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| PRIOR PRINTER'S NOS. 110, 2552 | PRINTER'S NO. 3424 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY SCHRODER, TURZAI, SAYLOR, VEREB, M. O'BRIEN, BAKER, BARRAR, CARROLL, D. COSTA, GROVE, MURPHY, RAPP, REESE, ROAE, SWANGER, VULAKOVICH, WATSON, PICKETT AND MURT, JANUARY 24, 2011 |
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| AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, APRIL 30, 2012 |
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| AN ACT |
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1 | Amending Title 4 (Amusements) of the Pennsylvania Consolidated |
2 | Statutes, providing for Internet gambling public awareness | <-- |
3 | campaign and for revocation and auction of slot machine |
4 | license; and further providing for Category 2 slot machine | <-- |
5 | license and, for number of slot machine licenses and for | <-- |
6 | table game taxes; and providing for prohibition on use of | <-- |
7 | State funds. | <-- |
8 | The General Assembly of the Commonwealth of Pennsylvania |
9 | hereby enacts as follows: |
10 | Section 1. Title 4 of the Pennsylvania Consolidated Statutes | <-- |
11 | is amended by adding a section to read: |
12 | Section 1. Title 4 of the Pennsylvania Consolidated Statutes | <-- |
13 | is amended by adding sections to read: |
14 | § 1207.1. Internet gambling public awareness campaign. |
15 | (a) General rule.--The board shall establish an Internet |
16 | gambling public awareness campaign in order to promote awareness |
17 | among the general public of issues relating to Internet |
18 | gambling. |
19 | (b) Campaign.--The public awareness campaign shall include |
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1 | the development and implementation of public awareness and |
2 | outreach efforts to inform the public about Internet gambling, |
3 | including, but not limited to, the following subjects: |
4 | (1) The legal status of Internet gambling in this |
5 | Commonwealth. |
6 | (2) The fact that Internet gambling is unregulated by |
7 | the Commonwealth, and that the fairness and integrity of |
8 | Internet gambling cannot be guaranteed. |
9 | (3) The risks of being defrauded of potentially large |
10 | amounts of money when gambling on the Internet. |
11 | (4) The risks to personal safety and bodily harm when |
12 | using personal identification on the Internet. |
13 | (5) The risks of identity theft when using personal |
14 | identification or financial information to gamble on the |
15 | Internet. |
16 | (6) Special risks for underage and problem gamblers when |
17 | gambling on the Internet. |
18 | (7) Access to services for problem gamblers, including |
19 | contact information for the Council on Compulsive Gambling |
20 | and the Department of Health. |
21 | (c) Agency coordination.--The board shall coordinate its |
22 | efforts with any activities being undertaken by other State |
23 | agencies to provide information to the public about Internet |
24 | gambling. |
25 | (d) Written information.--The board, within the limits of |
26 | funds available for this purpose, shall seek to utilize both |
27 | electronic and print media, and may prepare and disseminate such |
28 | written information as it deems necessary to accomplish the |
29 | purposes of this section. |
30 | (e) Electronic information.--The board shall make available |
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1 | electronically on its Internet website in both English and |
2 | Spanish, and any other language it deems necessary and |
3 | appropriate, information about Internet gambling as described in |
4 | subsection (b). |
5 | (f) Resources.--The board may accept, for the purposes of |
6 | the public awareness campaign, any special grant of funds, |
7 | services or property from the Federal Government or any of its |
8 | agencies, or from any foundation, organization or other entity. |
9 | (g) Report.--The board shall report to the Governor and the |
10 | General Assembly, not later than 18 months after the effective |
11 | date of this section, on the activities and accomplishments of |
12 | the Internet gambling public awareness campaign. |
13 | § 1209.1. Revocation and auction of slot machine license. |
14 | (a) General rule.-- |
15 | (1) Within 30 days after the revocation of a slot |
16 | machine license, the board shall initiate a public auction of |
17 | the slot machine license and table game operation certificate |
18 | for the highest responsible bid that will provide the |
19 | greatest amount of prospective projected total revenue to the | <-- |
20 | Commonwealth, and otherwise serves the interests of the |
21 | citizens of Pennsylvania. The awarding of the slot machine |
22 | license and table game operation certificate shall be |
23 | conditional on the successful bidder's prospective licensee's | <-- |
24 | ability to satisfy the qualifications as provided in this |
25 | part and board regulations. The auction shall be conducted in |
26 | such a manner as to maximize the price for each slot machine |
27 | license and table game operation certificate. In no case may |
28 | a Category 1 slot machine license and table game operation |
29 | certificate be sold awarded for a fee lower than $66,500,000. | <-- |
30 | In no case may a Category 2 slot machine license and table |
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1 | game operation certificate be sold awarded for a fee lower | <-- |
2 | than $66,500,000. In no case may a Category 3 slot machine |
3 | license and table game operation certificate be sold awarded | <-- |
4 | for a fee lower than $12,500,000. | <-- |
5 | (1.1) For purposes of this section only, the ownership |
6 | or financial interest restrictions in section 1330 (relating |
7 | to multiple slot machine license prohibition) shall not |
8 | apply. |
9 | (2) The board shall adopt procedures and regulations to |
10 | facilitate the conduct of the public auction in such a manner |
11 | as to maximize the price for each slot machine license and |
12 | table game operation certificate. |
13 | (b) Bidding procedures.--The open and competitive bidding |
14 | process shall adhere to the following procedures: |
15 | (1) The board shall make applications for the slot |
16 | machine license available to applicants pursuant to section |
17 | 1309 (relating to slot machine license application) and allow |
18 | a reasonable time for applicants to submit applications as |
19 | well as petitions for authorization to conduct table games |
20 | pursuant to section 13A12 (relating to petition requirements) |
21 | to the board. |
22 | (2) During the filing period of slot machine license |
23 | applications and petitions to conduct table games, the board |
24 | shall retain the services of a financial advisory firm to |
25 | assist the board in conducting the open and competitive |
26 | bidding process. |
27 | (3) A bidder prospective licensee must submit a | <-- |
28 | definitive, noncontingent offer to purchase binding proposal | <-- |
29 | to accept the award of the slot machine license and table |
30 | game operation certificate. The binding proposal shall | <-- |
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1 | provide must include the following: | <-- |
2 | (i) The consideration to be paid by the prospective |
3 | purchaser licensee. | <-- |
4 | (ii) Identification of all sources of external |
5 | financing involved in the transaction and submission of |
6 | all relevant commitment letters and other evidence of |
7 | financing. |
8 | (iii) Identification of the proposed location of the |
9 | new licensed facility. |
10 | (iv) Details of agreements with the municipality |
11 | where the licensed facility is to be located, including: |
12 | (A) Evidence of municipal approval to the |
13 | applicant for the licensed facility. |
14 | (B) Background and status of any discussions and |
15 | agreements with municipalities regarding the |
16 | construction of a licensed facility. |
17 | (v) A list of any regulatory, corporate or other |
18 | approvals required to consummate a transaction. |
19 | (vi) Information responsive to any other request for |
20 | information made by the board or the financial advisory |
21 | firm. |
22 | (vii) A discussion description of the proposed | <-- |
23 | ownership structure, including any other equity |
24 | participants in the binding proposal. |
25 | (viii) A business plan for the proposed licensed |
26 | facility, including: |
27 | (A) General statement of financial viability. |
28 | (B) Proposed corporate involvement in charitable |
29 | activity. |
30 | (C) Revenue sharing with other communities. | <-- |
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1 | (ix) Projected financial statements through 2012. | <-- |
2 | for five years following the projected date to commence | <-- |
3 | gaming operations at the licensed facility. |
4 | (x) Date by which the prospective purchaser licensee | <-- |
5 | will commit to commence gaming operations at the licensed |
6 | facility. |
7 | (xi) A projected date until which the prospective | <-- |
8 | purchaser licensee agrees to keep such binding proposal | <-- |
9 | open and irrevocable. |
10 | (4) After receiving Within five days of its receipt of | <-- |
11 | all of the bid proposals, the board shall open disclose the | <-- |
12 | content of all of the proposals in a public forum and | <-- |
13 | disclose the prospective owners' names, venture partners, if |
14 | any, and in the case of applicants for owners' licenses, the |
15 | locations of the proposed development sites., including: | <-- |
16 | (i) owners' names; |
17 | (ii) venture partners, if any; and |
18 | (iii) in the case of applicants for owners' |
19 | licenses, the locations of the proposed development |
20 | sites. |
21 | (5) No later than six 30 business days following the | <-- |
22 | opening of the binding proposals, the financial advisory firm |
23 | shall deliver to the board a summary analysis of each binding |
24 | proposal as such has been refined and clarified by the |
25 | prospective owners. |
26 | (6) The board shall evaluate the proposals within a |
27 | reasonable time and select no more than three final |
28 | applicants to participate in an auction. |
29 | (7) Following the selection of the three final | <-- |
30 | applicants, the board shall do all of the following: |
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1 | (i) Hold public hearings under section 1205 |
2 | (relating to license or permit application hearing |
3 | process; public input hearings). |
4 | (ii) Evaluate the winning bid within a reasonable |
5 | period of time for license suitability in accordance with |
6 | all applicable statutory and regulatory criteria, |
7 | including compliance with sections 1310 (relating to slot |
8 | machine license application character requirements), 1313 |
9 | (relating to slot machine license application financial |
10 | fitness requirements), 1316 (relating to bond for |
11 | issuance of slot machine license) and proof of financial |
12 | ability as required by section 13A12(b)(9). |
13 | (7) (8) By agreeing to participate in the auction or by | <-- |
14 | making a presentation to the board if so requested, each |
15 | competing bidder prospective licensee is agreeing that a | <-- |
16 | binding proposal, as refined and clarified, shall remain open |
17 | and irrevocable until the date indicated by such prospective |
18 | purchaser licensee in such proposal. The date indicated shall | <-- |
19 | in no event be less than 30 days following the auction. |
20 | (8) (9) After the auction and following the | <-- |
21 | presentations, the board shall identify a competing bidder | <-- |
22 | prospective licensee as the leading proposal winning | <-- |
23 | prospective licensee for the auction. |
24 | (9) Upon selection of a winning bid, the board shall | <-- |
25 | evaluate the winning bid within a reasonable period of time |
26 | for license suitability in accordance with all applicable |
27 | statutory and regulatory criteria, including compliance with |
28 | the bond requirements of sections 1313 (relating to slot |
29 | machine license application financial fitness requirements) |
30 | and 1316 (relating to bond for issuance of slot machine |
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1 | license) and proof of financial ability as required by |
2 | section 13A12(b)(9). |
3 | (10) If the winning bidder prospective licensee is | <-- |
4 | unable or otherwise fails to consummate the transaction, |
5 | including if the board determines that the winning bidder |
6 | does not satisfy the suitability requirements pursuant to |
7 | this part, the board may, on the same criteria, select from |
8 | the remaining bidders prospective licensees. | <-- |
9 | (c) Collusion among bidders prospective licensees.-- | <-- |
10 | Collusion among bidders prospective licensees is unlawful. Any | <-- |
11 | contract or conspiracy which unreasonably results in |
12 | underbidding is unlawful. When any person has reason to believe |
13 | collusion or other anticompetitive practices have occurred among |
14 | any bidders prospective licensees, a notice of the relevant | <-- |
15 | facts shall be transmitted to the Attorney General, who shall |
16 | investigate the reports. A bidder prospective licensee who | <-- |
17 | violates this section shall be penalized pursuant to section |
18 | 1518(b)(ii) (relating to prohibited acts; penalties). |
19 | (d) Proceeds.--The proceeds of the sale or auction of the |
20 | slot machine license and table game operation certificate shall |
21 | be deposited pursuant to sections 1209 (relating to slot machine | <-- |
22 | license fee) and 13A61 (relating to table game authorization |
23 | fee) into the Property Tax Relief Fund. | <-- |
24 | (e) Temporary regulations.-- | <-- |
25 | (1) In order to facilitate the prompt implementation of |
26 | this section, regulations promulgated by the board shall be |
27 | deemed temporary regulations which shall expire not later |
28 | than two years following the publication of the temporary |
29 | regulation. The board may promulgate temporary regulations |
30 | not subject to any of the following: |
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1 | (i) Sections 201, 202, 203, 204 and 205 of the act |
2 | of July 31, 1968 (P.L.769, No.240), referred to as the |
3 | Commonwealth Documents Law. |
4 | (ii) Section 204(b) of the act of October 15, 1980 |
5 | (P.L.950, No.164), known as the Commonwealth Attorneys |
6 | Act. |
7 | (iii) The act of June 25, 1982 (P.L.633, No.181), |
8 | known as the Regulatory Review Act. |
9 | (2) The board's authority to promulgate temporary |
10 | regulations under paragraph (1) shall expire one year after |
11 | the effective date of this section. Regulations adopted after |
12 | this period shall be promulgated as provided by law. |
13 | (e) (f) Definition.--As used in this section, "revocation" | <-- |
14 | means a decision by the board to revoke a slot machine license |
15 | that is final, binding, nonappealable and is not subject to a |
16 | pending legal challenge. |
17 | Section 2. Sections 1304(b) and 1307 of Title 4 are amended |
18 | to read: |
19 | § 1304. Category 2 slot machine license. |
20 | * * * |
21 | (b) Location.-- |
22 | (1) [Two] (i) Subject to the provisions of paragraph |
23 | (1.1), not more than two Category 2 licensed facilities |
24 | [and no more shall] may be located by the board within a |
25 | city of the first class, and not more than one Category 2 |
26 | licensed facility [and no more shall] may be located by |
27 | the board within a city of the second class. |
28 | (ii) No Category 2 licensed facility located by the |
29 | board within a city of the first class shall be within |
30 | ten linear miles of a Category 1 licensed facility |
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1 | regardless of the municipality where the Category 1 |
2 | licensed facility is located. Except for any Category 2 |
3 | licensed facility located by the board within a city of |
4 | the first class or a city of the second class, no |
5 | Category 2 licensed facility shall be located within 30 |
6 | linear miles of any Category 1 licensed facility that has |
7 | conducted over 200 racing days per year for the two |
8 | calendar years immediately preceding the effective date |
9 | of this part and not within 20 linear miles of any other |
10 | Category 1 licensed facility. Except for any Category 2 |
11 | licensed facility located by the board within a city of |
12 | the first class, no Category 2 licensed facility shall be |
13 | located within 20 linear miles of another Category 2 |
14 | licensed facility. |
15 | (1.1) In the event that a license for a Category 2 |
16 | licensed facility to be located within a city of the first |
17 | class, which license was issued prior to the effective date |
18 | of this paragraph, is revoked by the board prior to |
19 | commencement of operations of the Category 2 licensed |
20 | facility, then the board shall reissue the revoked Category 2 |
21 | slot machine license, pursuant to section 1209.1 (relating to |
22 | revocation and action of slot machine license) to another |
23 | applicant located anywhere in this Commonwealth for a |
24 | Category 2 licensed facility, provided that: |
25 | (i) no more than two Category 2 licensed facilities |
26 | may be located within a city of the first class; |
27 | (ii) no more than one Category 2 licensed facility |
28 | may be located in a city of the second class; and |
29 | (iii) the provisions of paragraph (1)(ii) are |
30 | satisfied. |
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1 | (2) Within five days of approving a license for an |
2 | applicant with a proposed licensed facility consisting of |
3 | land designated a subzone, an expansion subzone or an |
4 | improvement subzone under the Keystone Opportunity Zone, |
5 | Keystone Opportunity Expansion Zone and Keystone Opportunity |
6 | Improvement Zone Act for a slot machine license under this |
7 | section, the board shall notify the Department of Community |
8 | and Economic Development. The notice shall include a |
9 | description of the land of the proposed licensed facility |
10 | which is designated a subzone, an expansion subzone or an |
11 | improvement subzone. Within five days of receiving the notice |
12 | required by this paragraph, the Secretary of Community and |
13 | Economic Development shall decertify the land of the proposed |
14 | licensed facility as being a subzone, an expansion subzone or |
15 | an improvement subzone. Upon decertification in accordance |
16 | with this paragraph and notwithstanding Chapter 3 of the |
17 | Keystone Opportunity Zone, Keystone Opportunity Expansion |
18 | Zone and Keystone Opportunity Improvement Zone Act, a |
19 | political subdivision may amend the ordinance, resolution or |
20 | other required action which granted the exemptions, |
21 | deductions, abatements or credits required by the Keystone |
22 | Opportunity Zone, Keystone Opportunity Expansion Zone and |
23 | Keystone Opportunity Improvement Zone Act to repeal the |
24 | exemptions, deductions, abatements or credits for the land |
25 | decertified. |
26 | (3) Notwithstanding any other provision of law, the |
27 | governing body of a city of the first class shall not exempt |
28 | from real property taxation or provide any real property tax |
29 | abatement under the act of December 1, 1977 (P.L.237, No.76), |
30 | known as the Local Economic Revitalization Tax Assistance |
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1 | Act, to a Category 2 licensed facility located within the |
2 | city, or any improvements to such facility, unless the owner |
3 | of the licensed facility enters into or has entered into a |
4 | tax settlement agreement or payment in lieu of taxes |
5 | agreement with the city, including any amendments, |
6 | supplements or modifications of such agreements. |
7 | § 1307. Number of slot machine licenses. |
8 | The board may license no more than seven Category 1 licensed |
9 | facilities and no more than five Category 2 licensed facilities, |
10 | as it may deem appropriate, as long as [two, and not more ,] not |
11 | more than two Category 2 licensed facilities are located by the |
12 | board within the city of the first class and [that one, and not |
13 | more,] not more than one Category 2 licensed facility is located |
14 | by the board within the city of the second class, except in the |
15 | case of license revocation, wherein the provisions of section |
16 | 1304(b)(1.1) (relating to Category 2 slot machine license) shall |
17 | apply. The board may at its discretion increase the total number |
18 | of Category 2 licensed facilities permitted to be licensed by |
19 | the board by an amount not to exceed the total number of |
20 | Category 1 licenses not applied for within five years following |
21 | the effective date of this part. Except as permitted by section |
22 | 1328 (relating to change in ownership or control of slot machine |
23 | licensee), any Category 1 license may be reissued by the board |
24 | at its discretion as a Category 2 license if an application for |
25 | issuance of such license has not been made to the board. The |
26 | board may license no more than three Category 3 Licensed |
27 | facilities. |
28 | Section 3. Section 13A62(a)(1) and (3) of Title 4 are | <-- |
29 | amended and subsection (b) is amended by adding a paragraph to |
30 | read: |
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1 | § 13A62. Table game taxes. |
2 | (a) Imposition.-- |
3 | (1) Except as provided in paragraphs (2) and (3), each |
4 | certificate holder shall report to the department and pay |
5 | from its daily gross table game revenue, on a form and in the |
6 | manner prescribed by the department, a tax of [12%] 14% of |
7 | its daily gross table game revenue. |
8 | * * * |
9 | [(3) The tax reported and payable under paragraph (1) by |
10 | each certificate holder shall be 14% of daily gross table |
11 | game revenue for a period of two years following commencement |
12 | of table games operations at its licensed facility.] |
13 | (b) Deposits and distributions.-– |
14 | * * * |
15 | (4) Beginning with fiscal year 2012-2013, the department |
16 | shall make an annual distribution of 2% of each certificate |
17 | holder's daily gross table game revenue to the Property Tax |
18 | Relief Fund. |
19 | * * * |
20 | Section 4. Title 4 is amended by adding a section to read: | <-- |
21 | § 1410. Prohibition on use of State funds. |
22 | (a) General rule.--No moneys of any fund in the State |
23 | Treasury may be used directly or indirectly by a Commonwealth |
24 | agency for the relocation of a licensed facility, and no |
25 | Commonwealth agency shall provide State funds to any |
26 | municipality or instrumentality thereof for the purpose of |
27 | relocating a licensed facility. |
28 | (b) Definitions.--As used in this section, the following |
29 | words and phrases shall have the meanings given to them in this |
30 | subsection: |
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1 | "Commonwealth agency." The term shall have the meaning given |
2 | to it in section 102 of the act of February 14, 2008 (P.L.6, |
3 | No.3), known as the Right-to-Know Law. |
4 | Section 3 5. This act shall take effect immediately. | <-- |
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