PRIOR PRINTER'S NOS. 1196, 1247, 1460, 1464, 1468, 1544, 1545, 1561, 1563

PRINTER'S NO.  1586

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

711

Session of

2009

  

  

Report of the Committee of Conference

  

  

  

To the Members of the Senate and House of Representatives:

  

We, the undersigned, Committee of Conference on the part of the Senate and House of Representatives for the purpose of considering Senate Bill No. 711, entitled:

"An act amending Titles 4 (Amusements) and 64 (Public Authorities and Quasi-Public Corporations) Title 4 (Amusements) of the Pennsylvania Consolidated Statutes, making extensive revisions to provisions on gaming, in the areas of legislative intent, definitions, the Pennsylvania Gaming Control Board, * * * interception of oral communications, electronic funds transfer terminals, junkets, gaming schools and, appropriations and Commonwealth Financing Authority; further providing for powers and duties of the Commonwealth Financing Authority; and making related repeals,"

  

respectfully submit the following bill as our report:

  

DOMINIC PILEGGI

  

JANE M. EARLL

  

WAYNE D. FONTANA

  

(Committee on the part of the Senate.)

  

TODD A. EACHUS

  

DANTE SANTONI, JR.

  

  

  

(Committee on the part of the House of Representatives.)

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AN ACT

  

 


1

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

2

Statutes, making extensive revisions to provisions on gaming,

3

in the areas of legislative intent, definitions, the

4

Pennsylvania Gaming Control Board, applicability of other

5

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

6

regulatory agencies, licensed gaming entity application

7

appeals from board, license or permit application hearing

8

process and public hearings, board minutes and records,

9

regulatory authority, collection of fees and fines, slot

10

machine license fee, number of slot machines, reports of

11

board, diversity goals of board, license or permit

12

prohibition, specific authority to suspend slot machine

13

license, Category 2 slot machine license, Category 3 slot

14

machine license, number of slot machine licenses,

15

applications for license or permit, slot machine license

16

application, slot machine license application character

17

requirements, supplier licenses, manufacturer licenses,

18

gaming service provider, occupation permit application,

19

alternative manufacturer licensing standards, alternative

20

supplier licensing standards, additional licenses and permits

21

and approval of agreements, license renewals, change in

22

ownership or control of slot machine licensee, nonportability

23

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

24

slot machine licensee deposits, gross terminal revenue

25

deductions, itemized budget reporting, establishment of State

26

Gaming Fund and net slot machine revenue distribution,

27

distributions from Pennsylvania Race Horse Development Fund,

28

Pennsylvania Gaming Economic Development and Tourism Fund,

29

transfers from State Gaming Fund, responsibility and

30

authority of Department of Revenue, wagering on credit,

31

eminent domain authority, compulsive and problem gambling

32

program, drug and alcohol treatment, labor hiring

33

preferences, declaration of exemption from Federal laws

34

prohibiting slot machines, financial and employment

35

interests, additional restrictions, political influence,

36

regulation requiring exclusion of certain persons,

37

prosecutorial and adjudicative functions, investigations and

38

enforcement, conduct of public officials and employees,

39

prohibited acts and penalties, report of suspicious

40

transactions, additional authority, applicability of Clean

41

Indoor Air Act, liquor licenses at licensed facilities,

42

interception of oral communications, electronic funds

43

transfer terminals, junkets, gaming schools, appropriations

44

and Commonwealth Financing Authority; and making related

45

repeals.

46

The General Assembly of the Commonwealth of Pennsylvania

47

hereby enacts as follows:

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1

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

2

Consolidated Statutes is amended and the section is amended by

3

adding paragraphs to read:

4

§ 1102.  Legislative intent.

5

The General Assembly recognizes the following public policy

6

purposes and declares that the following objectives of the

7

Commonwealth are to be served by this part:

8

* * *

9

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

10

intended to supplement slot machine gaming by increasing

11

revenues to the Commonwealth and providing new employment

12

opportunities by creating skilled jobs for individuals

13

related to the conduct of table games at licensed facilities

14

in this Commonwealth.

15

* * *

16

(10.1)  The General Assembly has a compelling interest in

17

protecting the integrity of both the electoral process and

18

the legislative process by preventing corruption and the

19

appearance of corruption which may arise through permitting

20

any type of political campaign contributions by certain

21

persons involved in the gaming industry and regulated under

22

this part.

23

(10.2)  Banning all types of political campaign

24

contributions by certain persons subject to this part is

25

necessary to prevent corruption and the appearance of

26

corruption that may arise when political campaign

27

contributions and gaming regulated under this part are

28

intermingled.

29

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

30

regulatory control and legislative oversight over the

- 4 -

 


1

operation and play of slot machines and table games in this

2

Commonwealth; to [prevent the actual or appearance of

3

corruption that may result from large campaign

4

contributions;] ensure the bipartisan administration of this

5

part; and avoid actions that may erode public confidence in

6

the system of representative government.

7

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

8

authorize the operation and play of slot machines and table

9

games under a single slot machine license issued to a slot

10

machine licensee under this part.

11

(13)  The authorization of limited gaming in this

12

Commonwealth requires the Commonwealth to take steps to

13

increase awareness of compulsive and problem gambling and to

14

develop and implement effective strategies for prevention,

15

assessment and treatment of this behavioral disorder.

16

(14)  Research indicates that for some individuals

17

compulsive and problem gambling and drug and alcohol

18

addiction are related. Therefore, the General Assembly

19

intends to establish an approach to compulsive and problem

20

gambling prevention, assessment and treatment that will

21

ensure the provision of adequate resources to identify,

22

assess and treat both compulsive and problem gambling and

23

drug and alcohol addiction.

24

Section 2.  The definitions of "associated equipment,"

25

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

26

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

27

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

28

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

29

amended and the section is amended by adding definitions to

30

read:

- 5 -

 


1

§ 1103.  Definitions.

2

The following words and phrases when used in this part shall

3

have the meanings given to them in this section unless the

4

context clearly indicates otherwise:

5

* * *

6

"Associated equipment."  Any equipment or mechanical,

7

electromechanical or electronic contrivance, component or

8

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

9

games, including linking devices which connect to progressive

10

slot machines or slot machines, replacement parts, equipment

11

which affects the proper reporting and counting of gross

12

terminal revenue and gross table game revenue, computerized

13

systems for controlling and monitoring slot machines or table

14

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

15

computer to which all slot machines communicate and devices for

16

weighing or counting money.

17

* * *

18

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

19

against a certificate holder rather than against another player.

20

* * *

21

"Cash."  United States currency and coin.

22

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

23

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

24

(1)  Chips or tokens.

25

(2)  Travelers checks.

26

(3)  Foreign currency and coin.

27

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

28

(5)  Personal checks or drafts.

29

(6)  A negotiable instrument applied against credit

30

extended by a certificate holder or a financial institution.

- 6 -

 


1

(7)  Any other instrument or representation of value that

2

the Pennsylvania Gaming Control Board deems a cash

3

equivalent.

4

* * *

5

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

6

table game operation certificate awarded by the Pennsylvania

7

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

8

table games).

9

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

10

from any player, slot machine licensee or the Commonwealth while

11

operating or playing a slot machine or table game, including

12

causing, aiding, abetting or conspiring with another person to

13

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

14

abetting or conspiring with another person to alter the elements

15

of chance, method of selection or criteria which determine:

16

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

17

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

18

game or table game.

19

(3)  The value of a wagering instrument.

20

(4)  The value of a wagering credit.

21

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

22

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

23

or repair with the approval of a slot machine licensee.

24

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

25

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

26

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

27

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

28

without the slot machine licensee's approval.

29

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

30

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

- 7 -

 


1

at the certificate holder's licensed facility and redeemable

2

with the issuing certificate holder for cash or cash equivalent.

3

* * *

4

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

5

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

6

under this part, as authorized and approved by the Pennsylvania

7

Gaming Control Board [at a licensed facility].

8

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

9

cash equivalents or prizes.

10

* * *

11

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

12

contendere, whether or not a judgment of sentence has been

13

imposed as determined by the law of the jurisdiction in which

14

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

15

that has been expunged or overturned or for which an individual

16

has been pardoned or had an order of Accelerated Rehabilitative

17

Disposition entered.

18

* * *

19

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

20

designated for the counting, wrapping and recording of slot

21

machine and table game receipts.

22

"Counterfeit chip."  Any object that is:

23

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

24

a certificate holder's licensed facility and which was not

25

issued by that certificate holder for such use; or

26

(2)  presented to a certificate holder for redemption if

27

the object was not issued by the certificate holder.

28

* * *

29

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

30

Pennsylvania Gaming Control Board that is a mechanical,

- 8 -

 


1

electrical or computerized contrivance, terminal, machine or

2

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

3

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

4

any consideration whatsoever, is available for play or operation

5

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

6

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

7

electronic or computerized wagering or payment system. The term

8

shall not include a slot machine.

9

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

10

the following:

11

(1)  Deputy Secretaries of the Commonwealth and the

12

Governor's Office executive staff.

13

(2)  An employee of the executive branch whose duties

14

substantially involve licensing or enforcement under this

15

part, who has discretionary power which may affect or

16

influence the outcome of a Commonwealth agency's action or

17

decision or who is involved in the development of regulations

18

or policies relating to a licensed entity. The term shall

19

include an employee with law enforcement authority.

20

(3)  An employee of a county or municipality with

21

discretionary powers which may affect or influence the

22

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

23

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

24

law, regulation or policy relating to matters regulated under

25

this part. The term shall include an employee with law

26

enforcement authority.

27

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

28

commission, authority or other governmental body not included

29

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

30

may affect or influence the outcome of the governmental

- 9 -

 


1

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

2

involved in the development of regulation or policy relating

3

to matters regulated under this part. The term shall include

4

an employee with law enforcement authority.

5

* * *

6

"Fully automated electronic gaming table."  An electronic

7

gaming table determined by the Pennsylvania Gaming Control Board

8

to be playable or operable as a table game without the

9

assistance or participation of a person acting on behalf of a

10

certificate holder.

11

* * *

12

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

13

including, but not limited to:

14

(1)  Cashiers.

15

(2)  Change personnel.

16

(3)  [Counting] Count room personnel.

17

(4)  Slot attendants.

18

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

19

extend complimentary services, including employees performing

20

functions similar to those performed by a gaming junket

21

representative.

22

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

23

or table game device technicians.

24

(7)  Security personnel.

25

(8)  Surveillance personnel.

26

(9)  [Supervisors] Promotional play supervisors, credit

27

supervisors, pit supervisors, cashier supervisors, shift

28

supervisors, table game managers and assistant managers and

29

other supervisors and managers, except for those specifically

30

identified in this part as key employees.

- 10 -

 


1

(10)  Boxmen.

2

(11)  Dealers or croupiers.

3

(12)  Floormen.

4

(13)  Personnel authorized to issue promotional play.

5

(14)  Personnel authorized to issue credit.

6

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

7

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

8

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

9

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

10

licensed facility within this Commonwealth as determined by the

11

Pennsylvania Gaming Control Board. The term does not include

12

bartenders, cocktail servers or other persons engaged solely in

13

preparing or serving food or beverages, clerical or secretarial

14

personnel, parking attendants, janitorial, stage, sound and

15

light technicians and other nongaming personnel as determined by

16

the board.

17

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

18

junket enterprise or a gaming junket representative for an

19

individual who:

20

(1)  Is selected or approved for participation in the

21

arrangement based on the individual's ability to satisfy

22

specific financial qualifications and the likelihood that the

23

individual will participate in playing slot machines or table

24

games and patronize a licensed facility for the purpose of

25

gaming.

26

(2)  Receives complimentary services or gifts from a slot

27

machine licensee for participation in the arrangement

28

including the costs of transportation, food, lodging or

29

entertainment.

30

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

- 11 -

 


1

machine licensee, who employs or otherwise engages the services

2

of a gaming junket representative to arrange gaming junkets to a

3

licensed facility, regardless of whether the activities of the

4

person or the gaming junket representative occur within this

5

Commonwealth.

6

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

7

employee of a slot machine licensee, who arranges and negotiates

8

the terms of a gaming junket or selects individuals to

9

participate in a gaming junket to a licensed facility,

10

regardless of whether the activities of the individual occur

11

within this Commonwealth.

12

"Gaming school."  Any educational institution approved by the

13

Department of Education as an accredited college or university,

14

community college, Pennsylvania private licensed school or its

15

equivalent and whose curriculum guidelines are approved by the

16

Department of Labor and Industry to provide education and job

17

training related to employment opportunities associated with

18

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

19

device and associated equipment maintenance and repair.

20

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

21

be licensed as a manufacturer, supplier, management company or

22

gaming junket enterprise and:

23

(1)  provides goods or services to a slot machine

24

licensee or an applicant for a slot machine license for use

25

in the operation of a licensed facility; or

26

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

27

"Gross table game revenue."  The total of:

28

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

29

a table game minus the total of:

30

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

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1

result of playing a table game.

2

(ii)  Cash or cash equivalents paid to purchase

3

annuities to fund prizes payable to players over a period

4

of time as a result of playing a table game.

5

(iii)  The actual cost paid by the certificate holder

6

for any personal property distributed to a player as a

7

result of playing a table game. This does not include

8

travel expenses, food, refreshments, lodging or services.

9

(2)  Contest or tournament fees or payments, including

10

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

11

by a certificate holder to participate in a table game

12

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

13

a certificate holder for prizes awarded to the contest or

14

tournament winners.

15

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

16

certificate holder.

17

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

18

currency of other countries received in the playing of a table

19

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

20

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

21

perpetrated against a certificate holder for which the

22

certificate holder is not reimbursed.

23

"Gross terminal revenue."  The total of:

24

(1)  cash or cash equivalent wagers received by a slot

25

machine minus the total of:

26

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

27

[patrons] players as a result of playing a slot machine

28

[which are paid to patrons either manually], whether paid

29

manually or paid out by the slot machine.

30

[(2)] (ii)  Cash or cash equivalents paid to purchase

- 13 -

 


1

annuities to fund prizes payable to [patrons] players 

2

over a period of time as a result of playing a slot

3

machine.

4

[(3)] (iii)  Any personal property distributed to a

5

[patron as the] player as a result of playing a slot

6

machine. This does not include travel expenses, food,

7

refreshments, lodging or services.

8

(2)  cash received as entry fees for slot machine

9

contests or slot machine tournaments.

10

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

11

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

12

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

13

currency are readily convertible to [United States currency,] 

14

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

15

against a slot machine licensee for which the licensee is not

16

reimbursed [or cash received as entry fees for contests or

17

tournaments in which the patrons compete for prizes].

18

* * *

19

"Hotel."  As follows:

20

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

21

buildings owned or operated by a certificate holder which is

22

attached to, physically connected to or adjacent to the

23

certificate holder's licensed facility in which members of

24

the public may, for a consideration, obtain sleeping

25

accommodations.

26

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

27

Category 3 slot machine license) or 1407(d) (relating to

28

Pennsylvania Gaming Economic Development and Tourism Fund), a

29

building or buildings in which members of the public may, for

30

a consideration, obtain sleeping accommodations.

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1

* * *

2

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

3

or department head capacity and who is empowered to make

4

discretionary decisions that regulate slot machine or table game

5

operations, including the general manager and assistant manager

6

of the licensed facility, director of slot operations, director

7

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

8

operations, director of surveillance, director of marketing,

9

director of management information systems, director of

10

security, comptroller and any employee who is not otherwise

11

designated as a gaming employee and who supervises the

12

operations of these departments or to whom these department

13

directors or department heads report and such other positions

14

not otherwise designated or defined under this part which the

15

Pennsylvania Gaming Control Board shall determine based on

16

detailed analyses of job descriptions as provided in the

17

internal controls of the licensee as approved by the

18

Pennsylvania Gaming Control Board. All other gaming employees

19

unless otherwise designated by the Pennsylvania Gaming Control

20

Board shall be classified as non-key employees.

21

"Law enforcement authority."  The power to conduct

22

investigations of or to make arrests for criminal offenses.

23

* * *

24

"Licensed entity representative."  A person, including an

25

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

26

to represent the interest of any applicant, licensee, permittee

27

or other person authorized by the Pennsylvania Gaming Control

28

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

29

the provisions of this part regarding any matter before, or

30

which may reasonably be expected to come before, the

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1

Pennsylvania Gaming Control Board.

2

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

3

which a licensed gaming entity is authorized to place and

4

operate slot machines and, if authorized by the Pennsylvania

5

Gaming Control Board under Chapter 13A (relating to table

6

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

7

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

8

licensee was previously authorized pursuant to section

9

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

10

operate slot machines prior to the effective date of this

11

paragraph;

12

(2)  board-approved interim facility or temporary

13

facility; and

14

(3)  area of a hotel which the Pennsylvania Gaming

15

Control Board determines is suitable to conduct table games.

16

* * *

17

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

18

fabricates, assembles, produces, programs, designs or otherwise

19

makes modifications to any slot machine, table game device or

20

associated equipment for use or play of slot machines or table 

21

games in this Commonwealth for gaming purposes.

22

"Manufacturer license."  A license issued by the Pennsylvania

23

Gaming Control Board authorizing a manufacturer to manufacture

24

or produce slot machines, table game devices or associated

25

equipment for use in this Commonwealth for gaming purposes.

26

* * *

27

"Municipal authority."  A body politic and corporate created

28

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

29

as the Municipality Authorities Act of one thousand nine hundred

30

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

- 16 -

 


1

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

2

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

3

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

4

municipal authorities).

5

* * *

6

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

7

against another player and in which the certificate holder

8

collects a rake.

9

* * *

10

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

11

Pennsylvania Gaming Control Board or any applicant, licensee,

12

permittee, registrant or other person appearing of record in any

13

proceeding before the Pennsylvania Gaming Control Board.

14

* * *

15

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

16

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

17

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

18

play or operation of which may deliver or entitle the individual

19

playing or operating the slot machine or table game to receive

20

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

21

player or a slot machine licensee.

22

* * *

23

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

24

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

25

location, to allow the play or operation of any nonbanking game.

26

* * *

27

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

28

computerized contrivance, terminal, machine or other device

29

approved by the Pennsylvania Gaming Control Board which, upon

30

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

- 17 -

 


1

therein or upon payment of any consideration whatsoever,

2

including the use of any electronic payment system except a

3

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

4

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

5

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

6

entitle the person or persons playing or operating the

7

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

8

billets, tickets, tokens or electronic credits to be exchanged

9

for cash or to receive merchandise or anything of value

10

whatsoever, whether the payoff is made automatically from the

11

machine or manually. A slot machine:

12

(1)  May utilize spinning reels or video displays or

13

both.

14

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

15

winning patrons.

16

(3)  May use an electronic credit system for receiving

17

wagers and making payouts.

18

The term shall include associated equipment necessary to conduct

19

the operation of the contrivance, terminal, machine or other

20

device.

21

"Slot machine contest."  A slot machine competition among

22

players for cash, cash equivalents or prizes.

23

* * *

24

"Slot machine tournament."  An organized series of slot

25

machine contests approved by the Pennsylvania Gaming Control

26

Board in which an overall winner is ultimately determined.

27

* * *

28

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

29

provides, distributes or services any slot machine, table game

30

device or associated equipment for use or play of slot machines

- 18 -

 


1

or table games in this Commonwealth.

2

"Supplier license."  A license issued by the Pennsylvania

3

Gaming Control Board authorizing a supplier to provide products

4

or services related to slot machines, table game devices or

5

associated equipment to slot machine licensees for use in this

6

Commonwealth for gaming purposes.

7

* * *

8

"Suspicious transaction."  A transaction between a slot

9

machine licensee or an employee of a slot machine licensee and

10

an individual that involves the acceptance or redemption by a

11

person of cash or a cash equivalent involving or aggregating

12

$5,000 or more which a slot machine licensee or employee of a

13

slot machine licensee knows, suspects or has reason to believe:

14

(1)  involves funds derived from illegal activities or is

15

intended or conducted in order to conceal or disguise funds

16

or assets derived from illegal activities;

17

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

18

regulation or to avoid any transaction reporting requirement

19

under the laws or regulations of this Commonwealth or the

20

United States, including a plan to structure a series of

21

transactions to avoid any transaction reporting requirement

22

under the laws or regulations of this Commonwealth or the

23

United States; or

24

(3)  has no apparent lawful purpose or is not the type of

25

transaction in which a person would normally be expected to

26

engage and the slot machine licensee or employee knows of no

27

reasonable explanation for the transaction after examining

28

the available facts, including the background and possible

29

purpose of the transaction.

30

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

- 19 -

 


1

Pennsylvania Gaming Control Board. The term includes roulette,

2

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

3

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

4

chuck-a-luck, Panguingue, Fan-tan, Asia poker, Boston 5 stud

5

poker, Caribbean stud poker, Colorado hold 'em poker, double

6

attack blackjack, double cross poker, double down stud poker,

7

fast action hold 'em, flop poker, four card poker, let it ride

8

poker, mini-craps, mini-dice, pai gow poker, pokette, Spanish

9

21, Texas hold 'em bonus poker, three card poker, two card joker

10

poker, ultimate Texas hold 'em, winner's pot poker and any other

11

banking or nonbanking game. The term shall not include:

12

(1)  Lottery games of the Pennsylvania State Lottery as

13

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

14

known as the State Lottery Law.

15

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

16

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

17

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

18

or harness horse racing as authorized under the act of

19

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

20

Industry Reform Act.

21

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

22

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

23

Option Small Games of Chance Act.

24

(5)  Slot machine gaming and progressive slot machine

25

gaming as defined and authorized under this part.

26

(6)  Keno.

27

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

28

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

29

mechanical, electrical or computerized contrivance, terminal,

30

machine or other device, apparatus, equipment or supplies

- 20 -

 


1

approved by the Pennsylvania Gaming Control Board and used to

2

conduct a table game.

3

"Table game operation certificate."  A certificate awarded by

4

the Pennsylvania Gaming Control Board under Chapter 13A

5

(relating to table games) that authorizes a slot machine

6

licensee to conduct table games in accordance with this part.

7

"Tournament."  An organized series of contests approved by

8

the Pennsylvania Gaming Control Board in which an overall winner

9

is ultimately determined.

10

"Trustee."  A person appointed by the Pennsylvania Gaming

11

Control Board under section 1332 (relating to appointment of

12

trustee) to manage and control the operations of a licensed

13

facility and who has the fiduciary responsibility to make

14

decisions to preserve the viability of a licensed facility and

15

the integrity of gaming in this Commonwealth.

16

* * *

17

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

18

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

19

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

20

by adding a subsection to read:

21

§ 1201.  Pennsylvania Gaming Control Board established.

22

* * *

23

(f)  Qualified majority vote.--

24

* * *

25

(3)  Notwithstanding any other provision of this part or

26

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

27

member shall disclose the nature of his disqualifying

28

interest, disqualify himself and abstain from voting in a

29

hearing or proceeding under this part in which his

30

objectivity, impartiality, integrity or independence of

- 21 -

 


1

judgment may be reasonably questioned, as provided in

2

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

3

of conduct). If a legislative appointee has disqualified

4

himself, the qualified majority shall consist of all of the

5

remaining legislative appointees and at least two

6

gubernatorial appointees.

7

* * *

8

(h)  Qualifications and restrictions.--

9

* * *

10

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

11

or vocation for which the member receives a salary,

12

compensation or fee for services rendered which is in excess

13

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

14

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

15

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

16

(i)  Passive or unearned income, including interest,

17

dividends or capital gains from the sale of assets or

18

securities held for investment purposes.

19

(ii)  Health care benefits or retirement, pension or

20

annuity payments.

21

(iii)  Amounts received from a family-controlled

22

trade or business in which both personal services and

23

capital are income-producing factors, provided that the

24

personal services actually rendered by the member do not

25

generate a significant amount of income.

26

(iv)  Director's fees attributable to board

27

membership of a corporate or nonprofit body or board or

28

reimbursement for expenses incurred in connection with

29

board membership.

30

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

- 22 -

 


1

compensation for any activity related to the duties or

2

authority of the board other than salary and expenses

3

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

4

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

5

member from engaging in any employment or receiving any

6

compensation for such employment that is not connected to or

7

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

8

* * *

9

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

10

his immediate family shall divest any financial interest in

11

any applicant, licensed facility or licensed entity and in an

12

affiliate, intermediary, subsidiary or holding company

13

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

14

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

15

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

16

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

17

financial interest in any applicant, licensed facility or

18

licensed entity or in an affiliate, intermediary, subsidiary

19

or holding company [thereof] of an applicant, licensed

20

facility or licensed entity. For purposes of this paragraph,

21

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

22

or unemancipated child.

23

* * *

24

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

25

hearing or proceeding or participate in any other activity on

26

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

27

intermediary, subsidiary or holding company [thereof] of an

28

applicant or licensed entity, or any other licensee or

29

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

30

term of office.

- 23 -

 


1

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

2

contractor [of the board] shall accept a complimentary

3

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

4

licensed facility within this Commonwealth or at any other

5

facility outside this Commonwealth which is owned or operated

6

by a licensed gaming entity or any of its affiliates,

7

intermediaries, subsidiaries or holding companies [thereof]  

8

for the duration of their term of office, employment or

9

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

10

years from the termination of term of office, employment or

11

contract with the board. The provisions of this paragraph

12

prohibiting wagering during the term of employment shall not

13

apply to employees [who utilize] or independent contractors

14

while utilizing slot machines or table game devices for

15

testing purposes or [to verify] while verifying the

16

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

17

enforcement investigation.

18

* * *

19

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

20

an independent contractor of the board whose duties

21

substantially involve licensing, enforcement or the

22

development or adoption of regulations or policy under this

23

part shall:

24

(i)  accept employment with an applicant or licensed

25

entity, or an affiliate, intermediary, subsidiary or

26

holding company thereof, for a period of one year after

27

the termination of the employment relating to the conduct

28

of gaming or contract with the board; or

29

(ii)  appear before the board in any hearing or

30

proceeding or participate in any other activity on behalf

- 24 -

 


1

of any applicant, licensee, permittee or licensed entity,

2

or an affiliate, intermediary, subsidiary or holding

3

company thereof, for a period of two years after

4

termination of the employment or contract with the

5

board.]

6

(13)  The following shall apply to an employee of the

7

board whose duties substantially involve licensing,

8

enforcement, development of law, promulgation of regulations

9

or development of policy, relating to gaming under this part

10

or who has other discretionary authority which may affect or

11

influence the outcome of an action, proceeding or decision

12

under this part, including the executive director, bureau

13

directors and attorneys:

14

(i)  The individual may not, for a period of two

15

years following termination of employment, accept

16

employment with or be retained by an applicant or a

17

licensed entity or by an affiliate, intermediary,

18

subsidiary or holding company of an applicant or a

19

licensed entity.

20

(ii)  The individual may not, for a period of two

21

years following termination of employment, appear before

22

the board in a hearing or proceeding or participate in

23

activity on behalf of any applicant, licensee, permittee

24

or licensed entity or on behalf of an affiliate,

25

intermediary, subsidiary or holding company of any

26

applicant, licensee, permittee or licensed entity.

27

(iii)  An applicant or a licensed entity or an

28

affiliate, intermediary, subsidiary or holding company of

29

an applicant or a licensed entity may not, until the

30

expiration of two years following termination of

- 25 -

 


1

employment, employ or retain the individual. Violation of

2

this subparagraph shall result in termination of the

3

individual's employment and subject the violator to

4

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

5

(iv)  A prospective employee who, upon employment,

6

would be subject to this paragraph must, as a condition

7

of employment, sign an affidavit that the prospective

8

employee will not violate subparagraph (i) or (ii). If

9

the prospective employee fails to sign the affidavit, the

10

board shall rescind any offer of employment and shall not

11

employ the individual.

12

(13.1)  The following shall apply to an independent

13

contractor and to an employee of an independent contractor

14

whose duties substantially involve consultation relating to

15

licensing, enforcement, development of law, promulgation of

16

regulations or development of policy, relating to gaming

17

under this part:

18

(i)  The person may not, for a period of one year

19

following termination of the contract with the board, be

20

retained by an applicant or a licensed entity or by an

21

affiliate, intermediary, subsidiary or holding company of

22

an applicant or a licensed entity.

23

(ii)  The person may not, for a period of two years

24

following termination of the contract with the board,

25

appear before the board in a hearing or proceeding or

26

participate in activity on behalf of any applicant,

27

licensee, permittee or licensed entity or on behalf of an

28

affiliate, intermediary, subsidiary or holding company of

29

any applicant, licensee, permittee or licensed entity.

30

(iii)  An applicant or a licensed entity or an

- 26 -

 


1

affiliate, intermediary, subsidiary or holding company of

2

an applicant or a licensee may not, until the expiration

3

of one year following termination of the contract with

4

the board, employ or retain the person. A knowing

5

violation of this subparagraph shall result in

6

termination of the person's employment and subject the

7

violator to section 1518(c).

8

(iv)  Each contract between the board and an

9

independent contractor which involves the duties set

10

forth in this paragraph shall contain a provision

11

requiring the independent contractor to sign an affidavit

12

that the independent contractor will not violate

13

subparagraph (i) or (ii). If the independent contractor

14

fails to sign the affidavit, the board shall not enter

15

into the contract.

16

(v)  An independent contractor shall require a

17

prospective employee whose employment would involve the

18

duties set forth in this paragraph to sign an affidavit

19

that the prospective employee will not violate

20

subparagraph (i) or (ii). If the prospective employee

21

fails to sign the affidavit, the independent contractor

22

shall rescind any offer of employment and shall not

23

employ the individual.

24

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

25

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

26

or former independent contractor or a current or former

27

employee of an independent contractor from appearing before

28

the board in any hearing or proceeding as a witness or

29

testifying as to any fact or information.

30

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

- 27 -

 


1

board, the executive branch of the Commonwealth or a

2

political subdivision or of the agency or political

3

subdivision employing an employee, the State Ethics

4

Commission shall determine whether the individual's duties

5

substantially involve the development or adoption of

6

regulations or policy, licensing or enforcement under this

7

part and shall provide a written determination to the

8

employee to include any prohibition under this paragraph. An

9

individual who] The State Ethics Commission shall issue a

10

written determination of whether a person is subject to

11

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

12

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

13

person that relies in good faith on a determination issued 

14

under this paragraph shall not be subject to any penalty for

15

an action taken, provided that all material facts set forth

16

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

17

(14.1)  The State Ethics Commission shall publish a list

18

of all employment positions within the board and employment

19

positions within independent contractors whose duties would

20

subject the individuals in those positions to the provisions

21

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

22

contractor shall assist the State Ethics Commission in the

23

development of the list, which shall be published by the

24

State Ethics Commission in the Pennsylvania Bulletin

25

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

26

website. Upon request, employees of the board and each

27

independent contractor shall have a duty to provide the State

28

Ethics Commission with adequate information to accurately

29

develop and maintain the list. The State Ethics Commission

30

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

- 28 -

 


1

(relating to penalties) upon an individual who fails to

2

cooperate with the State Ethics Commission under this

3

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

4

published by the State Ethics Commission shall not be subject

5

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

6

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

7

of the board violates any provision of this section, the

8

appointing authority [or the board may, upon notice and

9

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

10

appointment or terminate the employment or contract, and the

11

person shall be ineligible for future appointment, employment

12

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

13

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

14

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

15

five years following removal, be prohibited from future

16

appointment to the board and shall be prohibited from

17

applying for a license, permit or other authorization under

18

this part and from becoming an independent contractor or

19

registering as a licensed entity representative.

20

* * *

21

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

22

their initial appointments within 60 days of the effective date

23

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

24

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

25

shall be final until receipt by the appointing authority of the

26

required background investigation of the appointee by the

27

Pennsylvania State Police which shall be completed within 30

28

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

29

foreign jurisdiction of a felony, infamous crime or gaming

30

offense shall be appointed to the board.

- 29 -

 


1

* * *

2

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

3

other fiscal crisis, the Governor orders the furlough of

4

Commonwealth employees, the board and its employees and all

5

employees of the department and the Pennsylvania State Police

6

whose duties involve the regulation and oversight of gaming

7

under this part shall not be subject to furlough and shall

8

continue to perform their duties of employment.

9

* * *

10

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

11

read:

12

§ 1201.1.  Applicability of other statutes.

13

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

14

board:

15

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

16

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

17

Right-to-Know Law.

18

* * *

19

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

20

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

21

adding paragraphs to read:

22

§ 1202.  General and specific powers.

23

(a)  General powers.--

24

(1)  The board shall have general and sole regulatory

25

authority over the conduct of gaming or related activities as

26

described in this part. The board shall ensure the integrity

27

of the acquisition and operation of slot machines, table

28

games, table game devices and associated equipment and shall

29

have sole regulatory authority over every aspect of the

30

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

- 30 -

 


1

table games.

2

(2)  The board shall employ individuals as necessary to

3

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

4

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

5

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

6

XXV (relating to retirement for State employees and

7

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

8

shall not be considered an executive or independent agency

9

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

10

the Commonwealth Attorneys Act. The board shall not take

11

final action to fill any vacancy in the position of executive

12

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

13

of the board or director of the Office of Enforcement Counsel

14

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

15

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

16

to investigations and enforcement).

17

* * *

18

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

19

power and duty:

20

* * *

21

(7)  To administer oaths, examine witnesses and issue

22

subpoenas compelling the attendance of witnesses or the

23

production of documents and records or other evidence[. The

24

provisions of this paragraph shall apply to designated

25

officers and employees.], or to designate officers or

26

employees to perform these duties.

27

* * *

28

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

29

condition or deny a table game operation certificate to a

30

slot machine licensee in accordance with Chapter 13A

- 31 -

 


1

(relating to table games).

2

* * *

3

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

4

license and permit applicants, to determine at its discretion

5

the suitability of any person who furnishes or seeks to

6

furnish to a slot machine licensee directly or indirectly any

7

goods, services or property related to slot machines, table

8

games, table game devices or associated equipment or through

9

any arrangements under which that person receives payment

10

based directly or indirectly on earnings, profits or receipts

11

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

12

associated equipment. The board may require any such person

13

to comply with the requirements of this part and the

14

regulations of the board and may prohibit the person from

15

furnishing the goods, services or property.

16

* * *

17

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

18

issue or renew a license, certificate, registration or permit

19

unless it is satisfied that the applicant has demonstrated by

20

clear and convincing evidence that the applicant is a person

21

of good character, honesty and integrity and is a person

22

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

23

habits and associations do not pose a threat to the public

24

interest or the effective regulation and control of slot

25

machine or table game operations or create or enhance the

26

danger of unsuitable, unfair or illegal practices, methods

27

and activities in the conduct of slot machine or table game 

28

operations or the carrying on of the business and financial

29

arrangements incidental thereto.

30

* * *

- 32 -

 


1

(27.1)  To publish each January in the Pennsylvania

2

Bulletin and on the Pennsylvania Gaming Control Board's

3

Internet website a complete list of all slot machine

4

licensees who filed a petition seeking authorization to

5

conduct table games and the status of each petition or table

6

game operation certificate.

7

* * *

8

(31)  To collect and post information on its Internet

9

website with sufficient detail to inform the public of each

10

person with a controlling interest or ownership interest in

11

an applicant for a slot machine license or a licensed gaming

12

entity, or affiliate, intermediary, subsidiary or holding

13

company of an applicant or licensed gaming entity. The

14

posting shall include:

15

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

16

any affiliate, intermediary, subsidiary or holding

17

company of the applicant or licensed gaming entity, is a

18

publicly traded domestic or foreign corporation,

19

partnership, limited liability company or other legal

20

entity, the names of all persons with a controlling

21

interest.

22

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

23

any affiliate, intermediary, subsidiary or holding

24

company of the applicant or licensed gaming entity, is a

25

privately held domestic or foreign corporation,

26

partnership, limited liability company or other legal

27

entity, the names of all persons with an ownership

28

interest equal to or greater than 1%.

29

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

30

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

- 33 -

 


1

(iv)  The names of all officers, directors and

2

principals of the applicant or licensed gaming entity.

3

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

4

(relating to appointment of trustee).

5

(33)  To adopt regulations governing the postemployment

6

limitations and restrictions applicable to members and to

7

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

8

(relating to Pennsylvania Gaming Control Board established).

9

In developing these regulations, the board may consult with

10

the State Ethics Commission, other governmental agencies and

11

the disciplinary board of the Supreme Court of Pennsylvania

12

regarding postemployment limitations and restrictions on

13

members and employees of the board who are members of the

14

Pennsylvania Bar.

15

(34)  To review detailed site plans identifying a

16

petitioner's proposed table game area within a licensed

17

facility to determine the adequacy of the proposed internal

18

and external security and proposed surveillance measures.

19

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

20

§ 1202.1.  Code of conduct.

21

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

22

conduct prior to the consideration of any license, permit or

23

registration application. The code of conduct shall supplement

24

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

25

(relating to accountability) and shall provide guidelines

26

applicable to members, employees of the board, independent

27

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

28

of the members, employees and independent contractors to enable

29

them to avoid any perceived or actual conflict of interest and

30

to promote public confidence in the integrity and impartiality

- 34 -

 


1

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

2

this section shall include registration of licensed entity

3

representatives under subsection (b) and the restrictions under

4

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

5

(b)  Registration.--

6

(1)  A licensed entity representative shall register with

7

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

8

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

9

business telephone number of both the licensed entity

10

representative and [the] any licensed entity, applicant for

11

licensure or other person being represented.

12

(2)  A licensed entity representative shall have an

13

[ongoing] affirmative duty to update its registration

14

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

15

be punishable by the board.

16

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

17

registration list which shall contain the information

18

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

19

public inspection at the offices of the board and on the

20

board's Internet website.

21

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

22

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

23

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

24

person.] (Reserved).

25

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

26

compensation, travel, lodging or other thing of value,

27

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

28

licensed entity; affiliate, subsidiary, or intermediary of an

29

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

30

licensed entity representative [thereof].

- 35 -

 


1

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

2

hearing or other proceeding in which the member's

3

objectivity, impartiality, integrity or independence of

4

judgment may be reasonably questioned due to the member's

5

relationship or association with a party connected to any

6

hearing or proceeding or a person appearing before the board.

7

(4)  Refrain from any financial or business dealing which

8

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

9

impartiality or independence of judgment.

10

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

11

office in any political party or political committee, as

12

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

13

contribute to or solicit contributions to a political

14

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

15

candidate, publicly endorse a candidate or actively

16

participate in a political campaign.

17

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

18

religious, health, fraternal, civic or other nonprofit entity

19

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

20

registrant or licensed entity representative, or from any 

21

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

22

any applicant, licensed entity, [interested] party or

23

licensed entity representative. [A board] Subject to the

24

provisions of section 1201(h)(4.1) (relating to Pennsylvania

25

Gaming Control Board established), a member may serve as an

26

officer, employee or member of the governing body of a

27

nonprofit entity and may attend, make personal contributions

28

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

29

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

30

letterhead used for fundraising events if the letterhead

- 36 -

 


1

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

2

nonprofit entity.

3

(7)  Not meet or engage in discussions with any

4

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

5

entity, permittee, registrant, licensed entity

6

representative, person who provides goods, property or

7

services to a slot machine licensee or any other person or

8

entity under the jurisdiction of the board unless the meeting

9

or discussion occurs on the business premises of the board

10

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

11

log shall be available for public inspection during the

12

regular business hours of the board and shall be posted on

13

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

14

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

15

participants and the subject discussed. The provisions of

16

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

17

consider matters requiring the physical inspection of the

18

equipment or premises of an applicant or a licensed entity

19

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

20

log.

21

(8)  Avoid impropriety and the appearance of impropriety

22

at all times and observe standards and conduct that promote

23

public confidence in the oversight of gaming.

24

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

25

relating to the conduct of a member.

26

(c.1)  Ex parte communications.--

27

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

28

engage in any ex parte communication with any person. No

29

attorney of the Office of Chief Counsel advising the board on

30

a particular licensing issue or proceeding shall engage in

- 37 -

 


1

any ex parte communication with any person.

2

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

3

Enforcement Counsel or an applicant, licensee or permittee in

4

any proceeding, shall engage in an ex parte communication

5

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

6

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

7

the board.

8

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

9

Enforcement Counsel shall engage in an ex parte communication

10

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

11

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

12

the board.

13

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

14

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

15

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

16

log shall be available for public inspection during the

17

regular business hours of the board and shall be posted on

18

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

19

(i)  The name of the individual documenting the ex

20

parte communication.

21

(ii)  The date and time of the ex parte

22

communication.

23

(iii)  The names of all individuals involved in the

24

ex parte communication.

25

(iv)  The subject discussed.

26

(2)  In addition to documenting an ex parte communication

27

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

28

communication and an opportunity to respond shall be provided

29

to all parties to a hearing or other proceeding directly

30

affected by the anticipated vote or action of the hearing

- 38 -

 


1

officer or board related to the ex parte communication.

2

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

3

received an ex parte communication shall recuse himself

4

from any hearing or other proceeding related to the ex

5

parte communication if the context and substance of the

6

ex parte communication creates substantial reasonable

7

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

8

independently or impartially.

9

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

10

received an ex parte communication who elects not to

11

recuse himself from a hearing or other proceeding shall

12

state his reasons for not recusing himself on the record

13

prior to the commencement of the hearing or proceeding.

14

(iii)  If a legislative appointee recuses himself

15

from any hearing or other proceeding under this section,

16

any qualified majority vote required under this part

17

shall consist of all of the remaining legislative

18

appointees and at least two gubernatorial appointees.

19

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

20

received an ex parte communication to recuse himself from

21

a hearing or other proceeding when required under

22

subparagraph (i) shall be grounds for appeal to the

23

board.

24

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

25

an ex parte communication to recuse himself from a

26

hearing or other proceeding when required under

27

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

28

of competent jurisdiction if the board action being

29

appealed could not have occurred without the

30

participation of the member.

- 39 -

 


1

(4)  This subsection shall not preclude a member from

2

consulting with other members individually if the

3

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

4

meetings) or with employees or independent contractors whose

5

functions are to assist the board in carrying out its

6

adjudicative functions.

7

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

8

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

9

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

10

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

11

subsection:

12

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

13

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

14

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

15

relating to a pending matter before the board or hearing officer

16

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

17

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

18

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

19

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

20

[Department of Revenue] department, Pennsylvania State Police,

21

Attorney General or other law enforcement official prior to the

22

beginning of the proceeding solely for the purpose of seeking

23

clarification or correction to evidentiary materials intended

24

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

25

communications between the board or a member and the office of

26

chief counsel.

27

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

28

of or representing the interest of any applicant, licensee,

29

permittee or registrant, including an attorney, agent or

30

lobbyist, regarding any matter which may reasonably be expected

- 40 -

 


1

to come before the board.]

2

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

3

§ 1202.2.  Expenses of regulatory agencies.

4

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

5

employees of the department and the Office of Attorney General,

6

and troopers and employees of the Pennsylvania State Police,

7

whose duties involve the regulation or enforcement of gaming

8

under this part who are seeking reimbursement from funds which

9

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

10

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

11

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

12

revenue deductions) may be reimbursed only for actual and

13

reasonable expenses incurred during the performance of their

14

duties under this part.

15

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

16

expense under subsection (a), the individual seeking

17

reimbursement must submit a receipt to the appropriate agency

18

documenting the expense incurred. Receipts and requests for

19

reimbursement shall be financial records for purposes of, and

20

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

21

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

22

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

23

§ 1204.  Licensed gaming entity application appeals from board.

24

The Supreme Court of Pennsylvania shall be vested with

25

exclusive appellate jurisdiction to consider appeals of any

26

final order, determination or decision of the board involving

27

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

28

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

29

operation certificate. Notwithstanding the provisions of 2

30

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

- 41 -

 


1

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

2

direct appeals from government agencies), the Supreme Court

3

shall affirm all final orders, determinations or decisions of

4

the board involving the approval, issuance, denial or

5

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

6

conditioning of a table game operation certificate unless it

7

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

8

order, determination or decision of the board was arbitrary and

9

there was a capricious disregard of the evidence.

10

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

11

amended and the subsection is amended by adding a paragraph to

12

read:

13

§ 1205.  License or permit application hearing process; public

14

input hearings.

15

* * *

16

(b)  Public input hearing requirement.--

17

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

18

board shall hold at least one public input hearing on the

19

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

20

hearing prior to:

21

(i)  Approving a slot machine license application or

22

renewing a slot machine license.

23

(ii)  Approving the structural redesign of a licensed

24

facility located in a city of the first class.

25

(2)  All public input hearings [relating to an

26

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

27

shall be held in the municipality where the licensed facility

28

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

29

with the municipality.

30

* * *

- 42 -

 


1

(4)  In addition to any witnesses scheduled to testify

2

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

3

comment period during which time members of the public may

4

address the board regarding the application, license or

5

proposed structural redesign. The board, in its discretion,

6

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

7

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

8

§ 1206.  Board minutes and records.

9

* * *

10

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

11

(1)  The following information submitted by an applicant,

12

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

13

to slot machine license application character requirements)

14

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

15

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

16

background or other investigation from any source shall be

17

[considered] confidential[.] and withheld from public

18

disclosure:

19

(i)  All information relating to character, honesty

20

and integrity, including family, habits, reputation,

21

history of criminal activity, business activities,

22

financial affairs and business, professional and personal

23

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

24

or otherwise obtained by the board or the bureau.

25

(ii)  Nonpublic personal information, including home

26

addresses, telephone numbers and other personal contact

27

information, Social Security numbers, educational

28

records, memberships, medical records, tax returns and

29

declarations, actual or proposed compensation, financial

30

account records, creditworthiness or financial condition

- 43 -

 


1

relating to an applicant, licensee or permittee or the

2

immediate family thereof.

3

(iii) Information relating to proprietary

4

information, trade secrets, patents or exclusive

5

licenses, architectural and engineering plans and

6

information relating to competitive marketing materials

7

and strategies, which may include customer-identifying

8

information or customer prospects for services subject to

9

competition.

10

(iv)  Security information, including risk prevention

11

plans, detection and countermeasures, location of count

12

rooms, emergency management plans, security and

13

surveillance plans, equipment and usage protocols and

14

theft and fraud prevention plans and countermeasures.

15

(v)  Information with respect to which there is a

16

reasonable possibility that public release or inspection

17

of the information would constitute an unwarranted

18

invasion into personal privacy of any individual as

19

determined by the board.

20

(vi)  Records of an applicant or licensee not

21

required to be filed with the Securities and Exchange

22

Commission by issuers that either have securities

23

registered under section 12 of the Securities Exchange

24

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

25

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

26

Securities Exchange Act of 1934.

27

(vii)  Records considered nonpublic matters or

28

information by the Securities and Exchange Commission as

29

provided by 17 CFR 200.80 (relating to commission records

30

and information).

- 44 -

 


1

(viii)  Any financial information deemed confidential

2

by the board upon a showing of good cause by the

3

applicant or licensee.

4

(2)  No claim of confidentiality shall be made regarding

5

any criminal history record information that is available to

6

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

7

regulations).

8

(3)  No claim of confidentiality shall be made regarding

9

any record in possession of the board that is otherwise

10

publicly available from a Commonwealth agency, local agency

11

or another jurisdiction.

12

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

13

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

14

release architectural renderings or models depicting a

15

proposed structural design or redesign of the licensed

16

facility that is the subject of the hearing.

17

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

18

[investigation] investigations and enforcement), the

19

information made confidential pursuant to this section shall

20

be withheld from public disclosure in whole or in part,

21

except that any confidential information shall be released

22

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

23

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

24

authorized law enforcement agency or shall be released to the

25

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

26

is requested by an applicant or licensee and does not

27

otherwise contain confidential information about another

28

person.

29

(5)  The board may seek a voluntary waiver of

30

confidentiality from an applicant or licensee but may not

- 45 -

 


1

require any applicant or licensee to waive any

2

confidentiality provided for in this subsection as a

3

condition for the approval of an application, renewal of a

4

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

5

violates this subsection shall]

6

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

7

employee, agent or independent contractor of the board, the

8

department, the Pennsylvania State Police, the Office of

9

Attorney General or any other Executive-branch office who has

10

obtained confidential information in the performance of

11

duties under this part, shall intentionally and publicly

12

disclose the information to any person, knowing that the

13

information being disclosed is confidential under this

14

subsection, unless the person is authorized by law to receive

15

it. A violation of this subsection constitutes a misdemeanor

16

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

17

independent contractor who violates this subsection shall be

18

administratively disciplined by discharge, suspension,

19

termination of contract or other formal disciplinary action

20

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

21

violates this paragraph, the other members shall refer the

22

matter to the current member's appointing authority.

23

* * *

24

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

25

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

26

paragraphs to read:

27

§ 1207.  Regulatory authority of board.

28

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

29

* * *

30

(4)  Require that each licensed entity provide to the

- 46 -

 


1

board its audited annual financial statements, with such

2

additional detail as the board from time to time shall

3

require, which information shall be submitted not later than

4

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

5

(5)  Prescribe the procedures to be followed by slot

6

machine licensees for any financial event that occurs in the

7

operation and play of slot machines or table games.

8

* * *

9

(7.1)  Enforce prescribed hours for the operation of

10

table games so that a certificate holder may conduct table

11

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

12

of patrons or to meet competition.

13

(8)  Require that each licensed gaming entity prohibit

14

persons under 21 years of age from operating or using slot

15

machines or playing table games.

16

(9)  Establish procedures for the inspection and

17

certification of compliance of each slot machine, table game,

18

table game device and associated equipment prior to being

19

placed into use by a slot machine licensee.

20

* * *

21

(14)  Consult with members of the Pennsylvania State

22

Police, the Office of Attorney General, the department and

23

such other persons it deems necessary for advice regarding

24

the various aspects of the powers and duties imposed on it

25

under this part and its jurisdiction over the authorization, 

26

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

27

licensed facilities.

28

* * *

29

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

30

petition, the use of a temporary facility within which slot

- 47 -

 


1

machines and table games may be available for play or

2

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

3

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

4

the board may extend permission to operate a temporary

5

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

6

(18)  (Reserved).

7

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

8

or condition a request to decrease the number of slot

9

machines in operation at a licensed facility. An employee may

10

not approve a requested decrease in the number of slot

11

machines under this paragraph if the requested decrease

12

exceeds 2% of the total number of slot machines in operation

13

at a licensed facility. Except as provided under paragraph

14

(20), at no time shall the number of slot machines in

15

operation at a Category 1 or Category 2 licensed facility be

16

less than 1,500 or less than 250 slot machines at a Category

17

3 licensed facility.

18

(20)  Approve, or authorize an employee of the board to

19

approve, a temporary reduction in the number of slot machines

20

in operation at a licensed facility under the following

21

circumstances:

22

(i)  For the duration of any renovation, remodeling

23

or modification of an area of a licensed facility where

24

slot machines are located.

25

(ii)  To enable the licensed facility to respond to

26

an emergency.

27

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

28

licensee to conduct slot machine tournaments and adopt

29

regulations governing the conduct of such tournaments.

30

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

- 48 -

 


1

Title 4 are amended to read:

2

§ 1208.  Collection of fees and fines.

3

The board has the following powers and duties:

4

(1)  To levy and collect fees from the various

5

applicants, licensees and permittees to fund the operations

6

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

7

the fees shall be deposited into the State Gaming Fund as

8

established in section 1403 (relating to establishment of

9

State Gaming Fund and net slot machine revenue distribution)

10

and distributed to the board upon appropriation by the

11

General Assembly. In addition to the fees set forth in

12

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

13

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

14

shall assess and collect fees as follows:

15

(i)  Supplier licensees shall pay [a]:

16

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

17

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

18

supplier license.] to supply slot machines or

19

associated equipment used in connection with slot

20

machines.

21

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

22

license to supply table game devices or associated

23

equipment used in connection with table games or

24

table game devices.

25

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

26

the appropriate supplier license. Upon the extension

27

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

28

(relating to supplier licenses), the fee shall be

29

$45,000 for the renewal.

30

(D)  Notwithstanding the fees established under

- 49 -

 


1

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

2

upon the board's determination that the fees will

3

unreasonably limit the availability of table game

4

devices or associated equipment used in connection

5

with table games or table game devices in this

6

Commonwealth.

7

(ii)  Manufacturer licensees shall pay [a]:

8

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

9

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

10

manufacturer license.] to manufacture slot machines

11

and associated equipment used in connection with slot

12

machines.

13

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

14

license to manufacture table game devices or

15

associated equipment used in connection with table

16

games or table game devices.

17

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

18

the appropriate manufacturer license. Upon the

19

extension of the renewal period under section

20

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

21

fee shall be $90,000 for the renewal.

22

(D)  Notwithstanding the fees established under

23

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

24

upon the board's determination that the fees will

25

unreasonably limit the availability of table game

26

devices or associated equipment used in connection

27

with table games or table game devices in this

28

Commonwealth.

29

(iii)  Each application for a slot machine license,

30

supplier license or manufacturer license must be

- 50 -

 


1

accompanied by a nonrefundable fee set by the board for

2

the cost of each individual requiring a background

3

investigation. The reasonable and necessary costs and

4

expenses incurred in any background investigation or

5

other investigation or proceeding concerning any

6

applicant, licensee, permittee or registrant shall be

7

reimbursed to the board by those persons.

8

* * *

9

§ 1209.  Slot machine license fee.

10

* * *

11

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

12

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

13

the board upon good cause consistent with the license

14

requirements as provided for in this part. Slot machine

15

licensees shall be required to update the information in their

16

initial applications annually, and the license of a licensee in

17

good standing shall be [updated and] renewed [annually] every

18

three years. Nothing in this subsection shall relieve a licensee

19

of the affirmative duty to notify the board of any changes

20

relating to the status of its license or to any other

21

information contained in the application materials on file with

22

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

23

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

24

subsection (a) shall be required.

25

* * *

26

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

27

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

28

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

29

license shall be returned to each licensee in the event

30

section 1201 (relating to Pennsylvania Gaming Control Board

- 51 -

 


1

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

2

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

3

amended or otherwise altered by an act of the General

4

Assembly, within five years following the [initial issuance

5

of any slot machine licenses pursuant to section 1301

6

(relating to authorized slot machine licenses)] date

7

established by the board as the deadline for the initial

8

submission of Category 1 and Category 2 slot machine license

9

applications, to change:

10

(i)  the composition of the board;

11

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

12

board;

13

(iii)  the manner in which members are nominated or

14

appointed to the board;

15

(iv)  the length of term for which each member

16

serves;

17

(v)  the general jurisdiction of the board in a

18

manner that impairs or otherwise reduces the board's

19

licensing authority; or

20

(vi)  section 1307 to increase the statutory maximum

21

number of permissible Category 1 or Category 2 licensed

22

facilities.

23

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

24

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

25

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

26

(i)  In the sixth year following the [initial

27

issuance of any slot machine licenses pursuant to section

28

1301] date established by the board as the deadline for

29

the initial submission of Category 1 and Category 2 slot

30

machine license applications, a Category 1 and Category 2

- 52 -

 


1

slot machine licensee shall be entitled to a partial

2

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

3

amount of $41,666,667.

4

(ii)  In the seventh 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 $33,333,334.

8

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

9

Category 2 slot machine licensee shall be entitled to a

10

partial return of the one-time slot machine license fee

11

in the amount of $25,000,000.

12

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

13

Category 2 slot machine licensee shall be entitled to a

14

partial return of the one-time slot machine license fee

15

in the amount of $16,666,668.

16

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

17

Category 2 slot machine licensee shall be entitled to a

18

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

19

amount of $8,333,334.

20

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

21

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

22

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

23

Category 2 slot machine licensees shall not be entitled to a

24

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

25

fee. Notwithstanding the foregoing, no slot machine licensee

26

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

27

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

28

implements a recommendation made by the board pursuant to a

29

qualified majority vote. In the event a full or partial

30

return of the slot machine license fee imposed pursuant to

- 53 -

 


1

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

2

amount to be returned to any slot machine licensee shall be

3

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

4

tax credits granted to such licensee pursuant to subsection

5

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

6

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

7

combined with the total tax credits granted, exceed the

8

amounts set forth in this subsection for any licensee. The

9

total or partial return of the slot machine license fee shall

10

extinguish a licensee's right to claim any further tax

11

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

12

claim for the return of the slot machine license fee.

13

(3)    Within ten days following a determination that a

14

slot machine licensee is entitled to the return of any

15

portion of the slot machine license fee paid by the slot

16

machine licensee based on the provisions of this section or

17

based on the contract executed by the slot machine licensee

18

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

19

immediately assess a one-time slot machine license renewal

20

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

21

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

22

renewal fee shall be paid by the slot machine licensee within

23

two business days following the return of the initial fee.

24

§ 1210.  Number of slot machines.

25

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

26

slot machine licensees under section 1305 (relating to Category

27

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

28

(1)  All slot machine licensees shall be permitted to

29

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

30

facility [and].

- 54 -

 


1

(2)  Each slot machine licensee shall be required to

2

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

3

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

4

of the issuance by the board of a slot machine license

5

[unless otherwise extended by the] to the slot machine

6

licensee. The board, upon application and for good cause

7

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

8

to exceed 24 months] ending on the later of 36 months from

9

the end of the initial one-year period or December 31, 2012.

10

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

11

Category 3 slot machine licensees under section 1305, six months

12

following the date of commencement of slot machine operations,

13

the board may permit a slot machine licensee to install and

14

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

15

facility, beyond those machines [authorized] permitted under

16

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

17

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

18

account the appropriateness of the physical space where the

19

additional slot machines will be located and the convenience of

20

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

21

account the potential benefit to economic development,

22

employment and tourism, enhanced revenues to the Commonwealth

23

and other economic indicators it deems applicable in making its

24

decision.

25

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

26

the beginning of slot machine operations at the licensed

27

facility, no licensed gaming entity may make available for play

28

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

29

machines from the same manufacturer or its affiliate,

30

intermediary, subsidiary or holding company. The provisions of

- 55 -

 


1

this subsection shall not apply to machines purchased pursuant

2

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

3

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

4

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

5

section is amended by adding subsections to read:

6

§ 1211.  Reports of board.

7

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

8

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

9

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

10

the General Assembly on the general operation of the board and

11

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

12

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

13

terminal revenue at each licensed [facilities] facility during

14

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

15

collected and, where appropriate, disbursed, the costs of

16

operation of the board, all hearings conducted and the results

17

of the hearings and other information that the board deems

18

necessary and appropriate.

19

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

20

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

21

table games) and every year thereafter, the annual report

22

submitted by the board shall include information on the conduct

23

of table games as follows:

24

(1)  Total gross table game revenue.

25

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

26

licensed facility during the previous year.

27

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

28

and where appropriate revenue disbursed during the previous

29

year. The department shall collaborate with the board to

30

carry out the requirements of this paragraph.

- 56 -

 


1

(4)  Other information related to the conduct of table

2

games.

3

The board may require certificate holders to provide information

4

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

5

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

6

facility shall provide:

7

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

8

racing commission summarizing how the introduction and

9

expansion of gaming has fulfilled the intent of this part to

10

enhance live racing at the licensed racetrack.

11

(2)  Plans to promote live racing and increase live

12

handle and daily attendance at the licensed racetrack in the

13

upcoming year.

14

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

15

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

16

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

17

itemized expenses of employees and members for that month that

18

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

19

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

20

revenue deductions) and all itemized expenses of employees of

21

the department and the Office of Attorney General and troopers

22

and employees of the Pennsylvania State Police for the preceding

23

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

24

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

25

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

26

expense is attributable. If the expense is directly attributable

27

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

28

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

29

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

30

report of all expenses described in this subsection for the

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1

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

2

website and shall be submitted to the Appropriations Committee

3

of the Senate, the Community, Economic and Recreational

4

Development Committee of the Senate, the Appropriations

5

Committee of the House of Representatives and the Gaming

6

Oversight Committee of the House of Representatives. Information

7

posted on the Internet website pursuant to this subsection shall

8

be financial records for the purposes of and subject to

9

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

10

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

11

Office of Attorney General and the Pennsylvania State Police

12

shall collaborate to develop a uniform system that will enable

13

the board to carry out the requirements of this subsection.

14

* * *

15

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

16

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

17

board required to be submitted to the General Assembly under

18

this part after the effective date of this subsection shall be

19

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

20

thereafter.

21

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

22

read:

23

§ 1212.  Diversity goals of board.

24

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

25

Assembly that the board promote and ensure diversity in all

26

aspects of the gaming activities authorized under this part. The

27

board shall work to enhance the representation of diverse groups

28

in [the]:

29

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

30

licensed entities [and licensed facilities] in this

- 58 -

 


1

Commonwealth [and through the].

2

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

3

business enterprises associated with or utilized by licensed

4

entities [and licensed facilities] and through the provision

5

of goods and services utilized by slot machine licensees

6

under this part.

7

(3)  The operation of licensed entities and the conduct

8

of gaming in this Commonwealth by ensuring licensed entities

9

promote the participation of diverse groups by affording

10

equal access to employment opportunities, including key

11

employee, gaming employee, and nongaming employee positions.

12

(4)  The operation of business enterprises associated

13

with or utilized by licensed entities, including business

14

enterprises that provide goods, property and services

15

utilized by slot machine licensees in this Commonwealth by

16

ensuring these business enterprises promote the participation

17

of diverse groups by affording equal access to employment

18

opportunities.

19

(5)  The construction, renovation or reconstruction of a

20

licensed facility by ensuring that all contracts and

21

subcontracts to be awarded relating to the construction,

22

renovation or reconstruction of a licensed facility contain

23

adequate provisions ensuring all contractors or

24

subcontractors and assignees will promote the participation

25

of diverse groups in any proposed construction, renovation or

26

reconstruction project by affording equal access to

27

employment opportunities.

28

(6)  The rendering of professional services to licensed

29

entities by ensuring licensed entities promote the

30

participation of diverse groups by affording equal access to

- 59 -

 


1

professional service contractual opportunities.

2

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

3

shall submit a quarterly report to the board describing

4

activities undertaken at its licensed facility related to the

5

development and implementation of its diversity plan in

6

accordance with section 1325 (relating to license or permit

7

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

8

reports shall contain a summary of:

9

(1)    All employee recruitment and retention efforts

10

undertaken to ensure the participation of diverse groups in

11

employment with the slot machine licensee.

12

(2)  The total number of hires and employment offers

13

made, including data relating to the race, gender and

14

residence of those hired or offered employment.

15

(3)    All contracting and subcontracting data involving

16

the slot machine licensee and minority-owned business

17

enterprises and women-owned business enterprises.

18

(4)    Any other information deemed relevant or necessary

19

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

20

plan.

21

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

22

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

23

ascertain] review of each slot machine licensee's activities

24

related to the implementation of its diversity plan in order to

25

evaluate whether the slot machine licensee has taken effective

26

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

27

enhance the] to implement a diversity plan and whether the

28

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

29

will achieve the Commonwealth's goal of enhanced representation

30

of diverse groups in the [ownership, participation and operation

- 60 -

 


1

of licensed facilities in this Commonwealth, through the

2

ownership and operation of business enterprises associated with

3

or utilized by slot machine licensees, through the provision of

4

goods and services utilized by slot machine licensees and

5

through employment opportunities] gaming industry as set forth

6

in subsection (a).

7

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

8

required under subsection (b) shall be completed six months

9

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

10

practically possible, and annually thereafter and shall contain

11

recommendations which the board determines appropriate. Each

12

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

13

following relating to each slot machine licensee's licensed

14

facility:

15

(1)  Employee recruitment and retention programs designed

16

to ensure the participation of diverse groups.

17

(2)  The total number of hires and employment offers

18

made, including data relating to the race, gender and

19

residence of individuals hired or offered employment.

20

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

21

business enterprise contracting and subcontracting data.

22

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

23

shall provide information as required by the board to enable the

24

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

25

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

26

"professional services" means those services rendered to a slot

27

machine licensee which relate to a licensed facility in this

28

Commonwealth, including, but not limited to:

29

(1)  Legal services.

30

(2)  Advertising or public relations services.

- 61 -

 


1

(3)  Engineering services.

2

(4)  Architectural, landscaping or surveying services.

3

(5)  Accounting, auditing or actuarial services.

4

(6)  Security consultant services.

5

(7)  Computer and information technology services, except

6

telephone service.

7

(8)  Insurance underwriting services.

8

§ 1213.  License or permit prohibition.

9

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

10

including principals and key employees,] The following apply:

11

(1)  The board shall be prohibited from granting a

12

principal license or a key employee license to an individual

13

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

14

any jurisdiction [shall be issued a license or permit unless

15

15 years has elapsed from the date of expiration of the

16

sentence for the offense].

17

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

18

permit to an applicant who has been convicted in any

19

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

20

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

21

prohibited from granting the following:

22

(i)  A principal license or key employee license to

23

an individual who has been convicted in any jurisdiction

24

of a misdemeanor gambling offense, unless 15 years have

25

elapsed from the date of conviction for the offense.

26

(ii)  A gaming employee permit or a license other

27

than a principal license or key employee license to an

28

individual who has been convicted in any jurisdiction of

29

a felony offense or of a misdemeanor gambling offense,

30

unless 15 years have elapsed from the date of conviction

- 62 -

 


1

for the offense.

2

(3)  Following the expiration of any prohibition period

3

applicable to an applicant under paragraph (2), in

4

determining whether to issue a license or permit, the board

5

shall consider the following factors:

6

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

7

position with the licensed entity.

8

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

9

or conduct.

10

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

11

offense or conduct occurred.

12

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

13

or conduct was committed.

14

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

15

isolated or a repeated incident.

16

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

17

good conduct in the community, counseling or psychiatric

18

treatment received and the recommendation of persons who

19

have substantial contact with the applicant.

20

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

21

any of the following:

22

(i)  An offense punishable under the laws of this

23

Commonwealth by imprisonment for more than five years.

24

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

25

jurisdiction, is:

26

(A)  classified as a felony; or

27

(B)  punishable by imprisonment for more than

28

five years.

29

(iii)  An offense under the laws of another

30

jurisdiction which, if committed in this Commonwealth,

- 63 -

 


1

would be subject to imprisonment for more than five

2

years.

3

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

4

read:

5

§ 1214.  Specific authority to suspend slot machine license.

6

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

7

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

8

municipal authority or other entity for an economic development

9

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

10

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

11

Development and Tourism Fund Capital Budget Itemization Act of

12

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

13

section or within 30 days following licensure, whichever is

14

later, enter into a written agreement with the municipality,

15

municipal authority or other entity. The written agreement shall

16

establish and govern the terms of the required payments,

17

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

18

payment shall be made and the duration of the payments.

19

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

20

fails to enter into a written agreement as required by

21

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

22

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

23

until the slot machine licensee satisfies the board that it has

24

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

25

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

26

machine licensee is in default with respect to a payment

27

obligation contained in a written agreement required by

28

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

29

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

30

until the slot machine licensee satisfies the board that it is

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1

in compliance with the terms of the written agreement.

2

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

3

shall prohibit the board from taking any additional action,

4

including suspension or revocation of the slot machine

5

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

6

imposing any other sanction permitted by this part against a

7

slot machine licensee who violates the provisions of this

8

section.

9

Section 10.2.  Sections 1304(b), 1305 and 1307 of Title 4 are

10

amended to read:

11

§ 1304.  Category 2 slot machine license.

12

* * *

13

(b)  Location.--

14

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

15

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

16

one Category 2 licensed facility and no more shall be located

17

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

18

licensed facility located by the board within a city of the

19

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

20

licensed facility regardless of the municipality where the

21

Category 1 licensed facility is located. Except for any

22

Category 2 licensed facility located by the board within a

23

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

24

Category 2 licensed facility shall be located within 30

25

linear miles of any Category 1 licensed facility that has

26

conducted over 200 racing days per year for the two calendar

27

years immediately preceding the effective date of this part

28

and not within 20 linear miles of any other Category 1

29

licensed facility. Except for any Category 2 licensed

30

facility located by the board within a city of the first

- 65 -

 


1

class, no Category 2 licensed facility shall be located

2

within 20 linear miles of another Category 2 licensed

3

facility.

4

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

5

applicant with a proposed licensed facility consisting of

6

land designated a subzone, an expansion subzone or an

7

improvement subzone under the Keystone Opportunity Zone,

8

Keystone Opportunity Expansion Zone and Keystone Opportunity

9

Improvement Zone Act for a slot machine license under this

10

section, the board shall notify the Department of Community

11

and Economic Development. The notice shall include a

12

description of the land of the proposed licensed facility

13

which is designated a subzone, an expansion subzone or an

14

improvement subzone. Within five days of receiving the notice

15

required by this paragraph, the Secretary of Community and

16

Economic Development shall decertify the land of the proposed

17

licensed facility as being a subzone, an expansion subzone or

18

an improvement subzone. Upon decertification in accordance

19

with this paragraph and notwithstanding Chapter 3 of the

20

Keystone Opportunity Zone, Keystone Opportunity Expansion

21

Zone and Keystone Opportunity Improvement Zone Act, a

22

political subdivision may amend the ordinance, resolution or

23

other required action which granted the exemptions,

24

deductions, abatements or credits required by the Keystone

25

Opportunity Zone, Keystone Opportunity Expansion Zone and

26

Keystone Opportunity Improvement Zone Act to repeal the

27

exemptions, deductions, abatements or credits for the land

28

decertified.

29

(3)    Notwithstanding any other provision of law, the

30

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

- 66 -

 


1

from real property taxation or provide any real property tax

2

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

3

known as the Local Economic Revitalization Tax Assistance

4

Act, to a Category 2 licensed facility located within the

5

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

6

of the licensed facility enters into or has entered into a

7

tax settlement agreement or payment in lieu of taxes

8

agreement with the city, including any amendments,

9

supplements or modifications of such agreements.

10

§ 1305.  Category 3 slot machine license.

11

(a)  Eligibility.--

12

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

13

slot machine license if the applicant, its affiliate,

14

intermediary, subsidiary or holding company has not applied

15

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

16

slot machine license and the person is seeking to locate a

17

Category 3 licensed facility in a well-established resort

18

hotel having no fewer than 275 guest rooms under common

19

ownership and having substantial year-round recreational

20

guest amenities. The applicant for a Category 3 license shall

21

be the owner or be a wholly owned subsidiary of the owner of

22

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

23

license may only be granted upon the express condition that

24

an individual may not enter a gaming area of the [licensee] 

25

licensed facility if the individual is not [a registered

26

overnight guest of the established resort hotel or if the

27

individual is not a patron of one or more of the amenities

28

provided by the established resort hotel.] any of the

29

following:

30

(i)  A registered overnight guest of the well-

- 67 -

 


1

established resort hotel.

2

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

3

provided by the well-established resort hotel.

4

(iii)  An authorized employee of the slot machine

5

licensee, of a gaming service provider, of the board or

6

of any regulatory, emergency response or law enforcement

7

agency while engaged in the performance of the employee's

8

duties.

9

(iv)  An individual holding a valid membership

10

approved in accordance with paragraph (1.1) or a guest of

11

such individual.

12

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

13

membership that allows an individual to use one or more of

14

the amenities provided by the well-established resort hotel

15

holding a Category 3 slot machine license. The membership

16

shall allow the member and one guest to enter the gaming

17

floor at any time as long as the guest is accompanied by the

18

individual owning or holding the membership. The board shall

19

base its approval of a membership on all of the following:

20

(i)  The duration of the membership.

21

(ii)  The amenity covered by the membership.

22

(iii)  Whether the fee charged for the membership

23

represents the fair market value for the use of the

24

amenity.

25

(2)  Notwithstanding section 1512(a) and (a.1) (relating

26

to public official financial interest), if at the time of

27

application an applicant has terminated public office or

28

employment as an executive-level public employee within the

29

last calendar year, the applicant shall be eligible to apply

30

for a slot machine license under this section but may not be

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1

issued a license until one year following the date of

2

termination as a public official or executive-level public

3

employee. An application submitted in accordance with this

4

paragraph shall not constitute a violation of section 1512(a)

5

or (a.1).

6

(3)  If the person seeking a slot machine license

7

proposes to place the licensed facility upon land designated

8

a subzone, an expansion subzone or an improvement subzone

9

under the act of October 6, 1998 (P.L.705, No.92), known as

10

the Keystone Opportunity Zone, Keystone Opportunity Expansion

11

Zone and Keystone Opportunity Improvement Zone Act, the

12

person shall, at any time prior to the application being

13

approved, submit a statement waiving the exemptions,

14

deductions, abatements or credits granted under the Keystone

15

Opportunity Zone, Keystone Opportunity Expansion Zone and

16

Keystone Opportunity Improvement Zone Act if the board

17

approves the application.

18

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

19

(1)  [No] Except as provided in paragraph (1.1), no 

20

Category 3 license shall be located by the board within 15

21

linear miles of another licensed facility.

22

(1.1)  A Category 3 license established on or after July

23

20, 2017, shall not be located by the board within 30 linear

24

miles of another licensed facility.

25

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

26

applicant with a proposed licensed facility consisting of

27

land designated a subzone, an expansion subzone or an

28

improvement subzone under the Keystone Opportunity Zone,

29

Keystone Opportunity Expansion Zone and Keystone Opportunity

30

Improvement Zone Act for a slot machine license under this

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1

section, the board shall notify the Department of Community

2

and Economic Development. The notice shall include a

3

description of the land of the proposed licensed facility

4

which is designated a subzone, an expansion subzone or an

5

improvement subzone. Within five days of receiving the notice

6

required by this paragraph, the Secretary of Community and

7

Economic Development shall decertify the land of the proposed

8

license facility as being a subzone, an expansion subzone or

9

an improvement subzone. Upon decertification in accordance

10

with this paragraph and notwithstanding Chapter 3 of the

11

Keystone Opportunity Zone, Keystone Opportunity Expansion

12

Zone and Keystone Opportunity Improvement Zone Act, a

13

political subdivision may amend the ordinance, resolution or

14

other required action which granted the exemptions,

15

deductions, abatements or credits required by the Keystone

16

Opportunity Zone, Keystone Opportunity Expansion Zone and

17

Keystone Opportunity Improvement Zone Act to repeal the

18

exemptions, deductions, abatements or credits for the land

19

decertified.

20

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

21

permissible slot machines as set forth in section 1210 (relating

22

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

23

the provisions of this section shall entitle the licensed entity

24

to operate no more than 500 slot machines at the licensed

25

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

26

holding a table game operation certificate shall be entitled to

27

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

28

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

29

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

30

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

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1

time Category 3 license fee to be paid by each successful

2

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

3

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

4

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

5

license fee and change of ownership or control of a license

6

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

7

Category 3 [license fee] licensee.

8

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

9

following words and phrases shall have the meaning given to them

10

in this subsection:

11

"Amenities."  Any ancillary activities, services or

12

facilities in which a registered guest or the transient public,

13

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

14

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

15

including, but not limited to, sports and recreational

16

activities and facilities such as a golf course or golf driving

17

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

18

meeting and banquet facilities; entertainment facilities; and

19

restaurant facilities.

20

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

21

registered attendee of a convention, meeting or banquet event or

22

a participant in a sport or recreational event or any other

23

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

24

participates in one or more of the amenities provided to

25

registered guests of the well-established resort hotel.

26

§ 1307.  Number of slot machine licenses.

27

The board may license no more than seven Category 1 licensed

28

facilities and no more than five Category 2 licensed facilities,

29

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

30

Category 2 [licenses] licensed facilities are located by the

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1

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

2

more, Category 2 licensed facility is located by the board

3

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

4

discretion increase the total number of Category 2 licensed

5

facilities permitted to be licensed by the board by an amount

6

not to exceed the total number of Category 1 licenses not

7

applied for within five years following the effective date of

8

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

9

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

10

Category 1 license may be reissued by the board at its

11

discretion as a Category 2 license if an application for

12

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

13

board may license no more than [two] three Category 3 Licensed

14

facilities.

15

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

16

by adding subsections to read:

17

§ 1308.  Applications for license or permit.

18

* * *

19

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

20

or permit under this part shall disclose in the application all

21

arrests of the applicant and all citations issued to the

22

applicant for non-traffic summary offenses. The information

23

shall include:

24

(1)  A brief description of the circumstances surrounding

25

the arrest or issuance of the citation.

26

(2)  The specific offense charged.

27

(3)  The ultimate disposition of the charge, including

28

the details of any dismissal, plea bargain, conviction,

29

sentence, pardon, expungement or order of Accelerated

30

Rehabilitative Disposition.

- 72 -

 


1

No applicant shall be required to provide documentation relating

2

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

3

of a summary offense shall not be grounds for denying an

4

application.

5

* * *

6

§ 1309.  Slot machine license application.

7

* * *

8

(a.1)  Table games information.--

9

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

10

with its application all information required under Chapter

11

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

12

consider its application for a slot machine license and a

13

table game operation certificate concurrently. All fees for a

14

table game operation certificate shall be paid by the

15

applicant in accordance with section 1361A (relating to table

16

game authorization fee).

17

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

18

machine license that has an application pending before the

19

board on the effective date of this subsection to supplement

20

its application with all information required under Chapter

21

13A and to request that the board consider its application

22

for a slot machine license and a table game operation

23

certificate concurrently. All fees for a table game operation

24

certificate shall be paid by the applicant in accordance with

25

section 1361A.

26

* * *

27

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

28

§ 1310.  Slot machine license application character

29

requirements.

30

(a)  Application.--

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1

(1)  Every application for a slot machine license shall

2

include such information, documentation and assurances as may

3

be required to establish by clear and convincing evidence the

4

applicant's suitability, including good character, honesty

5

and integrity. Information shall include, without limitation,

6

information pertaining to family, habits, character,

7

reputation, criminal history background, business activities,

8

financial affairs and business, professional and personal

9

associates, covering at least the ten-year period immediately

10

preceding the filing date of the application.

11

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

12

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

13

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

14

applications for license or permit), a conviction that has

15

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

16

pardoned or an order of Accelerated Rehabilitative

17

Disposition has been issued, shall be included with an

18

application and considered by the board as part of the review

19

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

20

(b)  Civil judgments and law enforcement agency

21

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

22

judgments obtained against the applicant pertaining to antitrust

23

or security regulation laws of the Federal Government, this

24

Commonwealth or any other state, jurisdiction, province or

25

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

26

reference from law enforcement agencies having jurisdiction in

27

the applicant's place of residence and principal place of

28

business, which letter of reference shall indicate that the law

29

enforcement agencies do not have any pertinent information

30

concerning the applicant or, if the law enforcement agency does

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1

have information pertaining to the applicant, shall specify the

2

nature and content of that information. If no letters are

3

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

4

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

5

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

6

that the applicant is or was during the period the activities

7

were conducted in good standing with the gaming or casino

8

enforcement or control agency.

9

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

10

applicant has held a gaming license in a jurisdiction where

11

gaming activities are permitted, the applicant shall produce a

12

letter of reference from the gaming or casino enforcement or

13

control agency which shall specify the experiences of that

14

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

15

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

16

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

17

under oath which is subject to the penalty for false swearing

18

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

19

period the activities were conducted in good standing with the

20

gaming or casino enforcement or control agency.

21

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

22

license, principal license or key employee license shall be

23

required to apply to each Federal agency deemed appropriate by

24

the board or bureau for agency records under the Freedom of

25

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

26

to the applicant and provide the bureau with the complete record

27

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

28

to the applicant prior to the receipt of information under this

29

subsection.

30

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

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1

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

2

sections are amended by adding subsections to read:

3

§ 1317.  Supplier licenses.

4

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

5

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

6

manufacturer licenses) shall ensure that the supplier is

7

appropriately licensed under this section. A person seeking to

8

provide slot machines, table game devices or associated

9

equipment to a slot machine licensee within this Commonwealth

10

through a contract with a licensed manufacturer shall apply to

11

the board for [a] the appropriate supplier license.

12

* * *

13

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

14

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

15

approve the application and issue the applicant a supplier

16

license consistent with all of the following:

17

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

18

expiration, the license may be renewed in accordance with

19

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

20

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

21

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

22

paragraph shall relieve a licensee of the affirmative duty to

23

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

24

license or to any information contained in the application

25

materials on file with the board.

26

* * *

27

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

28

supplier license to supply table game devices or associated

29

equipment used in connection with table games is licensed by the

30

board under this section to supply slot machines or associated

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1

equipment used in connection with slot machines, the board may

2

determine to use an abbreviated process requiring only that

3

information determined by the board to be necessary to consider

4

the issuance of a license to supply table game devices or

5

associated equipment used in connection with table games,

6

including financial viability of the applicant. Nothing in this

7

section shall be construed to waive any fees associated with

8

obtaining a license through the normal application process. The

9

board may only use the abbreviated process if all of the

10

following apply:

11

(1)  The supplier license was issued by the board within

12

a 36-month period immediately preceding the date the supplier

13

licensee files an initial application to supply table game

14

devices or associated equipment.

15

(2)  The person to whom the supplier license was issued

16

affirms there has been no material change in circumstances

17

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

* * *

23

§ 1317.1.  Manufacturer licenses.

24

(a)  Application.--A person seeking to manufacture slot

25

machines, table game devices and associated equipment for use in

26

this Commonwealth shall apply to the board for a manufacturer

27

license.

28

(b)  Requirements.--An application for a manufacturer license

29

shall be on the form required by the board, accompanied by the

30

application fee, and shall include all of the following:

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1

* * *

2

(5)  The type of slot machines, table game devices or

3

associated equipment to be manufactured or repaired.

4

* * *

5

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

6

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

7

approve the application and grant the applicant a manufacturer

8

license consistent with all of the following:

9

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

10

expiration, a license may be renewed in accordance with

11

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

12

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

13

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

14

paragraph shall relieve the licensee of the affirmative duty

15

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

16

its license or to any other information contained in

17

application materials on file with the board.

18

(2)  The license shall be nontransferable.

19

(3)  Any other condition established by the board.

20

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

21

manufacturer license to manufacture table game devices or

22

associated equipment used in connection with table games is

23

licensed by the board under this section to manufacture slot

24

machines or associated equipment used in connection with slot

25

machines, the board may determine to use an abbreviated process

26

requiring only that information determined by the board to be

27

necessary to consider the issuance of a license to manufacture

28

table game devices or associated equipment used in connection

29

with table games, including financial viability of the

30

applicant. Nothing in this section shall be construed to waive

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1

any fees associated with obtaining a license through the normal

2

application process. The board may only use the abbreviated

3

process if all of the following apply:

4

(1)  The manufacturer license was issued by the board

5

within a 36-month period immediately preceding the date the

6

manufacturer licensee files an application to manufacture

7

table game devices or associated equipment.

8

(2)  The person to whom the manufacturer license was

9

issued affirms there has been no material change in

10

circumstances relating to the license.

11

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

12

there has been no material change in circumstances relating

13

to the licensee that necessitates that the abbreviated

14

process not be used.

15

(d)  Renewal.--

16

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

17

manufacturer license, the manufacturer licensee seeking

18

renewal of its license shall submit a renewal application

19

accompanied by the renewal fee to the board.

20

(2)  If the renewal application satisfies the

21

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

22

licensee's manufacturer license.

23

(3)  If the board receives a complete renewal application

24

but fails to act upon the renewal application prior to the

25

expiration of the manufacturer license, the manufacturer

26

license shall continue in effect for an additional six-month

27

period or until acted upon by the board, whichever occurs

28

first.

29

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

30

manufacturer:

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1

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

2

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

3

table game device or associated equipment manufactured by the

4

[licensed] manufacturer, provided the manufacturer holds the

5

appropriate manufacturer license.

6

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

7

supplier under section 1317 (relating to supplier licenses)

8

to provide slot machines or associated equipment to a slot

9

machine licensee within this Commonwealth, provided the

10

supplier is licensed to supply slot machines or associated

11

equipment used in connection with slot machines.

12

(3)  A manufacturer may contract with a supplier under

13

section 1317 to provide table game devices or associated

14

equipment to a certificate holder, provided the supplier is

15

licensed to supply table game devices or associated equipment

16

used in connection with table games.

17

(e)  Prohibitions.--

18

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

19

devices or associated equipment for use within this

20

Commonwealth by a slot machine licensee unless the person has

21

been issued [a] the appropriate manufacturer license under

22

this section.

23

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

24

(relating to training equipment), no slot machine licensee

25

may use slot machines, table game devices or associated

26

equipment unless the slot machines, table game devices or

27

associated equipment were manufactured by a person that has

28

been issued [a] the appropriate manufacturer license under

29

this section.

30

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

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1

apply for or be issued a license under section 1317.

2

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

3

manufacturer licenses issued or the time period to submit

4

applications for licensure, except as required to comply with

5

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

6

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

7

read:

8

§ 1317.2.  Gaming service provider.

9

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

10

develop a classification system governing the certification,

11

registration and regulation of gaming service providers and

12

individuals and entities associated with them. The

13

classification system shall be based upon the following:

14

(1)  The monetary value or amount of business conducted

15

or expected to be conducted by the gaming service provider

16

with an applicant for a slot machine licensee or a slot

17

machine licensee in any consecutive 12-month period.

18

(2)  Whether the employees of the gaming service provider

19

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

20

restricted area of a licensed facility.

21

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

22

provided or to be provided by the gaming service provider.

23

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

24

type of business from the requirements of this section if the

25

board determines:

26

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

27

agency of the Federal Government, an agency of the

28

Commonwealth or the Pennsylvania Supreme Court; or

29

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

30

determined not to be necessary in order to protect the public

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1

interest or the integrity of gaming.

2

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

3

provider shall have a continuing duty to:

4

(1)  Provide all information, documentation and

5

assurances as the board may require.

6

(2)  Cooperate with the board in investigations, hearings

7

and enforcement and disciplinary actions.

8

(3)  Comply with all conditions, restrictions,

9

requirements, orders and rulings of the board in accordance

10

with this part.

11

(4)  Report any change in circumstances that may render

12

the gaming service provider ineligible, unqualified or

13

unsuitable for continued registration or certification.

14

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

15

of a gaming service provider to obtain a permit or other

16

authorization if, after an analysis of duties, responsibilities

17

and functions, the board determines that a permit or other

18

authorization is necessary to protect the integrity of gaming.

19

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

20

employee of the board may permit a gaming service provider

21

applicant to engage in business with an applicant for a slot

22

machine license or a slot machine licensee prior to approval of

23

the gaming service provider application if the following

24

criteria have been satisfied:

25

(1)  A completed application has been filed with the

26

board by the gaming service provider.

27

(2)  The slot machine applicant or slot machine licensee

28

contracting or doing business with the gaming service

29

provider certifies that it has performed due diligence on the

30

gaming service provider and believes that the applicant meets

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1

the qualification to be a gaming service provider pursuant to

2

this section.

3

(3)  The gaming service provider applicant agrees in

4

writing that the grant of interim authorization to conduct

5

business prior to board approval of its application does not

6

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

7

determines that the applicant is not suitable or continued

8

authorization is not in the public interest.

9

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

10

construed to prohibit the board from rescinding a grant of

11

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

12

person subject to interim authorization is at issue or if the

13

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

14

of the board or bureau.

15

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

16

(1)  Develop and maintain a list of approved gaming

17

service providers who are authorized to provide goods or

18

services whether under a grant of interim or continued

19

authorization.

20

(2)  Develop and maintain a list of prohibited gaming

21

service providers. An applicant for a slot machine license or

22

a slot machine licensee may not enter into an agreement or

23

engage in business with a gaming service provider listed on

24

the prohibited gaming service provider list.

25

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

26

utilize a gaming service provider that has not been approved by

27

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

28

exists or circumstances outside the control of the slot machine

29

licensee require immediate action to mitigate damage or loss to

30

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

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1

board shall promulgate regulations to govern the use of gaming

2

service providers under emergency circumstances. The regulations

3

shall include a requirement that the slot machine licensee

4

contact the board immediately upon utilizing a gaming service

5

provider that has not been approved by the board.

6

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

7

classification system developed by the board in accordance with

8

subsection (a) requires a gaming service provider or an

9

individual or entity associated with the gaming service provider

10

to submit to or provide the bureau with criminal history record

11

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

12

history record information), the bureau shall notify a slot

13

machine licensee that submitted a certification under subsection

14

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

15

misdemeanor gambling offense.

16

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

17

amended to read:

18

§ 1318.  Occupation permit application.

19

* * *

20

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

21

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

22

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

23

slot machines or table games are physically located.

24

§ 1319.  Alternative manufacturer licensing standards.

25

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

26

licensing standards of another jurisdiction within the United

27

States in which an applicant for a manufacturer license is

28

similarly licensed are comprehensive and thorough and provide

29

similar adequate safeguards as those required by this part. If

30

the board makes that determination, it may issue a manufacturer

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1

license to an applicant who holds a similar manufacturer license

2

in such other jurisdiction after conducting an evaluation of the

3

information relating to the applicant from such other

4

jurisdictions, as updated by the board, and evaluating other

5

information related to the applicant received from that

6

jurisdiction and other jurisdictions where the applicant may be

7

licensed, the board may incorporate such information in whole or

8

in part into its evaluation of the applicant.

9

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

10

[slot machine] manufacturer license is licensed in another

11

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

12

abbreviated process requiring only that information determined

13

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

14

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

15

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

16

waive any fees associated with obtaining a license through the

17

normal application process.

18

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

19

read:

20

§ 1319.1.  Alternative supplier licensing standards.

21

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

22

licensing standards of another jurisdiction within the United

23

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

24

similarly licensed are comprehensive and thorough and provide

25

similar adequate safeguards as required by this part. If the

26

board makes that determination, it may issue a supplier license

27

to an applicant who holds a similar supplier license in another

28

jurisdiction after conducting an evaluation of the information

29

relating to the applicant from the other jurisdictions, as

30

updated by the board, and evaluating other information related

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1

to the applicant received from that jurisdiction and other

2

jurisdictions where the applicant may be licensed, the board may

3

incorporate the information in whole or in part into its

4

evaluation of the applicant.

5

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

6

supplier license is licensed in another jurisdiction, the board

7

may determine to use an abbreviated process requiring only that

8

information determined by the board to be necessary to consider

9

the issuance of a license, including financial viability of the

10

applicant. Nothing in this section shall be construed to waive

11

any fees associated with obtaining a license through the normal

12

application process.

13

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

14

1329 of Title 4 are amended to read:

15

§ 1321.  Additional licenses and permits and approval of

16

agreements.

17

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

18

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

19

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

20

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

21

or any person who satisfies any of the following criteria:

22

(1)  The person transacts business within this

23

Commonwealth with a slot machine licensee as a ticket

24

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

25

operator of any other type of travel program or promotional

26

business related to slot machines or table games. The board

27

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

28

discretion, proposed tours, bus routes and travel programs.

29

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

30

be licensed or permitted under this part and provides any

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1

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

2

management [contracts] services for compensation to a slot

3

machine licensee at the licensed facility.

4

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

5

this Commonwealth between a person and a slot machine licensee

6

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

7

associated equipment is subject to the approval of the board in

8

accordance with rules and regulations promulgated by the board.

9

Every agreement shall be in writing and shall include a

10

provision for its termination without liability on the part of

11

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

12

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

13

expressly include this condition in the agreement is not a

14

defense in any action brought under this section relating to the

15

termination of the agreement.

16

§ 1326.  License renewals.

17

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

18

part unless otherwise provided shall be subject to renewal [on

19

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

20

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

21

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

22

in this subsection shall relieve a licensee of the affirmative

23

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

24

of its license or to any other information contained in the

25

application materials on file with the board. The application

26

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

27

expiration of the permit or license and shall include an update

28

of the information contained in the initial and any prior

29

renewal applications and the payment of any renewal fee required

30

by this part. Unless otherwise specifically provided in this

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1

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

2

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

3

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

4

has been received by the board will continue in effect unless

5

and until the board sends written notification to the holder of

6

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

7

such permit or license.

8

* * *

9

§ 1328.  Change in ownership or control of slot machine

10

licensee.

11

(a)  Notification and approval.--

12

(1)  A slot machine licensee shall notify the board

13

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

14

or contemplated change of ownership of the slot machine

15

licensee by a person or group of persons acting in concert

16

which involves any of the following:

17

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

18

securities or other ownership interests.

19

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

20

ownership interests of a corporation or other form of

21

business entity that owns directly or indirectly at least

22

20% of the voting or other securities or other ownership

23

interests of the licensee.

24

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

25

business of a licensee's assets.

26

(iv)  Any other transaction or occurrence deemed by

27

the board to be relevant to license qualifications.

28

(b)  Qualification of purchaser of slot machine licensee;

29

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

30

the ordinary course of business, of any slot machine licensee

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1

shall independently qualify for a license in accordance with

2

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

3

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

4

of any slot machine licensee shall require that the slot machine

5

licensee independently qualify for a license in accordance with

6

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

7

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

8

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

9

paid upon the assignment and actual change of control or

10

ownership of the slot machine license.

11

* * *

12

§ 1329.  [Nonportability] Portability and relocation of slot

13

machine license.

14

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

15

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

16

the specific physical location within the municipality and

17

county for which it was originally granted. [No]

18

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

19

slot machine licensee may petition the board to relocate its

20

facility. In determining whether to grant a petition to

21

relocate, the board shall:

22

(1)  Evaluate the proposed new location and the reason

23

for the relocation.

24

(2)  Conduct an analysis comparing estimated gross

25

terminal revenues and estimated gross table game revenues at

26

the proposed new location with estimated or actual gross

27

terminal revenues and estimated or actual gross table game

28

revenues at the approved current location.

29

(3)  Conduct an analysis comparing the economic impact of

30

the licensed facility at the proposed new location with the

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1

estimated or actual economic impact at the approved current

2

location. The comparative analysis shall include the total

3

cost of the project and projected direct and indirect

4

employment figures.

5

(4)  Commission a comprehensive traffic study for the

6

proposed new location.

7

(5)  Evaluate community support or opposition.

8

(6)  Consider any other information submitted by the

9

petitioner or requested by the board.

10

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

11

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

12

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

13

shown if the relocation of the licensed facility:

14

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

15

originally licensed;

16

(2)  will facilitate the timely commencement or the

17

continued conduct of gaming operations;

18

(3)  complies with all other provisions of this part

19

related to the siting and location of a licensed facility;

20

and

21

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

22

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

23

public input hearing in the municipality where the licensed

24

facility will be located prior to ruling on the petition.

25

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

26

be awarded for the purpose of relocating or developing the

27

relocated licensed facility to comply with any conditions of

28

approval of the relocation.

29

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

30

§ 1332.  Appointment of trustee.

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1

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

2

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

3

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

4

Commonwealth and the board to ensure compliance with this part

5

and any conditions imposed upon the slot machine license. A

6

trustee may be appointed only in the following circumstances:

7

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

8

slot machine license or a principal license if the principal

9

licensee is the only principal who exercises operational

10

control of the licensed facility.

11

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

12

a principal license if the principal licensee is the only

13

principal who exercises operational control of the licensed

14

facility.

15

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

16

Commonwealth.

17

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

18

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

19

principal and obtain a principal license. The board may

20

appoint a trustee and award the trustee a temporary principal

21

license as prescribed in board regulations.

22

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

23

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

24

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

25

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

26

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

27

licensee.

28

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

29

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

30

exercise only those powers, duties and responsibilities

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1

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

2

order appointing the trustee shall set forth the powers, duties

3

and responsibilities of the trustee which may include:

4

(1)  Maintaining and operating the licensed facility in a

5

manner that complies with this part and any conditions

6

imposed by the board.

7

(2)  Maintaining and operating the licensed facility

8

consistent with the measures generally taken in the ordinary

9

course of business including:

10

(i)  Entering into contracts.

11

(ii)  Borrowing money.

12

(iii)  Pledging, mortgaging or otherwise encumbering

13

the licensed facility or property thereof as security for

14

the repayment of loans subject to any provisions and

15

restrictions in any existing credit documents.

16

(iv)  Hiring, firing and disciplining employees.

17

(3)  Exercising the rights and obligations of the former

18

or suspended licensee.

19

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

20

machine licensee, including its books, records and papers.

21

(5)  Establishing accounts with financial institutions.

22

An account may not be established with a financial

23

institution in which the licensee, an affiliate of the former

24

or suspended licensee, the trustee, or an immediate family

25

member of the trustee, has a controlling interest.

26

(6)  Meeting with the former or suspended licensee.

27

(7)  Meeting with principals and key employees at the

28

licensed facility.

29

(8)  Meeting with the independent audit committee.

30

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

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1

keeping the board's executive director apprised of actions

2

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

3

(10)  Hiring legal counsel, accountants or other

4

consultants or assistants, with prior approval of the board,

5

as necessary to carry out the trustee's duties and

6

responsibilities.

7

(11)  Settling or compromising with any debtor or

8

creditor of the former or suspended licensee, including any

9

taxing authority.

10

(12)  Reviewing outstanding agreements to which the

11

former or suspended licensee is a party and advising the

12

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

13

subject of scrutiny, examination or investigation by the

14

board.

15

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

16

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

17

restructuring, transfer of assets or execution of a contract

18

or any other action taken outside of the ordinary course of

19

business.

20

(14)  Obtaining board approval for any payments outside

21

of those made in the ordinary course of business.

22

Notwithstanding any provision contained in this subsection to

23

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

24

preserve the assets of the licensed gaming entity.

25

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

26

compensation of a trustee and shall review and approve actual

27

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

28

accountants or other consultants or assistants hired by the

29

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

30

the former or suspended licensee. Total compensation for the

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1

trustee and all persons hired or retained by the trustee under

2

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

3

aggregate unless otherwise increased by the board pursuant to

4

subsection (d.2).

5

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

6

aggregate hourly rate of compensation to be paid to the trustee

7

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

8

board shall consider:

9

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

10

questions involved and the skill required to properly perform

11

the required services.

12

(2)  Whether the acceptance of the position by the

13

trustee or other person will preclude the trustee or other

14

person from other employment.

15

(3)  The fee customarily charged for similar services.

16

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

17

(5)  The experience, reputation and ability of the

18

trustee or other person selected to perform the services.

19

(d.2)  Compensation exceptions.--

20

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

21

aggregate hourly rate of compensation authorized under

22

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

23

the percentage change in the Consumer Price Index for All

24

Urban Consumers for the Pennsylvania, New Jersey, Delaware

25

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

26

which figures have been officially reported by the United

27

States Department of Labor, Bureau of Labor Statistics. When

28

adjusted, the board shall publish the adjusted aggregate

29

hourly rate of compensation in the Pennsylvania Bulletin.

30

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

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1

Enforcement Counsel, the board may increase the total hourly

2

rate of compensation above the limitation contained in

3

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

4

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

5

increase requested by the office.

6

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

7

administration of the trusteeship with the board in the form and

8

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

9

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

10

creditors or other parties in interest and make summaries of the

11

reports available to the public and shall post them on the

12

board's Internet website.

13

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

14

interest aggrieved by any alleged breach of a delegated power or

15

duty or responsibility of a trustee in the discharge of the

16

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

17

inaction by filing a petition in accordance with board

18

regulations. The petition must set forth in detail the pertinent

19

facts and the reasons why the facts constitute the alleged

20

breach. The board shall review any petition filed under this

21

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

22

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

23

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

24

machine licensee may not exercise any of its privileges, collect

25

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

26

its assets to anyone without prior approval of the appointed

27

trustee and the board.

28

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

29

trusteeship, net income from the licensed facility shall be

30

deposited in an escrow account maintained for that purpose.

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1

Payments from the escrow account during the period of

2

trusteeship may not be made without the prior approval of the

3

board. A suspended or former principal or slot machine licensee

4

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

5

escrow account during the period of trusteeship by filing a

6

petition in accordance with board regulation. The suspended or

7

former principal or slot machine licensee shall have the burden

8

of demonstrating good cause for the distribution of the funds

9

requested.

10

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

11

discontinue a trusteeship when:

12

(1)  the board determines that circumstances requiring

13

the appointment of the trustee no longer exist; or

14

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

15

board, consummated the sale, assignment, conveyance or other

16

disposition of all the assets or interest of the former

17

principal or slot machine licensee relating to the slot

18

machine license.

19

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

20

regulations governing establishment of a list of persons

21

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

22

minimum, the regulations shall provide for the following:

23

(1)  The minimum qualifications a person must possess to

24

be approved as a trustee, which shall include the

25

qualifications set forth in subsection (b).

26

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

27

approved trustee list.

28

(3)  Any other information the board deems necessary to

29

carry out the intent of this section.

30

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

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1

read:

2

CHAPTER 13A

3

TABLE GAMES

4

Subchapter

5

A.  General Provisions

6

B.  Table Games Authorized

7

C.  Conduct of Table Games

8

D.  (Reserved)

9

E.  Table Game Testing and Certification

10

F.  (Reserved)

11

G.  Table Game Taxes and Fees

12

SUBCHAPTER A

13

GENERAL PROVISIONS

14

Sec.

15

1301A.  (Reserved).

16

1302A.  Regulatory authority.

17

1303A.  Temporary table game regulations.

18

1304A.  Commonwealth resident employment goals.

19

§ 1301A.  (Reserved).

20

§ 1302A.  Regulatory authority.

21

The board shall promulgate regulations:

22

(1)  Establishing standards and procedures for table

23

games and table game devices or associated equipment,

24

including standards distinguishing electronic gaming tables,

25

fully automated electronic gaming tables and traditional

26

gaming tables. The standards and procedures shall provide for

27

any new table games or gaming tables and variations or

28

composites of approved table games or gaming tables, provided

29

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

30

any variations or composites or other approved table games or

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1

gaming tables are suitable for use after a test or

2

experimental period under the terms and conditions as the

3

board may deem appropriate.

4

(2)  Establishing standards and rules to govern the

5

conduct of table games and the system of wagering associated

6

with table games, including the conduct of table games and

7

the system of wagering on electronic gaming tables and fully

8

automated electronic gaming tables.

9

(2.1)  Establishing the method for calculating gross

10

table game revenue and standards for the daily counting and

11

recording of cash and cash equivalents received in the

12

conduct of table games, including the conduct of table games

13

on electronic gaming tables and fully automated electronic

14

gaming tables, and ensuring that internal controls are

15

followed, including observation by employees of the board of

16

that process, the maintenance of financial books and records

17

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

18

department in establishing these regulations.

19

(3)  Establishing notice requirements pertaining to

20

minimum and maximum wagers on table games. Minimum and

21

maximum wagers may be adjusted by the certificate holder in

22

the normal course of conducting table games, except that

23

changes in minimum wagers at any given gaming table shall not

24

apply to players already engaged in wagering at that gaming

25

table when the minimum wager is changed, unless 30 minutes

26

notice is provided at that gaming table.

27

(4)  Requiring each certificate holder to:

28

(i)  Provide written information at each operational

29

gaming table about table game rules, payoffs or winning

30

wagers and other information as the board may require.

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1

(ii)  Provide specifications approved by the board

2

under section 1207(11) (relating to regulatory authority

3

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

4

surveillance system to cover all areas where table games

5

are conducted. The specifications shall include

6

provisions providing the board and other persons

7

authorized by the board with onsite access to the system

8

or its signal.

9

(iii)  Designate one or more locations within the

10

licensed facility to conduct table games.

11

(iv)  Ensure that visibility in a licensed facility

12

is not obstructed in any way that could interfere with

13

the ability of the certificate holder, the board and

14

other persons authorized under this part or by the board

15

to oversee the surveillance of the conduct of table

16

games.

17

(v)  Integrate the licensed facility's count room for

18

slot machine and table game operations to ensure maximum

19

security of the counting and storage of cash and cash

20

equivalents.

21

(vi)  Equip each operational gaming table with a sign

22

indicating the permissible minimum and maximum wagers at

23

the gaming table.

24

(vii)  Adopt policies or procedures to prohibit any

25

table game device or associated equipment from being

26

possessed, maintained or exhibited by any person on the

27

premises of a licensed facility except in the areas of a

28

licensed facility where the conduct of table games is

29

authorized or in a restricted area designated to be used

30

for the inspection, service, repair or storage of table

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1

game devices or associated equipment by the certificate

2

holder or in an area used for employee training and

3

instruction by the certificate holder.

4

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

5

equivalents, fill slips, credit slips or inventory slips

6

are deposited at the gaming tables, and all areas where

7

drop boxes are kept while in use, with two locking

8

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

9

be under the exclusive control of the board, and the

10

second locking device or key shall be under the exclusive

11

control of the certificate holder's designated employees.

12

The drop boxes shall be brought into or removed from an

13

area where table games are conducted or locked or

14

unlocked in accordance with procedures established by the

15

board.

16

(ix)  Designate secure locations for the inspection

17

and storage of table game devices and associated

18

equipment as may be approved by the board.

19

(5)  Establishing the size and uniform color by

20

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

21

including tournaments, and a policy for the use of

22

promotional or commemorative chips used in the conduct of

23

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

24

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

25

licensed facility.

26

(5.1)  Establishing the procedure to be used by a

27

certificate holder to determine and extract a rake for the

28

purposes of generating gross table game revenue from

29

nonbanking games. The rake may be calculated using a

30

percentage or a flat fee methodology.

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1

(6)  Establishing minimum standards relating to the

2

acceptance of tips or gratuities by dealers and croupiers at

3

a table game, which shall include:

4

(i)  The requirement that tips or gratuities accepted

5

by dealers and croupiers at banking games be placed in a

6

common pool for complete distribution pro rata among all

7

dealers and croupiers.

8

(ii)  The right of the certificate holder to

9

establish policies under which tips or gratuities

10

accepted by dealers and croupiers at nonbanking games are

11

not required to be pooled and may be retained by the

12

dealers and croupiers.

13

Nothing in this paragraph shall prohibit a certificate holder

14

from adopting a formal policy relating to acceptance of tips

15

and gratuities, provided that the policy meets the minimum

16

standards established by the board under this paragraph.

17

(7)  Establishing the minimal proficiency requirements

18

for individuals to successfully complete a course of training

19

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

20

machine licensee from establishing a course of training for

21

its employees or potential employees or prohibit a

22

certificate holder from offering employment to an individual

23

who has not attended or completed a course of instruction at

24

a gaming school and shall require a slot machine licensee

25

that elects to train its gaming employees or potential table

26

game employees to submit a detailed summary of the training

27

program to the board and to demonstrate the adequacy of the

28

training. The regulations shall prohibit a slot machine

29

licensee from charging its employees or potential employees a

30

fee to complete a course of training.

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1

(8)  Establishing the practices and procedures governing

2

the conduct of tournaments under this chapter.

3

(9)  Establishing minimum standards relating to the

4

extension of credit to a player by a certificate holder.

5

Prior to extending credit, the certificate holder shall

6

consider an individual's financial fitness, including annual

7

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

8

monthly bank balance or level of play.

9

§ 1303A.  Temporary table game regulations.

10

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

11

implementation of this chapter, regulations promulgated by the

12

board shall be deemed temporary regulations which shall expire

13

not later than two years following the publication of the

14

temporary regulation. The board may promulgate temporary

15

regulations not subject to:

16

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

17

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

18

Commonwealth Documents Law.

19

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

20

the Regulatory Review Act.

21

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

22

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

23

Attorneys Act.

24

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

25

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

26

authority to adopt temporary regulations under subsection (a)

27

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

28

Regulations adopted after this period shall be promulgated as

29

provided by law.

30

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

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1

temporary regulations governing table game rules, licensing of

2

manufacturers and suppliers and surveillance standards in the

3

Pennsylvania Bulletin no later than February 1, 2010.

4

§ 1304A.  Commonwealth resident employment goals.

5

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

6

Assembly that the board promote and ensure the availability of

7

employment opportunities for Commonwealth residents in table

8

games and table game-related operations as authorized in this

9

chapter. The board shall work with each certificate holder to

10

ensure that a significant number of Commonwealth residents are

11

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

12

also the goal of the General Assembly that Commonwealth

13

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

14

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

15

following commencement of the conduct of table games at each

16

certificate holder's licensed facility.

17

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

18

ascertain each certificate holder's progress in achieving the

19

goals of this section and whether each certificate holder has

20

taken effective and meaningful action to employ Commonwealth

21

residents in table game-related positions at licensed

22

facilities. The first review shall be completed one year

23

following the award of the first table game operation

24

certificate. Each annual review shall contain recommendations

25

which the board determines appropriate and may be combined with

26

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

27

The review shall be submitted to the chairman and minority

28

chairman of the standing committees of the Senate and of the

29

House of Representatives with jurisdiction over this part.

30

SUBCHAPTER B

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1

TABLE GAMES AUTHORIZED

2

Sec.

3

1311A.  Authorization to conduct table games.

4

1312A.  Petition requirements.

5

1313A.  Prohibitions.

6

1314A.  Table game authorization hearing process; public input

7

hearings.

8

1315A.  Standard for review of petitions.

9

1316A.  Award of certificate.

10

1316.1A.  Amendment of statement of conditions.

11

1317A.    Table game operation certificate.

12

1318A.    Timing of initial table game authorizations.

13

§ 1311A.  Authorization to conduct table games.

14

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

15

licensee to conduct table games, including table game contests

16

and tournaments, and to operate a system of wagering associated

17

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

18

licensed facility. Authorization shall be contingent upon the

19

slot machine licensee's agreement to ensure that slot machine

20

and table game operations will be conducted in accordance with

21

this part and any other conditions established by the board.

22

Nothing in this part shall be construed to create a separate

23

license governing the conduct of table games by  slot machine

24

licensees within this Commonwealth.

25

(b)  Number of authorized gaming tables.--

26

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

27

awarded a table game operation certificate may operate up to

28

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

29

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

30

nonbanking games at any one time. Six months following the

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1

date of commencement of table game operations, the board may

2

permit a Category 1 or Category 2 certificate holder to

3

increase the number of gaming tables above the number

4

authorized under this paragraph. The certificate holder shall

5

petition the board for the increase at its licensed facility.

6

The board, in considering the petition, shall take into

7

account the appropriateness of the physical space where the

8

gaming tables will be located and the convenience of the

9

public attending the facility. The board may also take into

10

account the potential benefit to the Commonwealth.

11

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

12

game operation certificate may operate up to 50 gaming tables

13

at any one time at its licensed facility. No more than 30% of

14

these gaming tables may be used to play nonbanking games at

15

any one time.

16

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

17

players.

18

§ 1312A.  Petition requirements.

19

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

20

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

21

seek approval to conduct table games by filing a petition with

22

the board.

23

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

24

conduct table games shall include the following:

25

(1)  The name, business address and contact information

26

of the petitioner.

27

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

28

photograph of each principal and key employee of the

29

petitioner who will be involved in the conduct of table games

30

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

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1

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

2

types of table games for which authorization is being sought.

3

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

4

employment positions that will be created at the licensed

5

facility if table games are authorized and an updated hiring

6

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

7

preferences) which outlines the petitioner's plan to promote

8

the representation of diverse groups and Commonwealth

9

residents in the employment positions.

10

(5)  A brief description of the economic benefits

11

expected to be realized by the Commonwealth, its

12

municipalities and its residents if table games are

13

authorized at the petitioner's licensed facility.

14

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

15

be obtained to fund an expansion or modification of the

16

licensed facility to accommodate table games and to otherwise

17

fund the cost of commencing table game operations.

18

(7)  Information and documentation concerning financial

19

background and resources, as the board may require, to

20

establish by clear and convincing evidence the financial

21

stability, integrity and responsibility of the petitioner.

22

(8)  Information and documentation, as the board may

23

require, to establish by clear and convincing evidence that

24

the petitioner has sufficient business ability and experience

25

to create and maintain a successful table game operation. In

26

making this determination, the board may consider the results

27

of the petitioner's slot machine operation, including

28

financial information, employment data and capital

29

investment.

30

(9)  Information and documentation, as the board may

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1

require, to establish by clear and convincing evidence that

2

the petitioner has or will have the financial ability to pay

3

the authorization fee under section 1361A (relating to table

4

game authorization fee).

5

(10)  Detailed site plans identifying the petitioner's

6

proposed table game area within the licensed facility.

7

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

8

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

9

board which is signed by the petitioner and acknowledged by

10

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

11

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

12

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

13

this section:

14

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

15

(relating to slot machine license fee) or under any

16

contract executed by the applicant and the department

17

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

18

portion of the slot machine license fee paid by the

19

petitioner for its slot machine license; and

20

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

21

return of any portion of the slot machine license fee

22

paid by the petitioner for its slot machine license.

23

(12)  Other information as the board may require.

24

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

25

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

26

considered confidential by the board if the information would be

27

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

28

and records).

29

§ 1313A.  Prohibitions.

30

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

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1

required as a condition of slot machine licensure to make

2

payments to a municipality, municipal authority or other entity

3

for an economic development project, including any project

4

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

5

as Pennsylvania Gaming Economic Development and Tourism Fund

6

Capital Budget Itemization Act of 2007, may submit a petition

7

under section 1312A (relating to petition requirements) until

8

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

9

authority to suspend slot machine license) are met.

10

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

11

a petition submitted by any slot machine licensee subject to

12

subsection (a) until the written agreement required by section

13

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

14

which shall ensure the written agreement meets the requirements

15

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

16

development project imposed by the board when awarding the slot

17

machine license to the licensee are satisfied.

18

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

19

construed to relieve a slot machine licensee of its legal

20

obligation to make any required payments referenced under this

21

section if the slot machine licensee elects not to petition the

22

board for authorization to conduct table games.

23

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

24

hearings.

25

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

26

of all petitions to conduct table games shall be conducted in

27

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

28

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

29

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

30

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

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1

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

2

board may adopt procedures to provide parties before it with a

3

documentary hearing, and the board may resolve disputed material

4

facts without conducting an oral hearing where constitutionally

5

permissible.

6

(b)  Public input hearing requirement.--

7

(1)  Prior to granting a petition for a slot machine

8

licensee to conduct table games under this chapter, the board

9

shall hold at least one public input hearing on the matter in

10

the municipality where the petitioner's licensed facility is

11

located.

12

(2)  A list of all witnesses scheduled to testify at a

13

public input hearing shall be posted on the board's Internet

14

website at least seven days prior to the hearing. The list

15

shall be updated at least three days prior to the hearing.

16

Additional witnesses shall be posted on the board's Internet

17

website as they are added to the list.

18

§ 1315A.  Standard for review of petitions.

19

The board shall approve a petition if the petitioner

20

establishes, by clear and convincing evidence, all of the

21

following:

22

(1)  The petitioner's slot machine license is in good

23

standing with the board.

24

(2)  The conduct of table games at the petitioner's

25

licensed facility will have a positive economic impact on the

26

Commonwealth, its municipalities and residents through

27

increased revenues and employment opportunities.

28

(3)  The petitioner possesses adequate funds or has

29

secured adequate financing to:

30

(i)  Fund any necessary expansion or modification of

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1

the petitioner's licensed facility to accommodate the

2

conduct of table games.

3

(ii)  Pay the authorization fee in accordance with

4

section 1361A (relating to table game authorization fee).

5

(iii)  Commence table game operations at its licensed

6

facility.

7

(4)  The petitioner has the financial stability,

8

integrity and responsibility to conduct table games.

9

(5)  The petitioner has sufficient business ability and

10

experience to create and maintain a successful table game

11

operation.

12

(6)  The petitioner's proposed internal and external

13

security and proposed surveillance measures within the area

14

of the licensed facility where the petitioner seeks to

15

conduct table games are adequate.

16

(7)  The petitioner agrees that the number of slot

17

machines in operation at its licensed facility on October 1,

18

2009, will not be permanently reduced in order to install

19

gaming tables.

20

(8)  The petitioner has executed the waiver required

21

under section 1312A(b)(11) (relating to petition

22

requirements) and provided any other information required by

23

section 1312A(b).

24

§ 1316A.  Award of certificate.

25

Upon approval of a petition, the board shall award a table

26

games operation certificate to the petitioner. Awarding of a

27

table game operation certificate prior to the payment in full of

28

the authorization fee required by section 1361A (relating to

29

table game authorization fee) shall not relieve the petitioner

30

from complying with the provisions of section 1361A.

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1

§ 1316.1A.  Amendment of statement of conditions.

2

(a)  Amendment.--Upon awarding a table game operation 

3

certificate, the board shall amend the slot machine licensee's

4

statement of conditions governing the slot machine license to

5

include conditions pertaining to the requirements of this part.

6

If the slot machine licensee is a Category 1 or Category 2 slot

7

machine licensee, amendments to the statement of conditions

8

shall include a requirement that the slot machine licensee

9

acknowledge and honor the waiver of rights required to be filed

10

under section 1312A(b)(11) (relating to petition requirements).

11

(b)  Sanctions.--A certificate holder that fails to abide by

12

this part or any condition contained in the licensee's statement

13

of conditions in the conduct of table games shall be subject to

14

board-imposed administrative sanctions or other penalties

15

authorized under this part.

16

§ 1317A.  Table game operation certificate.

17

The following shall apply:

18

(1)  A table game operation certificate shall be in

19

effect unless:

20

(i)  Suspended or revoked by the board consistent

21

with the requirements of this part.

22

(ii)  The slot machine license held by the

23

certificate holder is suspended, revoked or not renewed

24

by the board consistent with the requirements of this

25

part.

26

(iii)  The certificate holder relinquishes or does

27

not seek renewal of its slot machine license.

28

(2)  The table game operation certificate shall include

29

an itemized list by type of table game and the number of

30

gaming tables approved by the board and permitted in the

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1

certificate holder's licensed facility. The certificate

2

holder may increase or decrease the number of gaming tables

3

permitted at the licensed facility, change the type of table

4

games played at a particular gaming table or change the

5

configuration of gaming tables upon notice to the board and

6

approval by a designated employee of the board. Unless

7

approved by the board, the total number of gaming tables in

8

operation at the licensed facility may not exceed the number

9

authorized in the table games operation certificate.

10

(3)  A certificate holder shall be required to update the

11

information in its initial table games petition at times

12

prescribed by the board.

13

§ 1318A.  Timing of initial table game authorizations.

14

The board shall approve or deny a petition within 60 days

15

following receipt of the petition.

16

SUBCHAPTER C

17

CONDUCT OF TABLE GAMES

18

Sec.

19

1321A.  Authorized locations for operation.

20

1322A.  Commencement of table game operations.

21

1323A.  Training of employees and potential employees.

22

1323.1A.  Training equipment.

23

1324A.  Condition of continued operation.

24

1325A.  Table game accounting controls and audit protocols.

25

1326A.  Cash equivalents.

26

1327A.  Other financial transactions.

27

1328A.  Key employees and occupation permits.

28

1329A.  Application of Clean Indoor Air Act.

29

1329.1A.  Application of Liquor Code.

30

§ 1321A.  Authorized locations for operation.

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1

(a)  Restriction.--A certificate holder shall only be

2

permitted to operate table games at the licensed facility, a

3

temporary facility authorized under subsection (a.1) or an area

4

authorized under subsection (b).

5

(a.1)  Temporary facilities.--The board may permit a

6

certificate holder to conduct table games at a temporary

7

facility which is physically connected to, attached to or

8

adjacent to a licensed facility for a period not to exceed 24

9

months.

10

(b)  Powers and duties of board.--Upon request made by a

11

certificate holder, the board may determine the suitability of a

12

hotel for the conduct of table games. The board may authorize

13

the executive director to designate specific areas of a licensed

14

facility, other than the gaming floor, or specific areas of a

15

hotel, including conference rooms, ballrooms or other rooms, in

16

which the certificate holder may conduct contests or

17

tournaments. No certificate holder may be approved to conduct

18

table games in a licensed facility or a hotel unless the areas

19

to be designated are equipped with adequate security and

20

surveillance equipment to ensure the integrity of the conduct of

21

a table game contest or tournament. The certificate holder shall

22

notify the board of the number of gaming tables that the

23

certificate holder intends to operate during a contest or

24

tournament, and the board shall designate an employee of the

25

board to approve or deny the request. An authorization granted

26

under this section may not:

27

(1)  Impose any criteria or requirements regarding the

28

contents or structure of a hotel which are unrelated to the

29

conduct of table games.

30

(2)  Authorize the placement or operation of slot

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1

machines in a hotel.

2

§ 1322A.  Commencement of table game operations.

3

A certificate holder may not operate or offer table games for

4

play at a licensed facility until the board determines that:

5

(1)  The certificate holder is in compliance with the

6

requirements of this part.

7

(2)  The certificate holder's internal controls and audit

8

protocols are sufficient to meet the requirements of section

9

1325A (relating to table game accounting controls and audit

10

protocols).

11

(3)  The certificate holder's table game employees, where

12

applicable, are licensed, permitted or otherwise authorized

13

by the board to perform their respective duties.

14

(4)  The certificate holder is prepared in all respects

15

to offer table game play to the public at the licensed

16

facility.

17

(5)  The certificate holder has implemented necessary

18

internal and management controls and security arrangements

19

and surveillance systems for the conduct of table games.

20

(6)  The certificate holder is in compliance with or has

21

complied with section 1361A (relating to table game

22

authorization fee).

23

§ 1322.1A.  Table game tournaments.

24

(a)  Authorization.--A certificate holder may conduct

25

tournaments at its licensed facility.

26

(b)  Submission of schedule.--The following shall apply:

27

(1)  A certificate holder that elects to conduct

28

tournaments shall submit to the executive director of the

29

board for approval a proposed schedule of tournaments to be

30

conducted at the licensed facility.

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1

(2)  The proposed schedule may be a weekly, monthly or

2

annual schedule and shall include information identifying all

3

of the following:

4

(i)  The type of table game or table games to be

5

played at each tournament.

6

(ii)  The proposed date and time of each tournament.

7

(iii)  The proposed entry fee and any other fees

8

associated with the tournament.

9

(iv)  The maximum number of participants.

10

(v)  Any other information as the board may require.

11

(3)  Submission of a proposed schedule shall not require

12

the certificate holder to conduct all tournaments contained

13

in the schedule. A certificate holder may not conduct a

14

tournament at a date or time not contained in the schedule

15

submitted to the executive director.

16

(4)  A certificate holder may seek to amend or modify the

17

schedule at any time by filing a written request with the

18

executive director.

19

(c)  Exemptions and additional tables.--The following shall

20

apply:

21

(1)  For a Category 1 or Category 2 licensed facility,

22

gaming tables used in tournaments shall be exempt from

23

section 1311A (b)(1) (relating to authorization to conduct

24

table games) and shall not be used in any calculation of the

25

total number of gaming tables authorized in the table game

26

authorization certificate.

27

(2)  For a Category 3 licensed facility, the executive

28

director may authorize the licensed facility to operate up to

29

15 additional gaming tables for use in tournaments. The

30

executive director may grant the use of the additional gaming

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1

tables for tournaments authorized under this paragraph only

2

one day per month.

3

(d)  Seating.--A gaming table used in tournament play shall

4

seat a maximum of ten players per table.

5

§ 1323A.  Training of employees and potential employees.

6

(a)  Adequacy.--A slot machine licensee that elects to offer

7

table game training to its employees or potential employees

8

shall submit to the board a detailed summary of the training

9

program demonstrating the adequacy of the training.

10

(b)  Authorization.--Notwithstanding any provision of this

11

part to the contrary, the executive director of the board may

12

authorize a slot machine licensee to conduct table game training

13

and instruction for the slot machine licensee's employees and

14

potential employees.

15

(c)  Effect.--Authorization granted under subsection (b)

16

shall do all of the following:

17

(1)  Permit a slot machine licensee to conduct training

18

at a location within the licensed facility or at another

19

location.

20

(2)  Require any training authorized on the gaming floor

21

to be conducted in a specified area of the gaming floor that

22

is clearly identified as a training area and not accessible

23

to the public

24

(3)  Designate a secure area at the location where the

25

training will take place for the storage of table game

26

devices and associated equipment used for training.

27

(4)  Limit the number of table game devices and

28

associated equipment to that necessary to conduct training.

29

(5)  Prohibit the payment of any cash, cash equivalent or

30

other prize to an individual as a result of play conducted

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1

during training or play conducted utilizing table game

2

devices or associated equipment obtained under section

3

1323.1A (relating to training equipment).

4

(6)  Prohibit a slot machine licensee from charging its

5

employees or potential employees a fee to participate in the

6

training.

7

(c.1)  Rescission or revocation.--An authorization granted by

8

the executive director under subsection (b) may be rescinded or

9

revoked by the executive director or the board without cause.

10

The slot machine licensee shall be given notice that the

11

authorization has been rescinded or revoked and afforded a

12

reasonable time to take all necessary actions required by the

13

executive director or the board.

14

(d)  Prohibition.--The board shall be prohibited from

15

charging a fee as a condition of receiving authorization under

16

subsection (b).

17

§ 1323.1A.  Training equipment.

18

(a)  Acquisition.--Notwithstanding section 1317 (relating to

19

supplier licenses) or section 1317.1 (relating to manufacturer

20

licenses), for a one-year period following the effective date of

21

this section, a slot machine licensee may purchase, lease or

22

otherwise obtain table game devices or associated equipment

23

that will be used for the sole purpose of conducting table game

24

training authorized under section 1323A (relating to initial

25

training of employees and potential employees) from a

26

manufacturer or supplier, whether or not licensed or otherwise

27

approved by the board under this part, or from an affiliate of

28

the slot machine licensee or a gaming facility in another

29

jurisdiction.

30

(b)  Identification.--Table game devices or associated

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1

equipment obtained by a slot machine licensee pursuant to

2

subsection (a) shall have an identification number which shall

3

be kept on file with the board and the table game devices or

4

associated equipment shall be clearly identified as being used

5

for training purposes only.

6

(c)  Prohibition.--

7

(1)  Table game devices and associated equipment obtained

8

pursuant to this section shall be prohibited from being used

9

on the gaming floor unless being used for training purposes

10

pursuant to section 1323A(c)(2).

11

(2)  The payment of any cash, cash equivalent or other

12

prize to an individual from the play of a table game on table

13

game devices or associated equipment obtained pursuant to

14

this section is prohibited.

15

§ 1324A.  Condition of continued operation.

16

As a condition of continued operation, a certificate holder

17

shall agree to maintain all books, records and documents

18

pertaining to table games in a manner and location within this

19

Commonwealth as approved by the board. All books, records and

20

documents related to table games shall:

21

(1)  be segregated by separate accounts within the slot

22

machine licensee's books, records and documents, except for

23

any books, records or documents that are common to both slot

24

machine and table game operations;

25

(2)  be immediately available for inspection upon request

26

of the board, the bureau, the department, the Pennsylvania

27

State Police or the Attorney General, or agents thereof,

28

during all hours of operation of the licensed facility in

29

accordance with regulations promulgated by the board; and

30

(3)  be maintained for a period as the board, by

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1

regulation, may require.

2

§ 1325A.  Table game accounting controls and audit protocols.

3

(a)  Approval.--Prior to the commencement of table game

4

operations, a certificate holder shall submit to the board for

5

approval all proposed site plans, internal control systems and

6

audit protocols for the certificate holder's table game

7

operations.

8

(b)  Minimum requirements.--A certificate holder's internal

9

controls and audit protocols shall:

10

(1)  Safeguard its assets and revenues, including the

11

recording of cash, cash equivalents and evidences of

12

indebtedness related to table games.

13

(2)  Provide for reliable records, accounts and reports

14

of any financial event that occurs in the conduct of table

15

games, including reports to the board related to table games.

16

(3)  Provide for accurate and reliable financial records

17

related to table games.

18

(4)  Establish procedures for all the following:

19

(i)  The receipt, storage and disbursal of chips,

20

cash and cash equivalents used in table games.

21

(ii)  Conversion of cash equivalents to cash.

22

(iii)  The redemption of chips and other

23

representations of value used in table games and the

24

payment of winnings and prizes.

25

(iv)  The recording of financial transactions

26

pertaining to table games.

27

(5)  Establish procedures for the collection and security

28

of cash and cash equivalents at the gaming tables.

29

(6)  Establish procedures for the recording of and

30

transfer of chips and cash equivalents between the gaming

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1

tables and the cashier's cage.

2

(7)  Establish procedures for the transfer of drop boxes

3

from the gaming tables to the count room.

4

(8)  Establish procedures and security for the counting

5

and recording of gross table game revenue.

6

(9)  Establish procedures for the security, storage and

7

recording of cash and cash equivalents utilized in table

8

games.

9

(10)  Establish procedures and security standards for the

10

handling and storage of table game devices and associated

11

equipment used in connection with table games.

12

(11)  Establish procedures and rules governing the

13

conduct of each table game and the responsibility of

14

employees related to table games.

15

(12)  Establish procedures for the collection and

16

recording of revenue from poker and other table games when

17

played as nonbanking games, including the type of rake

18

utilized and the methodology for calculating the amount of

19

permissible rake.

20

(13)  Ensure that any wagering permitted in the play of a

21

table game is implemented only in accordance with the

22

certificate holder's general or specific authorization, as

23

approved by the board.

24

(14)  Ensure the proper and timely accounting of gross

25

table game revenue and the calculation of gross table game

26

revenue, fees, taxes and assessments based on the gross table

27

game revenue.

28

(15)  Maintain accountability for assets, ensure that

29

recorded accountability for assets is compared with actual

30

assets at reasonable intervals and ensure that appropriate

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1

action is taken with respect to any discrepancies.

2

(16)  Ensure that all functions, duties and

3

responsibilities related to table game operations are

4

appropriately segregated and performed in accordance with

5

sound financial practices by qualified employees.

6

(17)  Permit use of its licensed facility by the board,

7

the bureau and other persons authorized under this part or by

8

the board to facilitate their ability to perform regulatory

9

and oversight functions under this chapter.

10

(c)  Submission to board.--The submission required under

11

subsection (a) shall include a detailed description of the

12

certificate holder's administrative and accounting procedures

13

related to table games, including its written system of internal

14

controls. Each written system of internal controls shall

15

include:

16

(1)  An organizational chart depicting appropriate

17

functions and responsibilities of employees involved in both

18

slot machine operations and table game operations.

19

(2)  A description of the duties and responsibilities of

20

each position shown on the organizational chart.

21

(3)  The record retention policy of the certificate

22

holder.

23

(4)  The procedure to be utilized to ensure that assets

24

are safeguarded, including mandatory count procedures.

25

(5)  A detailed narrative description of the

26

administrative and accounting procedures in place to ensure

27

compliance with the requirements of section 1326A (relating

28

to cash equivalents).

29

(6)  A statement signed by the certificate holder's chief

30

financial officer or other competent person attesting that

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1

the signatory believes, in good faith, that the system

2

satisfies the requirements of this section.

3

(d)  Review.--Prior to authorizing a certificate holder to

4

conduct table games, the board shall review the system of

5

internal controls submitted under subsection (c) to determine

6

whether it conforms to the requirements of this part and whether

7

it provides adequate and effective controls for the conduct of

8

table games.

9

§ 1326A.  Cash equivalents.

10

(a)  Checks.--

11

(1)  A certificate holder may accept a check from a

12

patron in exchange for cash or chips. The certificate holder

13

shall present each check for payment to the financial

14

institution upon which the check is drawn within ten days of

15

receipt by the certificate holder. No third party checks

16

shall be permitted.

17

(2)  Notwithstanding any law to the contrary, checks

18

cashed in conformity with the requirements of this section or

19

13 Pa.C.S. Div. 3 (relating to negotiable instruments) shall

20

be valid instruments, enforceable at law in the courts of

21

this Commonwealth. Any check cashed, transferred, conveyed,

22

given or accepted in violation of this section shall be

23

invalid and unenforceable for the purposes of collection by a

24

certificate holder but shall be included in the calculation

25

of gross table game revenue.

26

(b)  Notice of fees.--All fees charged for the conversion of

27

cash equivalents shall be disclosed.

28

(c)  Payment of cash equivalents.--Other than credit extended

29

by a certificate holder, an instrument that constitutes a cash

30

equivalent shall be made payable to the slot machine licensee,

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1

to the bearer or to cash. An instrument made payable to a third

2

party shall not be considered a cash equivalent and shall be

3

prohibited.

4

§ 1327A.  Other financial transactions.

5

(a)  Credit.--Notwithstanding section 1504 (relating to

6

wagering on credit), a certificate holder may extend interest-

7

free, unsecured credit to patrons for the purpose of playing

8

slot machines or table games in accordance with this section;

9

however, a certificate holder shall not accept credit cards,

10

charge cards or debit cards from a patron or player for the

11

exchange or purchase or chips, slot machine or table game

12

credits or for an advance of coins or currency to be utilized by

13

a player to play slot machine or table games. No credit card

14

advance machine may be placed on the gaming floor.

15

(b)  Credit applications.-–Each application for credit

16

submitted by a patron to a certificate holder shall be

17

maintained in a confidential credit file. The application shall

18

include the patron's name, address, telephone number and

19

comprehensive bank account information; the requested credit

20

limit; the patron's approximate amount of current indebtedness;

21

the amount and source of income in support of the application;

22

the patron's signature on the application; a certification of

23

truthfulness; and any other information deemed relevant by the

24

certificate holder. The certificate holder shall notify each

25

applicant that, as a condition of receiving credit, the

26

certificate holder will verify identity and indebtedness

27

information through a credit bureau or casino credit bureau and,

28

if appropriate, through direct contact with other slot machine

29

licensees.

30

(c)  Credit application verification.-–Prior to approving an

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1

application for credit, a certificate holder shall verify:

2

(1)  The identity, creditworthiness and indebtedness

3

information of the applicant by conducting a comprehensive

4

review of the information submitted with the application and

5

any information regarding the applicant's credit activity at

6

other licensed facilities which the certificate holder may

7

obtain through a casino credit bureau and, if appropriate,

8

through direct contact with other slot machine licensees.

9

(2)  That the applicant's name is not included on an

10

exclusion list under section 1514 (relating to regulation

11

requiring exclusion of certain persons) or 1516 (relating to

12

list of persons self excluded from gaming activities) or the

13

voluntary credit suspension list under subsection (h).

14

(d)  Establishment of credit.-–Upon completion of the

15

verification required under subsection (c), a certificate holder

16

may grant a patron credit. The certificate holder shall

17

establish a credit limit for each patron to whom the certificate

18

holder grants credit. Each applicant's credit limit shall be

19

approved by two or more employees of the certificate holder

20

holding the job positions of credit manager, assistant credit

21

manager, credit shift manager, credit executive or a key

22

employee in a direct reporting line above the manager or credit

23

manager. The approval shall be recorded in the applicant's

24

credit file and shall include the reasons and information relied

25

on for the approval of credit and verification by the employees

26

approving the applicant's credit limit. Increases to an

27

individual's credit limit may be approved following a written

28

request from the individual and reverification of an

29

individual's credit information.

30

(e)  Recordkeeping.-–Detailed information pertaining to all

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1

transactions affecting an individual's outstanding indebtedness

2

to a certificate holder shall be recorded in chronological order

3

in the individual's credit file.

4

(f)  Reduction or suspension of credit.-–A certificate holder

5

may reduce an individual's credit limit or suspend credit to an

6

individual for any reason.

7

(g)  Voluntary credit suspension.--An individual may request

8

a certificate holder to suspend the individual's credit. Each

9

certificate holder shall inform the board when an individual

10

requests a suspension of credit and shall provide the board with

11

all information necessary to maintain the voluntary credit

12

suspension list under subsection (h).

13

(h)  Voluntary credit suspension list.--The board shall

14

maintain a voluntary credit suspension list of all individuals

15

who have requested suspension of credit privileges and shall

16

provide the list on a continuous basis to the credit department

17

of each certificate holder. An individual may request placement

18

on the voluntary credit suspension list by submitting to the

19

board the individual's name, address and date of birth. The

20

individual does not need to provide a reason for the request.

21

Notwithstanding any other provision of law to the contrary, the

22

board's list of individuals who have had credit privileges

23

voluntarily suspended shall be confidential, and neither the

24

board nor the credit department of a certificate holder shall

25

divulge the name of any individual on this list to any person or

26

entity other than those provided for in this subsection. To be

27

removed from the list, the individual shall submit a request to

28

the board. The board shall remove the individual from the list

29

and inform the credit department of each certificate holder not

30

later than three business days after the board's receipt of the

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1

request.

2

(i)  Liability.--A certificate holder or employee thereof

3

shall not be liable to any individual on the voluntary credit

4

suspension list or to any other party in any judicial proceeding

5

for any harm, monetary or otherwise, which may arise as a result

6

of:

7

(1)  the failure of a certificate holder to restore

8

credit privileges to an individual on the voluntary credit

9

suspension list; or

10

(2)  otherwise permitting an individual on the voluntary

11

credit suspension list to engage in gaming activity in the

12

licensed facility while on the voluntary credit suspension

13

list.

14

(j)  Tax liability.--Draws against unsecured credit extended

15

to patrons pursuant to this section which become uncollectible

16

may not be claimed by a certificate holder as a deduction,

17

credit or any other type of reduction or offset against any tax

18

imposed by this part or the act of March 4, 1971 (P.L.6, No.2),

19

known as the Tax Reform Code of 1971.

20

§ 1328A.  Key employees and occupation permits.

21

Nothing in this part shall be construed to require any

22

individual who holds a principal license, a key employee license

23

or gaming employee license under Chapter 13 (relating to

24

licensees) to obtain a separate license or permit to be employed

25

in a certificate holder's table game operation authorized under

26

this chapter.

27

§ 1329A.  Application of Clean Indoor Air Act.

28

For the purpose of section 3(b)(11) of the act of June 13,

29

2008 (P.L.182, No.27), known as the Clean Indoor Air Act, the

30

term "gaming floor" shall include the areas of any licensed

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1

facility where the slot machine licensee is authorized to place

2

and operate slot machines or conduct table games, except such

3

areas off the gaming floor where contests or tournaments are

4

conducted unless smoking is otherwise permitted in such areas.

5

§ 1329.1A.  Application of Liquor Code.

6

The provisions of section 493(24)(ii) of the act of April 12,

7

1951 (P.L.90, No.21), known as the Liquor Code, shall also apply

8

to table games.

9

SUBCHAPTER D

10

(RESERVED)

11

SUBCHAPTER E

12

TABLE GAME TESTING AND CERTIFICATION

13

Sec.

14

1341A.  Table game device and associated equipment testing and

15

certification standards.

16

§ 1341A.  Table game device and associated equipment testing and

17

certification standards.

18

(a)  Expansion of independent testing and certification

19

facility.--Within one year of the effective date of this

20

section, the board shall expand the independent testing and

21

certification facility created under section 1320(b) to include

22

the testing and certification of table game devices and

23

associated equipment. Costs associated with the expansion of the

24

facility shall be assessed on manufacturers licensed to

25

manufacture table game devices or associated equipment under

26

this part in accordance with a schedule adopted by the board.

27

The expanded facility shall be made available to each table game

28

device manufacturer and supplier as determined by the board.

29

(b)  Use of other state standards.--The board may determine

30

whether the table game device testing and certification

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1

standards of another jurisdiction within the United States in

2

which a manufacturer licensed pursuant to section 1317.1

3

(relating to manufacturer licenses) to manufacture table game

4

devices or associated equipment used in connection with table

5

games is 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 permit the

8

manufacturer appropriately licensed pursuant to section 1317.1

9

to deploy table game devices or associated equipment it

10

manufactures which have met the table game device testing and

11

certification standards in another jurisdiction without

12

undergoing the full testing and certification process by the

13

board's independent testing and certification facility.

14

SUBCHAPTER F

15

(RESERVED)

16

SUBCHAPTER G

17

TABLE GAME TAXES AND FEES

18

Sec.

19

1361A.  Table game authorization fee.

20

1362A.  Table game taxes.

21

1363A.  Local share assessment.

22

§ 1361A.  Table game authorization fee.

23

(a)  Amount of authorization fee.--

24

(1)  A Category 1 or a Category 2 slot machine licensee

25

that submits a petition for a table game operation

26

certificate under section 1312A (relating to petition

27

requirements) on or before June 1, 2010, shall pay a one-time

28

nonrefundable authorization fee in the amount of $16,500,000.

29

A Category 1 or a Category 2 slot machine licensee that

30

submits a petition for a table game operation certificate

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1

under section 1312A after June 1, 2010, shall pay a one-time

2

nonrefundable authorization fee in the amount of $24,750,000.

3

(2)  A Category 3 slot machine licensee that submits a

4

petition for a table game operation certificate under section

5

1312A on or before June 1, 2010, shall pay a one-time

6

nonrefundable authorization fee in the amount of $7,500,000.

7

A Category 3 slot machine licensee that submits a petition

8

for a table game operation certificate under section 1312A

9

after June 1, 2010, shall pay a one-time nonrefundable

10

authorization fee in the amount of $11,250,000.

11

(3)  Notwithstanding paragraphs (1) and (2), the holder

12

of a Category 1 or Category 3 slot machine license issued

13

after June 1, 2010, that submits a petition for a table game

14

operation certificate shall pay a one-time nonrefundable

15

authorization fee in the amount of $16,500,000 or $7,500,000,

16

respectively.

17

(4)  A table game operation certificate shall not be

18

subject to renewal or payment of an additional authorization

19

fee.

20

(b)  Payment of fee.--A slot machine licensee that submits a

21

petition on or before June 1, 2010, shall pay the required

22

authorization fee on or before June 1, 2010. The board may allow

23

the fee to be paid in installments, provided all installments

24

are paid on or before June 1, 2010. In that event, the board and

25

the slot machine licensee shall enter into a written agreement

26

setting forth the terms of payment.

27

(c)  Failure to pay by deadline.--If a petitioner or

28

certificate holder fails to pay the required authorization fee

29

in full by June 1, 2010, the board shall impose a penalty and

30

may grant the petitioner or certificate holder up to a six-month

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1

extension to pay the authorization fee or any remaining portion

2

of the authorization fee and the penalty. The board shall

3

require the petitioner or certificate holder to make weekly

4

payments until the fee and penalty are paid in full.

5

(d)  Suspension of certificate.--The board shall suspend the

6

table game operation certificate if the certificate holder fails

7

to pay the total authorization fee and the penalty prior to the

8

expiration of an extension period granted under subsection (c).

9

The suspension shall remain in effect until final payment is

10

made.

11

(e)  (Reserved).

12

(f)  Deposit of fees.–-Notwithstanding section 1208 (relating

13

to collection of fees and fines), all table game authorization

14

fees or penalties received by the board under this subchapter;

15

all table game device and associated equipment manufacturer and

16

supplier license fees; all table game device or associated

17

equipment manufacturer and supplier renewal fees; and fees for

18

licenses issued under Chapter 16 (relating to junkets) shall be

19

deposited in the General Fund.

20

§ 1362A.  Table game taxes.

21

(a)  Imposition.--

22

(1)  Except as provided in paragraphs (2) and (3), each

23

certificate holder shall report to the department and pay

24

from its daily gross table game revenue, on a form and in the

25

manner prescribed by the department, a tax of 12% of its

26

daily gross table game revenue.

27

(2)  In addition to the tax payable under paragraph (1),

28

each certificate holder shall report to the department and

29

pay from its daily gross table game revenue, on a form and in

30

the manner prescribed by the department, a tax of 34% of its

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1

daily gross table game revenue from each table game played on

2

a fully automated electronic gaming table.

3

(3)  The tax reported and payable under paragraph (1) by

4

each certificate holder shall be 14% of daily gross table

5

game revenue for a period of two years following commencement

6

of table games operations at its licensed facility.

7

(b)  Deposits and distributions.-–

8

(1)  The tax imposed under subsection (a) shall be

9

payable to the department on a weekly basis and shall be

10

based upon gross table game revenue derived during the

11

previous week.

12

(2)  All funds owed to the Commonwealth under this

13

section shall be held in trust for the Commonwealth by the

14

certificate holder until the funds are paid to the

15

department. Unless otherwise agreed to by the board, a

16

certificate holder shall establish a separate bank account

17

into which gross table game revenue shall be deposited and

18

maintained until such time as the funds are paid to the

19

department under this section or paid into the fund under

20

section 1363A(a) (relating to local share assessment).

21

(3)  The tax imposed under subsection (a) shall be

22

deposited into the General Fund.

23

(c)  Deposits for property tax relief.--If, on the last day

24

of a fiscal year the balance of the Budget Stabilization Reserve

25

Fund established pursuant to section 1701-A of the act of April

26

9, 1929 (P.L.343, No.176), known as The Fiscal Code, exceeds

27

$750,000,000, as certified by the Secretary of the Budget, the

28

deposits made into the General Fund pursuant to subsection (b)

29

(3) shall cease and thereafter be deposited into the Property

30

Tax Relief Fund established pursuant to section 1409 (relating

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1

to Property Tax Relief Fund).

2

§ 1363A.  Local share assessment.

3

(a)  Required payment.--In addition to the tax imposed under

4

section 1362A (relating to table game taxes), each certificate

5

holder shall pay on a weekly basis and on a form and in a manner

6

prescribed by the department a local share assessment into a

7

restricted receipts account established within the fund. All

8

funds owed under this section shall be held in trust by the

9

certificate holder until the funds are paid into the account.

10

Funds in the account are hereby appropriated to the department

11

on a continuing basis for the purposes set forth in this

12

section.

13

(b)  Distributions to counties.--The department shall make

14

quarterly distributions from the local share assessments

15

deposited into the fund under subsection (a) to counties,

16

including home rule counties, hosting a licensed facility

17

authorized to conduct table games under this chapter in

18

accordance with the following:

19

(1)  If the licensed facility is a Category 1 licensed

20

facility located at a harness racetrack and the county,

21

including a home rule county, in which the licensed facility

22

is located is:

23

(i)  A county of the third class:  50% of the

24

licensed facility's local share assessment shall be added

25

to and distributed with the funds distributed under

26

section 1403(c)(2)(i)(D) (relating to establishment of

27

State Gaming Fund and net slot machine revenue

28

distribution).

29

(ii)  A county of the second class A:  50% of the

30

licensed facility's local share assessment shall be

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1

distributed to the county.

2

(iii)  A county of the fourth class:  50% of the

3

licensed facility's local share assessment shall be added

4

to the funds in the restricted receipts account

5

established pursuant to section 1403(c)(2)(i)(E) for

6

distribution with those funds.

7

(iv)  A county of the fifth class:  50% of the

8

licensed facility's local share assessment shall be added

9

to the funds in the restricted receipts account

10

established pursuant to section 1403(c)(2)(i)(F) for

11

distribution with those funds.

12

(2)  If the facility is a Category 1 licensed facility

13

that is located at a thoroughbred racetrack and the county in

14

which the licensed facility is located is:

15

(i)  A county of the second class A:  50% of the

16

licensed facility's local share assessment shall be

17

distributed to the county to be further distributed as

18

grants to a nonprofit hospital in a first class township

19

that is contiguous to the municipality in which the

20

licensed facility is located. If the nonprofit hospital

21

ceases to exist, 50% of the licensed facility's local

22

share assessment shall be distributed to the county in

23

which the licensed facility is located.

24

(ii)  Except as set forth in subparagraph (iii), a

25

county of the third class:  50% of the licensed

26

facility's local share assessment shall be distributed to

27

the county to be used solely to fund the establishment of

28

a county violent crime task force to reduce gang

29

violence, gun trafficking and violence and drug-related

30

crimes in the county. The district attorney shall

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1

appoint, direct and coordinate the operations and

2

personnel of the task force.

3

(iii)  A county of the third class which is also a

4

home rule county:  100% of the licensed facility's local

5

share assessment shall be distributed to a community

6

college that is established in the county after the

7

effective date of this subparagraph and prior to January

8

1, 2014, to be used by the community college for

9

organizational, administrative, operating and capital

10

expenditures and the payment of principal, interest and

11

expenses related to indebtedness, subject to the

12

following:

13

(A)  Until January 1, 2014, or until a community

14

college is established after the effective date of

15

this subparagraph prior to January 1, 2014, whichever

16

occurs first, 100% of the licensed facility's local

17

share assessment shall be distributed to the county

18

redevelopment authority to be deposited and

19

maintained by the county redevelopment authority in a

20

restricted receipts account. The funds may be

21

invested by the county redevelopment authority as

22

permitted by law, and any interest earned on the

23

funds and investment income derived from the funds

24

shall be deposited into the restricted receipts

25

account. The funds in the restricted receipts account

26

shall be distributed as provided in clause (B) or

27

used as provided in clause (C), as applicable.

28

(B)  If a community college is established in the

29

county following the effective date of this

30

subparagraph and prior to January 1, 2014, the funds

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1

in the restricted receipts account established under

2

clause (A) shall be distributed in their entirety by

3

the county redevelopment authority to the community

4

college no later than 60 days following the date of

5

the establishment of the community college.

6

(C)  If a community college is not established in

7

the county following the effective date of this

8

subparagraph and prior to January 1, 2014, beginning

9

January 1, 2014, 100% of the licensed facility's

10

local share assessment shall be distributed to the

11

county redevelopment authority to be deposited into

12

the restricted receipts account established under

13

clause (A) and all funds in the restricted receipts

14

account shall be used by the county redevelopment

15

authority for a revolving loan program available to

16

municipalities within the county for infrastructure

17

projects, including, but not limited to, water,

18

sewer, storm water management, flood control, roads,

19

broadband Internet access, site remediation and

20

public utility infrastructure in areas other than a

21

public utility's own facilities. The county

22

redevelopment authority may use funds from the

23

revolving loan program for expenses related to the

24

cost to administer the revolving loan program in an

25

amount not in excess of 0.5% of the revolving loan

26

program portfolio in a given calendar year. A

27

municipality may not use funds received under the

28

revolving loan program for general budget or

29

operating expenses.  The county redevelopment

30

authority shall develop loan program criteria and

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1

guidelines consistent with the provisions of this

2

clause.

3

(D)  For purposes of this subparagraph, a

4

community college shall be considered to be

5

established on the date on which the proposed

6

community college plan is approved by the State Board

7

of Education within the meaning of section 1903-A(c)

8

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

9

as the Public School Code of 1949, notwithstanding

10

the fact that a board of trustees of the community

11

college may not have yet been appointed by the

12

governing bodies of the local sponsor of the

13

community college.

14

(3)  If the facility is a Category 2 licensed facility

15

and if the county in which the licensed facility is located

16

is:

17

(i)  A county of the first class:  100% of the 

18

licensed facility's local share assessment shall be added

19

to and distributed with the funds distributed under

20

section 1403(c)(2)(iii)(A).

21

(ii)  A county of the second class:  50% of the

22

licensed facility's local share assessment shall be

23

distributed as follows:

24

(A)  Eighty-five percent shall be deposited into

25

a restricted receipts account to be established in

26

the Department of Education for distribution pursuant

27

to the act of June 14, 1961 (P.L.324, No.188), known

28

as The Library Code, for grants to an established

29

library system in the county but outside a city of

30

the second class. Funds made available under this

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1

clause shall be in addition to any funding provided

2

to such libraries pursuant to the act of April 9,

3

1929 (P.L.343, No.176), known as The Fiscal Code; the

4

Public School Code of 1949; and The Library Code.

5

Notwithstanding The Library Code, in making

6

distributions from funds made available under this

7

clause, the library system shall distribute the funds

8

as follows:

9

(I)  At least 80% shall be distributed to

10

libraries in the library system in the county but

11

outside a city of the second class on a per

12

capita basis of the population of the county

13

based on the most recent decennial census

14

excluding a city of the second class.

15

(II)  At least 15% but not more than 20%

16

shall be distributed to libraries in the library

17

system in each city, borough, town or township in

18

the county outside a city of the second class,

19

which has a market value per capita below the

20

fifth percentile of all cities, boroughs, towns

21

or townships, with comparable classifications.

22

The market value per capita and percentiles under

23

this subclause shall be as determined annually by

24

the State Tax Equalization Board.

25

(III)  Not more than 5% may be used to defray

26

the reasonable and necessary administrative costs

27

of the library system in administering the funds,

28

as determined by the Department of Education.

29

(IV)  If, after the distribution and use

30

under subclauses (I), (II) and (III), funds are

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1

still available for distribution under this

2

clause, those funds shall be shall be distributed

3

to libraries in the library system in the county

4

but outside a city of the second class on a per

5

capita basis of the population of the county

6

based on the most recent decennial census

7

excluding a city of the second class.

8

(B)  Fifteen percent to a recognized tourist

9

promotion agency that is established by a home rule

10

municipality that was formerly a township or borough

11

located in the county pursuant to the act of July 4,

12

2008 (P.L.621, No.50), known as the Tourist Promotion

13

Act, and recognized by the Department of Community

14

and Economic Development and the home rule

15

municipality.

16

(iii)  A county of the third class where a city of

17

the third class hosting the licensed facility is located

18

in two counties of the third class:  50% of the licensed

19

facility's local share assessment shall be distributed as

20

follows:

21

(A)  Sixty percent to the county in which the

22

licensed facility is located for economic development

23

projects, community improvement projects and other

24

projects in the public interest within the county.

25

(B)    Twenty percent to the nonhost city of the

26

third class in the county in which the licensed

27

facility is located.

28

(C)  Twenty percent to the nonhost county in

29

which the host city is located, of which 50% shall be

30

used solely for grants to municipalities that are

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1

contiguous to the host city for economic development

2

projects, community improvement projects and other

3

projects in the public interest.

4

(iv)  A county of the fifth class:  50% of the

5

licensed facility's local share assessment shall be

6

distributed as follows:

7

(A)  Fifty percent shall be added to the funds in

8

the restricted receipts account established pursuant

9

to section 1403(c)(2)(iii)(F)(I) for distribution

10

with those funds.

11

(B)  Fifty percent shall be transferred to the

12

Pennsylvania Higher Education Assistance Agency for

13

deposit into a restricted receipts account to be used

14

exclusively for grants to a school of medicine

15

located in a city of the second class A within a

16

county of the third class for operating costs

17

associated with the school of medicine.

18

(4)  The following apply:

19

(i)  If the facility is a Category 3 licensed

20

facility located in a county of the second class A:  50%

21

of the licensed facility's local share assessment shall

22

be deposited into a restricted receipts account to be

23

established in the Commonwealth Financing Authority to be

24

used exclusively for grants or guarantees for projects in

25

the 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 Program)

28

and 1558 (relating to Water Supply and Waste Water

29

Infrastructure Program).

30

(ii)  Except as provided in subparagraph (i), if the

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1

facility is a Category 3 licensed facility in a county of

2

any class:  50% of the licensed facility's local share

3

assessment shall be added to the funds in the restricted

4

receipts account established under section 1403(c)(2)(iv)

5

for distribution with those funds.

6

(5)    Except as otherwise provided in this subsection, if

7

the facility is a Category 1 or a Category 2 licensed

8

facility in a county of any class:  50% of the licensed

9

facility's local share assessment shall be distributed in

10

accordance with section 1403(c) based upon the category and

11

type of licensed facility and the classification of the

12

county where the licensed facility is located.

13

(c)  Distributions to municipalities.--The department shall

14

make quarterly distributions from the local share assessments

15

deposited into the fund under subsection (a) to municipalities,

16

including home rule municipalities, hosting a licensed facility

17

authorized to conduct table games under this chapter in

18

accordance with the following:

19

(1)  If the licensed facility is a Category 2 licensed

20

facility and is located in a city of the second class, 50% of

21

the licensed facility's local share assessment shall be  

22

deposited into a restricted receipts account to be

23

established in the Department of Education for distribution

24

pursuant to The Library Code for grants to an established

25

local library in the city for the purpose of maintaining the

26

library branch system . Funds made available under this

27

clause shall be in addition to any funding provided to such

28

libraries pursuant to The Fiscal Code, the Public School Code

29

of 1949 and The Library Code. Beginning July 1, 2011, if the

30

established local library fails to maintain the number of

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1

library branches operating within its system on June 30,

2

2011, 50% of the licensed facility's local share assessment

3

shall be distributed to the city to be used solely to fund

4

the accrued liability of all pension plans maintained by the

5

city.

6

(2)  If the licensed facility is a Category 1 licensed

7

facility located at a harness racetrack in a city of the

8

third class, 50% of the licensed facility's local share

9

assessment shall be distributed to the city for the purpose

10

of making payments to enable the city and other

11

municipalities in the school district in which the city is

12

located to become and remain local sponsors or members of a

13

community college. Payments may include initial buy-in costs,

14

including payment of debt service to fund the initial buy-in,

15

and annual local sponsor share payments to the community

16

college. Any funds remaining following the payment of all

17

local sponsorship, membership and other costs authorized

18

under this paragraph may be retained by the city and used for

19

any lawful purpose.

20

(3)  If a licensed facility is a Category 2 facility and

21

is located in a city of the third class and the city is

22

located in more than one county of the third class, 50% of

23

the licensed facility's local share assessment shall be

24

distributed as follows:

25

(i)  50% to the host city;

26

(ii)  20% to a city of the third class located solely

27

in the nonhost county in which the host city of the third

28

class is also located; and

29

(iii)  30% to a nonhost city of the third class

30

located solely in the host county.

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1

(4)  If the licensed facility is a Category 1 licensed

2

facility located at a harness racetrack in a township of the

3

first class, 50% of the licensed facility's local share

4

assessment shall be distributed to the township, subject,

5

however, to the budgetary limitation in this paragraph. The

6

amount distributed to the township shall not exceed 50% of

7

the township's total budget for fiscal year 2009, adjusted

8

for inflation in subsequent years by an amount not to exceed

9

an annual cost-of-living adjustment calculated by applying

10

the percentage change in the Consumer Price Index immediately

11

prior to the date the adjustment is due to take effect. Any

12

funds not distributed to the township because of the

13

budgetary limitation shall be distributed in accordance with

14

subsection (b) based upon the classification of the county

15

where the licensed facility is located.

16

(5)  The following apply:

17

(i)  Except as provided in subparagraphs (ii) and

18

(iii), if the licensed facility is a Category 1 or

19

Category 2 licensed facility and is located in a township

20

of the second class, 50% of the licensed facility's local

21

share assessment shall be distributed to the township,

22

subject, however, to the budgetary limitation in this

23

subparagraph. The amount distributed to the township

24

shall not exceed 50% of the township's total budget for

25

fiscal year 2009, adjusted for inflation in subsequent

26

years by an amount not to exceed an annual cost-of-living

27

adjustment calculated by applying the percentage change

28

in the Consumer Price Index immediately prior to the date

29

the adjustment is due to take effect. Any funds not

30

distributed to the township because of the budgetary

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1

limitation shall be distributed in accordance with

2

subsection (b) based upon the classification of county

3

where the licensed facility is located. No funds shall be

4

distributed under this subparagraph to a township of the

5

second class located in a county of the third class

6

receiving any funds under subsection (b)(2)(iii).

7

(ii)  If the licensed facility is a Category 1

8

licensed facility located at a thoroughbred racetrack in

9

a township of the second class in a county of the second

10

class A, 50% of the licensed facility's local share  

11

assessment shall be distributed to the township of the

12

second class, subject, however, to the budgetary

13

limitation in this subparagraph. The amount distributed

14

shall not exceed 50% of the department's total budget for

15

fiscal year 2009, adjusted for inflation in subsequent

16

years by an amount not to exceed an annual cost-of-living

17

adjustment calculated by applying the percentage change

18

in the Consumer Price Index immediately prior to the date

19

the adjustment is due to take effect. Any funds not

20

distributed to the recreation department because of the

21

budgetary limitation shall be distributed in accordance

22

with subsection (b) based upon the classification of

23

county where the licensed facility is located.

24

(iii)  If the licensed facility is a Category 1

25

licensed facility located at a thoroughbred racetrack in

26

a township of the second class in a county of the third

27

class with a population of not less than 200,000 but not

28

more than 260,000 where the licensed facility and all

29

attached or contiguous acreage owned by the licensed

30

facility is located in more than one township of the

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1

second class, 50% of the licensed facility's local share

2

assessment shall be distributed as follows:

3

(A)  $120,000 of the licensed facility's local

4

share assessment shall be distributed annually to

5

each such township of the second class; and

6

(B)  remaining funds shall be added to and

7

distributed with the funds distributed to the county

8

under subsection (b)(2)(ii).

9

(6)  The following apply:

10

(i)  If the licensed facility is a Category 3

11

licensed facility and is located in a borough in a county

12

of the third class and the borough is contiguous to a

13

city of the third class:

14

(A)  Twenty-five percent of the licensed

15

facility's local share assessment shall be

16

distributed to the host borough, subject to clause

17

(C).

18

(B)  Twenty-five percent of the licensed

19

facility's local share assessment shall be

20

distributed to the city of the third class that is

21

contiguous to the host borough, subject to clause

22

(C).

23

(C)  The amount distributed to the borough or the

24

city shall not exceed 50% of the borough's or the

25

city's total budget for fiscal year 2009, adjusted

26

for inflation in subsequent years by an amount not to

27

exceed an annual cost-of-living adjustment calculated

28

by applying the percentage change in the Consumer

29

Price Index immediately prior to the date the

30

adjustment is due to take effect. Any funds not

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1

distributed to the borough or the city because of the

2

budgetary limitation shall be distributed in

3

accordance with subsection (b) based upon the

4

classification of the county where the licensed

5

facility is located.

6

(ii)  Except as provided in subparagraph (i), if the

7

licensed facility is a Category 3 licensed facility and

8

is located in a municipality of any class, 50% of the

9

licensed facility's local share assessment shall be

10

distributed to the municipality, subject, however, to the

11

budgetary limitation in this subparagraph. The amount

12

distributed to the municipality shall not exceed 50% of

13

the municipality's total budget for fiscal year 2009,

14

adjusted for inflation in subsequent years by an amount

15

not to exceed an annual cost-of-living adjustment

16

calculated by applying the percentage change in the

17

Consumer Price Index immediately prior to the date the

18

adjustment is due to take effect. Any funds not

19

distributed to the municipality because of the budgetary

20

limitation shall be distributed in accordance with

21

subsection (b) based upon the classification of county

22

where the licensed facility is located.

23

(7)  Except as otherwise provided in this subsection, if

24

the facility is a Category 1 or a Category 2 licensed

25

facility in a municipality of any class, 50% of the licensed

26

facility's local share assessment shall be distributed to the

27

municipality, subject, however, to the budgetary limitation

28

in this paragraph. The amount distributed to the municipality

29

shall not exceed 50% of the municipality's total budget for

30

fiscal year 2009 adjusted for inflation in subsequent years

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1

by an amount not to exceed the annual cost-of-living

2

adjustment calculated by applying the percentage change in

3

the Consumer Price Index immediately prior to the date the

4

adjustment is due to take effect. Any funds not distributed

5

to the municipality because of the budgetary limitation shall

6

be distributed in accordance with subsection (b) based upon

7

the classification of county where the licensed facility is

8

located.

9

(d)  Construction.--The following shall apply to

10

distributions provided for in this section:

11

(1)  Distributions to counties shall be based upon county

12

classifications in effect on the effective date of this

13

section and any reclassification of a county as a result of a

14

Federal decennial census or pursuant to an act of the General

15

Assembly shall not apply to this section unless the act of

16

the General Assembly specifically provides otherwise.

17

(2)  Distributions to municipalities shall be based upon

18

municipal classifications in effect on the effective date of

19

this section and any reclassification of a municipality as a

20

result of a Federal decennial census or pursuant to an act of

21

the General Assembly shall not apply to this section unless

22

the act of the General Assembly specifically provides

23

otherwise.

24

(e)  Miscellaneous provisions.--

25

(1)  If any provision of this section is found to be

26

unenforceable for any reason, the distribution provided for

27

in such unenforceable provision shall be made to the

28

municipality in which the licensed facility is located.

29

(2)  References to the Consumer Price Index shall mean

30

the Consumer Price Index for All Urban Consumers for the

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1

Pennsylvania, New Jersey, Delaware and Maryland area for the

2

most recent 12-month period for which figures have been

3

officially reported by the United States Department of Labor,

4

Bureau of Labor Statistics.

5

(3)  A person or its affiliated entity or a political

6

subdivision may not compensate or incur an obligation to

7

compensate a person to engage in lobbying for compensation

8

contingent in whole or in part upon the approval, award,

9

receipt or denial of funds under this section. A person or

10

its affiliated entity may not engage in or agree to engage in

11

lobbying for compensation contingent in whole or in part upon

12

the approval, award, receipt or denial of funds under this

13

section. A violation of this paragraph shall be considered an

14

intentional violation of 65 Pa.C.S. § 13A09(e) (relating to

15

penalties). This paragraph shall not apply to a county or

16

municipality that compensates a person to prepare a grant

17

application for funds under this section if all of the

18

following requirements are met:

19

(i)  The person is not identified in the application.

20

(ii)  The person has no direct contact with the

21

agency, county or municipality providing the funding.

22

(iii)  The person is paid a fixed fee or percentage

23

of the amount of any funds approved, awarded or received

24

of up to 0.5%.

25

(4)  In cooperation with the department, the Office of

26

the Budget and the Commonwealth Financing Authority, the

27

Department of Community and Economic Development shall submit

28

an annual report on all distributions of local share

29

assessments to counties and municipalities under this section

30

to the chairman and minority chairman of the Appropriations

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1

Committee of the Senate, the chairman and the minority

2

chairman of the Community, Economic and Recreational

3

Development Committee of the Senate, the chairman and the

4

minority chairman of the Appropriations Committee of the

5

House of Representatives and the chairman and minority

6

chairman of the Gaming Oversight Committee of the House of

7

Representatives.

8

(5)    All counties and municipalities receiving

9

distributions of local share assessments under this section

10

shall submit an annual report to the Department of Community

11

and Economic Development on a form prepared by the Department

12

of Community and Economic Development that sets forth the

13

amount and use of the funds received for the prior calendar

14

year. The report shall set forth whether the funds received

15

were deposited into the county's or municipality's general

16

fund or committed to a specific project or use. The report

17

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

18

each year thereafter.

19

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

20

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

21

subsection:

22

"Community college."  The term shall have the meaning

23

ascribed to it in section 1901-A(4) of the act of March 10, 1949

24

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

25

"Local share assessment."  Two percent of a certificate

26

holder's daily gross table game revenue.

27

Section 11.2.  Sections 1401(b), 1402(a) and 1402.1 of Title

28

4 are amended to read:

29

§ 1401.  Slot machine licensee deposits.

30

* * *

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1

(b)  Initial deposit of funds.--Not later than two business

2

days prior to the commencement of slot machine operations by a

3

slot machine licensee, [the] a slot machine licensee shall

4

deposit and maintain the [sum of $5,000,000] following sums in

5

its account to guarantee the payment of funds to the

6

Commonwealth under this part and as security for its obligations

7

under section 1405 (relating to Pennsylvania Race Horse

8

Development Fund)[.]:

9

(1)  For a Category 1 or Category 2 slot machine

10

licensee, $1,500,000.

11

(2)  For a Category 3 slot machine licensee, $1,000,000.

12

No additional minimum deposit shall be required from a slot

13

machine licensee if a slot machine licensee is granted a table

14

game operation certificate under Chapter 13A (relating to table

15

games).

16

* * *

17

§ 1402.  Gross terminal revenue deductions.

18

(a)  Deductions.--After determining the appropriate

19

assessments for each slot machine licensee, the department shall

20

determine costs, expenses or payments from each account

21

established under section 1401 (relating to slot machine

22

licensee deposits). The following costs and expenses shall be

23

transferred to the appropriate agency upon appropriation by the

24

General Assembly:

25

(1)  The costs and expenses to be incurred by the

26

department in administering this part at each slot machine

27

licensee's licensed facility based upon a budget submitted by

28

the department [to and approved by the board] under section

29

1402.1 (relating to itemized budget reporting).

30

(2)  The other costs and expenses to be incurred by the

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1

department in administering this part based upon a budget

2

submitted by the department [to and approved by the board]

3

under section 1402.1.

4

(3)  Sums necessary to repay any loans made by the

5

General Fund to the department in connection with carrying

6

out its responsibilities under this part, including the costs

7

of the initial acquisition of the central control computer

8

and any accessories or associated equipment.

9

(4)  The costs and expenses to be incurred by the

10

Pennsylvania State Police and the Office of Attorney General

11

and not otherwise reimbursed under this part in carrying out

12

their respective responsibilities under this part based upon

13

[a budget] budgets submitted by the Pennsylvania State Police

14

and the Attorney General [to and approved by the board] under

15

section 1402.1.

16

(5)  Sums necessary to repay any loans made by the

17

General Fund to the Pennsylvania State Police in connection

18

with carrying out its responsibilities under this part.

19

(6)  The costs and expenses to be incurred by the board

20

in carrying out its responsibilities under this part based

21

upon a budget [approved] submitted by the board under section

22

1402.1.

23

(7)  Sums necessary to repay any loans made by the

24

General Fund to the board in connection with carrying out its

25

responsibilities under this part.

26

* * *

27

§ 1402.1.  Itemized budget reporting.

28

(a)  Submission.--The board, department, Pennsylvania State

29

Police and [the] Office of Attorney General shall prepare and

30

annually submit to the chairman of the Appropriations Committee

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1

of the Senate and the chairman of the Appropriations Committee

2

of the House of Representatives an itemized budget consisting of

3

amounts to be appropriated out of the accounts established under

4

section 1401 (relating to slot machine licensee deposits)

5

necessary to administer this part. The department, Pennsylvania

6

State Police and Office of Attorney General shall provide copies

7

of their itemized budgets to the board at the same time they are

8

submitted to the chairmen of the committees.

9

(b)  Analyses and recommendations.--As soon as practicable

10

after receiving copies of the itemized budgets submitted under

11

subsection (a), the board shall prepare and submit to the

12

chairmen of the committees analyses of, and make recommendations

13

regarding, the itemized budgets.

14

Section 11.3.  Section 1403(b), (c)(2)(i)(D), (E) and (F),

15

(iii)(F) and (iv) and (3)(v) and (viii) of Title 4 are amended

16

and the section is amended by adding subsections to read:

17

§ 1403.  Establishment of State Gaming Fund and net slot machine

18

revenue distribution.

19

* * *

20

(b)  Slot machine tax.--The department shall determine and

21

each slot machine licensee shall pay a daily tax of 34% from its

22

daily gross terminal revenue from the slot machines in operation

23

at its facility and a local share assessment as provided in

24

subsection (c) [into the fund]. All funds owed to the

25

Commonwealth, a county or a municipality under this section

26

shall be held in trust by the licensed gaming entity for the

27

Commonwealth, the county and the municipality until the funds

28

are paid or transferred [and distributed] to the fund. Unless

29

otherwise agreed to by the [Gaming Board] board, a licensed

30

gaming entity shall establish a separate bank account to

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1

maintain [gaming proceeds] gross terminal revenue until such

2

time as [they] the funds are paid or transferred under this

3

section. Moneys in the fund are hereby appropriated to the

4

department on a continuing basis for the purposes set forth in

5

subsection (c).

6

(c)  Transfers and distributions.--The department shall:

7

* * *

8

(2)  From the local share assessment established in

9

subsection (b), make quarterly distributions among the

10

counties hosting a licensed facility in accordance with the

11

following schedule:

12

(i)  If the licensed facility is a Category 1

13

licensed facility that is located at a harness racetrack

14

and the county, including a home rule county, in which

15

the licensed facility is located is:

16

* * *

17

(D)  (I)  A county of the third class:  Except as

18

provided in subclause (II), 2% of the gross

19

terminal revenue from each such licensed facility

20

shall be deposited into a restricted receipts 

21

account to be established in the [Department of

22

Community and Economic Development] Commonwealth

23

Financing Authority to be used exclusively for

24

grants for [health, safety and economic

25

development projects] projects in the public

26

interest to municipalities within the county

27

where the licensed facility is located.

28

[Municipalities that are contiguous to the

29

municipality hosting such licensed facility shall

30

be given priority by the Department of Community

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1

and Economic Development in the award of such

2

grants.]

3

(I.1)  Priority shall be given to multiyear

4

projects approved or awarded by the Department of

5

Community and Economic Development under

6

subclause (I) on or before the effective date of

7

this subclause.

8

(II)  If a licensed facility is located in

9

one of two counties of the third class where a

10

city of the third class is located in both

11

counties of the third class, the county in which

12

the licensed facility is located shall receive

13

1.2% of the gross terminal revenue to be

14

distributed as follows:  20% to the host city,

15

30% to the host county and 50% to the host county

16

for the purpose of making municipal grants within

17

the county, with priority given to municipalities

18

contiguous to the host city. The county of the

19

third class, which includes a city of the third

20

class that is located in two counties of the

21

third class and is not the host county for the

22

licensed facility, shall receive .8% of the gross

23

terminal revenue to be distributed as follows:

24

60% to a nonhost city of the third class located

25

solely in the nonhost county in which the host

26

city of the third class is also located or 60% to

27

the nonhost city of the third class located both

28

in the host and nonhost counties of the third

29

class, 35% to the nonhost county and 5% to the

30

nonhost county for the purpose of making

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1

municipal grants within the county.

2

(E)  A county of the fourth class:  2% of the

3

gross terminal revenue from each such licensed

4

facility shall be distributed as follows:

5

(I)  The department shall make distributions

6

directly to each municipality within the county,

7

except the host municipality, by using a formula

8

equal to the sum of $25,000 plus $10 per resident

9

of the municipality using the most recent

10

population figures provided by the Department of

11

Community and Economic Development, provided,

12

however, that the amount so distributed to any

13

municipality shall not exceed 50% of its total

14

budget for fiscal year 2009, adjusted for

15

inflation in subsequent fiscal years by an amount

16

not to exceed an annual cost-of-living adjustment

17

calculated by applying any upward percentage

18

change in the Consumer Price Index immediately

19

prior to the date the adjustment is due to take

20

effect. Distributions to a municipality in

21

accordance with this subclause shall be deposited

22

into a special fund which shall be established by

23

the municipality. The governing body of the

24

municipality shall have the right to draw upon

25

the special fund for any lawful purpose provided

26

that the municipality identifies the fund as the

27

source of the expenditure. Each municipality

28

shall annually submit a report to the Department

29

of Community and Economic Development detailing

30

the amount and purpose of each expenditure made

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1

from the special fund during the prior fiscal

2

year.

3

(II)  Any funds not distributed under

4

subclause (I) shall be deposited into a

5

restricted receipts account established in the

6

Department of Community and Economic Development

7

to be used exclusively for grants to the county,

8

to economic development authorities or

9

redevelopment authorities within the county for

10

grants for economic development projects,

11

infrastructure projects, job training, community

12

improvement projects, other projects in the

13

public interest, and necessary and reasonable

14

administrative costs. Notwithstanding the

15

provisions of the act of February 9, 1999 (P.L.1,

16

No.1), known as the Capital Facilities Debt

17

Enabling Act, grants made under this clause may

18

be utilized as local matching funds for other

19

grants or loans from the Commonwealth.

20

(F)  Counties of the fifth through eighth

21

classes:

22

(I)  Except as set forth in subclause (II), 

23

2% of the gross terminal revenue from each such

24

licensed facility shall be deposited into a

25

restricted account established in the Department

26

of Community and Economic Development to be used

27

exclusively for grants to the county.

28

(II)  If the licensed facility is located in

29

a second class township in a county of the fifth

30

class, 2% of the gross terminal revenue from the

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1

licensed facility shall be distributed as

2

follows:

3

(a)  1% shall be deposited into a

4

restricted receipts account to be established

5

in the Commonwealth Financing Authority to be

6

used exclusively for grants for projects in

7

the public interest to municipalities within

8

the county where the licensed facility is

9

located.

10

(b)  1% shall be distributed to the county

11

for projects in the public interest in the

12

county.

13

* * *

14

(iii)  If the facility is a Category 2 licensed

15

facility and if the county in which the licensed facility

16

is located is:

17

* * *

18

(F)  Counties of the fifth class:  2% of the

19

gross terminal revenue from each such licensed

20

facility shall be deposited and distributed as

21

follows:

22

(I)  One percent to be distributed as

23

follows:

24

(a)  Beginning in 2010, the sum of

25

$2,400,000 annually for a period of 20 years

26

to the county for purposes of funding debt

27

service related to the construction of a

28

community college campus located within the

29

county.

30

(b)  Any funds not distributed under

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1

subclause (a) shall be deposited into a

2

restricted receipts account to be established 

3

in the [Department of Community and Economic

4

Development] Commonwealth Financing Authority 

5

to be used exclusively for grants within the

6

county for economic development projects,

7

road projects located within a 20-mile radius

8

of the licensed facility and located within

9

the county, community improvement projects

10

and other projects in the public interest

11

within the county. The amount under this

12

subclause includes reasonable administrative

13

costs.

14

(II)  One percent shall be deposited into a

15

restricted receipts account to be established in

16

the [Department of Community and Economic

17

Development] Commonwealth Financing Authority to

18

be used exclusively for grants within contiguous

19

counties for economic development projects,

20

community improvement projects and other projects

21

in the public interest within contiguous

22

counties. The amount under this subclause

23

includes reasonable administrative costs. A

24

contiguous county that hosts a Category 1

25

licensed facility shall be ineligible to receive

26

grants under this subclause.

27

(II.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)(b) or (II) on or before the

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1

effective date of this subclause.

2

(III)  Fifty percent of any revenue required

3

to be transferred under paragraph (3)(v) shall be

4

deposited into the restricted receipts account

5

established under subclause (I)(b), and 50% shall

6

be deposited into the restricted [receipt] 

7

receipts account established under subclause

8

(II). Notwithstanding the Capital Facilities Debt

9

Enabling Act, grants made under this clause may

10

be utilized as local matching funds for other

11

grants or loans from the Commonwealth.

12

* * *

13

(iv)  [If] (A)  Except as provided in clause (B) or

14

(C), if the facility is a Category 3 licensed

15

facility, 2% of the gross terminal revenue from [each

16

such] the licensed facility shall be deposited into a

17

restricted receipts account established in the

18

Department of Community and Economic Development to

19

be used exclusively for grants to the county, to

20

economic development authorities or redevelopment

21

authorities within the county for grants for economic

22

development projects [and], community improvement

23

projects and other projects in the public interest.

24

(B)  If the facility is a Category 3 licensed

25

facility located in a county of the second class A,

26

2% of the gross terminal revenue from the licensed

27

facility shall be deposited into a restricted

28

receipts account to be established in the

29

Commonwealth Financing Authority to be used

30

exclusively for grants or guarantees for projects in

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1

the host county that qualify under 64 Pa.C.S. §§ 1551

2

(relating to Business in Our Sites Program), 1556

3

(relating to Tax Increment Financing Guarantee

4

Program) and 1558 (relating to Water Supply and

5

Wastewater Infrastructure Program).

6

(C)  If the facility is a Category 3 licensed

7

facility located in a county of the fifth class that

8

is contiguous to a county of the seventh class, 2% of

9

the gross terminal revenue from the licensed facility

10

shall be deposited into a restricted receipts account

11

to be established in the Commonwealth Financing

12

Authority to be used exclusively for grants within

13

the county for economic development projects,

14

infrastructure projects, community improvement

15

projects and other projects in the public interest

16

within the county and for infrastructure projects

17

within a 20-mile radius of the licensed facility in a

18

contiguous county of the seventh class.

19

* * *

20

(3)  From the local share assessment established in

21

subsection (b), make quarterly distributions among the

22

municipalities, including home rule municipalities, hosting a

23

licensed facility in accordance with the following schedule:

24

* * *

25

(v)  To a township of the second class hosting a

26

licensed facility[, other than a Category 3 licensed

27

facility,]

28

(A)  2% of the gross terminal revenue or

29

$10,000,000 annually, whichever is greater, shall be

30

paid by each licensed gaming entity operating a

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1

licensed facility [located in the township], other

2

than a Category 3 licensed facility or a licensed

3

facility owning land adjacent to the licensed

4

facility located in more than one township of the

5

second class, to the township of the second class

6

hosting the licensed facility, subject, however, to

7

the budgetary limitation in this subparagraph. The

8

amount allocated to the designated municipalities

9

shall not exceed 50% of their total budget for fiscal

10

year 2003-2004, adjusted for inflation in subsequent

11

years by an amount not to exceed an annual cost-of-

12

living adjustment calculated by applying the

13

percentage change in the Consumer Price Index

14

immediately prior to the date the adjustment is due

15

to take effect. Any remaining money shall be

16

collected by the department from each licensed gaming

17

entity and distributed in accordance with paragraph

18

(2) based upon the classification of county where the

19

licensed facility is located. [Where the licensed

20

facility is other than a Category 3 and is located in

21

more than one second class township, the] If revenues

22

generated by the 2% do not meet the $10,000,000

23

minimum specified in this subparagraph, the

24

department shall collect the remainder of the minimum

25

amount of $10,000,000 from each licensed gaming

26

entity operating a licensed facility in the township,

27

pay any balance due to the township and transfer any

28

remainder in accordance with paragraph (2).

29

(B)  2% of the gross terminal revenue or

30

$10,000,000 annually, whichever is greater, less the

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1

amount paid under clause (C), shall be paid by each

2

licensed gaming entity operating a licensed facility

3

and owning land adjacent to the licensed facility

4

located in more than one township of the second

5

class, other than a Category 3 licensed facility, to

6

the township of the second class hosting the licensed

7

facility, subject, however, to the budgetary

8

limitation in this subparagraph. The amount allocated

9

to the designated municipalities may not exceed 50%

10

of their total budget for the fiscal year 2003-2004,

11

adjusted for inflation in subsequent years by an

12

amount not to exceed an annual cost-of-living

13

adjustment calculated by applying the percentage

14

change in the Consumer Price Index immediately prior

15

to the date the adjustment is due to take effect. Any

16

remaining money shall be collected by the department

17

from each licensed gaming entity and distributed in

18

accordance with paragraph (2) based upon the

19

classification of the county where the licensed

20

facility is located. The county commissioners of

21

[the] a county of the third class in which the

22

licensed facility is located shall appoint an

23

advisory committee for the purpose of advising the

24

county as to the need for municipal grants for

25

health, safety, transportation and other projects in

26

the public interest to be comprised of two

27

individuals from the host municipality, two from

28

contiguous municipalities within the county of the

29

third class and one from the host county. [A county

30

other than a county of the third class in which the

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1

licensed facility is located is not required to

2

appoint an advisory committee and may use funds

3

received under this subparagraph for purposes other

4

than municipal grants.] In the event that the

5

revenues generated by the 2% do not meet the

6

$10,000,000 minimum specified in this subparagraph,

7

the department shall collect the remainder of the

8

minimum amount of $10,000,000 from each licensed

9

gaming entity operating a licensed facility in the

10

township, pay any balance due to the township and

11

transfer any remainder in accordance with paragraph

12

(2).

13

(C)  $160,000 annually shall be paid by each

14

licensed gaming entity operating a licensed facility

15

and owning land adjacent to the licensed facility

16

located in more than one township of the second

17

class, other than a Category 3 licensed facility, to

18

the township of the second class that is located in a

19

county of the fifth class in which the adjacent land

20

is located, including racetracks, grazing fields or

21

any other adjoining real property.

22

* * *

23

(viii)  [To] (A)  Except as provided in clause (B) or

24

(C), to a municipality of any class hosting a

25

Category 3 facility, 2% of the gross terminal revenue

26

from the Category 3 licensed facility located in the

27

municipality, subject, however, to the budgetary

28

limitation in this [subparagraph] clause. The amount

29

allocated to the designated municipalities shall not

30

exceed 50% of their total budget for fiscal year

- 162 -

 


1

[2003-2004] 2009, adjusted for inflation in

2

subsequent years by an amount not to exceed an annual

3

cost-of-living adjustment calculated by applying the

4

percentage change in the Consumer Price Index

5

immediately prior to the date the adjustment is due

6

to take effect. Any remaining money shall be

7

collected by the department from each licensed gaming

8

entity and distributed in accordance with paragraph

9

(2) based upon the classification of county where the

10

licensed facility is located.

11

(B)  If the municipality hosting a Category 3

12

licensed facility is a borough located in a county of

13

the third class and the borough is contiguous to a

14

city of the third class, 1% of gross terminal revenue

15

shall be distributed to the host borough and 1% of

16

gross terminal revenue shall be distributed to the

17

city of the third class that is contiguous to the

18

host borough, subject, however, to the budgetary

19

limitation in this clause. The amount allocated to

20

each designated municipality shall not exceed 50% of

21

its total budget for fiscal year 2009, adjusted for

22

inflation in subsequent years by an amount not to

23

exceed an annual cost-of-living adjustment calculated

24

by applying the percentage increase, if any, in the

25

Consumer Price Index immediately prior to the date

26

the adjustment is due to take effect. Any remaining

27

money shall be collected by the department from each

28

licensed gaming entity and distributed in accordance

29

with paragraph (2) based upon the classification of

30

county where the licensed facility is located.

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1

(C)  If the municipality hosting a Category 3

2

licensed facility is a township of the second class

3

in a county of the fifth class which is contiguous to

4

a county of the seventh class, 2% of the gross

5

terminal revenue from the Category 3 licensed

6

facility located in the municipality shall be

7

distributed to the municipality, subject, however, to

8

the budgetary limitation in this clause. The amount

9

allocated to the designated municipalities shall not

10

exceed the lesser of $1,000,000 or 50% of their total

11

budget for fiscal year 2009, adjusted for inflation

12

in subsequent years by an amount not to exceed an

13

annual cost-of-living adjustment calculated by

14

applying the percentage change in the consumer Price

15

Index immediately prior to the date the adjustment is

16

due to take effect. Any remaining money shall be

17

collected by the department from each licensed gaming

18

entity and distributed in equal amounts to each

19

municipality contiguous to the host municipality.

20

However,  the amount to be allocated to any

21

contiguous municipality  shall not exceed the lesser

22

of $1,000,000 or 50% of the municipality's total

23

budget for fiscal year 2009, adjusted for inflation

24

in subsequent years by an amount not to exceed an

25

annual cost-of-living adjustment calculated by

26

applying the percentage change in the Consumer Price

27

Index immediately prior to the date the adjustment is

28

due to take effect. Any money remaining following

29

distribution to contiguous municipalities shall be

30

collected by the department and distributed in

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1

accordance with paragraph (2) based upon the

2

classification of county where the licensed facility

3

is located.

4

* * *

5

(e)  Reporting.--

6

(1)  In cooperation with the department and the

7

Commonwealth Financing Authority, the Department of Community

8

and Economic Development shall submit an annual report on all

9

distributions of local share assessments to counties and

10

municipalities under this section to the chairman and

11

minority chairman of the Appropriations Committee of the

12

Senate, the chairman and minority chairman of the Community,

13

Economic and Recreational Development Committee of the

14

Senate, the chairman and minority chairman of the

15

Appropriations Committee of the House of Representatives and

16

the chairman and minority chairman of the Gaming Oversight

17

Committee of the House of Representatives. The report shall

18

be submitted by August 31, 2010, and by August 31 of each

19

year thereafter.

20

(2)  All counties and municipalities receiving

21

distributions of local share assessments under this section

22

shall submit information to the Department of Community and

23

Economic Development on a form prepared by the Department of

24

Community and Economic Development that sets forth the amount

25

and use of the funds received in the prior calendar year. The

26

form shall set forth whether the funds received were

27

deposited in the county's or municipality's General Fund or

28

committed to a specific project or use.

29

(f)  Prohibited activities.--

30

(1)  A person or its affiliated entity or a political

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1

subdivision shall not compensate or incur an obligation to

2

compensate a person to engage in lobbying for compensation

3

contingent in whole or in part upon the approval, award,

4

receipt or denial of funds under this section. A person or

5

its affiliated entity shall not engage in or agree to engage

6

in lobbying for compensation contingent in whole or in part

7

upon the approval, award, receipt or denial of funds under

8

this section. This subsection 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 the following

11

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

up to .5%.

18

(2)  A violation of this section shall be considered an

19

intentional violation of 65 Pa.C.S. § 13A09(e) (relating to

20

penalties).

21

Section 11.4.  Section 1406(a) of Title 4 is amended to read:

22

§ 1406.  Distributions from Pennsylvania Race Horse Development

23

Fund.

24

(a)  Distributions.--Funds [from] in the Pennsylvania Race

25

Horse Development Fund are hereby appropriated to the department

26

on a continuing basis for the purposes set forth in this

27

subsection and shall be distributed to each active and operating

28

Category 1 licensee conducting live racing [in the following

29

manner] as follows:

30

(1)  An amount equal to 18% of the daily gross terminal

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1

revenue of each Category 1 licensee shall be distributed to

2

each active and operating Category 1 licensee conducting live

3

racing unless the daily assessments are affected by the daily

4

assessment cap provided for in section 1405(c) (relating to

5

Pennsylvania Race Horse Development Fund). In cases in which

6

the daily assessment cap affects daily assessments, the

7

distribution to each active and operating Category 1 licensee

8

conducting live racing for that day shall be a percentage of

9

the total daily assessments paid into the Pennsylvania Race

10

Horse Development Fund for that day equal to the gross

11

terminal revenue of each active and operating Category 1

12

licensee conducting live racing for that day divided by the

13

total gross terminal revenue of all active and operating

14

Category 1 licensees conducting live racing for that day.

15

[The] Except as provided in paragraphs (2) and (2.1), the 

16

distributions to licensed racing entities from the

17

Pennsylvania Race Horse Development Fund shall be allocated

18

as follows:

19

(i)  Eighty percent shall be deposited weekly into a

20

separate, interest-bearing purse account to be

21

established by and for the benefit of the horsemen. The

22

earned interest on the account shall be credited to the

23

purse account. Licensees shall combine these funds with

24

revenues from existing purse agreements to fund purses

25

for live races consistent with those agreements with the

26

advice and consent of the horsemen.

27

(ii)  For thoroughbred tracks, 16% shall be deposited

28

on a monthly basis into the Pennsylvania Breeding Fund as

29

defined in section 223 of the Race Horse Industry Reform

30

Act. For standardbred tracks, 8% shall be deposited on a

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1

monthly basis in the Pennsylvania Sire Stakes Fund as

2

defined in section 224 of the Race Horse Industry Reform

3

Act, and 8% shall be deposited on a monthly basis into a

4

restricted account in the State Racing Fund to be known

5

as the Pennsylvania Standardbred Breeders Development

6

Fund. The State Harness Racing Commission shall, in

7

consultation with the Secretary of Agriculture by rule or

8

by regulation, adopt a standardbred breeders program that

9

will include the administration of Pennsylvania Stallion

10

Award, Pennsylvania Bred Award and a Pennsylvania Sired

11

and Bred Award.

12

(iii)  Four percent shall be used to fund health and

13

pension benefits for the members of the horsemen's

14

organizations representing the owners and trainers at the

15

racetrack at which the licensed racing entity operates

16

for the benefit of the organization's members, their

17

families, employees and others in accordance with the

18

rules and eligibility requirements of the organization,

19

as approved by the State Horse Racing Commission or the

20

State Harness Racing Commission. This amount shall be

21

deposited within five business days of the end of each

22

month into a separate account to be established by each

23

respective horsemen's organization at a banking

24

institution of its choice. Of this amount, $250,000 shall

25

be paid annually by the horsemen's organization to the

26

thoroughbred jockeys or standardbred drivers organization

27

at the racetrack at which the licensed racing entity

28

operates for health insurance, life insurance or other

29

benefits to active and disabled thoroughbred jockeys or

30

standardbred drivers in accordance with the rules and

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1

eligibility requirements of that organization.

2

(2)  [(Reserved).] Beginning January 1, 2010, and for the

3

remainder of fiscal year 2009-2010, distributions from the

4

Pennsylvania Race Horse Development Fund shall be allocated

5

as follows:

6

(i)  Each week, 34% of the money in the Pennsylvania

7

Race Horse Development Fund shall be transferred to the

8

General Fund.

9

(ii)  Each week, 66% of the money in the Pennsylvania

10

Race Horse Development Fund shall be distributed to each

11

active and operating Category 1 licensee conducting live

12

racing in accordance with the following formula:

13

(A)  Divide:

14

(I)  the total daily assessments paid by each

15

active and operating Category 1 licensee

16

conducting live racing into the Pennsylvania Race

17

Horse Development Fund for that week; by

18

(II)  the total daily assessments paid by all

19

active and operating Category 1 licensees

20

conducting live racing into the Pennsylvania Race

21

Horse Development Fund for that week.

22

(B)  Multiply the quotient under clause (A) by

23

the amount to be distributed under this subparagraph.

24

(iii)  The distribution under subparagraph (ii) shall

25

be allocated as follows:

26

(A)  The greater of 4% of the amount to be

27

distributed under subparagraph (ii) or $275,000 shall

28

be used to fund health and pension benefits for the

29

members of the horsemen's organizations representing

30

the owners and trainers at the racetrack at which the

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1

licensed racing entity operates for the benefit of

2

the organization's members, their families, employees

3

and others in accordance with the rules and

4

eligibility requirements of the organization, as

5

approved by the State Horse Racing Commission or the

6

State Harness Racing Commission. This amount shall be

7

deposited within five business days of the end of

8

each week into a separate account to be established

9

by each respective horsemen's organization at a

10

banking institution of its choice. Of this amount, a

11

minimum of $250,000 shall be paid annually by the

12

horsemen's organization to the thoroughbred jockeys

13

or standardbred drivers organization at the racetrack

14

at which the licensed racing entity operates for

15

health insurance, life insurance or other benefits to

16

active and disabled thoroughbred jockeys or

17

standardbred drivers in accordance with the rules and

18

eligibility requirements of that organization. The

19

total distributions for health and pension benefits

20

for fiscal year 2009-2010 shall not exceed

21

$11,400,000.

22

(B)  Of the money remaining to be distributed

23

under subparagraph (ii) after application of clause

24

(A), the following disbursements shall be made:

25

(I)  Eighty-three and one-third percent of

26

the money to be distributed under this clause

27

shall be deposited on a weekly basis into a

28

separate, interest-bearing purse account to be

29

established by and for the benefit of the

30

horsemen. The earned interest on the account

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1

shall be credited to the purse account. Licensees

2

shall combine these funds with revenues from

3

existing purse agreements to fund purses for live

4

races consistent with those agreements with the

5

advice and consent of the horsemen.

6

(II)  For thoroughbred tracks, 16 and 2/3% of

7

the money to be distributed under this clause

8

shall be deposited on a weekly basis into the

9

Pennsylvania Breeding Fund established in section

10

223 of the act of December 17, 1981 (P.L.435,

11

No.135), known as the Race Horse Industry Reform

12

Act. For standardbred tracks, 8 and 1/3% of the

13

money to be distributed under this clause shall

14

be deposited on a weekly basis into the

15

Pennsylvania Sire Stakes Fund as defined in

16

section 224 of the Race Horse Industry Reform

17

Act; and 8 and 1/3% of the money to be

18

distributed under this clause shall be deposited

19

on a weekly basis into a restricted account in

20

the State Racing Fund to be known as the

21

Pennsylvania Standardbred Breeders Development

22

Fund. The State Harness Racing Commission shall,

23

in consultation with the Secretary of

24

Agriculture, promulgate regulations adopting a

25

standardbred breeders program that will include

26

the administration of the Pennsylvania Stallion

27

Award, the Pennsylvania Bred Award and the

28

Pennsylvania Sired and Bred Award.

29

(2.1)  For fiscal years 2010-2011 through 2012-2013,

30

distributions from the Pennsylvania Race Horse Development

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1

Fund shall be allocated as follows:

2

(i)  Each week, 17% of the money in the Pennsylvania

3

Race Horse Development Fund shall be transferred to the

4

General Fund.

5

(ii)  Each week, 83% of the money in the Pennsylvania

6

Race Horse Development Fund shall be distributed to each

7

active and operating Category 1 licensee conducting live

8

racing in accordance with the following formula:

9

(A)  Divide:

10

(I)  the total daily assessments paid, by

11

each active and operating Category 1 licensee

12

conducting live racing, into the Pennsylvania

13

Race Horse Development Fund for that week; by

14

(II)  the total daily assessments paid, by

15

all active and operating Category 1 licensees

16

conducting live racing, into the Pennsylvania

17

Race Horse Development Fund for that week.

18

(B)  Multiply the quotient under clause (A) by

19

the amount to be distributed under this subparagraph.

20

(iii)  The distribution under subparagraph (ii) shall

21

be allocated as follows:

22

(A)  The greater of 4% of the amount to be

23

distributed under subparagraph (ii) or $220,000 shall

24

be used to fund health and pension benefits for the

25

members of the horsemen's organizations representing

26

the owners and trainers at the racetrack at which the

27

licensed racing entity operates for the benefit of

28

the organization's members, their families, employees

29

and others in accordance with the rules and

30

eligibility requirements of the organization, as

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1

approved by the State Horse Racing Commission or the

2

State Harness Racing Commission. This amount shall be

3

deposited within five business days of the end of

4

each week into a separate account to be established

5

by each respective horsemen's organization at a

6

banking institution of its choice. Of this amount, a

7

minimum of $250,000 shall be paid annually by the

8

horsemen's organization to the thoroughbred jockeys

9

or standardbred drivers organization at the racetrack

10

at which the licensed racing entity operates for

11

health insurance, life insurance or other benefits to

12

active and disabled thoroughbred jockeys or

13

standardbred drivers in accordance with the rules and

14

eligibility requirements of that organization. The

15

total distribution under this clause in any fiscal

16

year shall not exceed $11,400,000.

17

(B)  Of the money remaining to be distributed

18

under subparagraph (ii) after application of clause

19

(A), the following disbursements shall be made:

20

(I)  Eighty-three and one-third percent of

21

the money to be distributed under this clause

22

shall be deposited on a weekly basis into a

23

separate, interest-bearing purse account to be

24

established by and for the benefit of the

25

horsemen. The earned interest on the account

26

shall be credited to the purse account. Licensees

27

shall combine these funds with revenues from

28

existing purse agreements to fund purses for live

29

races consistent with those agreements with the

30

advice and consent of the horsemen.

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1

(II)  For thoroughbred tracks, 16 and 2/3% of

2

the money to be distributed under this clause

3

shall be deposited on a weekly basis into the

4

Pennsylvania Breeding Fund established in section

5

223 of the Race Horse Industry Reform Act. For

6

standardbred tracks, 8 and 1/3% of the money to

7

be distributed under this clause shall be

8

deposited on a weekly basis into the Pennsylvania

9

Sire Stakes Fund as defined in section 224 of the

10

Race Horse Industry Reform Act; and 8 and 1/3% of

11

the money to be distributed under this clause

12

shall be deposited on a weekly basis into a

13

restricted account in the State Racing Fund to be

14

known as the Pennsylvania Standardbred Breeders

15

Development Fund. The State Harness Racing

16

Commission shall, in consultation with the

17

Secretary of Agriculture, promulgate regulations

18

adopting a standardbred breeders program that

19

will include the administration of the

20

Pennsylvania Stallion Award, the Pennsylvania

21

Bred Award and the Pennsylvania Sired and Bred

22

Award.

23

* * *

24

Section 12.  Section 1407(d) introductory paragraph and (7)

25

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

26

subsections to read:

27

§ 1407.  Pennsylvania Gaming Economic Development and Tourism

28

Fund.

29

* * *

30

(d)  Restrictions on projects for certain counties and

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1

cities.--[For] Except as set forth in subsection (d.1), for a

2

ten-year period beginning with the first fiscal year during

3

which deposits are made into this fund, no moneys from the

4

Pennsylvania Gaming Economic Development and Tourism Fund shall

5

be distributed for any project located in a city or county of

6

the first or second class except as authorized by this

7

subsection. Moneys not used for the authorized projects in

8

cities and counties of the first and second classes may be used

9

throughout this Commonwealth. Moneys from the fund for projects

10

within cities and counties of the first and second classes may

11

only be used for the following projects during this ten-year

12

period:

13

* * *

14

[(7)  for retirement of indebtedness and for financing of

15

a hotel or convention center in a city of the second class

16

established pursuant to the authority of the act of July 29,

17

1953 (P.L.1034, No.270), known as the Public Auditorium

18

Authorities Law;]

19

* * *

20

(d.1)  Community and economic development.--

21

(1)  Notwithstanding subsection (b) or any other

22

provision of law to the contrary, the money authorized but

23

not expended under former subsection (d)(7) as of the

24

effective date of this subsection shall be deposited into a

25

restricted receipts account to be established in the

26

Commonwealth Financing Authority exclusively for eligible

27

applications submitted by the redevelopment authority of a

28

county of the second class created pursuant to the act of May

29

24, 1945 (P.L.991, No.385), known as the Urban Redevelopment

30

Law, for economic development, infrastructure development,

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1

job training, community improvement, public safety or other

2

projects in the public interest located in a county of the

3

second class. Community development corporations, political

4

subdivisions, urban redevelopment authorities, municipal

5

authorities, for-profit entities and nonprofit entities

6

located in a county of the second class shall be eligible to

7

receive funds made available under this paragraph.

8

(2)  Notwithstanding the Capital Facilities Debt Enabling

9

Act, funding under the paragraph (1) may be utilized as local

10

matching funds for grants or loans from the Commonwealth.

11

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

12

with the Department of Community and Economic Development and

13

the Commonwealth Financing Authority, shall submit an annual

14

report of all distribution of funds under this section to the

15

chairman and minority chairman of the Appropriations Committee

16

of the Senate, the chairman and minority chairman of the

17

Community, Economic and Recreational Development Committee of

18

the Senate, the chairman and minority chairman of the

19

Appropriations Committee of the House of Representatives and the

20

chairman and minority chairman of the Gaming Oversight Committee

21

of the House of Representatives. The report shall include

22

detailed information relating to transfers made from the

23

Pennsylvania Gaming Economic Development and Tourism Fund and

24

all reimbursements, distributions and payments made under

25

subsection (b) or the act of July 25, 2007 (P.L.342, No.53),

26

known as Pennsylvania Gaming Economic Development and Tourism

27

Fund Capital Budget Itemization Act of 2007. The report shall be

28

submitted by August 31, 2010, and by August 31 of each year

29

thereafter.

30

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

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1

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

2

convention center authority, sports and exhibition authority of

3

a county of the second class, urban redevelopment authority,

4

airport authority or other entity that receives money from the

5

fund pursuant to an Economic Development Capital Budget under

6

subsection (b) or the Pennsylvania Gaming Economic Development

7

and Tourism Fund Capital Budget Itemization Act of 2007 shall

8

submit an annual report to the Office of the Budget. The report

9

shall include detailed information, including records of

10

expenditures, payments and other distributions made from funds

11

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

12

information on all funds received prior to August 31, 2010. The

13

report shall be submitted by August 31, 2010, and by August 31

14

of each year thereafter until all funds under this section are

15

distributed or received. An entity that receives funds for the

16

first time after the effective date of this section shall submit

17

its initial report by August 31 of the year following receipt of

18

the funds.

19

(g)  Distribution to international airport.--Notwithstanding

20

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

21

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

22

Development and Tourism Fund Capital Budget Itemization Act of

23

2007, following the distribution of $42.5 million of funds

24

allocated to a county of the second class for debt service and

25

economic development projects for an international airport in

26

the county under section 3(2)(i)(E) of said act, all remaining

27

funds shall be distributed directly to an authority that

28

operates an international airport in the county.

29

Section 13.  Section 1408(a), (c) and (e) of Title 4 are

30

amended and the section is amended by adding a subsection to

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1

read:

2

§ 1408.  Transfers from State Gaming Fund.

3

(a)  Transfer for compulsive and problem gambling

4

treatment.--Each year, the sum of [$1,500,000] $2,000,000 or an

5

amount equal to [.001] .002 multiplied by the total gross

6

terminal revenue of all active and operating licensed gaming

7

entities, whichever is greater, shall be transferred into the

8

Compulsive and Problem Gambling Treatment Fund established in

9

section 1509 (relating to compulsive and problem gambling

10

program).

11

(a.1)  Transfer.--Beginning on the first business day of

12

January 2010 and annually thereafter, the sum of $3,000,000

13

shall be transfered to the Department of Health to be used to

14

provide drug and alcohol addiction treatment services, including

15

treatment for drug and alcohol addiction related to compulsive

16

and problem gambling, as set forth in section 1509.1 (relating

17

to drug and alcohol treatment).

18

* * *

19

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

20

[$5,000,000] $2,000,000 shall be transferred to the board for

21

the purpose of issuing grants to local law enforcement agencies

22

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

23

investigate violations of and enforce laws relating to unlawful

24

gambling in this Commonwealth. For purposes of this subsection,

25

the term "local law enforcement agency" shall include the

26

Pennsylvania State Police when conducting unlawful gambling

27

enforcement and prevention activities in a municipality which

28

does not have a municipal police department and in which the

29

Pennsylvania State Police provide the municipality with primary

30

police coverage.

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1

* * *

2

(e)  Transfer to Property Tax Relief Fund.--Monthly, the

3

State Treasurer shall transfer the remaining balance in the

4

State Gaming Fund which is not allocated in subsections (a),

5

(a.1), (b), (c) and (d) to the Property Tax Relief Fund

6

established in section 1409 (relating to Property Tax Relief

7

Fund).

8

Section 13.1.  Sections 1501(b) and (c), 1504 and 1505 of

9

Title 4 are amended to read:

10

§ 1501.  Responsibility and authority of department.

11

* * *

12

(b)  Application of rules and regulations.--The department

13

may prescribe the extent, if any, to which any rules and

14

regulations shall be applied without retroactive effect. The

15

department shall have authority to prescribe the forms and the

16

system of accounting and recordkeeping to be employed and

17

through its representative shall at all times have power of

18

access to and examination and audit of any equipment and records

19

relating to all aspects of the operation of slot machines and

20

table games under this part.

21

(c)  Procedure.--For purposes of implementing this part, the

22

department may promulgate regulations in the same manner in

23

which the board is authorized as provided in section 1203

24

(relating to temporary regulations) and section 1303A (relating

25

to temporary table game regulations).

26

* * *

27

§ 1504.  Wagering on credit.

28

[Slot] Except as otherwise provided in this section, slot 

29

machine licensees [may] shall not extend credit. Slot machine

30

licensees [may] shall not accept credit cards, charge cards or

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1

debit cards from a patron or player for the exchange or purchase

2

of slot machine credits or for an advance of coins or currency

3

to be utilized by a player to play slot machine games or extend

4

credit in any manner to a player so as to enable the player to

5

play slot machines. Slot machine licensees who hold a table game

6

operation certificate may extend credit for slot machine gaming

7

in accordance with section 1326A (relating to cash equivalents).

8

§ 1505.  No eminent domain authority.

9

Neither the Commonwealth nor any political subdivision

10

thereof shall have the right to acquire, with or without

11

compensation, through the power of eminent domain any property,

12

easement or land use right for the siting or construction of a

13

licensed facility [for the operation of slot machines by a slot

14

machine licensee].

15

Section 13.2.  Section 1509(a), (b), (c) and (d) of Title 4

16

are amended and the section is amended by adding subsections to

17

read:

18

§ 1509.  Compulsive and problem gambling program.

19

(a)  Establishment of program.--The Department of Health, in

20

consultation with organizations similar to the Mid-Atlantic

21

Addiction Training Institute, shall develop program guidelines

22

for public education, awareness and training regarding

23

compulsive and problem gambling and the treatment and prevention

24

of compulsive and problem gambling. The guidelines shall include

25

strategies for the prevention of compulsive and problem

26

gambling. The Department of Health may consult with the board

27

and licensed gaming entities to develop such strategies. [The

28

program shall include:

29

(1)  Maintenance of a compulsive gamblers assistance

30

organization's toll-free problem gambling telephone number to

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1

provide crisis counseling and referral services to families

2

experiencing difficulty as a result of problem or compulsive

3

gambling.

4

(2)  The promotion of public awareness regarding the

5

recognition and prevention of problem or compulsive gambling.

6

(3)  Facilitation, through in-service training and other

7

means, of the availability of effective assistance programs

8

for problem and compulsive gamblers and family members

9

affected by problem and compulsive gambling.

10

(4)  Conducting studies to identify adults and juveniles

11

in this Commonwealth who are or are at risk of becoming

12

problem or compulsive gamblers.

13

(5)  Providing grants to and contracting with

14

organizations which provide services as set forth in this

15

section.

16

(6)  Providing reimbursement for organizations for

17

reasonable expenses in assisting the Department of Health in

18

carrying out the purposes of this section.]

19

(a.1)  Duties of Department of Health.--From funds available

20

in the Compulsive and Problem Gambling Treatment Fund, the

21

Department of Health shall:

22

(1)  Maintain a compulsive gamblers assistance

23

organization's toll-free problem gambling telephone number to

24

provide crisis counseling and referral services to

25

individuals and families experiencing difficulty as a result

26

of problem or compulsive gambling.

27

(2)  Facilitate, through in-service training and other

28

means, the availability of effective assistance programs for

29

problem and compulsive gamblers and family members affected

30

by problem and compulsive gambling.

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1

(3)  At its discretion, conduct studies to identify

2

individuals in this Commonwealth who are or are at risk of

3

becoming problem or compulsive gamblers.

4

(4)  Provide grants to and contract with single county

5

authorities and other organizations which provide services as

6

set forth in this section.

7

(5)  Reimburse organizations for reasonable expenses

8

incurred assisting the Department of Health with implementing

9

this section.

10

(a.2)  Duties of Department of Health and board.--Within 60

11

days following the effective date of this subsection, the

12

Department of Health's Bureau of Drug and Alcohol Programs and

13

the board's Office of Compulsive and Problem Gambling shall

14

jointly collaborate with other appropriate offices and agencies

15

of State or local government, including single county

16

authorities, and providers and other persons, public or private,

17

with expertise in compulsive and problem gambling treatment to

18

do the following:

19

(1)  Implement a strategic plan for the prevention and

20

treatment of compulsive and problem gambling.

21

(2)  Adopt compulsive and problem gambling treatment

22

standards to be integrated with the Bureau of Drug and

23

Alcohol Program's uniform Statewide guidelines that govern

24

the provision of addiction treatment services.

25

(3)  Develop a method to coordinate compulsive and

26

problem gambling data collection and referral information to

27

crisis response hotlines, child welfare and domestic violence

28

programs and providers and other appropriate programs and

29

providers.

30

(4)  Develop and disseminate educational materials to

- 182 -

 


1

provide public awareness related to the prevention,

2

recognition and treatment of compulsive and problem gambling.

3

(5)  Develop demographic-specific compulsive and problem

4

gambling prevention, intervention and treatment programs.

5

(6)  Prepare an itemized budget outlining how funds will

6

be allocated to fulfill the responsibilities under this

7

section.

8

(b)  Compulsive and Problem Gambling Treatment Fund.--There

9

is hereby established in the State Treasury a special fund to be

10

known as the Compulsive and Problem Gambling Treatment Fund. All

11

moneys in the fund shall be [expended] administered by the

12

Department of Health and expended solely for programs for the

13

prevention and treatment of gambling addiction and other

14

emotional and behavioral problems associated with or related to

15

gambling addiction and for the administration of the compulsive

16

and problem gambling program[.]; provided that the Department of

17

Health shall annually distribute at least 50% of the money in

18

the fund to single county authorities under subsection (d). The

19

fund shall consist of money annually allocated to it from the

20

annual payment established under section [1408] 1408(a) 

21

(relating to transfers from State Gaming Fund), money which may

22

be allocated by the board, interest earnings on moneys in the

23

fund and any other contributions, payments or deposits which may

24

be made to the fund.

25

(c)  Notice of availability of assistance.--

26

(1)  Each slot machine licensee shall obtain a toll-free

27

telephone number to be used to provide persons with

28

information on assistance for compulsive or problem gambling.

29

Each licensee shall conspicuously post at least 20 signs

30

similar to the following statement:

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1

If you or someone you know has a gambling problem, help

2

is available. Call (Toll-free telephone number).

3

The signs must be posted within 50 feet of each entrance and

4

exit [and], within 50 feet of each automated teller machine

5

location within the licensed facility and in other

6

appropriate public areas of the licensed facility as

7

determined by the slot machine licensee.

8

(2)  Each racetrack where slot machines or table games 

9

are operated shall print a statement on daily racing programs

10

provided to the general public that is similar to the

11

following:

12

If you or someone you know has a gambling problem, help

13

is available. Call (Toll-free telephone number).

14

(3)  A licensed facility which fails to post or print the

15

warning sign in accordance with paragraph (1) or (2) shall be

16

assessed a fine of $1,000 a day for each day the [sign is] 

17

minimum number of signs are not posted or the required

18

statement is not printed as provided in this subsection.

19

(d)  Single county authorities.--The Department of Health

20

[may] shall make grants from the fund established under

21

subsection (b) to [a single county authority] single county

22

authorities created pursuant to the act of April 14, 1972

23

(P.L.221, No.63), known as the Pennsylvania Drug and Alcohol

24

Abuse Control Act, for the purpose of providing compulsive

25

gambling and gambling addiction prevention, treatment and

26

education programs. Treatment may include financial counseling,

27

irrespective of whether the financial counseling is provided by

28

the single county authority, the treatment service provider or

29

subcontracted to a third party. It is the intention of the

30

General Assembly that any grants [that] made by the Department

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1

of Health [may make] to any single county authority in

2

accordance with the provisions of this subsection be used

3

exclusively for the development and implementation of compulsive

4

and problem gambling programs authorized under [subsection (a)] 

5

this section.

6

(d.1)  Eligibility.--Eligibility to receive treatment

7

services for treatment of compulsive and problem gambling under

8

this section shall be determined using financial eligibility and

9

other requirements of the single county authorities as approved

10

by the Department of Health.

11

(d.2)  Report.--No later than October 1, 2010, and each

12

October 1 thereafter, the Department of Health, in consultation

13

with the board, shall prepare and submit a report on the impact

14

of the programs funded by the Compulsive and Problem Gambling

15

Treatment Fund to the Governor and to the members of the General

16

Assembly. The report shall include aggregate demographic-

17

specific data, including race, gender, geography and income of

18

those individuals treated.

19

* * *

20

Section 13.3.  Title 4 is amended by adding a section to

21

read:

22

§ 1509.1.  Drug and alcohol treatment.

23

(a)  Duties of Department of Health.--Annually, the

24

Department of Health shall allocate and transfer all funds

25

received by it under section 1408(a.1) (relating to transfers

26

from State Gaming Fund) to the single county authorities.

27

(b)  Duties of single county authorities.--The funds

28

allocated and transferred to the single county authorities under

29

subsection (a) shall be used by the single county authorities

30

solely for drug and alcohol addiction assessments, including

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1

drug and alcohol addiction assessment associated or related to

2

compulsive and problem gambling, and for the related addiction

3

treatment, in nonhospital residential detoxification facilities,

4

nonhospital residential rehabilitation facilities and halfway

5

houses licensed by the Department of Health to provide addiction

6

treatment services.

7

(c)  Eligibility.--Eligibility to receive treatment services

8

for treatment of drug and alcohol addiction or drug and alcohol

9

addiction associated with or related to compulsive and problem

10

gambling shall be determined using financial eligibility and

11

other requirements of the single county authorities as approved

12

by the Department of Health.

13

(d)  Report.--No later than October 1, 2010, and each October

14

1 thereafter, the Bureau of Drug and Alcohol Programs shall

15

prepare and submit a report to the Governor and to the members

16

of the General Assembly on the data and progress on activities

17

initiated under this section.

18

Section 13.4.  Sections 1510(a), 1511(b) and 1512(a.1), (a.5)

19

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

20

§ 1510.  Labor hiring preferences.

21

(a)  Category 1, 2, and 3 licensed facilities, generally.--

22

Each licensed gaming entity shall prepare a hiring plan for

23

employees of its respective licensed facility which promotes a

24

diverse work force, minority participation and personnel from

25

within the surrounding geographical area. The hiring plan shall

26

be approved by the board and shall be consistent with the goals

27

outlined in sections 1212 (relating to diversity goals of board)

28

and 1304A (relating to Commonwealth resident employment goals)

29

and shall be updated annually.

30

* * *

- 186 -

 


1

§ 1511.  Declaration of exemption from Federal laws prohibiting

2

slot machines.

3

* * *

4

(b)  Legal shipments.--All shipments of [slot machines] 

5

gambling devices, as defined in section 1 of the Gambling

6

Devices Transportation Act (64 Stat. 1134, 15 U.S.C. § 1171), 

7

into this Commonwealth, the registering, recording and labeling

8

of which has been effected by the manufacturer and supplier of

9

those devices, in accordance with sections [5 and 7] 3 and 4 of

10

the Gambling Devices Transportation Act (64 Stat. 1134, 15

11

U.S.C. §§ [1175 and 1177] 1173 and 1174), shall be deemed legal

12

shipments of [slot machines] gambling devices into this

13

Commonwealth.

14

§ 1512.  Financial and employment interests.

15

* * *

16

(a.1)  Employment.--Except as may be provided by rule or

17

order of the Pennsylvania Supreme Court and except as provided

18

in section 1202.1 (relating to code of conduct) or 1512.1

19

(relating to additional restrictions), no executive-level public

20

employee, public official or party officer, or an immediate

21

family member thereof, shall be employed by an applicant or a

22

slot machine licensee, manufacturer licensee, supplier licensee

23

or licensed racing entity, or by any holding company, affiliate,

24

intermediary or subsidiary thereof, while the individual is an

25

executive-level public employee, public official or party

26

officer and for one year following termination of the

27

individual's status as an executive-level public employee,

28

public official or party officer.

29

* * *

30

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

- 187 -

 


1

shall [publish] do all of the following:

2

(1)  Issue a written determination of whether a person is

3

subject to subsections (a), (a.1) or (a.2) upon the written

4

request of the person or any other person that may have

5

liability for an action taken with respect to such person. A

6

person that relies in good faith on a determination made

7

under this paragraph shall not be subject to any penalty for

8

an action taken, provided that all material facts set forth

9

in the request for the determination are correct.

10

(2)  Publish a list of all State, county, municipal and

11

other government positions that meet the definitions of

12

"public official" as defined under subsection (b) or

13

"executive-level public employee" [under subsection (b)]. The

14

Office of Administration shall assist the State Ethics

15

Commission in the development of the list, which shall be

16

published by the State Ethics Commission in the Pennsylvania

17

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

18

Internet website. Upon request, each public official shall

19

have a duty to provide the State Ethics Commission with

20

adequate information to accurately develop and maintain the

21

list. The State Ethics Commission may impose a civil penalty

22

under 65 Pa.C.S. § 1109(f) (relating to penalties) upon any

23

individual, including any public official or executive-level

24

public employee, who fails to cooperate with the State Ethics

25

Commission under this subsection. A person that relies in

26

good faith on the list published by the State Ethics

27

Commission shall not be subject to any penalty for a

28

violation of this section.

29

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

30

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

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1

subsection:

2

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

3

the following:

4

(1)  Deputy Secretaries of the Commonwealth and the

5

Governor's Office executive staff.

6

(2)  An employee of the Executive Branch with

7

discretionary power which may affect or influence the outcome

8

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

9

the development of regulations or policies relating to a

10

licensed entity or who is involved in other matters under

11

this part. The term shall include an employee with law

12

enforcement authority.

13

(3)  An employee of a county or municipality with

14

discretionary powers which may affect or influence the

15

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

16

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

17

policy relating to a licensed entity or who is involved in

18

other matters under this part. The term shall include an

19

employee with law enforcement authority.

20

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

21

commission, authority or other governmental body not included

22

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

23

may affect or influence the outcome of the governmental

24

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

25

development of regulation or policy relating to a licensed

26

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

27

The term shall include an employee with law enforcement

28

authority.]

29

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

30

hold, debt or equity securities or other ownership interest or

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1

profits interest. A financial interest shall not include any

2

debt or equity security, or other ownership interest or profits

3

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

4

following:

5

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

6

employee, public official, party officer or immediate family

7

member thereof may not exercise any managerial control or

8

receive income during the tenure of office and the period

9

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

10

apply only to blind trusts established prior to the effective

11

date of this paragraph.

12

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

13

sharing plan, individual retirement account, tax-sheltered

14

annuity, a plan established pursuant to section 457 of the

15

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

16

1 et seq.) or any successor provision deferred compensation

17

plan whether qualified or not qualified under the Internal

18

Revenue Code of 1986 or any successor provision or other

19

retirement plan that:

20

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

21

(ii)  is advised by an independent investment adviser

22

who has sole authority to make investment decisions with

23

respect to contributions made by the individual to these

24

plans.

25

(3)  A tuition account plan organized and operated

26

pursuant to section 529 of the Internal Revenue Code of 1986

27

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

28

directed by the individual.

29

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

30

fund in a licensed entity does not constitute a controlling

- 190 -

 


1

interest as defined in this part.

2

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

3

child.

4

["Law enforcement authority."  The power to conduct

5

investigations of or to make arrests for criminal offenses.]

6

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

7

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

8

State committee or member of the executive committee of a State

9

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

10

or treasurer of a county committee in which a licensed facility

11

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

12

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

13

licensed facility is located.

14

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

15

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

16

Governor's cabinet, Treasurer, Auditor General and Attorney

17

General of the Commonwealth.

18

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

19

of the Commonwealth.

20

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

21

a county or municipality that directly receives a

22

distribution of revenue under this part.

23

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

24

agency, board, commission, authority or other governmental

25

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

26

receives a distribution of revenue under this part.

27

(5)  An individual elected or appointed to a department,

28

agency, board, commission, authority, county, municipality or

29

other governmental body not included in paragraph (1), (2) or

30

(3) with discretionary power which may influence or affect

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1

the outcome of an action or decision and who is involved in

2

the development of regulation or policy relating to a

3

licensed entity or who is involved in other matters under

4

this part.

5

The term does not include a member of a school board or an

6

individual who held an uncompensated office with a governmental

7

body prior to January 1, 2006, and who no longer holds the

8

office as of January 1, 2006. The term includes a member of an

9

advisory board or commission which makes recommendations

10

relating to a licensed facility.

11

Section 14.  Title 4 is amended by adding a section to read:

12

§ 1512.1.  Additional restrictions.

13

(a)  Restrictions.--No individual trooper or employee of the

14

Pennsylvania State Police or employee of the Office of Attorney

15

General or the department whose duties substantially involve

16

licensing or enforcement, the development of laws, or the

17

development or adoption of regulations or policy related to

18

gaming under this part or who has other discretionary authority

19

which may affect or influence the outcome of an action,

20

proceeding or decision under this part shall do any of the

21

following:

22

(1)  Accept employment with or be retained by an

23

applicant or licensed entity, or an affiliate, intermediary,

24

subsidiary or holding company of an applicant or licensed

25

entity, for a period of two years after the termination of

26

employment.

27

(2)  Appear before the board in any hearing or proceeding

28

or participate in any other activity on behalf of any

29

applicant, licensee, permittee or licensed entity, or an

30

affiliate, intermediary, subsidiary or holding company of an

- 192 -

 


1

applicant, licensee or licensed entity, for a period of two

2

years after termination of employment. Nothing in this

3

paragraph shall prevent a current or former trooper or

4

employee of the Pennsylvania State Police, the Office of

5

Attorney General or the department from appearing before the

6

board in any proceeding or hearing as a witness or testifying

7

as to any fact or information.

8

(3)  As a condition of employment, a potential employee

9

who would be subject to this subsection shall sign an

10

affidavit that the individual will not accept employment with

11

or be retained by any applicant or licensed entity, or an

12

affiliate, intermediary, subsidiary or holding company of an

13

applicant or licensed entity, for a period of two years after

14

the termination of employment.

15

(b)  Employment or retention.--An applicant or licensed

16

entity or an affiliate, intermediary, subsidiary or holding

17

company of an applicant or licensed entity shall not employ or

18

retain an individual subject to subsection (a) until the

19

expiration of the period required in subsection (a)(1). An

20

applicant or licensed entity, or an affiliate, intermediary,

21

subsidiary or holding company of an applicant or licensed

22

entity, that knowingly employs or retains an individual in

23

violation of this subsection shall terminate the employment of

24

the individual and be subject to a penalty under section 1518(c)

25

(relating to prohibited acts; penalties).

26

(c)  Violation.--If an individual subject to subsection (a)

27

refuses or otherwise fails to sign an affidavit, the

28

individual's potential employer shall rescind the offer of 

29

employment.

30

(d)  Code of conduct.--The Pennsylvania State Police, Office

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1

of Attorney General and department each shall adopt a

2

comprehensive code of conduct which shall supplement all other

3

requirements under this part and 65 Pa.C.S. Pt. II (relating to

4

accountability), as applicable, and shall provide guidelines

5

applicable to troopers, employees, independent contractors of

6

the agency whose duties substantially involve licensing or

7

enforcement, the development of laws, or the development or

8

adoption of regulations or policy related to gaming under this

9

part or who has other discretionary authority which may affect

10

the outcome of an action, proceeding or decision under this

11

part, and the immediate families of these individuals to enable

12

them to avoid any perceived or actual conflict of interest and

13

to promote public confidence in the integrity and impartiality

14

of gaming enforcement and regulation. At a minimum, the code of

15

conduct adopted under this section shall apply the types of

16

restrictions applicable to members under section 1202.1(c),

17

except that the restrictions under section 1202.1(c)(5) shall

18

not apply to an elected Attorney General.

19

(e)  State Ethics Commission.--The State Ethics Commission

20

shall do all of the following:

21

(1)  Issue a written determination of whether an

22

individual is subject to subsection (a) upon the written

23

request of the individual or the individual's employer or

24

potential employer. A person that relies in good faith on a

25

determination made under this paragraph shall not be subject

26

to any penalty for an action taken, provided that all

27

material facts set forth in the request for the determination

28

are correct.

29

(2)  Publish a list of all positions within the

30

Pennsylvania State Police, the Office of Attorney General and

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1

the department whose duties would subject the individuals in

2

those positions to the provisions of subsection (a). Each

3

agency subject to this subsection shall assist the State

4

Ethics Commission in the development of the list, which shall

5

be published by the State Ethics Commission in the

6

Pennsylvania Bulletin biennially, shall be posted by the

7

board on the board's Internet website and shall be posted by

8

each agency on the agency's Internet website. Upon request by

9

the State Ethics Commission, members and employees of each

10

agency subject to this subsection shall have a duty to

11

provide the State Ethics Commission with adequate information

12

to accurately develop and maintain the list. The State Ethics

13

Commission may impose a civil penalty under 65 Pa.C.S. §

14

1109(f) (relating to penalties) upon any individual who fails

15

to cooperate with the State Ethics Commission under this

16

subsection. A person who relies in good faith on the list

17

published by the State Ethics Commission shall not be subject

18

to any penalty for a violation of subsection (a).

19

Section 14.1.  Sections 1513(c) and 1514 heading, (b), (f),

20

(g) and (h) of Title 4 are amended to read:

21

§ 1513.  Political influence.

22

* * *

23

(c)  Penalties.--

24

(1)  The first violation of this section by a licensed

25

gaming entity or any person that holds a controlling interest

26

in such gaming entity, or a subsidiary company thereof, [and] 

27

or any officer, director or management-level employee of such

28

licensee shall be punishable by a fine [of] equal to an

29

amount not less than [an] the average single day's gross

30

terminal revenue and gross table game revenue of the licensed

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1

gaming entity [derived from the operation of slot machines in

2

this Commonwealth]; a second violation of this section,

3

within five years of the first violation, shall be punishable

4

by at least a one-day suspension of the license held by the

5

licensed gaming entity and a fine equal to an amount not less

6

than [an] two times the average [two days'] single day's 

7

gross terminal revenue and gross table game revenue of the

8

licensed gaming entity; a third violation of this section

9

within five years of the second violation shall be punishable

10

by the immediate revocation of the license held by the

11

licensed gaming entity. Following revocation, the board shall

12

consider appointing a trustee in accordance with section 1332

13

(relating to appointment of trustee).

14

(2)  The first violation of this section by a

15

manufacturer or supplier licensed pursuant to this part or by

16

any person that holds a controlling interest in such

17

manufacturer or supplier, or a subsidiary company thereof,

18

[and] or any officer, director or management-level employee

19

of such a licensee shall be punishable by a fine [of] equal

20

to an amount not less than [one] a single day's average of

21

the gross profit from sales made by the manufacturer or

22

supplier in Pennsylvania during the preceding 12-month period

23

or portion thereof in the event the manufacturer or supplier

24

has not operated in Pennsylvania for 12 months; a [second] 

25

subsequent violation of this section within five years of

26

[the first] a prior violation shall be punishable by a one-

27

month suspension of the license held by the manufacturer or

28

supplier and a fine [of] equal to an amount not less than two

29

times [one] a single day's average of the gross profit from

30

sales made by the manufacturer or supplier in Pennsylvania

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1

during the preceding 12-month period or portion thereof in

2

the event the manufacturer or supplier has not operated in

3

Pennsylvania for 12 months.

4

(3)  In no event shall the fine imposed under this

5

section be [in] an amount less than [$50,000] $100,000 for

6

each violation. In addition to any fine or sanction that may

7

be imposed by the board under this subsection, any [person] 

8

individual who makes a contribution in violation of this

9

section commits a misdemeanor of the third degree.

10

* * *

11

§ 1514.  Regulation requiring exclusion or ejection of certain

12

persons.

13

* * *

14

(b)  Categories to be defined.--The board shall promulgate

15

definitions establishing those categories of persons who shall

16

be excluded or ejected pursuant to this section, including

17

cheats and persons whose privileges for licensure,

18

certification, permit or registration have been revoked.

19

* * *

20

(f)  Notice.--Whenever the [board places] bureau seeks to

21

place the name of any person on a list pursuant to this section,

22

the [board] bureau shall serve notice of this fact to such

23

person by personal service or certified mail at the last known

24

address of the person. The notice shall inform the person of the

25

right to request a hearing under subsection (g).

26

(g)  Hearing.--Within 30 days after receipt of notice in

27

accordance with subsection (f), the person named for exclusion

28

or ejection may demand a hearing before the board, at which

29

hearing the [board] bureau shall have the affirmative obligation

30

to demonstrate that the person named for exclusion or ejection

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1

satisfies the criteria for exclusion or ejection established by

2

this section and the board's regulations. Failure of the person 

3

to demand a hearing within 30 days after service shall be deemed

4

an admission of all matters and facts alleged in the [board's] 

5

bureau's notice and shall preclude [a] the person from having an

6

administrative hearing, but shall in no way affect the right to

7

judicial review as provided in this section.

8

(h)  Review.--If, upon completion of a hearing on the notice

9

of exclusion or ejection, the board determines that placement of

10

the name of the person on the exclusion or ejection list is

11

appropriate, the board shall make and enter an order to that

12

effect, which order shall be served on all [slot machine

13

licensees] licensed gaming entities. The order shall be subject

14

to review by the Commonwealth Court in accordance with the rules

15

of court.

16

Section 14.2.  Title 4 is amended by adding a section to

17

read:

18

§ 1516.1.  Prosecutorial and adjudicatory functions.

19

The board shall promulgate regulations and adopt procedures

20

necessary to ensure that the bureau is a distinct entity and to

21

prevent commingling of the investigatory and prosecutorial

22

functions of the bureau under section 1517 (relating to

23

investigations and enforcement) and the adjudicatory functions

24

of the board. Regulations and procedures promulgated or adopted

25

under this section shall do all of the following:

26

(1)  Provide that neither the executive director nor the

27

chief counsel of the board shall direct or limit the scope of

28

a background investigation conducted by the bureau.

29

(2)  Incorporate section 1202.1(c.1) (relating to code of

30

conduct) and any other applicable provisions of section

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1

1202.1.

2

Section 15.  Section 1517(a.1)(2) and (6), (b)(1), (c)(12)

3

and (e)(1) of Title 4 are amended, subsection (a.2)(1) is

4

amended by adding a subparagraph and subsection (c) is amended

5

by adding paragraphs to read:

6

§ 1517.  Investigations and enforcement.

7

* * *

8

(a.1)  Powers and duties of bureau.--The Bureau of

9

Investigations and Enforcement shall have the following powers

10

and duties:

11

* * *

12

(2)  Investigate and review all applicants for a license,

13

permit or registration. The bureau shall be prohibited from

14

disclosing any portion of a background investigation report

15

to any member prior to the submission of the bureau's final

16

background investigation report relating to the applicant's

17

suitability for licensure to the board. The Office of

18

Enforcement Counsel, on behalf of the bureau, shall prepare

19

the final background investigation report for inclusion in a

20

final report relating to the applicant's suitability for

21

licensure.

22

* * *

23

(6)  Conduct [audits] reviews of a licensed entity as

24

necessary to ensure compliance with this part. [An audit] A

25

review may include the review of accounting, administrative

26

and financial records, management control systems, procedures

27

and other records utilized by a licensed entity.

28

* * *

29

(a.2)  Office of Enforcement Counsel.--

30

(1)  There is established within the bureau an Office of

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1

Enforcement Counsel which shall act as the prosecutor in all

2

noncriminal enforcement actions initiated by the bureau under

3

this part and shall have the following powers and duties:

4

* * *

5

(iv)  Petition the board for the appointment of a

6

trustee under section 1332 (relating to appointment of

7

trustee).

8

* * *

9

(b)  Powers and duties of department.--

10

(1)  The department shall at all times have the power of

11

access to [examination] examine and audit [of any] equipment

12

and records relating to all aspects of the operation of slot

13

machines or table games under this part.

14

* * *

15

(c)  Powers and duties of the Pennsylvania State Police.--The

16

Pennsylvania State Police shall have the following powers and

17

duties:

18

* * *

19

(1.1)  Promptly conduct a background investigation on an

20

individual selected by the board to fill the position of

21

executive director of the board, director of the bureau,

22

chief counsel of the board or the director of the Office of

23

Enforcement Counsel and submit the results to the board.

24

* * *

25

(12)  Conduct audits or verification of information of

26

slot machine or table game operations at such times, under

27

such circumstances and to such extent as the bureau

28

determines. This paragraph includes reviews of accounting,

29

administrative and financial records and management control

30

systems, procedures and records utilized by a slot machine

- 200 -

 


1

licensee.

2

* * *

3

(14)  By March 1 of each year, the Commissioner of the

4

Pennsylvania State Police shall submit a report to the

5

Appropriations Committee of the Senate, the Community,

6

Economic and Recreational Development Committee of the

7

Senate, the Appropriations Committee of the House of

8

Representatives and the Gaming Oversight Committee of the

9

House of Representatives. The report shall summarize all law

10

enforcement activities at each licensed facility during the

11

previous calendar year and shall include all of the

12

following:

13

(i)  The number of arrests made and citations issued

14

at each licensed facility and the name of the law

15

enforcement agency making the arrest or issuing the

16

citation.

17

(ii)  A list of specific offenses charged for each

18

arrest made or citation issued.

19

(iii)  The number of criminal prosecutions resulting

20

from arrests made or citations issued.

21

(iv)  The number of convictions resulting from

22

prosecutions reported under subparagraph (iii).

23

(v)  The number of Pennsylvania State Police troopers

24

assigned to each licensed facility and to the gaming unit

25

at the Pennsylvania State Police headquarters.

26

(vi)  The number and the subject matter of complaints

27

made against Pennsylvania State Police troopers in

28

licensed facilities and the type of disciplinary actions

29

taken by the Pennsylvania State Police, if any, against

30

the Pennsylvania State Police troopers.

- 201 -

 


1

(vii)  The closest local police station, Pennsylvania

2

State Police station and regional Pennsylvania State

3

Police headquarters to each licensed facility.

4

* * *

5

(e)  Inspection, seizure and warrants.--

6

(1)  The bureau, the department and the Pennsylvania

7

State Police shall have the authority without notice and

8

without warrant to do all of the following in the performance

9

of their duties:

10

(i)  Inspect and examine all premises where slot

11

machine or table game operations are conducted, [gaming

12

devices or] slot machines, table game devices and

13

associated equipment are manufactured, sold, distributed

14

or serviced or where records of these activities are

15

prepared or maintained.

16

(ii)  Inspect all equipment and supplies in, about,

17

upon or around premises referred to in subparagraph (i).

18

(iii)  Seize, summarily remove and impound equipment

19

and supplies from premises referred to in subparagraph

20

(i) for the purposes of examination and inspection.

21

(iv)  Inspect, examine and audit all books, records

22

and documents pertaining to a slot machine licensee's

23

operation.

24

(v)  Seize, impound or assume physical control of any

25

book, record, ledger, game, device, cash box and its

26

contents, [counting] count room or its equipment or slot

27

machine or table game operations.

28

* * *

29

Section 16.  Section 1517.2 of Title 4 is amended to read:

30

§ 1517.2.  Conduct of [public officials and] board employees.

- 202 -

 


1

(a)  [Ex parte discussion prohibited.--An attorney

2

representing the bureau or the Office of Enforcement Counsel, or

3

an employee of the bureau or office involved in the hearing

4

process, shall not discuss the case ex parte with a hearing

5

officer, chief counsel or member] (Reserved).

6

(b)  [Other prohibitions.--A hearing officer, the chief

7

counsel or a member shall not discuss or exercise any

8

supervisory responsibility over any employee with respect to an

9

enforcement hearing with which the employee is involved] 

10

(Reserved).

11

(c)  Disqualification.--If it becomes necessary for the chief

12

counsel or a member to become involved on behalf of the board in

13

any enforcement proceeding, the chief counsel or the member

14

shall be prohibited from participating in the adjudication of

15

that matter and shall designate appropriate individuals to

16

exercise adjudicatory functions.

17

Section 16.1.  Section 1518(a)(2), (3), (4), (5), (7), (8),

18

(11) and (13), (b)(1) and (2) and (c)(1)(v) and (3) of Title 4

19

are amended, subsections (a) and (b) are amended by adding

20

paragraphs and the section is amended by adding subsections to

21

read:

22

§ 1518.  Prohibited acts; penalties.

23

(a)  Criminal offenses.--

24

* * *

25

(2)  It shall be unlawful for a person to willfully:

26

(i)  fail to report, pay or truthfully account for

27

and pay over any license fee, authorization fee, tax or

28

assessment imposed under this part; or

29

(ii)  attempt in any manner to evade or defeat any

30

license fee, authorization fee, tax or assessment imposed

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1

under this part.

2

(3)  It shall be unlawful for any licensed entity, gaming

3

employee, key employee or any other person to permit a slot

4

machine, table game or table game device to be operated,

5

transported, repaired or opened on the premises of a licensed

6

facility by a person other than a person licensed or

7

permitted by the board pursuant to this part.

8

(4)  It shall be unlawful for any licensed entity or

9

other person to manufacture, supply or place slot machines,

10

table games, table game devices or associated equipment into

11

play or display slot machines, table games, table game

12

devices or associated equipment on the [premise] premises of

13

a licensed facility without the authority of the board.

14

(5)  Except as provided for in section 1326 (relating to

15

license renewals), it shall be unlawful for a licensed entity

16

or other person to manufacture, supply, operate, carry on or

17

expose for play any slot machine, table game, table game

18

device or associated equipment after the person's license has

19

expired and prior to the actual renewal of the license.

20

* * *

21

(7)  (i)  Except as set forth in subparagraph (ii), it

22

shall be unlawful for an individual to use or possess a

23

cheating or thieving device, counterfeit or altered

24

billet, ticket, token or similar objects accepted by a

25

slot machine or counterfeit or altered slot machine-

26

issued tickets or vouchers at a licensed facility.

27

(ii)  An authorized employee of a licensee or an

28

employee of the board may possess and use a cheating or

29

thieving device, counterfeit or altered billet, ticket,

30

token or similar objects accepted by a slot machine or

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1

counterfeit or altered slot machine-issued tickets or

2

vouchers in performance of the duties of employment.

3

[(iii)  As used in this paragraph, the term "cheating

4

or thieving device" includes, but is not limited to, a

5

device to facilitate the alignment of any winning

6

combination or to remove from any slot machine money or

7

other contents. The term includes, but is not limited to,

8

a tool, drill, wire, coin or token attached to a string

9

or wire and any electronic or magnetic device.]

10

(7.1)  It shall be unlawful for an individual to do any

11

of the following:

12

(i)  Use or possess counterfeit, marked, loaded or

13

tampered with table game devices or associated equipment,

14

chips or other cheating devices in the conduct of gaming

15

under this part, except that an authorized employee of a

16

licensee or an authorized employee of the board may

17

possess and use counterfeit chips or table game devices

18

or associated equipment that have been marked, loaded or

19

tampered with, or other cheating devices in performance

20

of the duties of employment for training, investigative

21

or testing purposes only.

22

(ii)  Knowingly, by a trick or sleight of hand

23

performance or by fraud or fraudulent scheme, table game

24

device or other device, for himself or for another, win

25

or attempt to win any cash, property or prize at a

26

licensed facility or to reduce or attempt to reduce a

27

losing wager.

28

(8)  (i)  Except as set forth in subparagraph (ii), it

29

shall be unlawful for an individual to knowingly possess

30

or use while on the premises of a licensed facility a key

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1

or device designed for the purpose of and suitable for

2

opening or entering any slot machine, drop box or coin

3

box which is located on the premises of the licensed

4

facility.

5

(ii)  An authorized employee of a licensee or a

6

member of the board may possess and use a device referred

7

to in subparagraph (i) in the performance of the duties

8

of employment.

9

* * *

10

(11)  It shall be unlawful for a licensed gaming entity

11

that is a licensed racing entity and that has lost the

12

license issued to it by either the State Horse Racing

13

Commission or the State Harness Racing Commission under the

14

Race Horse Industry Reform Act or that has had that license

15

suspended to operate slot machines or table games at the

16

racetrack for which its slot machine license was issued

17

unless the license issued to it by either the State Horse

18

Racing Commission or the State Harness Racing Commission will

19

be subsequently reissued or reinstated within 30 days after

20

the loss or suspension.

21

* * *

22

(13)  It shall be unlawful for [any person] an individual 

23

under [18] 21 years of age to [be permitted in the] enter and

24

remain in any area of a licensed facility where slot machines

25

are operated or the play of table games is conducted, except

26

that an individual 18 years of age or older employed by a

27

slot machine licensee, a gaming service provider, the board

28

or any other regulatory or emergency response agency may

29

enter and remain in any such area while engaged in the

30

performance of the individual's employment duties.

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1

(13.1)  It shall be unlawful for an individual under 21

2

years of age to wager, play or attempt to play a slot machine

3

or table game at a licensed facility.

4

(14)  (Reserved).

5

(15)  It shall be unlawful for a licensed gaming entity

6

to require a wager to be greater than the stated minimum

7

wager or less than the stated maximum wager. However, a wager

8

made by a player and not rejected by a licensed gaming entity

9

prior to commencement of play shall be treated as a valid

10

wager. A wager accepted by a dealer shall be paid or lost in

11

its entirety in accordance with the rules of the game,

12

notwithstanding that the wager exceeded the current table

13

maximum wager or was lower than the current table minimum

14

wager.

15

(16)  An individual that engages in conduct prohibited by

16

18 Pa.C.S. § 6308 (relating to purchase, consumption,

17

possession or transfer of liquor or malt or brewed beverages)

18

in a licensed facility commits a nongambling offense.

19

(17)  It shall be unlawful for an individual to claim,

20

collect or take, or attempt to claim, collect or take, money

21

or anything of value in or from a slot machine, gaming table

22

or other table game device, with the intent to defraud, or to

23

claim, collect or take an amount greater than the amount won,

24

or to manipulate with the intent to cheat, any component of

25

any slot machine, table game or table game device in a manner

26

contrary to the designed and normal operational purpose.

27

(b)  Criminal penalties and fines.--

28

(1)  (i)  A person that commits a first offense in

29

violation of 18 Pa.C.S. § 4902, 4903 or 4904 in

30

connection with providing information or making any

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1

statement, whether written or oral, to the board, the

2

bureau, the department, the Pennsylvania State Police,

3

the Office of Attorney General or a district attorney as

4

required by this part commits an offense to be graded in

5

accordance with the applicable section violated. A person

6

that is convicted of a second or subsequent violation of

7

18 Pa.C.S. § 4902, 4903 or 4904 in connection with

8

providing information or making any statement, whether

9

written or oral, to the board, the bureau, the

10

department, the Pennsylvania State Police, the Office of

11

Attorney General or a district attorney as required by

12

this part commits a felony of the second degree.

13

(ii)  A person that violates subsection (a)(2)

14

through (12) or (17) commits a misdemeanor of the first

15

degree. A person that is convicted of a second or

16

subsequent violation of subsection (a)(2) through (12) or

17

(17) commits a felony of the second degree.

18

(2)  (i)  For a first violation of subsection (a)(1)

19

through (12) or (17), a person shall be sentenced to pay

20

a fine of:

21

(A)  not less than $75,000 nor more than $150,000

22

if the person is an individual;

23

(B)  not less than $300,000 nor more than

24

$600,000 if the person is a licensed gaming entity;

25

or

26

(C)  not less than $150,000 nor more than

27

$300,000 if the person is a licensed manufacturer or

28

supplier.

29

(ii)  For a second or subsequent violation of

30

subsection (a)(1) through (12) or (17), a person shall be

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1

sentenced to pay a fine of:

2

(A)  not less than $150,000 nor more than

3

$300,000 if the person is an individual;

4

(B)  not less than $600,000 nor more than

5

$1,200,000 if the person is a licensed gaming entity;

6

or

7

(C)  not less than $300,000 nor more than

8

$600,000 if the person is a licensed manufacturer or

9

supplier.

10

(3)  An individual who commits an offense in violation of

11

subsection (a)(13) or (13.1) commits a nongambling summary

12

offense and upon conviction of a first offense shall be

13

sentenced to pay a fine of not less than $200 nor more than

14

$1,000. An individual that is convicted of a second or

15

subsequent offense under subsection (a)(13) or (13.1) shall

16

be sentenced to pay a fine of not less than $500 nor more

17

than $1,500. In addition to the fine imposed, an individual

18

convicted of an offense under subsection (a)(13) or (13.1)

19

may be sentenced to perform a period of community service not

20

to exceed 40 hours.

21

(4)  An individual that commits an offense in violation

22

of subsection (a)(16) commits a nongambling offense to be

23

graded in accordance with 18 Pa.C.S. § 6308 and shall be

24

subject to the same penalties imposed pursuant to 18 Pa.C.S.

25

§ 6308 and 6310.4 (relating to restriction of operating

26

privileges) except that the fine imposed for a violation of

27

subsection (a)(16) shall be not less than $350 nor more than

28

$1,000.

29

(c)  Board-imposed administrative sanctions.--

30

(1)  In addition to any other penalty authorized by law,

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1

the board may impose without limitation the following

2

sanctions upon any licensee or permittee:

3

* * *

4

(v)  Suspend the license of any licensed gaming

5

entity for violation of or attempting to violate any

6

provisions of this part or regulations promulgated under

7

this part relating to its slot machine or table game 

8

operations.

9

* * *

10

(3)  In addition to any other fines or penalties that the

11

board may impose under this part or regulation, if a person

12

violates subsection (a)(2), the board shall impose an

13

administrative penalty of three times the amount of the

14

license fee, authorization fee, tax or other assessment

15

evaded and not paid, collected or paid over. This subsection

16

is subject to 2 Pa.C.S. Chs. 5 Subch. A and 7 Subch. A.

17

(d)  Aiding and abetting.--A person who aids, abets,

18

counsels, commands, induces, procures or causes another person

19

to violate a provision of this part shall be subject to all

20

sanctions and penalties, both civil and criminal, provided under

21

this part.

22

(e)  Continuing offenses.--A violation of this part that is

23

determined to be an offense of a continuing nature shall be

24

deemed to be a separate offense on each event or day during

25

which the violation occurs. Nothing in this section shall be

26

construed to preclude the commission of multiple violations of

27

the provisions of this part in any one day that establish

28

offenses consisting of separate and distinct acts or violations

29

of the provisions of this part or regulations promulgated under

30

this part.

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1

(f)  Property subject to seizure, confiscation, destruction

2

or forfeiture.--Any equipment, device or apparatus, money,

3

material, gaming proceeds or substituted proceeds or real or

4

personal property used, obtained or received or any attempt to

5

use, obtain or receive the device, apparatus, money, material,

6

proceeds or real or personal property in violation of this part,

7

shall be subject to seizure, confiscation, destruction or

8

forfeiture.

9

Section 17.  Title 4 is amended by adding sections to read:

10

§ 1518.1.  Report of suspicious transactions.

11

(a)  Duty.--A slot machine licensee or a person acting on

12

behalf of a slot machine licensee shall file a report of any

13

suspicious transaction with the bureau. The filing with the

14

bureau of a copy of a report made under 31 CFR 103.21 (relating

15

to reports by casinos of suspicious transactions) shall satisfy

16

this requirement.

17

(b)  Failure to report.--

18

(1)  A person required under this section to file a

19

report of a suspicious transaction who knowingly fails to

20

file a report of a suspicious transaction or who knowingly

21

causes another person having that responsibility to fail to

22

file a report commits a misdemeanor of the third degree.

23

(2)  A person required under this section to file a

24

report of a suspicious transaction who fails to file a report

25

or a person who causes another person required under this

26

section to file a report of a suspicious transaction to fail

27

to file a report shall be strictly liable for his actions and

28

may be subject to sanction under section 1518(c) (relating to

29

prohibited acts; penalties).

30

(c)  Bureau.--The bureau shall maintain a record of all

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1

reports made under this section for a period of five years. The

2

bureau shall make the reports available to any Federal or State

3

law enforcement agency upon written request and without

4

necessity of subpoena.

5

(d)  Notice prohibited.--A person who is required to file a

6

report of a suspicious transaction under this section shall not

7

notify any individual suspected of committing the suspicious

8

transaction that the transaction has been reported. Any person

9

that violates this subsection commits a misdemeanor of the third

10

degree and may be subject to sanction under section 1518(c).

11

(e)  Immunity.--A person who is required to file a report of

12

a suspicious transaction under this section who in good faith

13

makes the report shall not be liable in any civil action brought

14

by any person for making the report, regardless of whether the

15

transaction is later determined to be suspicious.

16

(f)  Sanctions.--

17

(1)  In considering appropriate administrative sanctions

18

against any person for a violation of this section, the board

19

shall consider all of the following:

20

(i)  The risk to the public and to the integrity of

21

gaming operations created by the conduct of the person.

22

(ii)  The seriousness of the conduct of the person

23

and whether the conduct was purposeful and with knowledge

24

that it was in contravention of the provisions of this

25

part or regulations promulgated under this part.

26

(iii)  Any justification or excuse for the conduct by

27

the person.

28

(iv)  The prior history of the particular licensee or

29

person involved with respect to gaming activity.

30

(v)  The corrective action taken by the slot machine

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1

licensee to prevent future misconduct of a like nature

2

from occurring.

3

(vi)  In the case of a monetary penalty, the amount

4

of the penalty in relation to the severity of the

5

misconduct and the financial means of the licensee or

6

person. The board may impose any schedule or terms of

7

payment of such penalty as it may deem appropriate.

8

(2)  It shall be no defense to disciplinary action before

9

the board that a person inadvertently, unintentionally or

10

unknowingly violated a provision of this section. The factors

11

under paragraph (1) shall only go to the degree of the

12

penalty to be imposed by the board and not to a finding of a

13

violation itself.

14

(g)  Regulations.--The board shall promulgate regulations to

15

effectuate the purposes of this section.

16

§ 1518.2.  Additional authority.

17

(a)  General rule.--The director of the Office of Enforcement

18

Counsel within the bureau may petition a court of record having

19

jurisdiction over information in the possession of an agency in

20

this Commonwealth, or if there is no such court, then the

21

Commonwealth Court for authorization to review or obtain

22

information in the possession of an agency in this Commonwealth

23

by averring specific facts demonstrating that the agency has in

24

its possession information material to a pending investigation

25

or inquiry being conducted by the bureau pursuant to this part

26

and that disclosure or release is in the best interest of the

27

Commonwealth. The petition shall request that the court enter a

28

rule upon the agency to show cause why the agency should not be

29

directed to disclose to the bureau, or identified agents

30

thereof, information in its possession about any pending matter

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1

under the jurisdiction of the bureau pursuant to this part. If a

2

respondent is a local agency, a copy of any rule issued pursuant

3

to this section shall be provided to the district attorney of

4

the county in which the local agency is located and the Office

5

of Attorney General. Upon request of a local agency, the

6

district attorney or the Attorney General may elect to enter an

7

appearance to represent the local agency in the proceedings.

8

(b)  Procedure.--The filing of a petition pursuant to this

9

section and related proceedings shall be in accordance with

10

court rule, including issuance as of course. A party to the

11

proceeding shall not disclose the filing of a petition or answer

12

or the receipt, content or disposition of a rule or order issued

13

pursuant to this section without leave of court. Any party to

14

the proceedings may request that the record be sealed and

15

proceedings be closed. The court shall grant the request if it

16

is in the best interest of any person or the Commonwealth to do

17

so.

18

(c)  Court determination.--Following review of the record,

19

the court shall grant the relief sought by the director of the

20

Office of Enforcement Counsel if the court determines that the

21

agency has in its possession information material to the

22

investigation or inquiry and that disclosure or release of the

23

information is in the best interest of the Commonwealth, that

24

the disclosure or release of the information is not otherwise

25

prohibited by statute or regulation and that the disclosure or

26

release of the information would not inhibit an agency in the

27

performance of the agency's duties. If the court so determines,

28

the court shall enter an order authorizing and directing the

29

information be made available for review in camera.

30

(d)  Release of materials or information.--If, after an in

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1

camera review by the court, the director of the Office of

2

Enforcement Counsel seeks to obtain copies of materials in the

3

agency's possession, the court may, if not otherwise prohibited

4

by statute or regulation, enter an order that the requested

5

materials be provided. Any order authorizing the release of

6

materials or other information shall contain direction regarding

7

the safekeeping and use of the materials or other information

8

sufficient to satisfy the court that the materials or

9

information will be sufficiently safeguarded. In making this

10

determination the court shall consider the input of the agency

11

in possession of the information and any input from any agency

12

with which the information originated concerning any pending

13

investigation or ongoing matter and the safety of person and

14

property.

15

(e)  Modification of order.--If subsequent investigation or

16

inquiry by the bureau warrants modification of any order entered

17

pursuant to this section, the director of the Office of

18

Enforcement Counsel may petition to request the modification.

19

Upon such request, the court may modify its orders at any time

20

and in any manner it deems necessary and appropriate. The agency

21

named in the original petition shall be given notice and an

22

opportunity to be heard.

23

(f)  Use of information or materials.--Any person who, by any

24

means authorized by this section, has obtained knowledge of

25

information or materials solely pursuant to this section may use

26

such information or materials in a manner consistent with any

27

directions imposed by the court and appropriate to the proper

28

performance of the person's official duties under this part.

29

(g)  Violation.--In addition to any remedies and penalties

30

provided in this part, any violation of the provisions of this

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1

section may be punished as contempt of the court.

2

(h)  Definition.--As used in this section the term "agency"

3

shall mean a "Commonwealth agency" or a "local agency" as those

4

terms are defined in section 102 of the act of February 14, 2008

5

(P.L.6, No.3), known as the Right-to-Know Law.

6

§ 1518.3.  Applicability of Clean Indoor Air Act.

7

Notwithstanding section 11(b) of the act of June 13, 2008

8

(P.L.182, No.27), known as the Clean Indoor Air Act, the

9

provisions of section 3(b)(11) of the Clean Indoor Air Act shall

10

apply to all licensed facilities.

11

Section 17.1.  Section 1521 of Title 4 is amended by adding a

12

subsection to read:

13

§ 1521.  Liquor licenses at licensed facilities.

14

* * *

15

(b.1)  Liquor Code sanctions.--Notwithstanding any other

16

provision of law, a person holding a slot machine license that

17

also holds a license issued by the Pennsylvania Liquor Control

18

Board shall not be subject to the provisions of section 471(c)

19

of the Liquor Code. In addition, if a fine is imposed under

20

section 471(b) of the Liquor Code, it shall be for not less than

21

$250 nor more than $25,000. The prior citation history of the

22

slot machine licensee shall be considered in determining the

23

amount of the fine.

24

* * *

25

Section 18.  Section 1522 of Title 4 is amended to read:

26

§ 1522.  Interception of oral communications.

27

The interception and recording of oral communications made in

28

a [counting] count room of a licensed facility by a licensee

29

shall not be subject to the provisions of 18 Pa.C.S. Ch. 57 

30

(relating to wiretapping and electronic surveillance). Notice

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1

that oral communications are being intercepted and recorded

2

shall be posted conspicuously in the [counting] count room.

3

Section 18.1.  Title 4 is amended by adding a section to

4

read:

5

§ 1523.  Electronic funds transfer terminals.

6

(a)  Prohibition.--A slot machine licensee may not install,

7

own or operate or allow another person to install, own or

8

operate on the premises of the licensed facility a slot machine

9

or table game that is played with a device that allows a player

10

to operate the slot machine or table game by transferring funds

11

electronically from a debit card, credit card or by means of an

12

electronic funds transfer terminal.

13

(b)  Definitions.--As used in this section, the following

14

words and phrases shall have the meanings given to them in this

15

subsection unless the context clearly indicates otherwise:

16

"Electronic funds transfer terminal."  An information-

17

processing device or an automatic teller machine used for

18

executing deposit account transactions between financial

19

institutions and their account holders by either the direct

20

transmission of electronic impulses or the recording of

21

electronic impulses for delayed processing. The fact that a

22

device is used for other purposes shall not prevent it from

23

being considered an electronic funds transfer terminal under

24

this definition.

25

Section 18.2.  Title 4 is amended by adding chapters to read:

26

Chapter 16

27

JUNKETS

28

Sec.

29

1601.  Gaming junkets authorized.

30

1602.  Gaming junket enterprise license.

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1

1603.  Classification system.

2

1604.  Gaming junket representatives.

3

1605.  Junket agreements.

4

1606.  Conduct of junket.

5

1607.  Violation of terms.

6

1608.  Records.

7

1609.  Report.

8

1610.  Gaming junket arrangement.

9

1611.  Prohibitions.

10

§ 1601.  Gaming junkets authorized.

11

The board may authorize the organization and conduct of

12

gaming junkets subject to the provisions of this chapter. No

13

gaming junket shall be organized or permitted to operate in this

14

Commonwealth and no person shall act as a gaming junket

15

representative or gaming junket enterprise except in accordance

16

with this chapter. The board shall establish a reasonable

17

application and authorization fee for any license, permit or

18

other authorization issued under this chapter.

19

§ 1602.  Gaming junket enterprise license.

20

(a)  Gaming junket enterprise license required.--All gaming

21

junket enterprises shall obtain a license from the board prior

22

to acting as a gaming junket enterprise in this Commonwealth.

23

(b)  Application.-–A gaming junket enterprise license

24

application shall be in a form prescribed by the board and shall

25

include the following:

26

(1)  The name, address and photograph of the applicant

27

and all owners, directors, managers and supervisory employees

28

of a gaming junket enterprise.

29

(2)  The details of a gaming junket enterprise license or

30

similar license applied for or granted or denied to the

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1

applicant by another jurisdiction.

2

(3)  Consent for the bureau to conduct a background

3

investigation, the scope of which shall be determined by the

4

board.

5

(4)  All releases necessary for the bureau and the board

6

to acquire licensing documents and other information

7

necessary to conduct a background investigation or otherwise

8

evaluate the application.

9

(5)  A list of all civil judgments obtained against the

10

applicant pertaining to any gaming junket enterprise with

11

which the applicant has been associated.

12

(6)  A description of the operation and organization of

13

the gaming junket enterprise.

14

(7)  Any additional information required by the board.

15

(c)  Enforcement information.-–If the applicant has held a

16

gaming junket license or other gaming license in another

17

jurisdiction, the applicant may submit a letter of reference

18

from the gaming enforcement agency in the other jurisdiction.

19

The letter shall specify the experiences of the agency with the

20

applicant, the applicant's associates and the applicant's gaming

21

junket enterprise or gaming activity. If no letter is received

22

within 30 days following the applicant's request, the applicant

23

may submit a statement under oath, subject to the penalty for

24

false swearing under 18 Pa.C.S. § 4903 (relating to false

25

swearing), that the applicant is in good standing with the

26

gaming enforcement agency in the other jurisdiction.

27

(d)  Issuance.-–Following review of the application,

28

completion of the background investigation and payment of the

29

license fee established by the board under section 1601(a)

30

(relating to gaming junkets authorized), the board may issue a

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1

gaming junket enterprise license to the applicant if the

2

applicant has proven by clear and convincing evidence that the

3

applicant is a person of good character, honesty and integrity

4

and that the applicant's activities, criminal record,

5

reputation, habits and associations do not pose a threat to the

6

public interest or suitable or legitimate operation of gaming.

7

(e)  Failure to cooperate.-–Failure to provide required

8

information or releases under this section shall result in the

9

immediate denial of an application for a license.

10

(f)  Nontransferability.-–A license issued under this section

11

shall be nontransferable.

12

§ 1603.  Classification system.

13

The board shall develop a classification system for the

14

regulation of gaming junket enterprises and the individuals and

15

entities associated with gaming junket enterprises.

16

§ 1604.  Gaming junket representatives.

17

(a)  Occupation permit.-–Except as otherwise provided in

18

subsection (e), a gaming junket representative shall obtain an

19

occupation permit from the board in accordance with section 1318

20

(relating to occupation permit application).

21

(b)  Application.-–In addition to the requirements of section

22

1308 (relating to applications for license or permit), the

23

application for a gaming junket representative occupation permit

24

shall be in a form prescribed by the board and shall include the

25

following:

26

(1)  Verification of employment status as a gaming junket

27

representative with a licensed gaming junket enterprise or an

28

applicant for a gaming junket enterprise license.

29

(2)  A description of employment responsibilities.

30

(3)  A consent form to allow the bureau to conduct a

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1

background investigation, the scope of which shall be

2

determined by the board.

3

(4)  A release for the bureau and the board to acquire

4

copies of information from government agencies, employers and

5

others as necessary to complete the investigation.

6

(5)  Fingerprints which shall be submitted to the

7

Pennsylvania State Police.

8

(6)  A photograph that meets the standards of the

9

Commonwealth Photo Imaging Network.

10

(7)  Details relating to a similar license, permit or

11

other authorization obtained in another jurisdiction, if any.

12

(8)  Any additional information required by the board.

13

(c)  Issuance.-–Following review of the application,

14

background investigation and payment of the permit fee

15

established by the board under section 1601(a) (relating to

16

gaming junkets authorized), the board may issue an occupation

17

permit if the applicant has proven by clear and convincing

18

evidence that the applicant is a person of good character,

19

honesty and integrity and is eligible and suitable to receive an

20

occupation permit.

21

(d)  Nontransferability.-–An occupation permit issued under

22

this section shall be nontransferable.

23

(e)  Holder of occupation permit.–-Nothing in this section

24

shall be construed to prohibit an individual who holds a valid

25

occupation permit and who is employed by a slot machine licensee

26

from acting as a junket representative. A gaming junket

27

representative need not be a resident of this Commonwealth.

28

§ 1605.  Junket agreements.

29

Agreements entered into between a slot machine licensee and a

30

gaming junket enterprise or a gaming junket representative shall

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1

include a provision for the termination of the agreement without

2

liability on the part of the slot machine licensee if:

3

(1)  The board orders the suspension, limitation,

4

conditioning, denial or revocation of the license of a gaming

5

junket representative license or occupation permit of a

6

gaming junket representative.

7

(2)  The board disapproves the agreement and requires its

8

termination.

9

Failure to expressly include the termination requirement under

10

this section in the agreement shall not constitute a defense in

11

an action brought relating to the termination of the agreement.

12

§ 1606.  Conduct of junket.

13

A slot machine licensee shall be responsible for the conduct

14

of a gaming junket representative or gaming junket enterprise

15

with which the slot machine licensee has an agreement and for

16

the terms and conditions of a gaming junket on its premises.

17

§ 1607.  Violation of terms.

18

Notwithstanding any other provision of this part, if the

19

board determines that the terms of an agreement to conduct a

20

gaming junket were violated by a slot machine licensee, gaming

21

junket enterprise or gaming junket representative, the board may

22

do any or all of the following:

23

(1)  Order restitution to the gaming junket participant.

24

(2)  Assess civil penalties or sanctions under section

25

1518 (relating to prohibited acts; penalties) for a violation

26

or deviation from the terms of the junket agreement.

27

§ 1608.  Records.

28

The board shall prescribe procedures and forms to retain

29

records relating to the conduct of a gaming junket by a slot

30

machine licensee. A slot machine licensee shall:

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1

(1)  Maintain a current report of the operations of

2

gaming junkets conducted at its licensed facility.

3

(2)  Submit to the board and the bureau a list of all its

4

employees who conduct business on behalf of the slot machine

5

licensee with gaming junket representatives on a full-time,

6

part-time or temporary basis.

7

(3)  Maintain records of all agreements entered into with

8

a gaming junket enterprise or gaming junket representative

9

for a minimum of five years.

10

(4)  Provide any other information relating to a gaming

11

junket required by the board or bureau.

12

§ 1609.  Report.

13

A slot machine licensee, gaming junket representative or

14

gaming junket enterprise shall file a report with the bureau on

15

each list of gaming junket participants or potential gaming

16

junket participants purchased by the slot machine licensee,

17

gaming junket representative or gaming junket enterprise. The

18

report shall include the source of the list and zip codes of

19

participants or potential participants on a list purchased

20

directly or indirectly by a slot machine licensee, gaming junket

21

representative or gaming junket enterprise. Nothing in this

22

section shall require the reporting or maintenance of personal

23

identifying information pertaining to participants or potential

24

participants.

25

§ 1610.  Gaming junket arrangement.

26

Upon petition by a slot machine licensee, the board may grant

27

an exemption from the permit requirements of this chapter to a

28

gaming junket representative. The board shall consult with the

29

bureau prior to granting an exemption under this section and

30

shall consider the following:

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1

(1)  The terms of the gaming junket arrangement.

2

(2)  The number and scope of gaming junkets.

3

(3)  Whether the exemption is consistent with the

4

policies and purposes of this part.

5

(4)  Any other factor deemed necessary by the bureau or

6

board.

7

The board may condition, limit or restrict the exemption.

8

§ 1611.  Prohibitions.

9

A gaming junket enterprise or gaming junket representative

10

shall not do any of the following:

11

(1)  Engage in efforts to collect on any check provided

12

by a gaming junket participant that has been returned by a

13

financial institution without payment.

14

(2)  Exercise approval authority over the authorization

15

or issuance of credit under section 1327A (relating to other

16

financial transactions).

17

(3)  Receive or retain a fee from an individual for the

18

privilege of participating in a gaming junket.

19

(4)  Pay for any service, including transportation, or

20

other thing of value provided to a participant participating

21

in a gaming junket except as authorized by this part.

22

CHAPTER 17

23

GAMING SCHOOLS

24

Sec.

25

1701.  Curriculum.

26

1701.1.  (Reserved).

27

1702.  Gaming school gaming equipment.

28

§ 1701.  Curriculum.

29

The Department of Labor and Industry, in consultation with

30

the Department of Education and the board, shall, within 60 days

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1

following the effective date of this section, develop curriculum

2

guidelines, including minimum proficiency requirements

3

established by the board, for gaming school instruction. The

4

guidelines shall, at a minimum, establish courses of instruction

5

that will provide individuals with adequate job training

6

necessary to obtain employment as a gaming employee with a

7

licensed gaming entity.

8

§ 1701.1.  (Reserved).

9

§ 1702.  Gaming school gaming equipment.

10

(a)  Use of gaming equipment.--All gaming equipment utilized

11

by a gaming school, including slot machines, table game devices,

12

associated equipment and all representations of value, shall be

13

used for training, instructional and practice purposes only. The

14

use of any such gaming equipment for actual gaming by any person

15

is prohibited.

16

(b)  Chips.--Unless the board otherwise determines, all

17

gaming chips and other representations of value utilized by a

18

gaming school shall be distinctly dissimilar to any chips

19

utilized by a slot machine licensee.

20

(c)  Possession, removal and transport of equipment.--No

21

gaming school shall possess, remove or transport, or cause to be

22

removed or transported, any slot machine, table game device or

23

associated equipment except in accordance with this part.

24

(d)  Serial numbers.--Each slot machine, table game device

25

and associated equipment on the premises of a gaming school

26

shall have permanently affixed on it a serial number which,

27

together with the location of the machine or table game device,

28

shall be filed with the board.

29

(e)  Security.--Each gaming school shall provide adequate

30

security for the slot machines, table games, table game devices

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1

and associated equipment on the gaming school premises.

2

(f)  Notice to board and bureau.--No gaming school shall sell

3

or transfer any slot machine, table game, table game device or

4

associated equipment except upon prior written notice to the

5

board and the bureau.

6

(g)  Additional training.--Each individual attending gaming

7

school shall be trained in cardiopulmonary resuscitation.

8

Section 18.3.  Section 1901(a) of Title 4 is amended to read:

9

§ 1901.  Appropriations.

10

(a)  Appropriation to board.--

11

(1)  The sum of $7,500,000 is hereby appropriated to the

12

Pennsylvania Gaming Control Board for the fiscal period July

13

1, 2004, to June 30, 2006, to implement and administer the

14

provisions of this part. The money appropriated in this

15

subsection shall be considered a loan from the General Fund

16

and shall be repaid to the General Fund quarterly commencing

17

with the date slot machine licensees begin operating slot

18

machines under this part. This appropriation shall be a two-

19

year appropriation and shall not lapse until June 30, 2006.

20

(2)  The sum of $2,100,000 is hereby appropriated from

21

the State Gaming Fund to the Pennsylvania Gaming Control

22

Board for salaries, wages and all necessary expenses for the

23

proper operation and administration of the Pennsylvania

24

Gaming Control Board for the expansion of gaming associated

25

with table games. This appropriation shall be a supplemental

26

appropriation for fiscal year 2009-2010 and shall be in

27

addition to the appropriation contained in the act of August

28

19, 2009 (P.L.  , No.9A), known as the Gaming Control

29

Appropriation Act of 2009.

30

* * *

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1

Section 18.4.  Title 4 is amended by adding a section to

2

read:

3

§ 1901.2.  Commonwealth Financing Authority.

4

The Commonwealth Financing Authority shall establish

5

accounts, administer and distribute the funds deposited into the

6

accounts and perform all other duties of the Commonwealth

7

Financing Authority required under this part.

8

Section 19.  No later than 90 days after the effective date

9

of this section, the Pennsylvania Gaming Control Board shall

10

transfer the sum of $12,500,000 from the amounts previously

11

appropriated to the Pennsylvania Gaming Control Board pursuant

12

to 4 Pa.C.S. § 1408 to the General Fund.

13

Section 19.1.  No later than ten business days after the

14

effective date of this section, the Department of Revenue shall

15

pay to each Category 1 and Category 2 slot machine licensee from

16

its existing account established under 4 Pa.C.S. § 1401(a) an

17

amount sufficient to bring the balance in the account to

18

$1,500,000.

19

Section 19.2.   The Pennsylvania Gaming Control Board shall

20

receive and accept for consideration additional applications for

21

a Category 3 license in accordance with 4 Pa.C.S. § 1305 if the

22

license has not been approved by the board on the effective date

23

of this section. An applicant that filed an application for a

24

Category 3 license prior to the effective date of this section

25

shall not be required to resubmit the application. The

26

additional application period shall be for 90 days from the

27

effective date of this section. This section shall supersede any

28

prior application period established under 4 Pa.C.S. Pt. II.

29

Section 19.3.  The provisions of this act are severable. If

30

any provision of this act or its application to any person or

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1

circumstance is held invalid, the invalidity shall not affect

2

other provisions or applications of this act which can be given

3

effect without the invalid provision or application.

4

Section 19.4.  The amendment of 4 Pa.C.S. § 1201(h)(13)(i)

5

shall not apply to individuals employed on the effective date of

6

this section by the Pennsylvania Gaming Control Board until July

7

1, 2010.

8

Section 19.5.  Repeals are as follows:

9

(1)  The General Assembly declares that the repeal under

10

paragraph (2) is necessary to effectuate the amendment or

11

addition of 4 Pa.C.S. § 1407(d)(7) and (d.1).

12

(2)  The following provisions of the act of July 25, 2007

13

(P.L.342, No.53), known as the Pennsylvania Gaming Economic

14

Development and Tourism Fund Capital Budget Itemization Act

15

of 2007, are repealed to the extent specified:

16

(i)  Section 3(2)(i)(G), absolutely.

17

(ii)  Section 4(7), absolutely.

18

(iii)  Section 5, insofar as inconsistent with this

19

act.

20

Section 19.6.  The amendment of 4 Pa.C.S. § 1406(a) shall

21

apply retroactively to January 1, 2010. 

22

Section 20.  The following shall apply:

23

(1)  The amendment of 4 Pa.C.S. § 1213 shall not apply to

24

any of the following:

25

(i)  An application submitted before the effective

26

date of this section.

27

(ii)  Any license or permit issued prior to the

28

effective date of this section.

29

(iii)  The renewal of any license or permit issued or

30

applied for prior to the effective date of this section.

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1

(2)  The amendment of 4 Pa.C.S. § 1202(a)(2) and the

2

addition of 4 Pa.C.S. § 1517(c)(1.1) shall not apply to an

3

individual:

4

(i)  who, on July 1, 2009, was serving officially or

5

acting as Executive Director of the Pennsylvania Gaming

6

Control Board, Chief Counsel of the board, or the

7

Director of the Office of Enforcement Counsel within the

8

Bureau of Investigations and Enforcement; and

9

(ii)  on whom the bureau or the Pennsylvania State

10

Police completed a background investigation as a

11

condition of employment with the board.

12

(3)  The amendment or addition of 4 Pa.C.S. § 1201(h)

13

(4.1) and (5) shall not apply to:

14

(i)    an individual appointed to the Pennsylvania

15

Gaming Control Board before July 1, 2010; or

16

(ii)  an individual under subparagraph (i) who is

17

reappointed to the Pennsylvania Gaming Control Board.

18

Section 21.  This act shall take effect as follows:

19

(1)  The following provisions shall take effect July 1,  

20

2011:

21

(i)  The amendment of 4 Pa.C.S. § 1407.

22

(ii)  Section 19.5 of this act.

23

(2)  The amendment of 4 Pa.C.S. § 1307 increasing the

24

number of Category 3 licensed facilities authorized by 4

25

Pa.C.S. Pt. II from two to three shall take effect:

26

(i)  on July 20, 2017, if all Category 3 licensed

27

facilities authorized by 4 Pa.C.S. Pt. II before the

28

effective date of this subparagraph have commenced the

29

operation of slot machines; or

30

(ii)  if all Category 3 licensed facilities

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1

authorized by 4 Pa.C.S. Pt. II before the effective date

2

of this subparagraph have not commenced operation on or

3

before July 20, 2017, upon a written determination of the

4

Pennsylvania Gaming Control Board issued after July 20,

5

2017, that all Category 3 licensed facilities authorized

6

by 4 Pa.C.S. Pt. II before the effective date of this

7

subparagraph have commenced the operation of slot

8

machines.

9

(3)  The remainder of this act shall take effect immediately.

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