information and documentation concerning financial

12

background and resources, as the board may require, to

13

establish by clear and convincing evidence the financial

14

stability, integrity and responsibility of the petitioner.

15

(8)  Information and documentation, as the board may

16

require, to establish by clear and convincing evidence that

17

the petitioner has sufficient business ability and experience

18

to create and maintain a successful table game operation. In

19

making this determination, the board may consider the results

20

of the petitioner's slot machine operation, including

21

financial information, employment data and capital

22

investment.

23

(9)  Information and documentation, as the board may

24

require, to establish by clear and convincing evidence that

25

the petitioner has or will have the financial ability to pay

26

the authorization fee under section 1361A (relating to table

27

game authorization fee).

28

(10)  Detailed site plans identifying the petitioner's

29

proposed table game area within the licensed facility.

30

(11)  If the petitioner is a Category 1 or Category 2

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1

slot machine licensee, a waiver, on a form prescribed by the

2

board which is signed by the petitioner and acknowledged by

3

each of the petitioner's principals, of the following rights

4

arising as a result of an amendment or addition to this part

5

that took effect at the same time as the effective date of

6

this section:

7

(i)  the petitioner's right under section 1209(f)

8

(relating to slot machine license fee) or under any

9

contract executed by the applicant and the department

10

under section 1209(c) to receive the return of any

11

portion of the slot machine license fee paid by the

12

petitioner for its slot machine license; and

13

(ii)  the petitioner's right, if any, to sue for the

14

return of any portion of the slot machine license fee

15

paid by the petitioner for its slot machine license.

16

(12)  Other information as the board may require.

17

(c)  Confidentiality.--Information submitted to the board

18

under subsection (b)(6), (7), (9), (10) and (12) may be

19

considered confidential by the board if the information would be

20

confidential under section 1206(f) (relating to board minutes

21

and records).

22

§ 1313A.  Prohibitions.

23

(a)  Slot machine licensee.--No slot machine licensee that is

24

required as a condition of slot machine licensure to make

25

payments to a municipality, municipal authority or other entity

26

for an economic development project, including any project

27

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

28

as Pennsylvania Gaming Economic Development and Tourism Fund

29

Capital Budget Itemization Act of 2007, may submit a petition

30

under section 1312A (relating to petition requirements) until

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1

the requirements of section 1214(a) (relating to specific

2

authority to suspend slot machine license) are met.

3

(b)  Duties of board.--The board shall not accept or approve

4

a petition submitted by any slot machine licensee subject to

5

subsection (a) until the written agreement required by section

6

1214(a) is submitted by the slot machine licensee to the board,

7

which shall ensure the written agreement meets the requirements

8

of section 1214(a) and all conditions relating to the economic

9

development project imposed by the board when awarding the slot

10

machine license to the licensee are satisfied.

11

(c)  Construction.--Nothing in this section shall be

12

construed to relieve a slot machine licensee of its legal

13

obligation to make any required payments referenced under this

14

section if the slot machine licensee elects not to petition the

15

board for authorization to conduct table games.

16

§ 1314A.  Table game authorization hearing process; public input

17

hearings.

18

(a)  General rule.--The board's consideration and resolution

19

of all petitions to conduct table games shall be conducted in

20

accordance with 2 Pa.C.S. (relating to administrative law and

21

procedure) or with procedures adopted by order of the board.

22

Notwithstanding the requirements of 2 Pa.C.S. §§ 504 (relating

23

to hearing and record) and 505 (relating to evidence and cross-

24

examination) as they relate to the conduct of oral hearings, the

25

board may adopt procedures to provide parties before it with a

26

documentary hearing, and the board may resolve disputed material

27

facts without conducting an oral hearing where constitutionally

28

permissible.

29

(b)  Public input hearing requirement.--

30

(1)  Prior to granting a petition for a slot machine

- 110 -

 


1

licensee to conduct table games under this chapter, the board

2

shall hold at least one public input hearing on the matter in

3

the municipality where the petitioner's licensed facility is

4

located.

5

(2)  A list of all witnesses scheduled to testify at a

6

public input hearing shall be posted on the board's Internet

7

website at least seven days prior to the hearing. The list

8

shall be updated at least three days prior to the hearing.

9

Additional witnesses shall be posted on the board's Internet

10

website as they are added to the list.

11

§ 1315A.  Standard for review of petitions.

12

The board shall approve a petition if the petitioner

13

establishes, by clear and convincing evidence, all of the

14

following:

15

(1)  The petitioner's slot machine license is in good

16

standing with the board.

17

(2)  The conduct of table games at the petitioner's

18

licensed facility will have a positive economic impact on the

19

Commonwealth, its municipalities and residents through

20

increased revenues and employment opportunities.

21

(3)  The petitioner possesses adequate funds or has

22

secured adequate financing to:

23

(i)  Fund any necessary expansion or modification of

24

the petitioner's licensed facility to accommodate the

25

conduct of table games.

26

(ii)  Pay the authorization fee in accordance with

27

section 1361A (relating to table game authorization fee).

28

(iii)  Commence table game operations at its licensed

29

facility.

30

(4)  The petitioner has the financial stability,

- 111 -

 


1

integrity and responsibility to conduct table games.

2

(5)  The petitioner has sufficient business ability and

3

experience to create and maintain a successful table game

4

operation.

5

(6)  The petitioner's proposed internal and external

6

security and proposed surveillance measures within the area

7

of the licensed facility where the petitioner seeks to

8

conduct table games are adequate.

9

(7)  The petitioner agrees that the number of slot

10

machines in operation at its licensed facility on October 1,

11

2009, will not be permanently reduced in order to install

12

gaming tables.

13

(8)  The petitioner has executed the waiver required

14

under section 1312A(b)(11) (relating to petition

15

requirements) and provided any other information required by

16

section 1312A(b).

17

§ 1316A.  Award of certificate.

18

Upon approval of a petition, the board shall award a table

19

games operation certificate to the petitioner. Awarding of a

20

table game operation certificate prior to the payment in full of

21

the authorization fee required by section 1361A (relating to

22

table game authorization fee) shall not relieve the petitioner

23

from complying with the provisions of section 1361A.

24

§ 1316.1A.  Amendment of statement of conditions.

25

(a)  Amendment.--Upon awarding a table game operation 

26

certificate, the board shall amend the slot machine licensee's

27

statement of conditions governing the slot machine license to

28

include conditions pertaining to the requirements of this part.

29

If the slot machine licensee is a Category 1 or Category 2 slot

30

machine licensee, amendments to the statement of conditions

- 112 -

 


1

shall include a requirement that the slot machine licensee

2

acknowledge and honor the waiver of rights required to be filed

3

under section 1312A(b)(11) (relating to petition requirements).

4

(b)  Sanctions.--A certificate holder that fails to abide by

5

this part or any condition contained in the licensee's statement

6

of conditions in the conduct of table games shall be subject to

7

board-imposed administrative sanctions or other penalties

8

authorized under this part.

9

§ 1317A.  Table game operation certificate.

10

The following shall apply:

11

(1)  A table game operation certificate shall be in

12

effect unless:

13

(i)  Suspended or revoked by the board consistent

14

with the requirements of this part.

15

(ii)  The slot machine license held by the

16

certificate holder is suspended, revoked or not renewed

17

by the board consistent with the requirements of this

18

part.

19

(iii)  The certificate holder relinquishes or does

20

not seek renewal of its slot machine license.

21

(2)  The table game operation certificate shall include

22

an itemized list by type of table game and the number of

23

gaming tables approved by the board and permitted in the

24

certificate holder's licensed facility. The certificate

25

holder may increase or decrease the number of gaming tables

26

permitted at the licensed facility, change the type of table

27

games played at a particular gaming table or change the

28

configuration of gaming tables upon notice to the board and

29

approval by a designated employee of the board. Unless

30

approved by the board, the total number of gaming tables in

- 113 -

 


1

operation at the licensed facility may not exceed the number

2

authorized in the table games operation certificate.

3

(3)  A certificate holder shall be required to update the

4

information in its initial table games petition at times

5

prescribed by the board.

6

§ 1318A.  Timing of initial table game authorizations.

7

The board shall approve or deny a petition within 60 days

8

following receipt of the petition.

9

SUBCHAPTER C

10

CONDUCT OF TABLE GAMES

11

Sec.

12

1321A.  Authorized locations for operation.

13

1322A.  Commencement of table game operations.

14

1323A.  Training of employees and potential employees.

15

1323.1A.  Training equipment.

16

1324A.  Condition of continued operation.

17

1325A.  Table game accounting controls and audit protocols.

18

1326A.  Cash equivalents.

19

1327A.  Other financial transactions.

20

1328A.  Key employees and occupation permits.

21

1329A.  Application of Clean Indoor Air Act.

22

1329.1A.  Application of Liquor Code.

23

§ 1321A.  Authorized locations for operation.

24

(a)  Restriction.--A certificate holder shall only be

25

permitted to operate table games at the licensed facility, a

26

temporary facility authorized under subsection (a.1) or an area

27

authorized under subsection (b).

28

(a.1)  Temporary facilities.--The board may permit a

29

certificate holder to conduct table games at a temporary

30

facility which is physically connected to, attached to or

- 114 -

 


1

adjacent to a licensed facility for a period not to exceed 24

2

months.

3

(b)  Powers and duties of board.--Upon request made by a

4

certificate holder, the board may determine the suitability of a

5

hotel for the conduct of table games. The board may authorize

6

the executive director to designate specific areas of a licensed

7

facility, other than the gaming floor, or specific areas of a

8

hotel, including conference rooms, ballrooms or other rooms, in

9

which the certificate holder may conduct table game contests or

<--

10

tournaments. No certificate holder may be approved to conduct

11

table games in a licensed facility or a hotel unless the areas

12

to be designated are equipped with adequate security and

13

surveillance equipment to ensure the integrity of the conduct of

14

a table game contest or tournament. The certificate holder shall

15

notify the board of the number of gaming tables that the

16

certificate holder intends to operate during a contest or

17

tournament, and the board shall designate an employee of the

18

board to approve or deny the request. An authorization granted

19

under this section may not:

20

(1)  Impose any criteria or requirements regarding the

21

contents or structure of a hotel which are unrelated to the

22

conduct of table games.

23

(2)  Authorize the placement or operation of slot

24

machines in a hotel.

25

(3)  Count the number of gaming tables to be utilized in

26

a contest or tournament toward the number of approved gaming

27

tables in the table game operation certificate.

28

§ 1322A.  Commencement of table game operations.

29

A certificate holder may not operate or offer table games for

30

play at a licensed facility until the board determines that:

- 115 -

 


1

(1)  The certificate holder is in compliance with the

2

requirements of this part.

3

(2)  The certificate holder's internal controls and audit

4

protocols are sufficient to meet the requirements of section

5

1325A (relating to table game accounting controls and audit

6

protocols).

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 is in compliance with or has

17

complied with section 1361A (relating to table game

18

authorization fee).

19

§ 1322.1A.  Table game tournaments.

<--

20

(a)  General rule.--A certificate holder may conduct table

21

game tournaments at a licensed facility. Except as otherwise

22

provided in subsection (b), gaming tables used to conduct

23

tournaments shall not be exempt when calculating the maximum

24

allowable number of gaming tables authorized under section

25

1311A(b) (relating to authorization to conduct table games) at

26

the licensed facility.

27

(b)  Exception.--Upon written request, the executive director

28

may grant a certificate holder the authority to conduct a table

29

game tournament using gaming tables that exceed the maximum

30

allowable number of gaming tables authorized at the licensed

- 116 -

 


1

facility.

2

(c)  Schedule.--Each certificate holder seeking an exception

3

under subsection (b) shall submit with its written request a

4

proposed schedule of table game tournaments for which the

5

certificate holder seeks the exception. The proposed schedule

6

may be a weekly, monthly or annual schedule and shall include

7

information identifying the proposed location, date and time of

8

each tournament, the proposed entry fee and any other fees

9

associated with the tournament, and the maximum allowable number

10

of participants in each tournament. Submission of a proposed

11

schedule shall not require the certificate holder to conduct all

12

table game tournaments contained in the schedule. A certificate

13

holder may not conduct a table game tournament at a location,

14

date or time not contained in the schedule approved by the

15

executive director.

16

(d)  Limitations.--The following shall apply to any schedule

17

submitted by a certificate holder pursuant to subsection (c):

18

(1)  Table game tournaments at Category 1 and Category 2

19

licensed facilities shall be limited to 30% of the nonbanking

20

gaming tables authorized at the licensed facility with a

21

maximum of ten players per table, unless an increase in the

22

number of tables is granted by the executive director upon

23

good cause shown.

24

(2)  Table game tournaments at Category 3 licensed

25

facilities shall be limited to 15 gaming tables with a

26

maximum of ten players per table.

27

(3)  Tournaments required to be scheduled under

28

subsection (c) submitted by a Category 3 licensed facility

29

shall be limited to a maximum of one day per month.

30

(e)  Amendment or modification of schedule.--A certificate

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1

holder may seek to amend or modify the approved schedule at any

2

time by filing a written request with the executive director.

3

§ 1323A.  Training of employees and potential employees.

4

(a)  Adequacy.--A slot machine licensee that elects to offer

5

table game training to its employees or potential employees

6

shall submit to the board a detailed summary of the training

7

program demonstrating the adequacy of the training.

8

(b)    Authorization.--Notwithstanding any provision of this

9

part to the contrary, the executive director of the board may

10

authorize a slot machine licensee to conduct table game training

11

and instruction for the slot machine licensee's employees and

12

potential employees.

13

(c)  Effect.--Authorization granted under subsection (b)

14

shall do all of the following:

15

(1)  Permit a slot machine licensee to conduct training

16

at a location within the licensed facility or at another

17

location.

18

(2)  Require any training authorized on the gaming floor

19

to be conducted in a specified area of the gaming floor that

20

is clearly identified as a training area and not accessible

21

to the public

22

(3)  Designate a secure area at the location where the

23

training will take place for the storage of table game

24

devices and associated equipment used for training.

25

(4)  Limit the number of table game devices and

26

associated equipment to that necessary to conduct training.

27

(5)  Prohibit the payment of any cash, cash equivalent or

28

other prize to an individual as a result of play conducted

29

during training or play conducted utilizing table game

30

devices or associated equipment obtained under section

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1

1323.1A (relating to training equipment).

2

(6)  Prohibit a slot machine licensee from charging its

3

employees or potential employees a fee to participate in the

4

training.

5

(c) Rescission or revocation.—-An authorization granted by

6

the executive director under subsection (b) may be rescinded or

7

revoked by the executive director or the board without cause.

8

The slot machine licensee shall be given notice that the

9

authorization has been rescinded or revoked and afforded a

10

reasonable time to take all necessary actions required by the

11

executive director or the board.

12

(d)  Prohibition.--The board shall be prohibited from

13

charging a fee as a condition of receiving authorization under

14

subsection (b).

15

§ 1323.1 A.  Training equipment.

16

(a)    Acquisition—-Notwithstanding section 1317 (relating to

17

supplier licenses) or section 1317.1 (relating to manufacturer

18

licenses), for a one-year period following the effective date of

19

this section, a slot machine licensee may purchase, lease or

20

otherwise obtain table game devices or associated equipment

21

that will be used for the sole purpose of conducting table game

22

training authorized under section 1323A (relating to initial

23

training of employees and potential employees) from a

24

manufacturer or supplier, whether or not licensed or otherwise

25

approved by the board under this part, or from an affiliate of

26

the slot machine licensee or a gaming facility in another

27

jurisdiction.

28

(b)    Identification.--Table game devices or associated

29

equipment obtained by a slot machine licensee pursuant to

30

subsection (a) shall have an identification number which shall

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1

be kept on file with the board and the table game devices or

2

associated equipment shall be clearly identified as being used

3

for training purposes only.

4

(c)  Prohibition.—-

5

(1)  Table game devices and associated equipment obtained

6

pursuant to this section shall be prohibited from being used

7

on the gaming floor unless being used for training purposes

8

pursuant to section 1323A(c)(2).

9

(2)  The payment of any cash, cash equivalent or other

10

prize to an individual from the play of a table game on table

11

game devices or associated equipment obtained pursuant to

12

this section is prohibited.

13

§ 1324A.  Condition of continued operation.

14

As a condition of continued operation, a certificate holder

15

shall agree to maintain all books, records and documents

16

pertaining to table games in a manner and location within this

17

Commonwealth as approved by the board. All books, records and

18

documents related to table games shall:

19

(1)  be segregated by separate accounts within the slot

20

machine licensee's books, records and documents, except for

21

any books, records or documents that are common to both slot

22

machine and table game operations;

23

(2)  be immediately available for inspection upon request

24

of the board, the bureau, the department, the Pennsylvania

25

State Police or the Attorney General, or agents thereof,

26

during all hours of operation of the licensed facility in

27

accordance with regulations promulgated by the board; and

28

(3)  be maintained for a period as the board, by

29

regulation, may require.

30

§ 1325A.  Table game accounting controls and audit protocols.

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1

(a)  Approval.--Prior to the commencement of table game

2

operations, a certificate holder shall submit to the board for

3

approval all proposed site plans, internal control systems and

4

audit protocols for the certificate holder's table game

5

operations.

6

(b)  Minimum requirements.--A certificate holder's internal

7

controls and audit protocols shall:

8

(1)  Safeguard its assets and revenues, including the

9

recording of cash, cash equivalents and evidences of

10

indebtedness related to table games.

11

(2)  Provide for reliable records, accounts and reports

12

of any financial event that occurs in the conduct of table

13

games, including reports to the board related to table games.

14

(3)  Provide for accurate and reliable financial records

15

related to table games.

16

(4)  Establish procedures for all the following:

17

(i)  The receipt, storage and disbursal of chips,

18

cash and cash equivalents used in table games.

19

(ii)  Conversion of cash equivalents to cash.

20

(iii)  The redemption of chips and other

21

representations of value used in table games and the

22

payment of winnings and prizes.

23

(iv)  The recording of financial transactions

24

pertaining to table games.

25

(5)  Establish procedures for the collection and security

26

of cash and cash equivalents at the gaming tables.

27

(6)  Establish procedures for the recording of and

28

transfer of chips and cash equivalents between the gaming

29

tables and the cashier's cage.

30

(7)  Establish procedures for the transfer of drop boxes

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1

from the gaming tables to the count room.

2

(8)  Establish procedures and security for the counting

3

and recording of gross table game revenue.

4

(9)  Establish procedures for the security, storage and

5

recording of cash and cash equivalents utilized in table

6

games.

7

(10)  Establish procedures and security standards for the

8

handling and storage of table game devices and associated

9

equipment used in connection with table games.

10

(11)  Establish procedures and rules governing the

11

conduct of each table game and the responsibility of

12

employees related to table games.

13

(12)  Establish procedures for the collection and

14

recording of revenue from poker and other table games when

15

played as nonbanking games, including the type of rake

16

utilized and the methodology for calculating the amount of

17

permissible rake.

18

(13)  Ensure that any wagering permitted in the play of a

19

table game is implemented only in accordance with the

20

certificate holder's general or specific authorization, as

21

approved by the board.

22

(14)  Ensure the proper and timely accounting of gross

23

table game revenue and the calculation of gross table game

24

revenue, fees, taxes and assessments based on the gross table

25

game revenue.

26

(15)  Maintain accountability for assets, ensure that

27

recorded accountability for assets is compared with actual

28

assets at reasonable intervals and ensure that appropriate

29

action is taken with respect to any discrepancies.

30

(16)  Ensure that all functions, duties and

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1

responsibilities related to table game operations are

2

appropriately segregated and performed in accordance with

3

sound financial practices by qualified employees.

4

(17)  Permit use of its licensed facility by the board,

5

the bureau and other persons authorized under this part or by

6

the board to facilitate their ability to perform regulatory

7

and oversight functions under this chapter.

8

(c)  Submission to board.--The submission required under

9

subsection (a) shall include a detailed description of the

10

certificate holder's administrative and accounting procedures

11

related to table games, including its written system of internal

12

controls. Each written system of internal controls shall

13

include:

14

(1)  An organizational chart depicting appropriate

15

functions and responsibilities of employees involved in both

16

slot machine operations and table game operations.

17

(2)  A description of the duties and responsibilities of

18

each position shown on the organizational chart.

19

(3)  The record retention policy of the certificate

20

holder.

21

(4)  The procedure to be utilized to ensure that assets

22

are safeguarded, including mandatory count procedures.

23

(5)  A detailed narrative description of the

24

administrative and accounting procedures in place to ensure

25

compliance with the requirements of section 1326A (relating

26

to cash equivalents).

27

(6)  A statement signed by the certificate holder's chief

28

financial officer or other competent person attesting that

29

the signatory believes, in good faith, that the system

30

satisfies the requirements of this section.

- 123 -

 


1

(d)  Review.--Prior to authorizing a certificate holder to

2

conduct table games, the board shall review the system of

3

internal controls submitted under subsection (c) to determine

4

whether it conforms to the requirements of this part and whether

5

it provides adequate and effective controls for the conduct of

6

table games.

7

§ 1326A.  Cash equivalents.

8

(a)  Checks.--

9

(1)  A certificate holder may accept a check from a

10

patron in exchange for cash or chips. The certificate holder

11

shall present each check for payment to the financial

12

institution upon which the check is drawn within ten days of

13

receipt by the certificate holder. No third party checks

14

shall be permitted.

15

(2)  Notwithstanding any law to the contrary, checks

16

cashed in conformity with the requirements of this section or

17

13 Pa.C.S. Div. 3 (relating to negotiable instruments) shall

18

be valid instruments, enforceable at law in the courts of

19

this Commonwealth. Any check cashed, transferred, conveyed,

20

given or accepted in violation of this section shall be

21

invalid and unenforceable for the purposes of collection by a

22

certificate holder but shall be included in the calculation

23

of gross table game revenue.

24

(b)  Notice of fees.--All fees charged for the conversion of

25

cash equivalents shall be disclosed.

26

(c)  Payment of cash equivalents.--Other than credit extended

27

by a certificate holder, an instrument that constitutes a cash

28

equivalent shall be made payable to the slot machine licensee,

29

to the bearer or to cash.  An instrument made payable to a third

30

party shall not be considered a cash equivalent and shall be

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1

prohibited.

2

§ 1327A.  Other financial transactions.

3

(a)  Credit.--Notwithstanding section 1504 (relating to

4

wagering on credit), a certificate holder may extend interest-

<--

5

free, unsecured credit to patrons for the purpose of playing

6

slot machines or table games in accordance with this section;

7

however, a certificate holder shall not accept credit cards,

8

charge cards or debit cards from a patron or player for the

9

exchange or purchase or chips, slot machine or table game

10

credits or for an advance of coins or currency to be utilized by

11

a player to play slot machine or table games. No credit card

<--

12

advance machine may be placed on the gaming floor.

13

(b)  Credit applications.-–Each application for credit

14

submitted by a patron to a certificate holder shall be

15

maintained in a confidential credit file. The application shall

16

include the patron's name, address, telephone number and

17

comprehensive bank account information; the requested credit

18

limit; the patron's approximate amount of current indebtedness;

19

the amount and source of income in support of the application;

20

the patron's signature on the application; a certification of

21

truthfulness; and any other information deemed relevant by the

22

certificate holder. The certificate holder shall notify each

23

applicant that, as a condition of receiving credit, the

24

certificate holder will verify identity and indebtedness

25

information through a credit bureau or casino credit bureau and,

26

if appropriate, through direct contact with other slot machine

27

licensees.

28

(c)  Credit application verification.-–Prior to approving an

29

application for credit, a certificate holder shall verify:

30

(1)  The identity, creditworthiness and indebtedness

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1

information of the applicant by conducting a comprehensive

2

review of the information submitted with the application and

3

any information regarding the applicant's credit activity at

4

other licensed facilities which the certificate holder may

5

obtain through a casino credit bureau and, if appropriate,

6

through direct contact with other slot machine licensees.

7

(2)  That the applicant's name is not included on an

8

exclusion list under section 1514 (relating to regulation

9

requiring exclusion of certain persons) or 1516 (relating to

10

list of persons self excluded from gaming activities) or the

11

voluntary credit suspension list under subsection (h).

12

(d)  Establishment of credit.-–Upon completion of the

13

verification required under subsection (c), a certificate holder

14

may grant a patron credit. The certificate holder shall

15

establish a credit limit for each patron to whom the certificate

16

holder grants credit. Each applicant's credit limit shall be

17

approved by two or more employees of the certificate holder

18

holding the job positions of credit manager, assistant credit

19

manager, credit shift manager, credit executive or a key

20

employee in a direct reporting line above the manager or credit

21

manager. The approval shall be recorded in the applicant's

22

credit file and shall include the reasons and information relied

23

on for the approval of credit and verification by the employees

24

approving the applicant's credit limit. Increases to an

25

individual's credit limit may be approved following a written

26

request from the individual and reverification of an

27

individual's credit information.

28

(e)  Recordkeeping.-–Detailed information pertaining to all

29

transactions affecting an individual's outstanding indebtedness

30

to a certificate holder shall be recorded in chronological order

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1

in the individual's credit file.

2

(f)  Reduction or suspension of credit.-–A certificate holder

3

may reduce an individual's credit limit or suspend credit to an

4

individual for any reason.

5

(g)  Voluntary credit suspension.--An individual may request

6

a certificate holder to suspend the individual's credit. Each

7

certificate holder shall inform the board when an individual

8

requests a suspension of credit and shall provide the board with

9

all information necessary to maintain the voluntary credit

10

suspension list under subsection (h).

11

(h)  Voluntary credit suspension list.--The board shall

12

maintain a voluntary credit suspension list of all individuals

13

who have requested suspension of credit privileges and shall

14

provide the list on a continuous basis to the credit department

15

of each certificate holder. An individual may request placement

16

on the voluntary credit suspension list by submitting to the

17

board the individual's name, address and date of birth. The

18

individual does not need to provide a reason for the request.

19

Notwithstanding any other provision of law to the contrary, the

20

board's list of individuals who have had credit privileges

21

voluntarily suspended shall be confidential, and neither the

22

board nor the credit department of a certificate holder shall

23

divulge the name of any individual on this list to any person or

24

entity other than those provided for in this subsection. To be

25

removed from the list, the individual shall submit a request to

26

the board. The board shall remove the individual from the list

27

and inform the credit department of each certificate holder not

28

later than three business days after the board's receipt of the

29

request.

30

(i)  Liability.--A certificate holder or employee thereof

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1

shall not be liable to any individual on the voluntary credit

2

suspension list or to any other party in any judicial proceeding

3

for any harm, monetary or otherwise, which may arise as a result

4

of:

5

(1)  the failure of a certificate holder to restore

6

credit privileges to an individual on the voluntary credit

7

suspension list; or

8

(2)  otherwise permitting an individual on the voluntary

9

credit suspension list to engage in gaming activity in the

10

licensed facility while on the voluntary credit suspension

11

list.

12

(j)  Tax liability.--Draws against unsecured credit extended

13

to patrons pursuant to this section which become uncollectible

14

may not be claimed by a certificate holder as a deduction,

15

credit or any other type of reduction or offset against any tax

16

imposed by this part or the act of March 4, 1971 (P.L.6, No.2),

17

known as the Tax Reform Code of 1971.

18

§ 1328A.  Key employees and occupation permits.

19

Nothing in this part shall be construed to require any

20

individual who holds a principal license, a key employee license

21

or gaming employee license under Chapter 13 (relating to

22

licensees) to obtain a separate license or permit to be employed

23

in a certificate holder's table game operation authorized under

24

this chapter.

25

§ 1329A.  Application of Clean Indoor Air Act.

26

For the purpose of section 3(b)(11) of the act of June 13,

27

2008 (P.L.182, No.27), known as the Clean Indoor Air Act, the

28

term "gaming floor" shall include the areas of any licensed

29

facility where the slot machine licensee is authorized to place

30

and operate slot machines or conduct table games, except such

- 128 -

 


1

areas off the gaming floor where contests or tournaments are

2

conducted unless smoking is otherwise permitted in such areas.

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 and associated equipment testing and

13

certification standards.

14

§ 1341A.  Table game device and associated equipment testing and

15

certification standards.

16

(a)  Expansion of independent testing and certification

17

facility.--Within one year of the effective date of this

18

section, the board shall expand the independent testing and

19

certification facility created under section 1320(b) to include

20

the testing and certification of table game devices and

21

associated equipment. Costs associated with the expansion of the

22

facility shall be assessed on manufacturers licensed to

23

manufacture table game devices or associated equipment under

24

this part in accordance with a schedule adopted by the board.

25

The expanded facility shall be made available to each table game

26

device manufacturer and supplier as determined by the board.

27

(b)  Use of other state standards.--The board may determine

28

whether the table game device testing and certification

29

standards of another jurisdiction within the United States in

30

which a manufacturer licensed pursuant to section 1317.1

- 129 -

 


1

(relating to manufacturer licenses) to manufacture table game

2

devices or associated equipment used in connection with table

3

games is licensed are comprehensive and thorough and provide

4

similar adequate safeguards as those required by this part. If

5

the board makes that determination, it may permit the

6

manufacturer appropriately licensed pursuant to section 1317.1

7

to deploy table game devices or associated equipment it

8

manufactures which have met the table game device testing and

9

certification standards in another jurisdiction without

10

undergoing the full testing and certification process by the

11

board's independent testing and certification facility.

12

SUBCHAPTER F

13

(RESERVED)

14

SUBCHAPTER G

15

TABLE GAME TAXES AND FEES

16

Sec.

17

1361A.  Table game authorization fee.

18

1362A.  Table game taxes.

19

1363A.  Local share assessment.

20

§ 1361A.  Table game authorization fee.

21

(a)  Amount of authorization fee.--

22

(1)  A Category 1 or a Category 2 slot machine licensee

23

that submits a petition for a table game operation

24

certificate under section 1312A (relating to petition

25

requirements) on or before June 1, 2010, shall pay a one-time

26

nonrefundable authorization fee in the amount of $16,500,000.

27

A Category 1 or a Category 2 slot machine licensee that

28

submits a petition for a table game operation certificate

29

under section 1312A after June 1, 2010, shall pay a one-time

30

nonrefundable authorization fee in the amount of $24,750,000.

- 130 -

 


1

(2)  A Category 3 slot machine licensee that submits a

2

petition for a table game operation certificate under section

3

1312A on or before June 1, 2010, shall pay a one-time

4

nonrefundable authorization fee in the amount of $7,500,000.

5

A Category 3 slot machine licensee that submits a petition

6

for a table game operation certificate under section 1312A

7

after June 1, 2010, shall pay a one-time nonrefundable

8

authorization fee in the amount of $11,250,000.

9

(3)  Notwithstanding paragraphs (1) and (2), the holder

10

of a Category 1 or Category 3 slot machine license issued

11

after June 1, 2010, that submits a petition for a table game

12

operation certificate shall pay a one-time nonrefundable

13

authorization fee in the amount of $16,500,000 or $7,500,000,

14

respectively.

15

(4)  A table game operation certificate shall not be

16

subject to renewal or payment of an additional authorization

17

fee.

18

(b)    Payment of fee.--A slot machine licensee that submits a

19

petition on or before June 1, 2010, shall pay the required

20

authorization fee on or before June 1, 2010. The board may allow

21

the fee to be paid in installments, provided all installments

22

are paid on or before June 1, 2010. In that event, the board and

23

the slot machine licensee shall enter into a written agreement

24

setting forth the terms of payment.

25

(c)  Failure to pay by deadline.--If a petitioner or

26

certificate holder fails to pay the required authorization fee

27

in full by June 1, 2010, the board shall impose a penalty and

28

may grant the petitioner or certificate holder up to a six-month

29

extension to pay the authorization fee or any remaining portion

30

of the authorization fee and the penalty. The board shall

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1

require the petitioner or certificate holder to make weekly

2

payments until the fee and penalty are paid in full.

3

(d)  Suspension of certificate.--The board shall suspend the

4

table game operation certificate if the certificate holder fails

5

to pay the total authorization fee and the penalty prior to the

6

expiration of an extension period granted under subsection (c).

7

The suspension shall remain in effect until final payment is

8

made.

9

(e)  (Reserved).

10

(f)  Deposit of fees.–-Notwithstanding section 1208 (relating

11

to collection of fees and fines), all table game authorization

12

fees or penalties received by the board under this subchapter;

13

all table game device and associated equipment manufacturer and

14

supplier license fees; all table game device or associated

15

equipment manufacturer and supplier renewal fees; and fees for

16

licenses issued under Chapter 16 (relating to junkets) shall be

17

deposited in the General Fund.

18

§ 1362A.  Table game taxes.

19

(a)  Imposition.--

20

(1)  Except as provided in paragraphs (2) and (3), each

21

certificate holder shall report to the department and pay

22

from its daily gross table game revenue, on a form and in the

23

manner prescribed by the department, a tax of 12% of its

24

daily gross table game revenue.

25

(2)  In addition to the tax payable under paragraph (1),

26

each certificate holder shall report to the department and

27

pay from its daily gross table game revenue, on a form and in

28

the manner prescribed by the department, a tax of 34% of its

29

daily gross table game revenue from each table game played on

30

a fully automatic electronic gaming table.

- 132 -

 


1

(3)  Until July 1, 2011, the The tax reported and payable

<--

2

under paragraph (1) by each certificate holder shall be 14%

<--

3

of daily gross table game revenue for a period of two years

<--

4

following commencement of table games operations at its

5

licensed facility.

6

(b)  Deposits and distributions.-–

7

(1)  The tax imposed under subsection (a) shall be

8

payable to the department on a weekly basis and shall be

9

based upon gross table game revenue derived during the

10

previous week.

11

(2)  All funds owed to the Commonwealth under this

12

section shall be held in trust for the Commonwealth by the

13

certificate holder until the funds are paid to the

14

department. Unless otherwise agreed to by the board, a

15

certificate holder shall establish a separate bank account

16

into which gross table game revenue shall be deposited and

17

maintained until such time as the funds are paid to the

18

department under this section or paid into the fund under

19

section 1363A(a) (relating to local share assessment).

20

(3)  The tax imposed under subsection (a) shall be

21

deposited into the General Fund.

22

(c)  Deposits for property tax relief.--If, on the last day

23

of a fiscal year the balance of the Budget Stabilization Reserve

24

Fund established pursuant to section 1701-A of the act of April

25

9, 1929 (P.L.343, No.176), known as The Fiscal Code, exceeds

26

$750,000,000, as certified by the Secretary of the Budget, the

27

deposits made into the General Fund pursuant to subsection (a)

28

shall cease and thereafter be deposited into the Property Tax

29

Relief Fund established pursuant to 4 Pa.C.S. § 1409 (relating

30

to Property Tax Relief Fund).

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1

§ 1363A.  Local share assessment.

2

(a)  Required payment.--In addition to the tax imposed under

3

section 1362A (relating to table game taxes), each certificate

4

holder shall pay on a weekly basis and on a form and in a manner

5

prescribed by the department a local share assessment into a

6

restricted receipts account established within the fund. All

7

funds owed to a county or municipality under this section shall

8

be held in trust by the certificate holder until the funds are

9

paid into the account. Funds in the account are hereby

10

appropriated to the department on a continuing basis for the

11

purposes set forth in this section.

12

(b)  Distributions to counties.--The department shall make

13

quarterly distributions from the local share assessments

14

deposited into the fund under subsection (a) to counties,

15

including home rule counties, hosting a licensed facility

16

authorized to conduct table games under this chapter in

17

accordance with the following:

18

(1)  If the licensed facility is a Category 1 licensed

19

facility located at a harness racetrack and the county,

20

including a home rule county, in which the licensed facility

21

is located is:

22

(i)  A county of the third class:  50% of the

23

licensed facility's local share assessment shall be added

24

to and distributed with the funds distributed under

25

section 1403(c)(2)(i)(D) (relating to establishment of

26

State Gaming Fund and net slot machine revenue

27

distribution).

28

(ii)  A county of the second class A:  50% of the

29

licensed facility's local share assessment shall be

30

distributed to the county.

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1

(iii)  A county of the fourth class:  50% of the

2

licensed facility's local share assessment shall be added

3

to the funds in the restricted receipts account

4

established pursuant to section 1403(c)(2)(i)(E) for

5

distribution with those funds.

6

(iv)  A county of the fifth class:  50% of the

7

licensed facility's local share assessment shall be added

8

to the funds in the restricted receipts account

9

established pursuant to section 1403(c)(2)(i)(F) for

10

distribution with those funds.

11

(2)  If the facility is a Category 1 licensed facility

12

that is located at a thoroughbred racetrack and the county in

13

which the licensed facility is located is:

14

(i)  A county of the second class A:  50% of the

15

licensed facility's local share assessment shall be

16

distributed to the county to be further distributed as

17

grants to a nonprofit hospital in a first class township

18

that is contiguous to the municipality in which the

19

licensed facility is located. If the nonprofit hospital

20

ceases to exist, 50% of the licensed facility's local

21

share assessment shall be distributed to the county in

22

which the licensed facility is located.

23

(ii)  Except as set forth in subparagraph (iii), a

24

county of the third class:  50% of the licensed

25

facility's local share assessment shall be distributed to

26

the county to be used solely to fund the establishment of

27

a county violent crime task force to reduce gang

28

violence, gun trafficking and violence and drug-related

29

crimes in the county. The district attorney shall

30

appoint, direct and coordinate the operations and

- 135 -

 


1

personnel of the task force.

2

(iii)  A county of the third class which is also a

3

home rule county:  100% of the licensed facility's local

4

share assessment shall be distributed to a community

5

college that is established in the county after the

6

effective date of this subparagraph and prior to January

7

1, 2014, to be used by the community college for

8

organizational, administrative, operating and capital

9

expenditures and the payment of principal, interest and

10

expenses related to indebtedness, subject to the

11

following:

12

(A)  Until January 1, 2014, or until a community

13

college is established after the effective date of

14

this subparagraph prior to January 1, 2014, whichever

15

occurs first, 100% of the licensed facility's local

16

share assessment shall be distributed to the county

17

redevelopment authority to be deposited and

18

maintained by the county redevelopment authority in a

19

restricted receipts account. The funds may be

20

invested by the county redevelopment authority as

21

permitted by law, and any interest earned on the

22

funds and investment income derived from the funds

23

shall be deposited into the restricted receipts

24

account. The funds in the restricted receipts account

25

shall be distributed as provided in clause (B) or

26

used as provided in clause (C), as applicable.

27

(B)  If a community college is established in the

28

county following the effective date of this

29

subparagraph and prior to January 1, 2014, the funds

30

in the restricted receipts account established under

- 136 -

 


1

clause (A) shall be distributed in their entirety by

2

the county redevelopment authority to the community

3

college no later than 60 days following the date of

4

the establishment of the community college.

5

(C)  If a community college is not established in

6

the county following the effective date of this

7

subparagraph and prior to January 1, 2014, beginning

8

January 1, 2014, 100% of the licensed facility's

9

local share assessment shall be distributed to the

10

county redevelopment authority to be deposited into

11

the restricted receipts account established under

12

clause (A) and all funds in the restricted receipts

13

account shall be used by the county redevelopment

14

authority for a revolving loan program available to

15

municipalities within the county for infrastructure

16

projects, including, but not limited to, water,

17

sewer, storm water management, flood control, roads,

18

broadband Internet access, site remediation and

19

public utility infrastructure in areas other than a

20

public utility's own facilities. The county

21

redevelopment authority may use funds from the

22

revolving loan program for expenses related to the

23

cost to administer the revolving loan program in an

24

amount not in excess of 0.5% of the revolving loan

25

program portfolio in a given calendar year. A

26

municipality may not use funds received under the

27

revolving loan program for general budget or

28

operating expenses.  The county redevelopment

29

authority shall develop loan program criteria and

30

guidelines consistent with the provisions of this

- 137 -

 


1

clause.

2

(D)  For purposes of this subparagraph, a

3

community college shall be considered to be

4

established on the date on which the proposed

5

community college plan is approved by the State Board

6

of Education within the meaning of section 1903-A(c)

7

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

8

as the Public School Code of 1949, notwithstanding

9

the fact that a board of trustees of the community

10

college may not have yet been appointed by the

11

governing bodies of the local sponsor of the

12

community college.

13

(3)  If the facility is a Category 2 licensed facility

14

and if the county in which the licensed facility is located

15

is:

16

(i)  A county of the first class:  100% of the

<--

17

licensed facility's local share assessment shall be added

18

to and distributed with the funds distributed under

19

section 1403(c)(2)(iii)(A).

20

(i)  A county of the first class:  100% of each

<--

21

licensed facility's local share assessment shall be

22

distributed as follows:

23

(A)  50% of each licensed facility's local share

24

assessment to the Department of Community and

25

Economic Development for grants to nonprofit

26

organizations and governmental agencies for programs

27

that will preserve, improve, develop and promote

28

education, child welfare services, crime prevention,

29

health care clinics, workforce development and the

30

arts within the county. Notwithstanding any other

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1

provision of law, funds from licensed gaming entities

2

located within a county of the first class may not be

3

distributed outside of a county of the first class.

4

For purposes of this clause, the term "governmental

5

agencies" shall include a school district of the

6

first class and agencies of a city of the first

7

class.

8

(B)  50% of each licensed facility's local share

9

assessment shall be deposited into restricted

10

receipts accounts, segregated by licensed facility,

11

within the Department of Community and Economic

12

Development to be used exclusively for grants to

13

eligible applicants for community improvement

14

projects, health and safety projects and public

15

interest projects subject to the following:

16

(I)  The Department of Community and Economic

17

Development shall establish separate restricted

18

receipts accounts corresponding to each licensed

19

facility within the county.

20

(II)  Funds in any restricted account shall

21

be used solely for eligible projects located in

22

affected communities within the city of the first

23

class and within a 1.5 mile radius of the

24

licensed facility.

25

(III)  In each year in which grants are

26

awarded, no single applicant may be awarded a

27

grant or grants in an amount which, individually

28

or in the aggregate, exceed 30% of the total

29

funds available for distribution in such year.

30

(C)  As used in clause (B), the following terms

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1

shall be given the meanings in this clause:

2

"Affected communities."  Geographic areas within

3

a 1.5 mile radius of a licensed facility, with

4

priority given to residential areas.

5

"Community improvement projects."  Projects that

6

improve or create civic, cultural or recreational

7

activities or facilities in the affected communities.

8

"Eligible applicant."  The term shall include any

9

legal entity organized for profit or as a not-for-

10

profit corporation or organization. The term shall

11

not include any of the following:

12

(I)  A county or city of the first class, any

13

board, commission, municipal authority or other

14

agency or instrumentality thereof.

15

(II)  Any legal entity, whether for profit or

16

not-for-profit, in which an executive-level

17

public employee or a public official, as defined

18

in section 1512 (relating to financial and

19

employment interests), holds a financial interest

20

or serves as a voting board member by virtue of

21

his position as an executive-level public

22

employee or as a public official.

23

(III)  Any legal entity, whether for profit

24

or not-for-profit, in which an executive-level

25

public employee or a public official appoints 50%

26

or more of the entity's voting board members.

27

"Health and safety projects."  Projects that

28

promote the health and safety of affected

29

communities.

30

"Public interest projects."  Projects that

- 140 -

 


1

improve the quality of life in the affected

2

communities.

3

(ii)  A county of the second class:  50% of the

4

licensed facility's local share assessment shall be

5

distributed as follows:

6

(A)  Eighty-five percent shall be deposited into

7

a restricted receipts account to be established in

8

the Department of Education for distribution pursuant

9

to the act of June 14, 1961 (P.L.324, No.188), known

10

as The Library Code, for grants to an established

11

library system in the county but outside a city of

12

the second class. Funds made available under this

13

clause shall be in addition to any funding provided

14

to such libraries pursuant to the act of April 9,

15

1929 (P.L.343, No.176), known as The Fiscal Code; the

16

Public School Code of 1949; and The Library Code.

17

Notwithstanding The Library Code, in making

18

distributions from funds made available under this

19

clause, the library system shall distribute the funds

20

as follows:

21

(I)  At least 80% shall be distributed to

22

libraries in the library system in the county but

23

outside a city of the second class on a per

24

capita basis of the population of the county

25

based on the most recent decennial census

26

excluding a city of the second class.

27

(II)  At least 15% but not more than 20%

28

shall be distributed to libraries in the library

29

system in each city, borough, town or township in

30

the county outside a city of the second class,

- 141 -

 


1

which has a market value per capita below the

2

fifth percentile of all cities, boroughs, towns

3

or townships, with comparable classifications.

4

The market value per capita and percentiles under

5

this subclause shall be as determined annually by

6

the State Tax Equalization Board.

7

(III)  Not more than 5% may be used to defray

8

the reasonable and necessary administrative costs

9

of the library system in administering the funds,

10

as determined by the Department of Education.

11

(IV)  If, after the distribution and use

12

under subclauses (I), (II) and (III), funds are

13

still available for distribution under this

14

clause, those funds shall be shall be distributed

15

to libraries in the library system in the county

16

but outside a city of the second class on a per

17

capita basis of the population of the county

18

based on the most recent decennial census

19

excluding a city of the second class.

20

(B)  Fifteen percent to a recognized tourist

21

promotion agency that is established by a home rule

22

municipality that was formerly a township or borough

23

located in the county pursuant to the act of July 4,

24

2008 (P.L.621, No.50), known as the Tourist Promotion

25

Act, and recognized by the Department of Community

26

and Economic Development and the home rule

27

municipality.

28

(iii)  A county of the third class where a city of

29

the third class hosting the licensed facility is located

30

in two counties of the third class:  50% of the licensed

- 142 -

 


1

facility's local share assessment shall be distributed as

2

follows:

3

(A)  Sixty percent to the county in which the

4

licensed facility is located for economic development

5

projects, community improvement projects and other

6

projects in the public interest within the county.

7

(B)    Twenty percent to the nonhost city of the

8

third class in the county in which the licensed

9

facility is located.

10

(C)  Twenty percent to the nonhost county in

11

which the host city is located, of which 50% shall be

12

used solely for grants to municipalities that are

13

contiguous to the host city for economic development

14

projects, community improvement projects and other

15

projects in the public interest.

16

(iv)  A county of the fifth class:  50% of the

17

licensed facility's local share assessment shall be

18

distributed as follows:

19

(A)  Fifty percent shall be added to the funds in

20

the restricted receipts account established pursuant

21

to section 1403(c)(2)(iii)(F)(I) for distribution

22

with those funds.

23

(B)  Fifty percent shall be transferred to the

24

Pennsylvania Higher Education Assistance Agency for

25

deposit into a restricted receipts account to be used

26

exclusively for grants to a school of medicine

27

located in a city of the second class A within a

28

county of the third class for operating costs

29

associated with the school of medicine.

30

(4)  The following apply:

- 143 -

 


1

(i)  If the facility is a Category 3 licensed

2

facility located in a county of the second class A:  50%

3

of the licensed facility's local share assessment shall

4

be deposited into a restricted receipts account to be

5

established in the Commonwealth Financing Authority to be

6

used exclusively for grants or guarantees for projects in

7

the county that qualify under 64 Pa.C.S. §§ 1551

8

(relating to Business in Our Sites Program), 1556

9

(relating to Tax Increment Financing Guarantee Program)

10

and 1558 (relating to Water Supply and Waste Water

11

Infrastructure Program).

12

(ii)  Except as provided in subparagraph (i), if the

13

facility is a Category 3 licensed facility in a county of

14

any class:  50% of the licensed facility's local share

15

assessment shall be added to the funds in the restricted

16

receipts account established under section 1403(c)(2)(iv)

17

for distribution with those funds.

18

(5)    Except as otherwise provided in this subsection, if

19

the facility is a Category 1 or a Category 2 licensed

20

facility in a county of any class:  50% of the licensed

21

facility's local share assessment shall be distributed in

22

accordance with section 1403(c) based upon the category and

23

type of licensed facility and the classification of the

24

county where the licensed facility is located.

25

(c)  Distributions to municipalities.--The department shall

26

make quarterly distributions from the local share assessments

27

deposited into the fund under subsection (a) to municipalities,

28

including home rule municipalities, hosting a licensed facility

29

authorized to conduct table games under this chapter in

30

accordance with the following:

- 144 -

 


1

(1)  If the licensed facility is a Category 2 licensed

2

facility and is located in a city of the second class, 50% of

3

the licensed facility's local share assessment shall be  

4

deposited into a restricted receipts account to be

5

established in the Department of Education for distribution

6

pursuant to The Library Code for grants to an established

7

local library in the city for the purpose of maintaining the

8

library branch system in existence on January 1, 2011. Funds

<--

9

made available under this clause shall be in addition to any

10

funding provided to such libraries pursuant to The Fiscal

11

Code, the Public School Code of 1949 and The Library Code. If

<--

12

the established local library in the city fails to maintain

13

the library branch system as provided in this paragraph, 50% 

14

Beginning July 1, 2011, if the established local library

<--

15

fails to maintain the number of library branches operating

16

within its system on June 30, 2011, 50% of the licensed

17

facility's local share assessment shall be distributed to the

18

city to be used solely to fund the accrued liability of all

19

pension plans maintained by the city.

20

(2)  If the licensed facility is a Category 1 licensed

<--

21

facility located at a harness racetrack in a city of the

22

third class, 50% of the licensed facility's local share

23

assessment shall be distributed to the city solely for the

24

purpose of becoming and remaining a member or local sponsor

25

of a community college on behalf of all students in the

26

school district. If in any year the amount distributable or

27

received under this paragraph exceeds the amount necessary

28

for the city to become or remain a member or local sponsor,

29

the excess shall be distributed to, or retained by, the city

30

and may be used for any lawful purpose.

- 145 -

 


1

(2)  If the licensed facility is a Category 1 licensed

<--

2

facility located at a harness racetrack in a city of the

3

third class, 50% of the licensed facility's local share

4

assessment shall be distributed to the city solely for the

5

purpose of making payments to enable the city and other

6

municipalities in the school district in which the city is

7

located to become and remain local sponsors or members of a

8

community college. Payments may include initial buy-in costs,

9

including payment of debt service to fund the initial buy-in,

10

and annual local sponsor share payments to the community

11

college.

12

(3)  If a licensed facility is a Category 2 facility and

13

is located in a city of the third class and the city is

14

located in more than one county of the third class, 50% of

15

the licensed facility's local share assessment shall be

16

distributed as follows:

17

(i)  50% to the host city;

18

(ii)  20% to a city of the third class located solely

19

in the nonhost county in which the host city of the third

20

class is also located; and

21

(iii)  30% to a nonhost city of the third class

22

located solely in the host county.

23

(4)  If the licensed facility is a Category 1 licensed

24

facility located at a harness racetrack in a township of the

25

first class, 50% of the licensed facility's local share

26

assessment shall be distributed to the township, subject,

27

however, to the budgetary limitation in this paragraph. The

28

amount distributed to the township shall not exceed 50% of

29

the township's total budget for fiscal year 2009, adjusted

30

for inflation in subsequent years by an amount not to exceed

- 146 -

 


1

an annual cost-of-living adjustment calculated by applying

2

the percentage change in the Consumer Price Index immediately

3

prior to the date the adjustment is due to take effect. Any

4

funds not distributed to the township because of the

5

budgetary limitation shall be distributed in accordance with

6

subsection (b) based upon the classification of the county

7

where the licensed facility is located.

8

(5)  The following apply:

9

(i)  Except as provided in subparagraphs (ii) and

10

(iii), if the licensed facility is a Category 1 or

11

Category 2 licensed facility and is located in a township

12

of the second class, 50% of the licensed facility's local

13

share assessment shall be distributed to the township,

14

subject, however, to the budgetary limitation in this

15

subparagraph. The amount distributed to the township

16

shall not exceed 50% of the township's total budget for

17

fiscal year 2009, adjusted for inflation in subsequent

18

years by an amount not to exceed an annual cost-of-living

19

adjustment calculated by applying the percentage change

20

in the Consumer Price Index immediately prior to the date

21

the adjustment is due to take effect. Any funds not

22

distributed to the township because of the budgetary

23

limitation shall be distributed in accordance with

24

subsection (b) based upon the classification of county

25

where the licensed facility is located. No funds shall be

26

distributed under this subparagraph to a township of the

27

second class located in a county of the third class

28

receiving any funds under subsection (b)(2)(iii).

29

(ii)  If the licensed facility is a Category 1

30

licensed facility located at a thoroughbred racetrack in

- 147 -

 


1

a township of the second class in a county of the second

2

class A, 50% of the licensed facility's local share

3

assessment shall be distributed to the recreation

4

department of the township of the second class to support

5

youth athletics assessment shall be distributed to the

6

township of the second class, subject, however, to the

<--

7

budgetary limitation in this subparagraph. The amount

8

distributed shall not exceed 50% of the department's

9

total budget for fiscal year 2009, adjusted for inflation

10

in subsequent years by an amount not to exceed an annual

11

cost-of-living adjustment calculated by applying the

12

percentage change in the Consumer Price Index immediately

13

prior to the date the adjustment is due to take effect.

14

Any funds not distributed to the recreation department

15

because of the budgetary limitation shall be distributed

16

in accordance with subsection (b) based upon the

17

classification of county where the licensed facility is

18

located.

19

(iii)  If the licensed facility is a Category 1

20

licensed facility located at a thoroughbred racetrack in

21

a township of the second class in a county of the third

22

class with a population of not less than 200,000 but not

23

more than 260,000 where the licensed facility and all

24

attached or contiguous acreage owned by the licensed

25

facility is located in more than one township of the

26

second class, 50% of the licensed facility's local share

27

assessment shall be distributed as follows:

28

(A)  $120,000 of the licensed facility's local

29

share assessment shall be distributed annually to

30

each such township of the second class; and

- 148 -

 


1

(B) remaining funds shall be added to and

2

distributed with the funds distributed to the county

3

under subsection (b)(2)(ii).

4

(6)  The following apply:

5

(i)  If the licensed facility is a Category 3

6

licensed facility and is located in a borough in a county

7

of the third class and the borough is contiguous to a

8

city of the third class:

9

(A)  Fifty percent of the licensed facility's

10

local share assessment shall be distributed to the

11

host borough, subject to clause (C).

12

(B)  Fifty percent of the licensed facility's

13

local share assessment shall be distributed to the

14

city of the third class that is contiguous to the

15

host borough, subject to clause (C).

16

(C)  The amount distributed to the borough or the

17

city shall not exceed 50% of the borough's or the

18

city's total budget for fiscal year 2009, adjusted

19

for inflation in subsequent years by an amount not to

20

exceed an annual cost-of-living adjustment calculated

21

by applying the percentage change in the Consumer

22

Price Index immediately prior to the date the

23

adjustment is due to take effect. Any funds not

24

distributed to the borough or the city because of the

25

budgetary limitation shall be distributed in

26

accordance with subsection (b) based upon the

27

classification of the county where the licensed

28

facility is located.

29

(ii)  Except as provided in subparagraph (i), if the

30

licensed facility is a Category 3 licensed facility and

- 149 -

 


1

is located in a municipality of any class, 50% of the

2

licensed facility's local share assessment shall be

3

distributed to the municipality, subject, however, to the

4

budgetary limitation in this subparagraph. The amount

5

distributed to the municipality shall not exceed 50% of

6

the municipality's total budget for fiscal year 2009,

7

adjusted for inflation in subsequent years by an amount

8

not to exceed an annual cost-of-living adjustment

9

calculated by applying the percentage change in the

10

Consumer Price Index immediately prior to the date the

11

adjustment is due to take effect. Any funds not

12

distributed to the municipality because of the budgetary

13

limitation shall be distributed in accordance with

14

subsection (b) based upon the classification of county

15

where the licensed facility is located.

16

(7)  Except as otherwise provided in this subsection, if

17

the facility is a Category 1 or a Category 2 licensed

18

facility in a municipality of any class, 50% of the licensed

19

facility's local share assessment shall be distributed to the

20

municipality, subject, however, to the budgetary limitation

21

in this paragraph. The amount distributed to the municipality

22

shall not exceed 50% of the municipality's total budget for

23

fiscal year 2009 adjusted for inflation in subsequent years

24

by an amount not to exceed the annual cost-of-living

25

adjustment calculated by applying the percentage change in

26

the Consumer Price Index immediately prior to the date the

27

adjustment is due to take effect. Any funds not distributed

28

to the municipality because of the budgetary limitation shall

29

be distributed in accordance with subsection (b) based upon

30

the classification of county where the licensed facility is

- 150 -

 


1

located.

2

(d)  Construction.--The following shall apply to

3

distributions provided for in this section:

4

(1)  Distributions to counties shall be based upon county

5

classifications in effect on the effective date of this

6

section and any reclassification of a county as a result of a

7

Federal decennial census or pursuant to an act of the General

8

Assembly shall not apply to this section unless the act of

9

the General Assembly specifically provides otherwise.

10

(2)  Distributions to municipalities shall be based upon

11

municipal classifications in effect on the effective date of

12

this section and any reclassification of a municipality as a

13

result of a Federal decennial census or pursuant to an act of

14

the General Assembly shall not apply to this section unless

15

the act of the General Assembly specifically provides

16

otherwise.

17

(e)  Miscellaneous provisions.--

18

(1)  If any provision of this section is found to be

19

unenforceable for any reason, the distribution provided for

20

in such unenforceable provision shall be made to the

21

municipality in which the licensed facility is located.

22

(2)  References to the Consumer Price Index shall mean

23

the Consumer Price Index for All Urban Consumers for the

24

Pennsylvania, New Jersey, Delaware and Maryland area for the

25

most recent 12-month period for which figures have been

26

officially reported by the United States Department of Labor,

27

Bureau of Labor Statistics.

28

(3)  A person or its affiliated entity or a political

29

subdivision may not compensate or incur an obligation to

30

compensate a person to engage in lobbying for compensation

- 151 -

 


1

contingent in whole or in part upon the approval, award,

2

receipt or denial of funds under this section. A person or

3

its affiliated entity may not engage in or agree to engage in

4

lobbying for compensation contingent in whole or in part upon

5

the approval, award, receipt or denial of funds under this

6

section. A violation of this paragraph shall be considered an

7

intentional violation of 65 Pa.C.S. § 13A09(e) (relating to

8

penalties). This paragraph shall not apply to a county or

9

municipality that compensates a person to prepare a grant

10

application for funds under this section if all of the

11

following requirements are met:

12

(i)  The person is not identified in the application.

13

(ii)  The person has no direct contact with the

14

agency, county or municipality providing the funding.

15

(iii)  The person is paid a fixed fee or percentage

16

of the amount of any funds approved, awarded or received

17

of up to 0.5%.

18

(4)  In cooperation with the department, the Department

19

of Community and Economic Development, and the Commonwealth

20

Financing Authority, the Office of the Budget shall submit an

21

annual report on all distributions of local share assessments

22

to counties and municipalities under this section to the

23

chairman and minority chairman of the Appropriations

24

Committee of the Senate, the chairman and the minority

25

chairman of the Community, Economic and Recreational

26

Development Committee of the Senate, the chairman and the

27

minority chairman of the Appropriations Committee of the

28

House of Representatives and the chairman and minority

29

chairman of the Gaming Oversight Committee of the House of

30

Representatives.

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1

(5)    All counties and municipalities receiving

2

distributions of local share assessments under this section

3

shall submit an annual report to the Department of Community

4

and Economic Development on a form prepared by the Department

5

of Community and Economic Development that sets forth the

6

amount and use of the funds received for the prior calendar

7

year. The report shall set forth whether the funds received

8

were deposited into the county's or municipality's general

9

fund or committed to a specific project or use. The report

10

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

11

each year thereafter.

12

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

13

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

14

subsection:

15

"Community college."  The term shall have the meaning

16

ascribed to it in section 1901-A(4) of the act of March 10, 1949

17

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

18

"Local share assessment."  Two percent of a certificate

19

holder's daily gross table game revenue.

20

Section 11.2.  Sections 1401(b), 1402(a) and 1402.1 of Title

21

4 are amended to read:

22

§ 1401.  Slot machine licensee deposits.

23

* * *

24

(b)  Initial deposit of funds.--Not later than two business

25

days prior to the commencement of slot machine operations by a

26

slot machine licensee, [the] a slot machine licensee shall

27

deposit and maintain the [sum of $5,000,000] following sums in

28

its account to guarantee the payment of funds to the

29

Commonwealth under this part and as security for its obligations

30

under section 1405 (relating to Pennsylvania Race Horse

- 153 -

 


1

Development Fund)[.]:

2

(1)  For a Category 1 or Category 2 slot machine

3

licensee, $1,500,000.

4

(2)  For a Category 3 slot machine licensee, $1,000,000.

5

No additional minimum deposit shall be required from a slot

6

machine licensee if a slot machine licensee is granted a table

7

game operation certificate under Chapter 13A (relating to table

8

games).

9

* * *

10

§ 1402.  Gross terminal revenue deductions.

11

(a)  Deductions.--After determining the appropriate

12

assessments for each slot machine licensee, the department shall

13

determine costs, expenses or payments from each account

14

established under section 1401 (relating to slot machine

15

licensee deposits). The following costs and expenses shall be

16

transferred to the appropriate agency upon appropriation by the

17

General Assembly:

18

(1)  The costs and expenses to be incurred by the

19

department in administering this part at each slot machine

20

licensee's licensed facility based upon a budget submitted by

21

the department [to and approved by the board] under section

22

1402.1 (relating to itemized budget reporting).

23

(2)  The other costs and expenses to be incurred by the

24

department in administering this part based upon a budget

25

submitted by the department [to and approved by the board]

26

under section 1402.1.

27

(3)  Sums necessary to repay any loans made by the

28

General Fund to the department in connection with carrying

29

out its responsibilities under this part, including the costs

30

of the initial acquisition of the central control computer

- 154 -

 


1

and any accessories or associated equipment.

2

(4)  The costs and expenses to be incurred by the

3

Pennsylvania State Police and the Office of Attorney General

4

and not otherwise reimbursed under this part in carrying out

5

their respective responsibilities under this part based upon

6

[a budget] budgets submitted by the Pennsylvania State Police

7

and the Attorney General [to and approved by the board] under

8

section 1402.1.

9

(5)  Sums necessary to repay any loans made by the

10

General Fund to the Pennsylvania State Police in connection

11

with carrying out its responsibilities under this part.

12

(6)  The costs and expenses to be incurred by the board

13

in carrying out its responsibilities under this part based

14

upon a budget [approved] submitted by the board under section

15

1402.1.

16

(7)  Sums necessary to repay any loans made by the

17

General Fund to the board in connection with carrying out its

18

responsibilities under this part.

19

* * *

20

§ 1402.1.  Itemized budget reporting.

21

(a)  Submission.--The board, department, Pennsylvania State

22

Police and [the] Office of Attorney General shall prepare and

23

annually submit to the chairman of the Appropriations Committee

24

of the Senate and the chairman of the Appropriations Committee

25

of the House of Representatives an itemized budget consisting of

26

amounts to be appropriated out of the accounts established under

27

section 1401 (relating to slot machine licensee deposits)

28

necessary to administer this part. The department, Pennsylvania

29

State Police and Office of Attorney General shall provide copies

30

of their itemized budgets to the board at the same time they are

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1

submitted to the chairmen of the committees.

2

(b)  Analyses and recommendations.--As soon as practicable

3

after receiving copies of the itemized budgets submitted under

4

subsection (a), the board shall prepare and submit to the

5

chairmen of the committees analyses of, and make recommendations

6

regarding, the itemized budgets.

7

Section 11.3.  Section 1403(b), (c)(2)(i)(D), (E) and (F),

8

(iii)(F) and (iv) and (3)(v) and (viii) of Title 4 are amended

9

and the section is amended by adding subsections to read:

10

§ 1403.  Establishment of State Gaming Fund and net slot machine

11

revenue distribution.

12

* * *

13

(b)  Slot machine tax.--[The department shall determine and

14

each] Each slot machine licensee shall report to the department

15

and pay on a form and in a manner prescribed by the department a

16

daily tax of 34% from its daily gross terminal revenue from the

17

slot machines in operation at its facility and a local share

18

assessment as provided in subsection (c) [into the fund]. All

19

funds owed to the Commonwealth, a county or a municipality under

20

this section shall be held in trust by the licensed gaming

21

entity for the Commonwealth, the county and the municipality 

22

until the funds are paid or transferred [and distributed] to the

23

fund. Unless otherwise agreed to by the [Gaming Board] board, a

24

licensed gaming entity shall establish a separate bank account

25

to maintain [gaming proceeds] gross terminal revenue until such

26

time as [they] the funds are paid or transferred under this

27

section. Moneys in the fund are hereby appropriated to the

28

department on a continuing basis for the purposes set forth in

29

subsection (c).

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

13

terminal revenue from each such licensed facility

14

shall be deposited into a restricted receipts 

15

account to be established in the [Department of

16

Community and Economic Development] Commonwealth

17

Financing Authority to be used exclusively for

18

grants for [health, safety and economic

19

development projects] projects in the public

20

interest to municipalities within the county

21

where the licensed facility is located.

22

[Municipalities that are contiguous to the

23

municipality hosting such licensed facility shall

24

be given priority by the Department of Community

25

and Economic Development in the award of such

26

grants.]

27

(I.1)  Priority shall be given to multiyear

28

projects approved or awarded by the Department of

29

Community and Economic Development under

30

subclause (I) on or before the effective date of

- 157 -

 


1

this subclause.

2

(II)  If a licensed facility is located in

3

one of two counties of the third class where a

4

city of the third class is located in both

5

counties of the third class, the county in which

6

the licensed facility is located shall receive

7

1.2% of the gross terminal revenue to be

8

distributed as follows:  20% to the host city,

9

30% to the host county and 50% to the host county

10

for the purpose of making municipal grants within

11

the county, with priority given to municipalities

12

contiguous to the host city. The county of the

13

third class, which includes a city of the third

14

class that is located in two counties of the

15

third class and is not the host county for the

16

licensed facility, shall receive .8% of the gross

17

terminal revenue to be distributed as follows:

18

60% to a nonhost city of the third class located

19

solely in the nonhost county in which the host

20

city of the third class is also located or 60% to

21

the nonhost city of the third class located both

22

in the host and nonhost counties of the third

23

class, 35% to the nonhost county and 5% to the

24

nonhost county for the purpose of making

25

municipal grants within the county.

26

(E)  A county of the fourth class:  2% of the

27

gross terminal revenue from each such licensed

28

facility shall be distributed as follows:

29

(I)  The department shall make distributions

30

directly to each municipality within the county,

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1

except the host municipality, by using a formula

2

equal to the sum of $25,000 plus $10 per resident

3

of the municipality using the most recent

4

population figures provided by the Department of

5

Community and Economic Development, provided,

6

however, that the amount so distributed to any

7

municipality shall not exceed 50% of its total

8

budget for fiscal year 2009, adjusted for

9

inflation in subsequent fiscal years by an amount

10

not to exceed an annual cost-of-living adjustment

11

calculated by applying any upward percentage

12

change in the Consumer Price Index immediately

13

prior to the date the adjustment is due to take

14

effect. Distributions to a municipality in

15

accordance with this subclause shall be deposited

16

into a special fund which shall be established by

17

the municipality. The governing body of the

18

municipality shall have the right to draw upon

19

the special fund for any lawful purpose provided

20

that the municipality identifies the fund as the

21

source of the expenditure. Each municipality

22

shall annually submit a report to the Department

23

of Community and Economic Development detailing

24

the amount and purpose of each expenditure made

25

from the special fund during the prior fiscal

26

year.

27

(II)  Any funds not distributed under

28

subclause (I) shall be deposited into a

29

restricted receipts account established in the

30

Department of Community and Economic Development

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1

to be used exclusively for grants to the county,

2

to economic development authorities or

3

redevelopment authorities within the county for

4

grants for economic development projects,

5

infrastructure projects, job training, community

6

improvement projects, other projects in the

7

public interest, and necessary and reasonable

8

administrative costs. Notwithstanding the

9

provisions of the act of February 9, 1999 (P.L.1,

10

No.1), known as the Capital Facilities Debt

11

Enabling Act, grants made under this clause may

12

be utilized as local matching funds for other

13

grants or loans from the Commonwealth.

14

(F)  Counties of the fifth through eighth

15

classes:

16

(I)  Except as set forth in subclause (II), 

17

2% of the gross terminal revenue from each such

18

licensed facility shall be deposited into a

19

restricted account established in the Department

20

of Community and Economic Development to be used

21

exclusively for grants to the county.

22

(II)  If the licensed facility is located in

23

a second class township in a county of the fifth

24

class, 2% of the gross terminal revenue from the

25

licensed facility shall be distributed as

26

follows:

27

(a)  1% shall be deposited into a

28

restricted receipts account to be established

29

in the Commonwealth Financing Authority to be

30

used exclusively for grants for projects in

- 160 -

 


1

the public interest to municipalities within

2

the county where the licensed facility is

3

located.

4

(b)  1% shall be distributed to the county

5

for projects in the public interest in the

6

county.

7

* * *

8

(iii)  If the facility is a Category 2 licensed

9

facility and if the county in which the licensed facility

10

is located is:

11

* * *

12

(F)  Counties of the fifth class:  2% of the

13

gross terminal revenue from each such licensed

14

facility shall be deposited and distributed as

15

follows:

16

(I)  One percent to be distributed as

17

follows:

18

(a)  Beginning in 2010, the sum of

19

$2,400,000 annually for a period of 20 years

20

to the county for purposes of funding debt

21

service related to the construction of a

22

community college campus located within the

23

county.

24

(b)  Any funds not distributed under

25

subclause (a) shall be deposited into a

26

restricted receipts account to be established 

27

in the [Department of Community and Economic

28

Development] Commonwealth Financing Authority 

29

to be used exclusively for grants within the

30

county for economic development projects,

- 161 -

 


1

road projects located within a 20-mile radius

2

of the licensed facility and located within

3

the county, community improvement projects

4

and other projects in the public interest

5

within the county. The amount under this

6

subclause includes reasonable administrative

7

costs.

8

(II)  One percent shall be deposited into a

9

restricted receipts account to be established in

10

the [Department of Community and Economic

11

Development] Commonwealth Financing Authority to

12

be used exclusively for grants within contiguous

13

counties for economic development projects,

14

community improvement projects and other projects

15

in the public interest within contiguous

16

counties. The amount under this subclause

17

includes reasonable administrative costs. A

18

contiguous county that hosts a Category 1

19

licensed facility shall be ineligible to receive

20

grants under this subclause.

21

(II.1)  Priority shall be given to multiyear

22

projects approved or awarded by the Department of

23

Community and Economic Development under

24

subclause (II) on or before the effective date of

25

this subclause.

26

(III)  Fifty percent of any revenue required

27

to be transferred under paragraph (3)(v) shall be

28

deposited into the restricted receipts account

29

established under subclause (I)(b), and 50% shall

30

be deposited into the restricted [receipt] 

- 162 -

 


1

receipts account established under subclause

2

(II). Notwithstanding the Capital Facilities Debt

3

Enabling Act, grants made under this clause may

4

be utilized as local matching funds for other

5

grants or loans from the Commonwealth.

6

* * *

7

(iv)  [If] (A)  Except as provided in clause (B) or

8

(C), if the facility is a Category 3 licensed

9

facility, 2% of the gross terminal revenue from [each

10

such] the licensed facility shall be deposited into a

11

restricted receipts account established in the

12

Department of Community and Economic Development to

13

be used exclusively for grants to the county, to

14

economic development authorities or redevelopment

15

authorities within the county for grants for economic

16

development projects [and], community improvement

17

projects and other projects in the public interest.

18

(B)  If the facility is a Category 3 licensed

19

facility located in a county of the second class A,

20

2% of the gross terminal revenue from the licensed

21

facility shall be deposited into a restricted

22

receipts account to be established in the

23

Commonwealth Financing Authority to be used

24

exclusively for grants or guarantees for projects in

25

the host county that qualify under 64 Pa.C.S. §§ 1551

26

(relating to Business in Our Sites Program), 1556

27

(relating to Tax Increment Financing Guarantee

28

Program) and 1558 (relating to Water Supply and

29

Wastewater Infrastructure Program).

30

(C)  If the facility is a Category 3 licensed

- 163 -

 


1

facility located in a county of the fifth class that

2

is contiguous to a county of the seventh class, 2% of

3

the gross terminal revenue from the licensed facility

4

shall be deposited into a restricted receipts account

5

to be established in the Commonwealth Financing

6

Authority to be used exclusively for grants within

7

the county for economic development projects,

8

infrastructure projects, community improvement

9

projects and other projects in the public interest

10

within the county and for infrastructure projects

11

within a 20-mile radius of the licensed facility in a

12

contiguous county of the seventh class.

13

* * *

14

(3)  From the local share assessment established in

15

subsection (b), make quarterly distributions among the

16

municipalities, including home rule municipalities, hosting a

17

licensed facility in accordance with the following schedule:

18

* * *

19

(v)  To a township of the second class hosting a

20

licensed facility[, other than a Category 3 licensed

21

facility,]

22

(A)  2% of the gross terminal revenue or

23

$10,000,000 annually, whichever is greater, shall be

24

paid by each licensed gaming entity operating a

25

licensed facility [located in the township], other

26

than a Category 3 licensed facility or a licensed

27

facility owning land adjacent to the licensed

28

facility located in more than one township of the

29

second class, to the township of the second class

30

hosting the licensed facility, subject, however, to

- 164 -

 


1

the budgetary limitation in this subparagraph. The

2

amount allocated to the designated municipalities

3

shall not exceed 50% of their total budget for fiscal

4

year 2003-2004, adjusted for inflation in subsequent

5

years by an amount not to exceed an annual cost-of-

6

living adjustment calculated by applying the

7

percentage change in the Consumer Price Index

8

immediately prior to the date the adjustment is due

9

to take effect. Any remaining money shall be

10

collected by the department from each licensed gaming

11

entity and distributed in accordance with paragraph

12

(2) based upon the classification of county where the

13

licensed facility is located. [Where the licensed

14

facility is other than a Category 3 and is located in

15

more than one second class township, the] If revenues

16

generated by the 2% do not meet the $10,000,000

17

minimum specified in this subparagraph, the

18

department shall collect the remainder of the minimum

19

amount of $10,000,000 from each licensed gaming

20

entity operating a licensed facility in the township,

21

pay any balance due to the township and transfer any

22

remainder in accordance with paragraph (2).

23

(B)  2% of the gross terminal revenue or

24

$10,000,000 annually, whichever is greater, less the

25

amount paid under clause (C), shall be paid by each

26

licensed gaming entity operating a licensed facility

27

and owning land adjacent to the licensed facility

28

located in more than one township of the second

29

class, other than a Category 3 licensed facility, to

30

the township of the second class hosting the licensed

- 165 -

 


1

facility, subject, however, to the budgetary

2

limitation in this subparagraph. The amount allocated

3

to the designated municipalities may not exceed 50%

4

of their total budget for the fiscal year 2003-2004,

5

adjusted for inflation in subsequent years by an

6

amount not to exceed an annual cost-of-living

7

adjustment calculated by applying the percentage

8

change in the Consumer Price Index immediately prior

9

to the date the adjustment is due to take effect. Any

10

remaining money shall be collected by the department

11

from each licensed gaming entity and distributed in

12

accordance with paragraph (2) based upon the

13

classification of the county where the licensed

14

facility is located. The county commissioners of

15

[the] a county of the third class in which the

16

licensed facility is located shall appoint an

17

advisory committee for the purpose of advising the

18

county as to the need for municipal grants for

19

health, safety, transportation and other projects in

20

the public interest to be comprised of two

21

individuals from the host municipality, two from

22

contiguous municipalities within the county of the

23

third class and one from the host county. [A county

24

other than a county of the third class in which the

25

licensed facility is located is not required to

26

appoint an advisory committee and may use funds

27

received under this subparagraph for purposes other

28

than municipal grants.] In the event that the

29

revenues generated by the 2% do not meet the

30

$10,000,000 minimum specified in this subparagraph,

- 166 -

 


1

the department shall collect the remainder of the

2

minimum amount of $10,000,000 from each licensed

3

gaming entity operating a licensed facility in the

4

township, pay any balance due to the township and

5

transfer any remainder in accordance with paragraph

6

(2).

7

(C)  $160,000 annually shall be paid by each

8

licensed gaming entity operating a licensed facility

9

and owning land adjacent to the licensed facility

10

located in more than one township of the second

11

class, other than a Category 3 licensed facility, to

12

the township of the second class that is located in a

13

county of the fifth class in which the adjacent land

14

is located, including racetracks, grazing fields or

15

any other adjoining real property.

16

* * *

17

(viii)  [To] (A)  Except as provided in clause (B) or

18

(C), to a municipality of any class hosting a

19

Category 3 facility, 2% of the gross terminal revenue

20

from the Category 3 licensed facility located in the

21

municipality, subject, however, to the budgetary

22

limitation in this [subparagraph] clause. The amount

23

allocated to the designated municipalities shall not

24

exceed 50% of their total budget for fiscal year

25

[2003-2004] 2009, adjusted for inflation in

26

subsequent years by an amount not to exceed an annual

27

cost-of-living adjustment calculated by applying the

28

percentage change in the Consumer Price Index

29

immediately prior to the date the adjustment is due

30

to take effect. Any remaining money shall be

- 167 -

 


1

collected by the department from each licensed gaming

2

entity and distributed in accordance with paragraph

3

(2) based upon the classification of county where the

4

licensed facility is located.

5

(B)  If the municipality hosting a Category 3

6

licensed facility is a borough located in a county of

7

the third class and the borough is contiguous to a

8

city of the third class, 1% of gross terminal revenue

9

shall be distributed to the host borough and 1% of

10

gross terminal revenue shall be distributed to the

11

city of the third class that is contiguous to the

12

host borough, subject, however, to the budgetary

13

limitation in this clause. The amount allocated to

14

each designated municipality shall not exceed 50% of

15

its total budget for fiscal year 2009, adjusted for

16

inflation in subsequent years by an amount not to

17

exceed an annual cost-of-living adjustment calculated

18

by applying the percentage increase, if any, in the

19

Consumer Price Index immediately prior to the date

20

the adjustment is due to take effect. Any remaining

21

money shall be collected by the department from each

22

licensed gaming entity and distributed in accordance

23

with paragraph (2) based upon the classification of

24

county where the licensed facility is located.

25

(C)  If the municipality hosting a Category 3

26

licensed facility is a township of the second class

27

in a county of the fifth class which is contiguous to

<--

28

a county of the seventh class, 2% of the gross

29

terminal revenue from the Category 3 licensed

30

facility located in the municipality, subject,

- 168 -

 


1

however, to the budgetary limitation in this clause.

2

The amount allocated to the designated municipalities

3

shall not exceed the lesser of $1,000,000 or 50% of

<--

4

their total budget for fiscal year 2009, adjusted for

5

inflation in subsequent years by an amount not to

6

exceed an annual cost-of-living adjustment calculated

7

by applying the percentage change in the consumer

8

Price Index immediately prior to the date the

9

adjustment is due to take effect. Any remaining money

10

shall be collected by the department from each

11

licensed gaming entity and distributed in equal

12

amounts to each municipality contiguous to the host

13

municipality. However, if the amount to be allocated

<--

14

to any contiguous municipality exceeds shall not

<--

15

exceed the lesser of $1,000,000 or 50% of the

16

municipality's total budget for fiscal year 2009,

17

adjusted for inflation in subsequent years by an

18

amount not to exceed an annual cost-of-living

19

adjustment calculated by applying the percentage

20

change in the Consumer Price Index immediately prior

21

to the date the adjustment is due to take effect. Any

22

money remaining following distribution to contiguous

23

municipalities shall be collected by the department

24

and distributed in accordance with paragraph (2)

25

based upon the classification of county where the

26

licensed facility is located.

27

* * *

28

(e)  Reporting.--

29

(1)  In cooperation with the department and the

<--

30

Commonwealth Financing Authority, the Department of Community

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1

and Economic Development shall submit an annual report on all

2

distributions of local share assessments to counties and

3

municipalities under this section to the chairman and

4

minority chairman of the Appropriations Committee of the

5

Senate, the chairman and minority chairman of the Community,

6

Economic and Recreational Development Committee of the

7

Senate, the chairman and minority chairman of the

8

Appropriations Committee of the House of Representatives and

9

the chairman and minority chairman of the Gaming Oversight

10

Committee of the House of Representatives. The report shall

11

be submitted by August 31, 2010, and by August 31 of each

12

year thereafter.

13

(2)  All counties and municipalities receiving

14

distributions of local share assessments under this section

15

shall submit information to the Department of Community and

16

Economic Development on a form prepared by the Department of

17

Community and Economic Development that sets forth the amount

18

and use of the funds received in the prior calendar year. The

19

form shall set forth whether the funds received were

20

deposited in the county's or municipality's General Fund or

21

committed to a specific project or use.

22

(f)  Prohibited activities.--

23

(1)  A person or its affiliated entity or a political

24

subdivision shall not compensate or incur an obligation to

25

compensate a person to engage in lobbying for compensation

26

contingent in whole or in part upon the approval, award,

27

receipt or denial of funds under this section. A person or

28

its affiliated entity shall not engage in or agree to engage

29

in lobbying for compensation contingent in whole or in part

30

upon the approval, award, receipt or denial of funds under

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1

this section. This subsection shall not apply to a county or

2

municipality that compensates a person to prepare a grant

3

application for funds under this section if the following

4

requirements are met:

5

(i)  The person is not identified in the application.

6

(ii)  The person has no direct contact with the

7

agency, county or municipality providing the funding.

8

(iii)  The person is paid a fixed fee or percentage

9

of the amount of any funds approved, awarded or received

10

up to .5%.

11

(2)  A violation of this section shall be considered an

12

intentional violation of 65 Pa.C.S. § 13A09(e) (relating to

13

penalties).

14

Section 11.4.  Section 1406(a) of Title 4 is amended to read:

15

§ 1406.  Distributions from Pennsylvania Race Horse Development

16

Fund.

17

(a)  Distributions.--Funds [from] in the Pennsylvania Race

18

Horse Development Fund are hereby appropriated to the department

19

on a continuing basis for the purposes set forth in this

20

subsection and shall be distributed to each active and operating

21

Category 1 licensee conducting live racing [in the following

22

manner] as follows:

23

(1)  An amount equal to 18% of the daily gross terminal

24

revenue of each Category 1 licensee shall be distributed to

25

each active and operating Category 1 licensee conducting live

26

racing unless the daily assessments are affected by the daily

27

assessment cap provided for in section 1405(c) (relating to

28

Pennsylvania Race Horse Development Fund). In cases in which

29

the daily assessment cap affects daily assessments, the

30

distribution to each active and operating Category 1 licensee

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1

conducting live racing for that day shall be a percentage of

2

the total daily assessments paid into the Pennsylvania Race

3

Horse Development Fund for that day equal to the gross

4

terminal revenue of each active and operating Category 1

5

licensee conducting live racing for that day divided by the

6

total gross terminal revenue of all active and operating

7

Category 1 licensees conducting live racing for that day.

8

[The] Except as provided in paragraphs (2) and (2.1), the 

9

distributions to licensed racing entities from the

10

Pennsylvania Race Horse Development Fund shall be allocated

11

as follows:

12

(i)  Eighty percent shall be deposited weekly into a

13

separate, interest-bearing purse account to be

14

established by and for the benefit of the horsemen. The

15

earned interest on the account shall be credited to the

16

purse account. Licensees shall combine these funds with

17

revenues from existing purse agreements to fund purses

18

for live races consistent with those agreements with the

19

advice and consent of the horsemen.

20

(ii)  For thoroughbred tracks, 16% shall be deposited

21

on a monthly basis into the Pennsylvania Breeding Fund as

22

defined in section 223 of the Race Horse Industry Reform

23

Act. For standardbred tracks, 8% shall be deposited on a

24

monthly basis in the Pennsylvania Sire Stakes Fund as

25

defined in section 224 of the Race Horse Industry Reform

26

Act, and 8% shall be deposited on a monthly basis into a

27

restricted account in the State Racing Fund to be known

28

as the Pennsylvania Standardbred Breeders Development

29

Fund. The State Harness Racing Commission shall, in

30

consultation with the Secretary of Agriculture by rule or

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1

by regulation, adopt a standardbred breeders program that

2

will include the administration of Pennsylvania Stallion

3

Award, Pennsylvania Bred Award and a Pennsylvania Sired

4

and Bred Award.

5

(iii)  Four percent shall be used to fund health and

6

pension benefits for the members of the horsemen's

7

organizations representing the owners and trainers at the

8

racetrack at which the licensed racing entity operates

9

for the benefit of the organization's members, their

10

families, employees and others in accordance with the

11

rules and eligibility requirements of the organization,

12

as approved by the State Horse Racing Commission or the

13

State Harness Racing Commission. This amount shall be

14

deposited within five business days of the end of each

15

month into a separate account to be established by each

16

respective horsemen's organization at a banking

17

institution of its choice. Of this amount, $250,000 shall

18

be paid annually by the horsemen's organization to the

19

thoroughbred jockeys or standardbred drivers organization

20

at the racetrack at which the licensed racing entity

21

operates for health insurance, life insurance or other

22

benefits to active and disabled thoroughbred jockeys or

23

standardbred drivers in accordance with the rules and

24

eligibility requirements of that organization.

25

(2)  [(Reserved).] Beginning January 1, 2010, and for the

26

remainder of fiscal year 2009-2010, distributions from the

27

Pennsylvania Race Horse Development Fund shall be allocated

28

as follows:

29

(i)  Each week, 34% of the money in the Pennsylvania

30

Race Horse Development Fund shall be transferred to the

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1

General Fund.

2

(ii)  Each week, 66% of the money in the Pennsylvania

3

Race Horse Development Fund shall be distributed to each

4

active and operating Category 1 licensee conducting live

5

racing in accordance with the following formula:

6

(A)  Divide:

7

(I)  the total daily assessments paid by each

8

active and operating Category 1 licensee

9

conducting live racing into the Pennsylvania Race

10

Horse Development Fund for that week; by

11

(II)  the total daily assessments paid by all

12

active and operating Category 1 licensees

13

conducting live racing into the Pennsylvania Race

14

Horse Development Fund for that week.

15

(B)  Multiply the quotient under clause (A) by

16

the amount to be distributed under this subparagraph.

17

(iii)  The distribution under subparagraph (ii) shall

18

be allocated as follows:

19

(A)  The greater of 4% of the amount to be

20

distributed under subparagraph (ii) or $275,000 shall

21

be used to fund health and pension benefits for the

22

members of the horsemen's organizations representing

23

the owners and trainers at the racetrack at which the

24

licensed racing entity operates for the benefit of

25

the organization's members, their families, employees

26

and others in accordance with the rules and

27

eligibility requirements of the organization, as

28

approved by the State Horse Racing Commission or the

29

State Harness Racing Commission. This amount shall be

30

deposited within five business days of the end of

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1

each week into a separate account to be established

2

by each respective horsemen's organization at a

3

banking institution of its choice. Of this amount, a

4

minimum of $250,000 shall be paid annually by the

5

horsemen's organization to the thoroughbred jockeys

6

or standardbred drivers organization at the racetrack

7

at which the licensed racing entity operates for

8

health insurance, life insurance or other benefits to

9

active and disabled thoroughbred jockeys or

10

standardbred drivers in accordance with the rules and

11

eligibility requirements of that organization. The

12

total distributions for health and pension benefits

13

for fiscal year 2009-2010 shall not exceed

14

$11,400,000.

15

(B)  Of the money remaining to be distributed

16

under subparagraph (ii) after application of clause

17

(A), the following disbursements shall be made:

18

(I)  Eighty-three and one-third percent of

19

the money to be distributed under this clause

20

shall be deposited on a weekly basis into a

21

separate, interest-bearing purse account to be

22

established by and for the benefit of the

23

horsemen. The earned interest on the account

24

shall be credited to the purse account. Licensees

25

shall combine these funds with revenues from

26

existing purse agreements to fund purses for live

27

races consistent with those agreements with the

28

advice and consent of the horsemen.

29

(II)  For thoroughbred tracks, 16 and 2/3% of

30

the money to be distributed under this clause

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1

shall be deposited on a weekly basis into the

2

Pennsylvania Breeding Fund established in section

3

223 of the act of December 17, 1981 (P.L.435,

4

No.135), known as the Race Horse Industry Reform

5

Act. For standardbred tracks, 8 and 1/3% of the

6

money to be distributed under this clause shall

7

be deposited on a weekly basis into the

8

Pennsylvania Sire Stakes Fund as defined in

9

section 224 of the Race Horse Industry Reform

10

Act; and 8 and 1/3% of the money to be

11

distributed under this clause shall be deposited

12

on a weekly basis into a restricted account in

13

the State Racing Fund to be known as the

14

Pennsylvania Standardbred Breeders Development

15

Fund. The State Harness Racing Commission shall,

16

in consultation with the Secretary of

17

Agriculture, promulgate regulations adopting a

18

standardbred breeders program that will include

19

the administration of the Pennsylvania Stallion

20

Award, the Pennsylvania Bred Award and the

21

Pennsylvania Sired and Bred Award.

22

(2.1)  For fiscal years 2010-2011 through 2012-2013,

23

distributions from the Pennsylvania Race Horse Development

24

Fund shall be allocated as follows:

25

(i)  Each week, 17% of the money in the Pennsylvania

26

Race Horse Development Fund shall be transferred to the

27

General Fund.

28

(ii)  Each week, 83% of the money in the Pennsylvania

29

Race Horse Development Fund shall be distributed to each

30

active and operating Category 1 licensee conducting live

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1

racing in accordance with the following formula:

2

(A)  Divide:

3

(I)  the total daily assessments paid, by

4

each active and operating Category 1 licensee

5

conducting live racing, into the Pennsylvania

6

Race Horse Development Fund for that week; by

7

(II)  the total daily assessments paid, by

8

all active and operating Category 1 licensees

9

conducting live racing, into the Pennsylvania

10

Race Horse Development Fund for that week.

11

(B)  Multiply the quotient under clause (A) by

12

the amount to be distributed under this subparagraph.

13

(iii)  The distribution under subparagraph (ii) shall

14

be allocated as follows:

15

(A)  The greater of 4% of the amount to be

16

distributed under subparagraph (ii) or $220,000 shall

17

be used to fund health and pension benefits for the

18

members of the horsemen's organizations representing

19

the owners and trainers at the racetrack at which the

20

licensed racing entity operates for the benefit of

21

the organization's members, their families, employees

22

and others in accordance with the rules and

23

eligibility requirements of the organization, as

24

approved by the State Horse Racing Commission or the

25

State Harness Racing Commission. This amount shall be

26

deposited within five business days of the end of

27

each week into a separate account to be established

28

by each respective horsemen's organization at a

29

banking institution of its choice. Of this amount, a

30

minimum of $250,000 shall be paid annually by the

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1

horsemen's organization to the thoroughbred jockeys

2

or standardbred drivers organization at the racetrack

3

at which the licensed racing entity operates for

4

health insurance, life insurance or other benefits to

5

active and disabled thoroughbred jockeys or

6

standardbred drivers in accordance with the rules and

7

eligibility requirements of that organization. The

8

total distribution under this clause in any fiscal

9

year shall not exceed $11,400,000.

10

(B)  Of the money remaining to be distributed

11

under subparagraph (ii) after application of clause

12

(A), the following disbursements shall be made:

13

(I)  Eighty-three and one-third percent of

14

the money to be distributed under this clause

15

shall be deposited on a weekly basis into a

16

separate, interest-bearing purse account to be

17

established by and for the benefit of the

18

horsemen. The earned interest on the account

19

shall be credited to the purse account. Licensees

20

shall combine these funds with revenues from

21

existing purse agreements to fund purses for live

22

races consistent with those agreements with the

23

advice and consent of the horsemen.

24

(II)  For thoroughbred tracks, 16 and 2/3% of

25

the money to be distributed under this clause

26

shall be deposited on a weekly basis into the

27

Pennsylvania Breeding Fund established in section

28

223 of the Race Horse Industry Reform Act. For

29

standardbred tracks, 8 and 1/3% of the money to

30

be distributed under this clause shall be

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1

deposited on a weekly basis into the Pennsylvania

2

Sire Stakes Fund as defined in section 224 of the

3

Race Horse Industry Reform Act; and 8 and 1/3% of

4

the money to be distributed under this clause

5

shall be deposited on a weekly basis into a

6

restricted account in the State Racing Fund to be

7

known as the Pennsylvania Standardbred Breeders

8

Development Fund. The State Harness Racing

9

Commission shall, in consultation with the

10

Secretary of Agriculture, promulgate regulations

11

adopting a standardbred breeders program that

12

will include the administration of the

13

Pennsylvania Stallion Award, the Pennsylvania

14

Bred Award and the Pennsylvania Sired and Bred

15

Award.

16

* * *

17

Section 12.  Section 1407(d) introductory paragraph and (7)

18

of Title 4 are amended and the section is amended by adding

19

subsections to read:

20

§ 1407.  Pennsylvania Gaming Economic Development and Tourism

21

Fund.

22

* * *

23

(d)  Restrictions on projects for certain counties and

24

cities.--[For] Except as set forth in subsection (d.1), for a

25

ten-year period beginning with the first fiscal year during

26

which deposits are made into this fund, no moneys from the

27

Pennsylvania Gaming Economic Development and Tourism Fund shall

28

be distributed for any project located in a city or county of

29

the first or second class except as authorized by this

30

subsection. Moneys not used for the authorized projects in

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1

cities and counties of the first and second classes may be used

2

throughout this Commonwealth. Moneys from the fund for projects

3

within cities and counties of the first and second classes may

4

only be used for the following projects during this ten-year

5

period:

6

* * *

7

[(7)  for retirement of indebtedness and for financing of

8

a hotel or convention center in a city of the second class

9

established pursuant to the authority of the act of July 29,

10

1953 (P.L.1034, No.270), known as the Public Auditorium

11

Authorities Law;]

12

* * *

13

(d.1)  Community and economic development.--

14

(1)  Notwithstanding subsection (b) or any other

15

provision of law to the contrary, the money authorized but

16

not expended under former subsection (d)(7) as of the

17

effective date of this subsection shall be deposited into a

18

restricted receipts account to be established in the

19

Commonwealth Financing Authority exclusively for eligible

20

applications submitted by the redevelopment authority of a

21

county of the second class created pursuant to the act of May

22

24, 1945 (P.L.991, No.385), known as the Urban Redevelopment

23

Law, for economic development, infrastructure development,

24

job training, community improvement, public safety or other

25

projects in the public interest located in a county of the

26

second class. Community development corporations, political

27

subdivisions, urban redevelopment authorities, municipal

28

authorities, for-profit entities and nonprofit entities

29

located in a county of the second class shall be eligible to

30

receive funds made available under this paragraph.

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1

(2)  Notwithstanding the Capital Facilities Debt Enabling

2

Act, funding under the paragraph (1) may be utilized as local

3

matching funds for grants or loans from the Commonwealth.

4

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

5

with the Department of Community and Economic Development and

6

the Commonwealth Financing Authority, shall submit an annual

7

report of all distribution of funds under this section to the

8

chairman and minority chairman of the Appropriations Committee

9

of the Senate, the chairman and minority chairman of the

10

Community, Economic and Recreational Development Committee of

11

the Senate, the chairman and minority chairman of the

12

Appropriations Committee of the House of Representatives and the

13

chairman and minority chairman of the Gaming Oversight Committee

14

of the House of Representatives. The report shall include

15

detailed information relating to transfers made from the

16

Pennsylvania Gaming Economic Development and Tourism Fund and

17

all reimbursements, distributions and payments made under

18

subsection (b) or the act of July 25, 2007 (P.L.342, No.53),

19

known as Pennsylvania Gaming Economic Development and Tourism

20

Fund Capital Budget Itemization Act of 2007. The report shall be

21

submitted by August 31, 2010, and by August 31 of each year

22

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 Pennsylvania Gaming Economic Development

30

and Tourism Fund Capital Budget Itemization Act of 2007 shall

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1

submit an annual report to the Office of the Budget. The report

2

shall include detailed information, including records of

3

expenditures, payments and other distributions made from funds

4

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

5

information on all funds received prior to August 31, 2010. The

6

report shall be submitted by August 31, 2010, and by August 31

7

of each year thereafter until all funds under this section are

8

distributed or received. An entity that receives funds for the

9

first time after the effective date of this section shall submit

10

its initial report by August 31 of the year following receipt of

11

the funds.

12

(g)  Distribution to international airport.--Notwithstanding

13

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

14

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

15

Development and Tourism Fund Capital Budget Itemization Act of

16

2007, following the distribution of $42.5 million of funds

17

allocated to a county of the second class for debt service and

18

economic development projects for an international airport in

19

the county under section 3(2)(i)(E) of said act, all remaining

20

funds shall be distributed directly to an authority that

21

operates an international airport in the county.

22

Section 13.  Section 1408(a), (c) and (e) of Title 4 are

23

amended and the section is amended by adding a subsection to

24

read:

25

§ 1408.  Transfers from State Gaming Fund.

26

(a)  Transfer for compulsive and problem gambling

27

treatment.--Each year, the sum of [$1,500,000] $2,000,000 or an

28

amount equal to [.001] .002 multiplied by the total gross

29

terminal revenue of all active and operating licensed gaming

30

entities, whichever is greater, shall be transferred into the

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1

Compulsive and Problem Gambling Treatment Fund established in

2

section 1509 (relating to compulsive and problem gambling

3

program).

4

(a.1)  Transfer.--Beginning on the first business day of

5

January 2010 and annually thereafter, the sum of $3,000,000

6

shall be transfered to the Department of Health to be used to

7

provide drug and alcohol addiction treatment services, including

8

treatment for drug and alcohol addiction related to compulsive

9

and problem gambling, as set forth in section 1509.1 (relating

10

to drug and alcohol treatment).

11

* * *

12

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

13

[$5,000,000] $2,000,000 shall be transferred to the board for

14

the purpose of issuing grants to local law enforcement agencies

15

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

16

investigate violations of and enforce laws relating to unlawful

17

gambling in this Commonwealth. For purposes of this subsection,

18

the term "local law enforcement agency" shall include the

19

Pennsylvania State Police when conducting unlawful gambling

20

enforcement and prevention activities in a municipality which

21

does not have a municipal police department and in which the

22

Pennsylvania State Police provide the municipality with primary

23

police coverage.

24

* * *

25

(e)  Transfer to Property Tax Relief Fund.--Monthly, the

26

State Treasurer shall transfer the remaining balance in the

27

State Gaming Fund which is not allocated in subsections (a),

28

(a.1), (b), (c) and (d) to the Property Tax Relief Fund

29

established in section 1409 (relating to Property Tax Relief

30

Fund).

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1

Section 13.1.  Sections 1501(b) and (c), 1504 and 1505 of

2

Title 4 are amended to read:

3

§ 1501.  Responsibility and authority of department.

4

* * *

5

(b)  Application of rules and regulations.--The department

6

may prescribe the extent, if any, to which any rules and

7

regulations shall be applied without retroactive effect. The

8

department shall have authority to prescribe the forms and the

9

system of accounting and recordkeeping to be employed and

10

through its representative shall at all times have power of

11

access to and examination and audit of any equipment and records

12

relating to all aspects of the operation of slot machines and

13

table games under this part.

14

(c)  Procedure.--For purposes of implementing this part, the

15

department may promulgate regulations in the same manner in

16

which the board is authorized as provided in section 1203

17

(relating to temporary regulations) and section 1303A (relating

18

to temporary table game regulations).

19

* * *

20

§ 1504.  Wagering on credit.

21

[Slot] Except as otherwise provided in this section, slot 

22

machine licensees [may] shall not extend credit. Slot machine

23

licensees [may] shall not accept credit cards, charge cards or

24

debit cards from a patron or player for the exchange or purchase

25

of slot machine credits or for an advance of coins or currency

26

to be utilized by a player to play slot machine games or extend

27

credit in any manner to a player so as to enable the player to

28

play slot machines. Slot machine licensees who hold a table game

29

operation certificate may extend credit for slot machine gaming

30

in accordance with section 1326A (relating to cash equivalents).

- 184 -

 


1

§ 1505.  No eminent domain authority.

2

Neither the Commonwealth nor any political subdivision

3

thereof shall have the right to acquire, with or without

4

compensation, through the power of eminent domain any property,

5

easement or land use right for the siting or construction of a

6

licensed facility [for the operation of slot machines by a slot

7

machine licensee].

8

Section 13.2.  Section 1509(a), (b), (c) and (d) of Title 4

9

are amended and the section is amended by adding subsections to

10

read:

11

§ 1509.  Compulsive and problem gambling program.

12

(a)  Establishment of program.--The Department of Health, in

13

consultation with organizations similar to the Mid-Atlantic

14

Addiction Training Institute, shall develop program guidelines

15

for public education, awareness and training regarding

16

compulsive and problem gambling and the treatment and prevention

17

of compulsive and problem gambling. The guidelines shall include

18

strategies for the prevention of compulsive and problem

19

gambling. The Department of Health may consult with the board

20

and licensed gaming entities to develop such strategies. [The

21

program shall include:

22

(1)  Maintenance of a compulsive gamblers assistance

23

organization's toll-free problem gambling telephone number to

24

provide crisis counseling and referral services to families

25

experiencing difficulty as a result of problem or compulsive

26

gambling.

27

(2)  The promotion of public awareness regarding the

28

recognition and prevention of problem or compulsive gambling.

29

(3)  Facilitation, through in-service training and other

30

means, of the availability of effective assistance programs

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1

for problem and compulsive gamblers and family members

2

affected by problem and compulsive gambling.

3

(4)  Conducting studies to identify adults and juveniles

4

in this Commonwealth who are or are at risk of becoming

5

problem or compulsive gamblers.

6

(5)  Providing grants to and contracting with

7

organizations which provide services as set forth in this

8

section.

9

(6)  Providing reimbursement for organizations for

10

reasonable expenses in assisting the Department of Health in

11

carrying out the purposes of this section.]

12

(a.1)  Duties of Department of Health.--From funds available

13

in the Compulsive and Problem Gambling Treatment Fund, the

14

Department of Health shall:

15

(1)  Maintain a compulsive gamblers assistance

16

organization's toll-free problem gambling telephone number to

17

provide crisis counseling and referral services to

18

individuals and families experiencing difficulty as a result

19

of problem or compulsive gambling.

20

(2)  Facilitate, through in-service training and other

21

means, the availability of effective assistance programs for

22

problem and compulsive gamblers and family members affected

23

by problem and compulsive gambling.

24

(3)  At its discretion, conduct studies to identify

25

individuals in this Commonwealth who are or are at risk of

26

becoming problem or compulsive gamblers.

27

(4)  Provide grants to and contract with single county

28

authorities and other organizations which provide services as

29

set forth in this section.

30

(5)  Reimburse organizations for reasonable expenses

- 186 -

 


1

incurred assisting the Department of Health with implementing

2

this section.

3

(a.2)  Duties of Department of Health and board.--Within 60

4

days following the effective date of this subsection, the

5

Department of Health's Bureau of Drug and Alcohol Programs and

6

the board's Office of Compulsive and Problem Gambling shall

7

jointly collaborate with other appropriate offices and agencies

8

of State or local government, including single county

9

authorities, and providers and other persons, public or private,

10

with expertise in compulsive and problem gambling treatment to

11

do the following:

12

(1)  Implement a strategic plan for the prevention and

13

treatment of compulsive and problem gambling.

14

(2)  Adopt compulsive and problem gambling treatment

15

standards to be integrated with the Bureau of Drug and

16

Alcohol Program's uniform Statewide guidelines that govern

17

the provision of addiction treatment services.

18

(3)  Develop a method to coordinate compulsive and

19

problem gambling data collection and referral information to

20

crisis response hotlines, child welfare and domestic violence

21

programs and providers and other appropriate programs and

22

providers.

23

(4)  Develop and disseminate educational materials to

24

provide public awareness related to the prevention,

25

recognition and treatment of compulsive and problem gambling.

26

(5)  Develop demographic-specific compulsive and problem

27

gambling prevention, intervention and treatment programs.

28

(6)  Prepare an itemized budget outlining how funds will

29

be allocated to fulfill the responsibilities under this

30

section.

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1

(b)  Compulsive and Problem Gambling Treatment Fund.--There

2

is hereby established in the State Treasury a special fund to be

3

known as the Compulsive and Problem Gambling Treatment Fund. All

4

moneys in the fund shall be [expended] administered by the

5

Department of Health and expended solely for programs for the

6

prevention and treatment of gambling addiction and other

7

emotional and behavioral problems associated with or related to

8

gambling addiction and for the administration of the compulsive

9

and problem gambling program[.]; provided that the Department of

10

Health shall annually distribute at least 50% of the money in

11

the fund to single county authorities under subsection (d). The

12

fund shall consist of money annually allocated to it from the

13

annual payment established under section [1408] 1408(a) 

14

(relating to transfers from State Gaming Fund), money which may

15

be allocated by the board, interest earnings on moneys in the

16

fund and any other contributions, payments or deposits which may

17

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 at least 20 signs

23

similar to the 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 and in other

29

appropriate public areas of the licensed facility as

30

determined by the slot machine licensee.

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1

(2)  Each racetrack where slot machines or table games 

2

are operated shall print a statement on daily racing programs

3

provided to the general public that is similar to the

4

following:

5

If you or someone you know has a gambling problem, help

6

is available. Call (Toll-free telephone number).

7

(3)  A licensed facility which fails to post or print the

8

warning sign in accordance with paragraph (1) or (2) shall be

9

assessed a fine of $1,000 a day for each day the [sign is] 

10

minimum number of signs are not posted or the required

11

statement is not printed as provided in this subsection.

12

(d)  Single county authorities.--The Department of Health

13

[may] shall make grants from the fund established under

14

subsection (b) to [a single county authority] single county

15

authorities created pursuant to the act of April 14, 1972

16

(P.L.221, No.63), known as the Pennsylvania Drug and Alcohol

17

Abuse Control Act, for the purpose of providing compulsive

18

gambling and gambling addiction prevention, treatment and

19

education programs. Treatment may include financial counseling,

20

irrespective of whether the financial counseling is provided by

21

the single county authority, the treatment service provider or

22

subcontracted to a third party. It is the intention of the

23

General Assembly that any grants [that] made by the Department

24

of Health [may make] to any single county authority in

25

accordance with the provisions of this subsection be used

26

exclusively for the development and implementation of compulsive

27

and problem gambling programs authorized under [subsection (a)] 

28

this section.

29

(d.1)  Eligibility.--Eligibility to receive treatment

30

services for treatment of compulsive and problem gambling under

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1

this section shall be determined using financial eligibility and

2

other requirements of the single county authorities as approved

3

by the Department of Health.

4

(d.2)  Report.--No later than October 1, 2010, and each

5

October 1 thereafter, the Department of Health, in consultation

6

with the board, shall prepare and submit a report on the impact

7

of the programs funded by the Compulsive and Problem Gambling

8

Treatment Fund to the Governor and to the members of the General

9

Assembly. The report shall include aggregate demographic-

10

specific data, including race, gender, geography and income of

11

those individuals treated.

12

* * *

13

Section 13.3.  Title 4 is amended by adding a section to

14

read:

15

§ 1509.1.  Drug and alcohol treatment.

16

(a)  Duties of Department of Health.--Annually, the

17

Department of Health shall allocate and transfer all funds

18

received by it under section 1408(a.1) (relating to transfers

19

from State Gaming Fund) to the single county authorities.

20

(b)  Duties of single county authorities.--The funds

21

allocated and transferred to the single county authorities under

22

subsection (a) shall be used by the single county authorities

23

solely for drug and alcohol addiction assessments, including

24

drug and alcohol addiction assessment associated or related to

25

compulsive and problem gambling, and for the related addiction

26

treatment, in nonhospital residential detoxification facilities,

27

nonhospital residential rehabilitation facilities and halfway

28

houses licensed by the Department of Health to provide addiction

29

treatment services.

30

(c)  Eligibility.--Eligibility to receive treatment services

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1

for treatment of drug and alcohol addiction or drug and alcohol

2

addiction associated with or related to compulsive and problem

3

gambling shall be determined using financial eligibility and

4

other requirements of the single county authorities as approved

5

by the Department of Health.

6

(d)  Report.--No later than October 1, 2010, and each October

7

1 thereafter, the Bureau of Drug and Alcohol Programs shall

8

prepare and submit a report to the Governor and to the members

9

of the General Assembly on the data and progress on activities

10

initiated under this section.

11

Section 13.4.  Sections 1510(a), 1511(b) and 1512(a.1), (a.5)

12

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

13

§ 1510.  Labor hiring preferences.

14

(a)  Category 1, 2, and 3 licensed facilities, generally.--

15

Each licensed gaming entity shall prepare a hiring plan for

16

employees of its respective licensed facility which promotes a

17

diverse work force, minority participation and personnel from

18

within the surrounding geographical area. The hiring plan shall

19

be approved by the board and shall be consistent with the goals

20

outlined in sections 1212 (relating to diversity goals of board)

21

and 1304A (relating to Commonwealth resident employment goals)

22

and shall be updated annually.

23

* * *

24

§ 1511.  Declaration of exemption from Federal laws prohibiting

25

slot machines.

26

* * *

27

(b)  Legal shipments.--All shipments of [slot machines] 

28

gambling devices, as defined in section 1 of the Gambling

29

Devices Transportation Act (64 Stat. 1134, 15 U.S.C. § 1171), 

30

into this Commonwealth, the registering, recording and labeling

- 191 -

 


1

of which has been effected by the manufacturer and supplier of

2

those devices, in accordance with sections [5 and 7] 3 and 4 of

3

the Gambling Devices Transportation Act (64 Stat. 1134, 15

4

U.S.C. §§ [1175 and 1177] 1173 and 1174), shall be deemed legal

5

shipments of [slot machines] gambling devices into this

6

Commonwealth.

7

§ 1512.  Financial and employment interests.

8

* * *

9

(a.1)  Employment.--Except as may be provided by rule or

10

order of the Pennsylvania Supreme Court and except as provided

11

in section 1202.1 (relating to code of conduct) or 1512.1

12

(relating to additional restrictions), no executive-level public

13

employee, public official or party officer, or an immediate

14

family member thereof, shall be employed by an applicant or a

15

slot machine licensee, manufacturer licensee, supplier licensee

16

or licensed racing entity, or by any holding company, affiliate,

17

intermediary or subsidiary thereof, while the individual is an

18

executive-level public employee, public official or party

19

officer and for one year following termination of the

20

individual's status as an executive-level public employee,

21

public official or party officer.

22

* * *

23

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

24

shall [publish] do all of the following:

25

(1)  Issue a written determination of whether a person is

26

subject to subsections (a), (a.1) or (a.2) upon the written

27

request of the person or any other person that may have

28

liability for an action taken with respect to such person. A

29

person that relies in good faith on a determination made

30

under this paragraph shall not be subject to any penalty for

- 192 -

 


1

an action taken, provided that all material facts set forth

2

in the request for the determination are correct.

3

(2)  Publish a list of all State, county, municipal and

4

other government positions that meet the definitions of

5

"public official" as defined under subsection (b) or

6

"executive-level public employee" [under subsection (b)]. The

7

Office of Administration shall assist the State Ethics

8

Commission in the development of the list, which shall be

9

published by the State Ethics Commission in the Pennsylvania

10

Bulletin biennially and posted by the board on the board's

11

Internet website. Upon request, each public official shall

12

have a duty to provide the State Ethics Commission with

13

adequate information to accurately develop and maintain the

14

list. The State Ethics Commission may impose a civil penalty

15

under 65 Pa.C.S. § 1109(f) (relating to penalties) upon any

16

individual, including any public official or executive-level

17

public employee, who fails to cooperate with the State Ethics

18

Commission under this subsection. A person that relies in

19

good faith on the list published by the State Ethics

20

Commission shall not be subject to any penalty for a

21

violation of this section.

22

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

23

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

24

subsection:

25

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

26

the following:

27

(1)  Deputy Secretaries of the Commonwealth and the

28

Governor's Office executive staff.

29

(2)  An employee of the Executive Branch with

30

discretionary power which may affect or influence the outcome

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1

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

2

the development of regulations or policies relating to a

3

licensed entity or who is involved in other matters under

4

this part. The term shall include an employee with law

5

enforcement authority.

6

(3)  An employee of a county or municipality with

7

discretionary powers which may affect or influence the

8

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

9

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

10

policy relating to a licensed entity or who is involved in

11

other matters under this part. The term shall include an

12

employee with law enforcement authority.

13

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

14

commission, authority or other governmental body not included

15

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

16

may affect or influence the outcome of the governmental

17

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

18

development of regulation or policy relating to a licensed

19

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

20

The term shall include an employee with law enforcement

21

authority.]

22

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

23

hold, debt or equity securities or other ownership interest or

24

profits interest. A financial interest shall not include any

25

debt or equity security, or other ownership interest or profits

26

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

27

following:

28

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

29

employee, public official, party officer or immediate family

30

member thereof may not exercise any managerial control or

- 194 -

 


1

receive income during the tenure of office and the period

2

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

3

apply only to blind trusts established prior to the effective

4

date of this paragraph.

5

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

6

sharing plan, individual retirement account, tax-sheltered

7

annuity, a plan established pursuant to section 457 of the

8

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

9

1 et seq.) or any successor provision deferred compensation

10

plan whether qualified or not qualified under the Internal

11

Revenue Code of 1986 or any successor provision or other

12

retirement plan that:

13

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

14

(ii)  is advised by an independent investment adviser

15

who has sole authority to make investment decisions with

16

respect to contributions made by the individual to these

17

plans.

18

(3)  A tuition account plan organized and operated

19

pursuant to section 529 of the Internal Revenue Code of 1986

20

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

21

directed by the individual.

22

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

23

fund in a licensed entity does not constitute a controlling

24

interest as defined in this part.

25

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

26

child.

27

["Law enforcement authority."  The power to conduct

28

investigations of or to make arrests for criminal offenses.]

29

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

30

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

- 195 -

 


1

State committee or member of the executive committee of a State

2

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

3

or treasurer of a county committee in which a licensed facility

4

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

5

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

6

licensed facility is located.

7

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

8

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

9

Governor's cabinet, Treasurer, Auditor General and Attorney

10

General of the Commonwealth.

11

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

12

of the Commonwealth.

13

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

14

a county or municipality that directly receives a

15

distribution of revenue under this part.

16

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

17

agency, board, commission, authority or other governmental

18

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

19

receives a distribution of revenue under this part.

20

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

21

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

22

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

23

(3) with discretionary power which may influence or affect

24

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

25

the development of regulation or policy relating to a

26

licensed entity or who is involved in other matters under

27

this part.

28

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

29

individual who held an uncompensated office with a governmental

30

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

- 196 -

 


1

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

2

advisory board or commission which makes recommendations

3

relating to a licensed facility.

4

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

5

§ 1512.1.  Additional restrictions.

6

(a)  Restrictions.--No individual trooper or employee of the

7

Pennsylvania State Police or employee of the Office of Attorney

8

General or the department whose duties substantially involve

9

licensing or enforcement, the development of laws, or the

10

development or adoption of regulations or policy related to

11

gaming under this part or who has other discretionary authority

12

which may affect or influence the outcome of an action,

<--

13

proceeding or decision under this part shall do any of the

14

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.

- 197 -

 


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 potential employer shall terminate the rescind the

<--

22

offer of employment.

23

(d)  Code of conduct.--The Pennsylvania State Police, Office

24

of Attorney General and department each shall adopt a

25

comprehensive code of conduct which shall supplement all other

26

requirements under this part and 65 Pa.C.S. Pt. II (relating to

27

accountability), as applicable, and shall provide guidelines

28

applicable to troopers, employees, independent contractors of

29

the agency whose duties substantially involve licensing or

30

enforcement, the development of laws, or the development or

- 198 -

 


1

adoption of regulations or policy related to gaming under this

2

part or who has other discretionary authority which may affect

3

the outcome of an action, proceeding or decision under this

4

part, and the immediate families of these individuals to enable

5

them to avoid any perceived or actual conflict of interest and

6

to promote public confidence in the integrity and impartiality

7

of gaming enforcement and regulation. At a minimum, the code of

8

conduct adopted under this section shall apply the types of

9

restrictions applicable to members under section 1202.1(c),

10

except that the restrictions under section 1202.1(c)(5) shall

11

not apply to an elected Attorney General.

12

(e)  State Ethics Commission.--The State Ethics Commission

13

shall do all of the following:

14

(1)  Issue a written determination of whether an

15

individual is subject to subsection (a) upon the written

16

request of the individual or the individual's employer or

17

potential employer. A person that relies in good faith on a

18

determination made under this paragraph shall not be subject

19

to any penalty for an action taken, provided that all

20

material facts set forth in the request for the determination

21

are correct.

22

(2)  Publish a list of all positions within the

23

Pennsylvania State Police, the Office of Attorney General and

24

the department whose duties would subject the individuals in

25

those positions to the provisions of subsection (a). Each

26

agency subject to this subsection shall assist the State

27

Ethics Commission in the development of the list, which shall

28

be published by the State Ethics Commission in the

29

Pennsylvania Bulletin biennially, shall be posted by the

30

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

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1

each agency on the agency's Internet website. Upon request by

2

the State Ethics Commission, members and employees of each

3

agency subject to this subsection shall have a duty to

4

provide the State Ethics Commission with adequate information

5

to accurately develop and maintain the list. The State Ethics

6

Commission may impose a civil penalty under 65 Pa.C.S. §

7

1109(f) (relating to penalties) upon any individual who fails

8

to cooperate with the State Ethics Commission under this

9

subsection. A person who relies in good faith on the list

10

published by the State Ethics Commission shall not be subject

11

to any penalty for a violation of subsection (a).

12

Section 14.1.  Sections 1513(c) and 1514 heading, (b), (f),

13

(g) and (h) of Title 4 are amended to read:

14

§ 1513.  Political influence.

15

* * *

16

(c)  Penalties.--

17

(1)  The first violation of this section by a licensed

18

gaming entity or any person that holds a controlling interest

19

in such gaming entity, or a subsidiary company thereof, [and] 

20

or any officer, director or management-level employee of such

21

licensee shall be punishable by a fine [of] equal to an

22

amount not less than [an] the average single day's gross

23

terminal revenue and gross table game revenue of the licensed

24

gaming entity [derived from the operation of slot machines in

25

this Commonwealth]; a second violation of this section,

26

within five years of the first violation, shall be punishable

27

by at least a one-day suspension of the license held by the

28

licensed gaming entity and a fine equal to an amount not less

29

than [an] two times the average [two days'] single day's 

30

gross terminal revenue and gross table game revenue of the

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1

licensed gaming entity; a third violation of this section

2

within five years of the second violation shall be punishable

3

by the immediate revocation of the license held by the

4

licensed gaming entity. Following revocation, the board shall

5

consider appointing a trustee in accordance with section 1332

6

(relating to appointment of trustee).

7

(2)  The first violation of this section by a

8

manufacturer or supplier licensed pursuant to this part or by

9

any person that holds a controlling interest in such

10

manufacturer or supplier, or a subsidiary company thereof,

11

[and] or any officer, director or management-level employee

12

of such a licensee shall be punishable by a fine [of] equal

13

to an amount not less than [one] a single day's average of

14

the gross profit from sales made by the manufacturer or

15

supplier in Pennsylvania during the preceding 12-month period

16

or portion thereof in the event the manufacturer or supplier

17

has not operated in Pennsylvania for 12 months; a [second] 

18

subsequent violation of this section within five years of

19

[the first] a prior violation shall be punishable by a one-

20

month suspension of the license held by the manufacturer or

21

supplier and a fine [of] equal to an amount not less than two

22

times [one] a single day's average of the gross profit from

23

sales made by the manufacturer or supplier in Pennsylvania

24

during the preceding 12-month period or portion thereof in

25

the event the manufacturer or supplier has not operated in

26

Pennsylvania for 12 months.

27

(3)  In no event shall the fine imposed under this

28

section be [in] an amount less than [$50,000] $100,000 for

29

each violation. In addition to any fine or sanction that may

30

be imposed by the board under this subsection, any [person] 

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1

individual who makes a contribution in violation of this

2

section commits a misdemeanor of the third degree.

3

* * *

4

§ 1514.  Regulation requiring exclusion or ejection of certain

5

persons.

6

* * *

7

(b)  Categories to be defined.--The board shall promulgate

8

definitions establishing those categories of persons who shall

9

be excluded or ejected pursuant to this section, including

10

cheats and persons whose privileges for licensure,

11

certification, permit or registration have been revoked.

12

* * *

13

(f)  Notice.--Whenever the [board places] bureau seeks to

14

place the name of any person on a list pursuant to this section,

15

the [board] bureau shall serve notice of this fact to such

16

person by personal service or certified mail at the last known

17

address of the person. The notice shall inform the individual of

18

the right to request a hearing under subsection (g).

19

(g)  Hearing.--Within 30 days after receipt of notice in

20

accordance with subsection (f), the person named for exclusion

21

or ejection may demand a hearing before the board, at which

22

hearing the [board] bureau shall have the affirmative obligation

23

to demonstrate that the person named for exclusion or ejection

24

satisfies the criteria for exclusion or ejection established by

25

this section and the board's regulations. Failure of the person 

26

to demand a hearing within 30 days after service shall be deemed

27

an admission of all matters and facts alleged in the [board's] 

28

bureau's notice and shall preclude [a] the person from having an

29

administrative hearing, but shall in no way affect the right to

30

judicial review as provided in this section.

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1

(h)  Review.--If, upon completion of a hearing on the notice

2

of exclusion or ejection, the board determines that placement of

3

the name of the person on the exclusion or ejection list is

4

appropriate, the board shall make and enter an order to that

5

effect, which order shall be served on all [slot machine

6

licensees] licensed gaming entities. The order shall be subject

7

to review by the Commonwealth Court in accordance with the rules

8

of court.

9

Section 14.2.  Title 4 is amended by adding a section to

10

read:

11

§ 1516.1.  Prosecutorial and adjudicatory functions.

12

The board shall promulgate regulations and adopt procedures

13

necessary to ensure that the bureau is a distinct entity and to

14

prevent commingling of the investigatory and prosecutorial

15

functions of the bureau under section 1517 (relating to

16

investigations and enforcement) and the adjudicatory functions

17

of the board. Regulations and procedures promulgated or adopted

18

under this section shall do all of the following:

19

(1)  Provide that neither the executive director nor the

20

chief counsel of the board shall direct or limit the scope of

21

a background investigation conducted by the bureau.

22

(2)  Incorporate section 1202.1(c.1) (relating to code of

23

conduct) and any other applicable provisions of section

24

1202.1.

25

Section 15.  Section 1517(a.1)(2) and (6), (b)(1), (c)(12)

26

and (e)(1) of Title 4 are amended, subsection (a.2)(1) is

27

amended by adding a subparagraph and subsection (c) is amended

28

by adding paragraphs to read:

29

§ 1517.  Investigations and enforcement.

30

* * *

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1

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

2

Investigations and Enforcement shall have the following powers

3

and duties:

4

* * *

5

(2)  Investigate and review all applicants for a license,

6

permit or registration. The bureau shall be prohibited from

7

disclosing any portion of a background investigation report

8

to any board member prior to the submission of the bureau's

9

final background investigation report relating to the

10

applicant's suitability for licensure to the board. The

11

Office of Enforcement Counsel, on behalf of the bureau, shall

12

prepare the final background investigation report for

13

inclusion in a final report relating to the applicant's

14

suitability for licensure.

15

* * *

16

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

17

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

18

review may include the review of accounting, administrative

19

and financial records, management control systems, procedures

20

and other records utilized by a licensed entity.

21

* * *

22

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

23

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

24

Enforcement Counsel which shall act as the prosecutor in all

25

noncriminal enforcement actions initiated by the bureau under

26

this part and shall have the following powers and duties:

27

* * *

28

(iv)  Petition the board for the appointment of a

29

trustee under section 1332 (relating to appointment of

30

trustee).

- 204 -

 


1

* * *

2

(b)  Powers and duties of department.--

3

(1)  The department shall at all times have the power of

4

access to [examination] examine and audit [of any] equipment

5

and records relating to all aspects of the operation of slot

6

machines or table games under this part.

7

* * *

8

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

9

Pennsylvania State Police shall have the following powers and

10

duties:

11

* * *

12

(1.1)  Promptly conduct a background investigation on an

13

individual selected by the board to fill the position of

14

executive director of the board, director of the bureau,

15

chief counsel of the board or the director of the Office of

16

Enforcement Counsel and submit the results to the board.

17

* * *

18

(12)  Conduct audits or verification of information of

19

slot machine or table game operations at such times, under

20

such circumstances and to such extent as the bureau

21

determines. This paragraph includes reviews of accounting,

22

administrative and financial records and management control

23

systems, procedures and records utilized by a slot machine

24

licensee.

25

* * *

26

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

27

Pennsylvania State Police shall submit a report to the

28

Appropriations Committee of the Senate, the Community,

29

Economic and Recreational Development Committee of the

30

Senate, the Appropriations Committee of the House of

- 205 -

 


1

Representatives and the Gaming Oversight Committee of the

2

House of Representatives. The report shall summarize all law

3

enforcement activities at each licensed facility during the

4

previous calendar year and shall include all of the

5

following:

6

(i)  The number of arrests made and citations issued

7

at each licensed facility and the name of the law

8

enforcement agency making the arrest or issuing the

9

citation.

10

(ii)  A list of specific offenses charged for each

11

arrest made or citation issued.

12

(iii)  The number of criminal prosecutions resulting

13

from arrests made or citations issued.

14

(iv)  The number of convictions resulting from

15

prosecutions reported under subparagraph (iii).

16

(v)  The number of Pennsylvania State Police troopers

17

assigned to each licensed facility and to the gaming unit

18

at the Pennsylvania State Police headquarters.

19

(vi)  The number and the subject matter of complaints

20

made against Pennsylvania State Police troopers in

21

licensed facilities and the type of disciplinary actions

22

taken by the Pennsylvania State Police, if any, against

23

the Pennsylvania State Police troopers.

24

(vii)  The closest local police station, Pennsylvania

25

State Police station and regional Pennsylvania State

26

Police headquarters to each licensed facility.

27

* * *

28

(e)  Inspection, seizure and warrants.--

29

(1)  The bureau, the department and the Pennsylvania

30

State Police shall have the authority without notice and

- 206 -

 


1

without warrant to do all of the following in the performance

2

of their duties:

3

(i)  Inspect and examine all premises where slot

4

machine or table game operations are conducted, [gaming

5

devices or] slot machines, table game devices and

6

associated equipment are manufactured, sold, distributed

7

or serviced or where records of these activities are

8

prepared or maintained.

9

(ii)  Inspect all equipment and supplies in, about,

10

upon or around premises referred to in subparagraph (i).

11

(iii)  Seize, summarily remove and impound equipment

12

and supplies from premises referred to in subparagraph

13

(i) for the purposes of examination and inspection.

14

(iv)  Inspect, examine and audit all books, records

15

and documents pertaining to a slot machine licensee's

16

operation.

17

(v)  Seize, impound or assume physical control of any

18

book, record, ledger, game, device, cash box and its

19

contents, [counting] count room or its equipment or slot

20

machine or table game operations.

21

* * *

22

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

23

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

24

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

25

representing the bureau or the Office of Enforcement Counsel, or

26

an employee of the bureau or office involved in the hearing

27

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

28

officer, chief counsel or member] (Reserved).

29

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

30

counsel or a member shall not discuss or exercise any

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1

supervisory responsibility over any employee with respect to an

2

enforcement hearing with which the employee is involved] 

3

(Reserved).

4

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

5

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

6

any enforcement proceeding, the chief counsel or the member

7

shall be prohibited from participating in the adjudication of

8

that matter and shall designate appropriate individuals to

9

exercise adjudicatory functions.

10

Section 16.1.  Section 1518(a)(2), (3), (4), (5), (7), (8),

11

(11) and (13), (b)(1) and (2) and (c)(1)(v) and (3) of Title 4

12

are amended, subsections (a) and (b) are amended by adding

13

paragraphs and the section is amended by adding subsections to

14

read:

15

§ 1518.  Prohibited acts; penalties.

16

(a)  Criminal offenses.--

17

* * *

18

(2)  It shall be unlawful for a person to willfully:

19

(i)  fail to report, pay or truthfully account for

20

and pay over any license fee, authorization fee, tax or

21

assessment imposed under this part; or

22

(ii)  attempt in any manner to evade or defeat any

23

license fee, authorization fee, tax or assessment imposed

24

under this part.

25

(3)  It shall be unlawful for any licensed entity, gaming

26

employee, key employee or any other person to permit a slot

27

machine, table game or table game device to be operated,

28

transported, repaired or opened on the premises of a licensed

29

facility by a person other than a person licensed or

30

permitted by the board pursuant to this part.

- 208 -

 


1

(4)  It shall be unlawful for any licensed entity or

2

other person to manufacture, supply or place slot machines,

3

table games, table game devices or associated equipment into

4

play or display slot machines, table games, table game

5

devices or associated equipment on the [premise] premises of

6

a licensed facility without the authority of the board.

7

(5)  Except as provided for in section 1326 (relating to

8

license renewals), it shall be unlawful for a licensed entity

9

or other person to manufacture, supply, operate, carry on or

10

expose for play any slot machine, table game, table game

11

device or associated equipment after the person's license has

12

expired and prior to the actual renewal of the license.

13

* * *

14

(7)  (i)  Except as set forth in subparagraph (ii), it

15

shall be unlawful for an individual to use or possess a

16

cheating or thieving device, counterfeit or altered

17

billet, ticket, token or similar objects accepted by a

18

slot machine or counterfeit or altered slot machine-

19

issued tickets or vouchers at a licensed facility.

20

(ii)  An authorized employee of a licensee or an

21

employee of the board may possess and use a cheating or

22

thieving device, counterfeit or altered billet, ticket,

23

token or similar objects accepted by a slot machine or

24

counterfeit or altered slot machine-issued tickets or

25

vouchers in performance of the duties of employment.

26

[(iii)  As used in this paragraph, the term "cheating

27

or thieving device" includes, but is not limited to, a

28

device to facilitate the alignment of any winning

29

combination or to remove from any slot machine money or

30

other contents. The term includes, but is not limited to,

- 209 -

 


1

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

2

or wire and any electronic or magnetic device.]

3

(7.1)  It shall be unlawful for an individual to do any

4

of the following:

5

(i)  Use or possess counterfeit, marked, loaded or

6

tampered with table game devices or associated equipment,

7

chips or other cheating devices in the conduct of gaming

8

under this part, except that an authorized employee of a

9

licensee or an authorized employee of the board may

10

possess and use counterfeit chips or table game devices

11

or associated equipment that have been marked, loaded or

12

tampered with, or other cheating devices in performance

13

of the duties of employment for training, investigative

14

or testing purposes only.

15

(ii)  Knowingly, by a trick or sleight of hand

16

performance or by fraud or fraudulent scheme, table game

17

device or other device, for himself or for another, win

18

or attempt to win any cash, property or prize at a

19

licensed facility or to reduce or attempt to reduce a

20

losing wager.

21

(8)  (i)  Except as set forth in subparagraph (ii), it

22

shall be unlawful for an individual to knowingly possess

23

or use while on the premises of a licensed facility a key

24

or device designed for the purpose of and suitable for

25

opening or entering any slot machine, drop box or coin

26

box which is located on the premises of the licensed

27

facility.

28

(ii)  An authorized employee of a licensee or a

29

member of the board may possess and use a device referred

30

to in subparagraph (i) in the performance of the duties

- 210 -

 


1

of employment.

2

* * *

3

(11)  It shall be unlawful for a licensed gaming entity

4

that is a licensed racing entity and that has lost the

5

license issued to it by either the State Horse Racing

6

Commission or the State Harness Racing Commission under the

7

Race Horse Industry Reform Act or that has had that license

8

suspended to operate slot machines or table games at the

9

racetrack for which its slot machine license was issued

10

unless the license issued to it by either the State Horse

11

Racing Commission or the State Harness Racing Commission will

12

be subsequently reissued or reinstated within 30 days after

13

the loss or suspension.

14

* * *

15

(13)  It shall be unlawful for [any person] an individual 

16

under [18] 21 years of age to [be permitted in the] enter and

17

remain in any area of a licensed facility where slot machines

18

are operated or the play of table games is conducted, except

19

that an individual 18 years of age or older employed by a

20

slot machine licensee, a gaming service provider, the board

<--

21

or any other regulatory agency may enter and remain in any

22

such area while engaged in the performance of the

<--

23

individual's employment duties being performed on behalf of

<--

24

the slot machine licensee.

25

(13.1)  It shall be unlawful for an individual under 21

26

years of age to wager, play or attempt to play a slot machine

27

or table game at a licensed facility.

28

(14)  (Reserved).

29

(15)  It shall be unlawful for a licensed gaming entity

30

to require a wager to be greater than the stated minimum

- 211 -

 


1

wager or less than the stated maximum wager. However, a wager

2

made by a player and not rejected by a licensed gaming entity

3

prior to commencement of play shall be treated as a valid

4

wager. A wager accepted by a dealer shall be paid or lost in

5

its entirety in accordance with the rules of the game,

6

notwithstanding that the wager exceeded the current table

7

maximum wager or was lower than the current table minimum

8

wager.

9

(16)  An individual that engages in conduct prohibited by

10

18 Pa.C.S. § 6308 (relating to purchase, consumption,

11

possession or transfer of liquor or malt or brewed beverages)

12

in a licensed facility commits a nongambling offense.

13

(17)  It shall be unlawful for an individual to claim,

14

collect or take, or attempt to claim, collect or take, money

15

or anything of value in or from a slot machine, gaming table

16

or other table game device, with the intent to defraud, or to

17

claim, collect or take an amount greater than the amount won,

18

or to manipulate with the intent to cheat, any component of

19

any slot machine, table game or table game device in a manner

20

contrary to the designed and normal operational purpose.

21

(b)  Criminal penalties and fines.--

22

(1)  (i)  A person that commits a first offense in

23

violation of 18 Pa.C.S. § 4902, 4903 or 4904 in

24

connection with providing information or making any

25

statement, whether written or oral, to the board, the

26

bureau, the department, the Pennsylvania State Police,

27

the Office of Attorney General or a district attorney as

28

required by this part commits an offense to be graded in

29

accordance with the applicable section violated. A person

30

that is convicted of a second or subsequent violation of

- 212 -

 


1

18 Pa.C.S. § 4902, 4903 or 4904 in connection with

2

providing information or making any statement, whether

3

written or oral, to the board, the bureau, the

4

department, the Pennsylvania State Police, the Office of

5

Attorney General or a district attorney as required by

6

this part commits a felony of the second degree.

7

(ii)  A person that violates subsection (a)(2)

8

through (12) or (17) commits a misdemeanor of the first

9

degree. A person that is convicted of a second or

10

subsequent violation of subsection (a)(2) through (12) or

11

(17) commits a felony of the second degree.

12

(2)  (i)  For a first violation of subsection (a)(1)

13

through (12) or (17), a person shall be sentenced to pay

14

a fine of:

15

(A)  not less than $75,000 nor more than $150,000

16

if the person is an individual;

17

(B)  not less than $300,000 nor more than

18

$600,000 if the person is a licensed gaming entity;

19

or

20

(C)  not less than $150,000 nor more than

21

$300,000 if the person is a licensed manufacturer or

22

supplier.

23

(ii)  For a second or subsequent violation of

24

subsection (a)(1) through (12) or (17), a person shall be

25

sentenced to pay a fine of:

26

(A)  not less than $150,000 nor more than

27

$300,000 if the person is an individual;

28

(B)  not less than $600,000 nor more than

29

$1,200,000 if the person is a licensed gaming entity;

30

or

- 213 -

 


1

(C)  not less than $300,000 nor more than

2

$600,000 if the person is a licensed manufacturer or

3

supplier.

4

(3)  An individual who commits an offense in violation of

5

subsection (a)(13) or (13.1) commits a nongambling summary

6

offense and upon conviction of a first offense shall be

7

sentenced to pay a fine of not less than $200 nor more than

8

$1,000. An individual that is convicted of a second or

9

subsequent offense under subsection (a)(13) or (13.1) shall

10

be sentenced to pay a fine of not less than $500 nor more

11

than $1,500. In addition to the fine imposed, an individual

12

convicted of an offense under subsection (a)(13) or (13.1)

13

may be sentenced to perform a period of community service not

14

to exceed 40 hours.

15

(4)  An individual that commits an offense in violation

16

of subsection (a)(16) commits a nongambling offense to be

17

graded in accordance with 18 Pa.C.S. § 6308 and shall be

18

subject to the same penalties imposed pursuant to 18 Pa.C.S.

19

§ 6308 and 6310.4 (relating to restriction of operating

20

privileges) except that the fine imposed for a violation of

21

subsection (a)(16) shall be not less than $350 nor more than

22

$1,000.

23

(c)  Board-imposed administrative sanctions.--

24

(1)  In addition to any other penalty authorized by law,

25

the board may impose without limitation the following

26

sanctions upon any licensee or permittee:

27

* * *

28

(v)  Suspend the license of any licensed gaming

29

entity for violation of or attempting to violate any

30

provisions of this part or regulations promulgated under

- 214 -

 


1

this part relating to its slot machine or table game 

2

operations.

3

* * *

4

(3)  In addition to any other fines or penalties that the

5

board may impose under this part or regulation, if a person

6

violates subsection (a)(2), the board shall impose an

7

administrative penalty of three times the amount of the

8

license fee, authorization fee, tax or other assessment

9

evaded and not paid, collected or paid over. This subsection

10

is subject to 2 Pa.C.S. Chs. 5 Subch. A and 7 Subch. A.

11

(d)  Aiding and abetting.--A person who aids, abets,

12

counsels, commands, induces, procures or causes another person

13

to violate a provision of this part shall be subject to all

14

sanctions and penalties, both civil and criminal, provided under

15

this part.

16

(e)  Continuing offenses.--A violation of this part that is

17

determined to be an offense of a continuing nature shall be

18

deemed to be a separate offense on each event or day during

19

which the violation occurs. Nothing in this section shall be

20

construed to preclude the commission of multiple violations of

21

the provisions of this part in any one day that establish

22

offenses consisting of separate and distinct acts or violations

23

of the provisions of this part or regulations promulgated under

24

this part.

25

(f)  Property subject to seizure, confiscation, destruction

26

or forfeiture.--Any equipment, device or apparatus, money,

27

material, gaming proceeds or substituted proceeds or real or

28

personal property used, obtained or received or any attempt to

29

use, obtain or receive the device, apparatus, money, material,

30

proceeds or real or personal property in violation of this part,

- 215 -

 


1

shall be subject to seizure, confiscation, destruction or

2

forfeiture.

3

Section 17.  Title 4 is amended by adding sections to read:

4

§ 1518.1.  Report of suspicious transactions.

5

(a)  Duty.--A slot machine licensee or a person acting on

6

behalf of a slot machine licensee shall file a report of any

7

suspicious transaction with the bureau. The filing with the

8

bureau of a copy of a report made under 31 CFR 103.21 (relating

9

to reports by casinos of suspicious transactions) shall satisfy

10

this requirement.

11

(b)  Failure to report.--

12

(1)  A person required under this section to file a

13

report of a suspicious transaction who knowingly fails to

14

file a report of a suspicious transaction or who knowingly

15

causes another person having that responsibility to fail to

16

file a report commits a misdemeanor of the third degree.

17

(2)  A person required under this section to file a

18

report of a suspicious transaction who fails to file a report

19

or a person who causes another person required under this

20

section to file a report of a suspicious transaction to fail

21

to file a report shall be strictly liable for his actions and

22

may be subject to sanction under section 1518(c) (relating to

23

prohibited acts; penalties).

24

(c)  Bureau.--The bureau shall maintain a record of all

25

reports made under this section for a period of five years. The

26

bureau shall make the reports available to any Federal or State

27

law enforcement agency upon written request and without

28

necessity of subpoena.

29

(d)  Notice prohibited.--A person who is required to file a

30

report of a suspicious transaction under this section shall not

- 216 -

 


1

notify any individual suspected of committing the suspicious

2

transaction that the transaction has been reported. Any person

3

that violates this subsection commits a misdemeanor of the third

4

degree and may be subject to sanction under section 1518(c).

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 for a violation of this section, the board

13

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

- 217 -

 


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

§ 1518.2.  Additional authority.

11

(a)  General rule.--The director of the Office of Enforcement

12

Counsel within the bureau may petition a court of record having

13

jurisdiction over information in the possession of an agency in

14

this Commonwealth, or if there is no such court, then the

15

Commonwealth Court for authorization to review or obtain

16

information in the possession of an agency in this Commonwealth

17

by averring specific facts demonstrating that the agency has in

18

its possession information material to a pending investigation

19

or inquiry being conducted by the bureau pursuant to this part

20

and that disclosure or release is in the best interest of the

21

Commonwealth. The petition shall request that the court enter a

22

rule upon the agency to show cause why the agency should not be

23

directed to disclose to the bureau, or identified agents

24

thereof, information in its possession about any pending matter

25

under the jurisdiction of the bureau pursuant to this part. If a

26

respondent is a local agency, a copy of any rule issued pursuant

27

to this section shall be provided to the district attorney of

28

the county in which the local agency is located and the Office

29

of Attorney General. Upon request of a local agency, the

30

district attorney or the Attorney General may elect to enter an

- 218 -

 


1

appearance to represent the local agency in the proceedings.

2

(b)  Procedure.--The filing of a petition pursuant to this

3

section and related proceedings shall be in accordance with

4

court rule, including issuance as of course. A party shall not

5

disclose the filing of a petition or answer or the receipt,

6

content or disposition of a rule or order issued pursuant to

7

this section without leave of court. Any party to the

8

proceedings may request that the record be sealed and

9

proceedings be closed. The court shall grant the request if it

10

is in the best interest of any person or the Commonwealth to do

11

so.

12

(c)  Court determination.--Following review of the record,

13

the court shall grant the relief sought by the director of the

14

Office of Enforcement Counsel if the court determines that the

15

agency has in its possession information material to the

16

investigation or inquiry and that disclosure or release of the

17

information is in the best interest of the Commonwealth, that

18

the disclosure or release of the information is not otherwise

19

prohibited by statute or regulation and that the disclosure or

20

release of the information would not inhibit an agency in the

21

performance of the agency's duties. If the court so determines,

22

the court shall enter an order authorizing and directing the

23

information be made available for review in camera.

24

(d)  Release of materials or information.--If, after an in

25

camera review by the court, the director of the Office of

26

Enforcement Counsel seeks to obtain copies of materials in the

27

agency's possession, the court may, if not otherwise prohibited

28

by statute or regulation, enter an order that the requested

29

materials be provided. Any order authorizing the release of

30

materials or other information shall contain direction regarding

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1

the safekeeping and use of the materials or other information

2

sufficient to satisfy the court that the materials or

3

information will be sufficiently safeguarded. In making this

4

determination the court shall consider the input of the agency

5

in possession of the information and any input from any agency

6

with which the information originated concerning any pending

7

investigation or ongoing matter and the safety of person and

8

property.

9

(e)  Modification of order.--If subsequent investigation or

10

inquiry by the bureau warrants modification of any order entered

11

pursuant to this section, the director of the Office of

12

Enforcement Counsel may petition to request the modification.

13

Upon such request, the court may modify its orders at any time

14

and in any manner it deems necessary and appropriate. The agency

15

named in the original petition shall be given notice and an

16

opportunity to be heard.

17

(f)  Use of information or materials.--Any person who, by any

18

means authorized by this section, has obtained knowledge of

19

information or materials solely pursuant to this section may use

20

such information or materials in a manner consistent with any

21

directions imposed by the court and appropriate to the proper

22

performance of the person's official duties under this part.

23

(g)  Violation.--In addition to any remedies and penalties

24

provided in this part, any violation of the provisions of this

25

section may be punished as contempt of the court.

26

(h)  Definition.--As used in this section the term "agency"

27

shall mean a "Commonwealth agency" or a "local agency" as those

28

terms are defined in section 102 of the act of February 14, 2008

29

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

30

§ 1518.3.  Applicability of Clean Indoor Air Act.

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1

Notwithstanding section 11(b) of the act of June 13, 2008

2

(P.L.182, No.27), known as the Clean Indoor Air Act, the

3

provisions of section 3(b)(11) of the Clean Indoor Air Act shall

4

apply to all licensed facilities.

5

Section 17.1.  Section 1521 of Title 4 is amended by adding a

6

subsection to read:

7

§ 1521.  Liquor licenses at licensed facilities.

8

* * *

9

(b.1)  Liquor Code sanctions.--Notwithstanding any other

10

provision of law, a person holding a slot machine license that

11

also holds a license issued by the Pennsylvania Liquor Control

12

Board shall not be subject to the provisions of section 471(c)

13

of the Liquor Code. In addition, if a fine is imposed under

14

section 471(b) of the Liquor Code, it shall be for not less than

15

$250 nor more than $25,000. The prior citation history of the

16

slot machine licensee shall be considered in determining the

17

amount of the fine.

18

* * *

19

Section 18.  Section 1522 of Title 4 is amended to read:

20

§ 1522.  Interception of oral communications.

21

The interception and recording of oral communications made in

22

a [counting] count room of a licensed facility by a licensee

23

shall not be subject to the provisions of 18 Pa.C.S. Ch. 57 

24

(relating to wiretapping and electronic surveillance). Notice

25

that oral communications are being intercepted and recorded

26

shall be posted conspicuously in the [counting] count room.

27

Section 18.1.  Title 4 is amended by adding a section to

28

read:

29

§ 1523.  Electronic funds transfer terminals.

30

(a)  Prohibition.--A slot machine licensee may not install,

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1

own or operate or allow another person to install, own or

2

operate on the premises of the licensed facility a slot machine

3

or table game that is played with a device that allows a player

4

to operate the slot machine or table game by transferring funds

5

electronically from a debit card, credit card or by means of an

6

electronic funds transfer terminal.

7

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

8

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

9

subsection unless the context clearly indicates otherwise:

10

"Electronic funds transfer terminal."  An information-

11

processing device or an automatic teller machine used for

12

executing deposit account transactions between financial

13

institutions and their account holders by either the direct

14

transmission of electronic impulses or the recording of

15

electronic impulses for delayed processing. The fact that a

16

device is used for other purposes shall not prevent it from

17

being considered an electronic funds transfer terminal under

18

this definition.

19

Section 18.2.  Title 4 is amended by adding chapters to read:

20

Chapter 16

21

JUNKETS

22

Sec.

23

1601.  Gaming junkets authorized.

24

1602.  Gaming junket enterprise license.

25

1603.  Classification system.

26

1604.  Gaming junket representatives.

27

1605.  Junket agreements.

28

1606.  Conduct of junket.

29

1607.  Violation of terms.

30

1608.  Records.

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1

1609.  Report.

2

1610.  Gaming junket arrangement.

3

1611.  Prohibitions.

4

§ 1601.  Gaming junkets authorized.

5

The board may authorize the organization and conduct of

6

gaming junkets subject to the provisions of this chapter. No

7

gaming junket shall be organized or permitted to operate in this

8

Commonwealth and no person shall act as a gaming junket

9

representative or gaming junket enterprise except in accordance

10

with this chapter. The board shall establish a reasonable

11

application and authorization fee for any license, permit or

12

other authorization issued under this chapter.

13

§ 1602.  Gaming junket enterprise license.

14

(a)  Gaming junket enterprise license required.--All gaming

15

junket enterprises shall obtain a license from the board prior

16

to acting as a gaming junket enterprise in this Commonwealth.

17

(b)  Application.-–A gaming junket enterprise license

18

application shall be in a form prescribed by the board and shall

19

include the following:

20

(1)  The name, address and photograph of the applicant

21

and all owners, directors, managers and supervisory employees

22

of a gaming junket enterprise.

23

(2)  The details of a gaming junket enterprise license or

24

similar license applied for or granted or denied to the

25

applicant by another jurisdiction.

26

(3)  Consent for the bureau to conduct a background

27

investigation, the scope of which shall be determined by the

28

board.

29

(4)  All releases necessary for the bureau and the board

30

to acquire licensing documents and other information

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1

necessary to conduct a background investigation or otherwise

2

evaluate the application.

3

(5)  A list of all civil judgments obtained against the

4

applicant pertaining to any gaming junket enterprise with

5

which the applicant has been associated.

6

(6)  A description of the operation and organization of

7

the gaming junket enterprise.

8

(7)  Any additional information required by the board.

9

(c)  Enforcement information.-–If the applicant has held a

10

gaming junket license or other gaming license in another

11

jurisdiction, the applicant may submit a letter of reference

12

from the gaming enforcement agency in the other jurisdiction.

13

The letter shall specify the experiences of the agency with the

14

applicant, the applicant's associates and the applicant's gaming

15

junket enterprise or gaming activity. If no letter is received

16

within 30 days following the applicant's request, the applicant

17

may submit a statement under oath, subject to the penalty for

18

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

19

swearing), that the applicant is in good standing with the

20

gaming enforcement agency in the other jurisdiction.

21

(d)  Issuance.-–Following review of the application,

22

completion of the background investigation and payment of the

23

license fee established by the board under section 1601(a)

24

(relating to gaming junkets authorized), the board may issue a

25

gaming junket enterprise license to the applicant if the

26

applicant has proven by clear and convincing evidence that the

27

applicant is a person of good character, honesty and integrity

28

and that the applicant's activities, criminal record,

29

reputation, habits and associations do not pose a threat to the

30

public interest or suitable or legitimate operation of gaming.

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1

(e)  Failure to cooperate.-–Failure to provide required

2

information or releases under this section shall result in the

3

immediate denial of an application for a license.

4

(f)  Nontransferability.-–A license issued under this section

5

shall be nontransferable.

6

§ 1603.  Classification system.

7

The board shall develop a classification system for the

8

regulation of gaming junket enterprises and the individuals and

9

entities associated with gaming junket enterprises.

10

§ 1604.  Gaming junket representatives.

11

(a)  Occupation permit.-–Except as otherwise provided in

12

subsection (e), a gaming junket representative shall obtain an

13

occupation permit from the board in accordance with section 1318

14

(relating to occupation permit application).

15

(b)  Application.-–In addition to the requirements of section

16

1308 (relating to applications for license or permit), the

17

application for a gaming junket representative occupation permit

18

shall be in a form prescribed by the board and shall include the

19

following:

20

(1)  Verification of employment status as a gaming junket

21

representative with a licensed gaming junket enterprise or an

22

applicant for a gaming junket enterprise license.

23

(2)  A description of employment responsibilities.

24

(3)  A consent form to allow the bureau to conduct a

25

background investigation, the scope of which shall be

26

determined by the board.

27

(4)  A release for the bureau and the board to acquire

28

copies of information from government agencies, employers and

29

others as necessary to complete the investigation.

30

(5)  Fingerprints which shall be submitted to the

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1

Pennsylvania State Police.

2

(6)  A photograph that meets the standards of the

3

Commonwealth Photo Imaging Network.

4

(7)  Details relating to a similar license, permit or

5

other authorization obtained in another jurisdiction, if any.

6

(8)  Any additional information required by the board.

7

(c)  Issuance.-–Following review of the application,

8

background investigation and payment of the permit fee

9

established by the board under section 1601(a) (relating to

10

gaming junkets authorized), the board may issue an occupation

11

permit if the applicant has proven by clear and convincing

12

evidence that the applicant is a person of good character,

13

honesty and integrity and is eligible and suitable to receive an

14

occupation permit.

15

(d)  Nontransferability.-–An occupation permit issued under

16

this section shall be nontransferable.

17

(e)  Holder of occupation permit.–-Nothing in this section

18

shall be construed to prohibit an individual who holds a valid

19

occupation permit and who is employed by a slot machine licensee

20

from acting as a junket representative. A gaming junket

21

representative need not be a resident of this Commonwealth.

22

§ 1605.  Junket agreements.

23

Agreements entered into between a slot machine licensee and a

24

gaming junket enterprise or a gaming junket representative shall

25

include a provision for the termination of the agreement without

26

liability on the part of the slot machine licensee if:

27

(1)  The board orders the suspension, limitation,

28

conditioning, denial or revocation of the license of a gaming

29

junket representative license or occupation permit of a

30

gaming junket representative.

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1

(2)  The board disapproves the agreement and requires its

2

termination.

3

Failure to expressly include the termination requirement under

4

this section in the agreement shall not constitute a defense in

5

an action brought relating to the termination of the agreement.

6

§ 1606.  Conduct of junket.

7

A slot machine licensee shall be responsible for the conduct

8

of a gaming junket representative or gaming junket enterprise

9

with which the slot machine licensee has an agreement and for

10

the terms and conditions of a gaming junket on its premises.

11

§ 1607.  Violation of terms.

12

Notwithstanding any other provision of this part, if the

13

board determines that the terms of an agreement to conduct a

14

gaming junket were violated by a slot machine licensee, gaming

15

junket enterprise or gaming junket representative, the board may

16

do any or all of the following:

17

(1)  Order restitution to the gaming junket participant.

18

(2)  Assess civil penalties or sanctions under section

19

1518 (relating to prohibited acts; penalties) for a violation

20

or deviation from the terms of the junket agreement.

21

§ 1608.  Records.

22

The board shall prescribe procedures and forms to retain

23

records relating to the conduct of a gaming junket by a slot

24

machine licensee. A slot machine licensee shall:

25

(1)  Maintain a current report of the operations of

26

gaming junkets conducted at its licensed facility.

27

(2)  Submit to the board and the bureau a list of all its

28

employees who conduct business on behalf of the slot machine

29

licensee with gaming junket representatives on a full-time,

30

part-time or temporary basis.

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1

(3)  Maintain records of all agreements entered into with

2

a gaming junket enterprise or gaming junket representative

3

for a minimum of five years.

4

(4)  Provide any other information relating to a gaming

5

junket required by the board or bureau.

6

§ 1609.  Report.

7

A slot machine licensee, gaming junket representative or

8

gaming junket enterprise shall file a report with the bureau on

9

each list of gaming junket participants or potential gaming

10

junket participants purchased by the slot machine licensee,

11

gaming junket representative or gaming junket enterprise. The

12

report shall include the source of the list and zip codes of

13

participants or potential participants on a list purchased

14

directly or indirectly by a slot machine licensee, gaming junket

15

representative or gaming junket enterprise. Nothing in this

16

section shall require the reporting or maintenance of personal

17

identifying information pertaining to participants or potential

18

participants.

19

§ 1610.  Gaming junket arrangement.

20

Upon petition by a slot machine licensee, the board may grant

21

an exemption from the permit requirements of this chapter to a

22

gaming junket representative. The board shall consult with the

23

bureau prior to granting an exemption under this section and

24

shall consider the following:

25

(1)  The terms of the gaming junket arrangement.

26

(2)  The number and scope of gaming junkets.

27

(3)  Whether the exemption is consistent with the

28

policies and purposes of this part.

29

(4)  Any other factor deemed necessary by the bureau or

30

board.

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1

The board may condition, limit or restrict the exemption.

2

§ 1611.  Prohibitions.

3

A gaming junket enterprise or gaming junket representative

4

shall not do any of the following:

5

(1)  Engage in efforts to collect on any check provided

6

by a gaming junket participant that has been returned by a

7

financial institution without payment.

8

(2)  Exercise approval authority over the authorization

9

or issuance of credit under section 1326A (relating to cash

10

equivalents).

11

(3)  Receive or retain a fee from an individual for the

12

privilege of participating in a gaming junket.

13

(4)  Pay for any service, including transportation, or

14

other thing of value provided to a participant participating

15

in a gaming junket except as authorized by this part.

16

CHAPTER 17

17

GAMING SCHOOLS

18

Sec.

19

1701.  Curriculum.

20

1701.1.  (Reserved).

21

1702.  Gaming school gaming equipment.

22

§ 1701.  Curriculum.

23

The Department of Labor and Industry, in consultation with

24

the Department of Education and the board, shall, within 60 days

25

following the effective date of this section, develop curriculum

26

guidelines, including minimum proficiency requirements

27

established by the board, for gaming school instruction. The

28

guidelines shall, at a minimum, establish courses of instruction

29

that will provide individuals with adequate job training

30

necessary to obtain employment as a gaming employee with a

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1

licensed gaming entity.

2

§ 1701.1.  (Reserved).

3

§ 1702.  Gaming school gaming equipment.

4

(a)  Use of gaming equipment.--All gaming equipment utilized

5

by a gaming school, including slot machines, table game devices,

6

associated equipment and all representations of value, shall be

7

used for training, instructional and practice purposes only. The

8

use of any such gaming equipment for actual gaming by any person

9

is prohibited.

10

(b)  Chips.--Unless the board otherwise determines, all

11

gaming chips and other representations of value utilized by a

12

gaming school shall be distinctly dissimilar to any chips

13

utilized by a slot machine licensee.

14

(c)  Possession, removal and transport of equipment.--No

15

gaming school shall possess, remove or transport, or cause to be

16

removed or transported, any slot machine, table game device or

17

associated equipment except in accordance with this part.

18

(d)  Serial numbers.--Each slot machine, table game device

19

and associated equipment on the premises of a gaming school

20

shall have permanently affixed on it a serial number which,

21

together with the location of the machine or table game device,

22

shall be filed with the board.

23

(e)  Security.--Each gaming school shall provide adequate

24

security for the slot machines, table games, table game devices

25

and associated equipment on the gaming school premises.

26

(f)  Notice to board and bureau.--No gaming school shall sell

27

or transfer any slot machine, table game, table game device or

28

associated equipment except upon prior written notice to the

29

board and the bureau.

30

(g)  Additional training.--Each individual attending gaming

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1

school shall be trained in cardiopulmonary resuscitation.

2

Section 18.3.  Section 1901(a) of Title 4 is amended to read:

3

§ 1901.  Appropriations.

4

(a)  Appropriation to board.--

5

(1)  The sum of $7,500,000 is hereby appropriated to the

6

Pennsylvania Gaming Control Board for the fiscal period July

7

1, 2004, to June 30, 2006, to implement and administer the

8

provisions of this part. The money appropriated in this

9

subsection shall be considered a loan from the General Fund

10

and shall be repaid to the General Fund quarterly commencing

11

with the date slot machine licensees begin operating slot

12

machines under this part. This appropriation shall be a two-

13

year appropriation and shall not lapse until June 30, 2006.

14

(2)  The sum of $2,100,000 is hereby appropriated from

15

the State Gaming Fund to the Pennsylvania Gaming Control

16

Board for salaries, wages and all necessary expenses for the

17

proper operation and administration of the Pennsylvania

18

Gaming Control Board for the expansion of gaming associated

19

with table games. This appropriation shall be a supplemental

20

appropriation for fiscal year 2009-2010 and shall be in

21

addition to the appropriation contained in the act of August

22

19, 2009 (P.L.  , No.9A), known as the Gaming Control

23

Appropriation Act of 2009.

24

* * *

25

Section 18.4.  Section 1513(b) of Title 64 is amended to

<--

26

read:

27

§ 1513.  Powers.

28

* * *

29

(b)  Duties.--The authority shall do all of the following:

30

(1)  Administer the programs established in Subchapter E

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1

in accordance with this chapter.

2

(2)  Fund the programs established in Subchapter E and 12

3

Pa.C.S. Ch. 29 (relating to machinery and equipment loans)

4

subject to Subchapter D (relating to funds, accounts,

5

indebtedness and use).

6

(3)  Establish accounts, administer and distribute the

7

funds deposited into such accounts and perform all other

8

duties required of the authority under 4 Pa.C.S. Part II

9

(relating to gaming).

10

Section 18.4.  Title 4 is amended by adding a section to

<--

11

read:

12

§ 1901.2.  Commonwealth Financing Authority.

13

The Commonwealth Financing Authority shall establish

14

accounts, administer and distribute the funds deposited into the

15

accounts and perform all other duties of the Commonwealth

16

Financing Authority required under this part.

17

Section 19.  No later than 90 days after the effective date

18

of this section, the Pennsylvania Gaming Control Board shall

19

transfer the sum of $12,500,000 from the amounts previously

20

appropriated to the Pennsylvania Gaming Control Board pursuant

21

to 4 Pa.C.S. § 1408 to the General Fund.

22

Section 19.1.  No later than ten business days after the

23

effective date of this section, the Department of Revenue shall

24

pay to each Category 1 and Category 2 slot machine licensee from

25

its existing account established under 4 Pa.C.S. § 1401(a) an

26

amount sufficient to bring the balance in the account to

27

$1,500,000.

28

Section 19.2.  (Reserved). The Pennsylvania Gaming Control

<--

29

Board shall accept and consider additional applications for a

30

Category 3 license established under 4 Pa.C.S. § 1305 if the

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1

license has not been approved by the board on the effective date

2

of this section. An applicant that filed an application for a

3

Category 3 license prior to the effective date of this section

4

shall not be required to resubmit the application. The

5

additional applications shall be submitted to the board within

6

90 days of the effective date of this section. This section

7

shall supersede any prior application period established under 4

8

Pa.C.S. Pt. II.

9

Section 19.3.  The provisions of this act are severable. If

10

any provision of this act or its application to any person or

11

circumstance is held invalid, the invalidity shall not affect

12

other provisions or applications of this act which can be given

13

effect without the invalid provision or application.

14

Section 19.4.  The amendment of 4 Pa.C.S. § 1201(h)(13) 

15

1201(h)(13)(i) shall not apply to individuals employed on the

<--

16

effective date of this section by the Pennsylvania Gaming

17

Control Board until July 1, 2010.

18

Section 19.5.  Repeals are as follows:

19

(1)  The General Assembly declares that the repeal under

20

paragraph (2) is necessary to effectuate the amendment or

21

addition of 4 Pa.C.S. §§ 1407(d)(7) and (d.1) and 64 Pa.C.S.

<--

22

§ 1513(b)(3) 1901.2.

<--

23

(2)  The following provisions of the act of July 25, 2007

24

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

25

Development and Tourism Fund Capital Budget Itemization Act

26

of 2007, are repealed to the extent specified:

27

(i)  Section 3(2)(i)(G), absolutely.

28

(ii)  Section 4(7), absolutely.

29

(iii)  Section 5, insofar as inconsistent with this

30

act.

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1

Section 20.  The following shall apply:

2

(1)  The amendment of 4 Pa.C.S. § 1213 shall not apply to

3

any of the following:

4

(i)  An application submitted before the effective

5

date of this section.

6

(ii)  Any license or permit issued prior to the

7

effective date of this section.

8

(iii)  The renewal of any license or permit issued or

9

applied for prior to the effective date of this section.

10

(2)  The amendment of 4 Pa.C.S. § 1202(a)(2) and the

11

addition of 4 Pa.C.S. § 1517(c)(1.1) shall not apply to an

12

individual:

13

(i)  who, on July 1, 2009, was serving officially or

14

acting as Executive Director of the Pennsylvania Gaming

15

Control Board, Chief Counsel of the board, or the

16

Director of the Office of Enforcement Counsel within the

17

Bureau of Investigations and Enforcement; and

18

(ii)  on whom the bureau or the Pennsylvania State

19

Police completed a background investigation as a

20

condition of employment with the board.

21

(3)  The amendment or addition of 4 Pa.C.S. § 1201(h)

22

(4.1) and (5) shall not apply to:

23

(i)    an individual appointed to the Pennsylvania

24

Gaming Control Board before July 1, 2010; or

25

(ii)  an individual under subparagraph (i) who is

26

reappointed to the Pennsylvania Gaming Control Board.

27

Section 21.  This act shall take effect as follows:

28

(1)  The following provisions shall take effect July 1,

29

2010 2011:

<--

30

(i)  The amendment of 4 Pa.C.S. § 1407.

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1

(ii)  Section 19.5 of this act.

2

(2)  The remainder of this act shall take effect

3

immediately.

- 235 -