THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY ORIE, RAFFERTY, PICCOLA, WASHINGTON, MENSCH AND GREENLEAF, MARCH 23, 2012

REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, MARCH 23, 2012  

AN ACT

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

Statutes, in general provisions, further providing for

legislative intent and for definitions; transferring certain

powers and duties of the Department of Revenue and the Bureau

of Investigations and Enforcement of the Pennsylvania Gaming

Control Board to the Division of Gaming Enforcement of the

Office of Attorney General; in Pennsylvania Gaming Control

Board, further providing for establishment of board, for

general and specific powers and for reports of board; in

licensees, further providing for licensing of principals; in

administration and enforcement, further providing for

investigations and enforcement and for prohibited acts and

penalties; and providing for audit by Auditor General.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1102(8) of Title 4 of the Pennsylvania

Consolidated Statutes is amended and the section is amended by

adding a paragraph to read:

§ 1102.  Legislative intent.

The General Assembly recognizes the following public policy

purposes and declares that the following objectives of the

Commonwealth are to be served by this part:

* * *

(1.1)  Since limited gaming operations are especially

sensitive and in need of public control and supervision and

since it is vital to the interests of the Commonwealth to

prevent entry, directly or indirectly, into limited gaming

operations or the ancillary industries regulated by this part

of persons who have pursued economic gains in an occupational

manner or context which are in violation of the criminal or

civil laws of this Commonwealth, the regulatory and

investigatory powers and duties shall be exercised by the

Division of Gaming Enforcement of the Office of Attorney

General, the Pennsylvania State Police and the Pennsylvania

Gaming Control Board to the fullest extent consistent with

law to avoid entry of such persons into the limited gaming

operations or the ancillary industries regulated by this

part.

* * *

(8)  Strictly monitored and enforced control over all

limited gaming authorized by this part shall be provided

through regulation, licensing and appropriate enforcement

actions of specified locations, persons, associations,

practices, activities, licensees and permittees by the

Division of Gaming Enforcement of the Office of Attorney

General, the Pennsylvania State Police and the Pennsylvania

Gaming Control Board.

* * *

Section 2.  The definition of "bureau" in section 1103 of

Title 4 is amended and the section is amended by adding a

definition to read:

§ 1103.  Definitions.

The following words and phrases when used in this part shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

["Bureau."  The Bureau of Investigations and Enforcement of

the Pennsylvania Gaming Control Board.]

* * *

"Division."  The Division of Gaming Enforcement of the Office

of Attorney General.

* * *

Section 3.  Section 1201(b)(1), (h)(9), (13) and (14.1) and

(m)(3) of Title 4 are amended, subsection (h) is amended by

adding paragraphs and the section is amended by adding a

subsection to read:

§ 1201.  Pennsylvania Gaming Control Board established.

* * *

(b)  Membership.--The board shall consist of the following

members:

(1)  Three members appointed by the Governor, at least

one of whom possesses a minimum of ten years' Federal or

state law enforcement employment experience and at least one

of whom possesses a minimum of ten years' private business or

finance employment experience.

* * *

(f.1)  Executive session.--The board may not meet in

executive session for the purpose of conducting quasi-judicial

deliberations involving slot machine license applications,

except to consider confidential information as provided under

section 1206(f) (relating to board minutes and records).

* * *

(h)  Qualifications and restrictions.--

* * *

(2.1)  No officer, director or key employee of a licensed

entity shall be appointed a member of the board for four

years following termination of the term of office or

employment with the licensed entity.

* * *

(9)  No member or employee of the board may accept

employment with any applicant, licensed entity, or an

affiliate, intermediary, subsidiary or holding company

thereof, for a period of [two] four years from the

termination of term of office[.] or employment.

(9.1)  No member may:

(i)  be an applicant or former applicant;

(ii)  be a principal of a licensed entity; or

(iii)  have any ownership control in any affiliate,

intermediary, subsidiary or holding company thereof.

* * *

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

board [whose duties substantially involve licensing,

enforcement, development of law, promulgation of regulations

or development of policy, relating to gaming under this part

or who has other discretionary authority which may affect or

influence the outcome of an action, proceeding or decision

under this part], including the executive director, bureau

directors and attorneys:

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

four years following termination of employment, accept

employment with or be retained by an applicant or a

licensed entity or by an affiliate, intermediary,

subsidiary or holding company of an applicant or a

licensed entity.

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

four years following termination of employment, appear

before the board in a hearing or proceeding or

participate in activity on behalf of any applicant,

licensee, permittee or licensed entity or on behalf of an

affiliate, intermediary, subsidiary or holding company of

any applicant, licensee, permittee or licensed entity.

(iii)  An applicant or a licensed entity or an

affiliate, intermediary, subsidiary or holding company of

an applicant or a licensed entity may not, until the

expiration of [two] four years following termination of

employment, employ or retain the individual. Violation of

this subparagraph shall result in termination of the

individual's employment and subject the violator to

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

(iv)  A prospective employee who, upon employment,

would be subject to this paragraph must, as a condition

of employment, sign an affidavit that the prospective

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

the prospective employee fails to sign the affidavit, the

board shall rescind any offer of employment and shall not

employ the individual.

* * *

(14.1)  The State Ethics Commission shall publish a list

of all employment positions [within] of the board and all 

employment positions within independent contractors whose

duties would subject the individuals in those positions to

the provisions of [paragraphs (13) and] paragraph (13.1). The

board [and each] shall assist the State Ethics Commission by

providing a list of employment positions of the board. Each 

independent contractor shall assist the State Ethics

Commission in the development of the list, which shall be

published by the State Ethics Commission in the Pennsylvania

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

Internet website. Upon request, all employees of the board

and each independent contractor shall have a duty to provide

the State Ethics Commission with adequate information to

accurately develop and maintain the list. The State Ethics

Commission may impose a civil penalty under 65 Pa.C.S. §

1109(f) (relating to penalties) upon an individual who fails

to cooperate with the State Ethics Commission under this

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

published by the State Ethics Commission shall not be subject

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

* * *

(m)  Employment requirements.--

* * *

(3)  The board shall obtain fingerprints and photographs

for each prospective employee consistent with the standards

adopted by the division in consultation with the Pennsylvania

State Police.

* * *

Section 4.  Section 1202(b)(9), (10), (25) and (28) of Title

4 are amended and the subsection is amended by adding paragraphs

to read:

§ 1202.  General and specific powers.

* * *

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

power and duty:

* * *

(9)  To require background investigations on applicants,

licensees, principals, key employees or permittees under the

jurisdiction of the board[.] to be conducted by the division. 

No licensee may obtain a contract or commence work at a

licensed facility prior to the completion of a background

investigation.

[(10)  To enter into an agreement with the Pennsylvania

State Police for the reimbursement of actual costs as

approved by the board to the Pennsylvania State Police for

the investigations. Investigations shall include information

in the possession of the Attorney General.]

* * *

[(25)  To promulgate regulations pertaining to the

operation of the bureau to insure separation of functions

between the bureau and the board. The board shall provide the

employees necessary to the bureau for enforcement of this

part.]

* * *

(28)  To prepare and, through the Governor, submit

annually to the General Assembly an itemized budget

consistent with Article VI of the act of April 9, 1929

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

consisting of the amounts necessary to be appropriated by the

General Assembly out of the accounts established under

section 1401 (relating to slot machine licensee deposits)

required to meet the obligations accruing during the fiscal

period beginning July 1 of the following year. The budget

shall include itemized recommendations for [the Attorney

General,] the department [and the Pennsylvania State Police]

as to the amount needed to meet [their] its obligations under

this part.

(28.1)  To establish and post on the board's Internet

website budgetary guidelines of the board, including a salary

matrix for members and employees of the board.

* * *

(31.1)  To post on the board's Internet website:

(i)  All contracts and contract-related information

of the board available to the public in accordance with

the act of February 14, 2008 (P.L.6, No.3), known as the

Right-to-Know Law.

(ii)  A description of all requests for access to

records under the Right-to-Know Law, including the total

number of record requests, the number of requests

approved, the number of requests denied and the number

and outcome of appeals from denials of access to records.

* * *

Section 5.  Sections 1202.1(e), 1202.2(a), 1206(f)(1),

1207(2) and (14), 1208(1), 1211(a), 1309(a)(9), 1310(b) and

1311(g) and (h) of Title 4 are amended to read:

§ 1202.1.  Code of conduct.

* * *

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

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

subsection:

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

engaged in or received by a member or hearing officer of the

board regarding the merits of or any fact in issue relating to a

pending matter before the board or hearing officer or which may

reasonably be expected to come before the board or hearing

officer in a contested on-the-record proceeding. The term shall

not include off-the-record communications by or between a member

or hearing officer of the board, the division, department,

Pennsylvania State Police[, Attorney General] or other law

enforcement official prior to the beginning of the proceeding

solely for the purpose of seeking clarification or correction to

evidentiary materials intended for use in the proceedings. The

term shall also not include communications between the board or

a member and the office of chief counsel.

§ 1202.2.  Expenses of regulatory agencies.

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

employees of the department and the [Office of Attorney General]

division, and troopers and employees of the Pennsylvania State

Police, whose duties involve the regulation or enforcement of

gaming under this part who are seeking reimbursement from funds

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

license or a slot machine licensee or from the assessments made

by the department under section 1402(a)(relating to gross

terminal revenue deductions) may be reimbursed only for actual

and reasonable expenses incurred during the performance of their

duties under this part.

* * *

§ 1206.  Board minutes and records.

* * *

(f)  Confidentiality of information.--

(1)  The following information submitted by an applicant,

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

to slot machine license application character requirements)

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

or obtained by the board or the [bureau] division as part of

a background or other investigation from any source shall be

confidential and withheld from public disclosure:

(i)  All information relating to character, honesty

and integrity, including family, habits, reputation,

history of criminal activity, business activities,

financial affairs and business, professional and personal

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

or otherwise obtained by the board or the [bureau]

division.

(ii)  Nonpublic personal information, including home

addresses, telephone numbers and other personal contact

information, Social Security numbers, educational

records, memberships, medical records, tax returns and

declarations, actual or proposed compensation, financial

account records, creditworthiness or financial condition

relating to an applicant, licensee or permittee or the

immediate family thereof.

(iii)  Information relating to proprietary

information, trade secrets, patents or exclusive

licenses, architectural and engineering plans and

information relating to competitive marketing materials

and strategies, which may include customer-identifying

information or customer prospects for services subject to

competition.

(iv)  Security information, including risk prevention

plans, detection and countermeasures, location of count

rooms, emergency management plans, security and

surveillance plans, equipment and usage protocols and

theft and fraud prevention plans and countermeasures.

(v)  Information with respect to which there is a

reasonable possibility that public release or inspection

of the information would constitute an unwarranted

invasion into personal privacy of any individual as

determined by the board.

(vi)  Records of an applicant or licensee not

required to be filed with the Securities and Exchange

Commission by issuers that either have securities

registered under section 12 of the Securities Exchange

Act of 1934 (48 Stat. 881, 15 U.S.C. § 78l) or are

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

Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C.

§ 78o).

(vii)  Records considered nonpublic matters or

information by the Securities and Exchange Commission as

provided by 17 CFR 200.80 (relating to commission records

and information).

(viii)  Any financial information deemed confidential

by the board upon a showing of good cause by the

applicant or licensee.

* * *

§ 1207.  Regulatory authority of board.

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

* * *

(2)  Restrict access to confidential information in the

possession of the board which has been obtained under this

part and ensure that the confidentiality of information is

maintained and protected. Records shall be retained by the

board for seven years. The restrictions shall not apply to

the division.

* * *

(14)  Consult with members of the Pennsylvania State

Police, the [Office of Attorney General] division, the

department and such other persons it deems necessary for

advice regarding the various aspects of the powers and duties

imposed on it under this part and its jurisdiction over the

authorization,  operation and play of slot machines, table

games and licensed facilities.

* * *

§ 1208.  Collection of fees and fines.

The board has the following powers and duties:

(1)  To levy and collect fees from the various

applicants, licensees and permittees to fund the operations

of the board. Unless otherwise provided in this part, the 

fees shall be deposited into the State Gaming Fund as

established in section 1403 (relating to establishment of

State Gaming Fund and net slot machine revenue distribution)

and distributed to the board upon appropriation by the

General Assembly. In addition to the fees set forth in

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

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

shall assess and collect fees as follows:

(i)  Supplier licensees shall pay:

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

license to supply slot machines or associated

equipment used in connection with slot machines.

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

license to supply table game devices or associated

equipment used in connection with table games or

table game devices.

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

the appropriate supplier license. Upon the extension

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

(relating to supplier licenses), the fee shall be

$45,000 for the renewal.

(D)  Notwithstanding the fees established under

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

upon the board's determination that the fees will

unreasonably limit the availability of table game

devices or associated equipment used in connection

with table games or table game devices in this

Commonwealth.

(ii)  Manufacturer licensees shall pay:

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

license to manufacture slot machines and associated

equipment used in connection with slot machines.

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

license to manufacture table game devices or

associated equipment used in connection with table

games or table game devices.

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

the appropriate manufacturer license. Upon the

extension of the renewal period under section

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

fee shall be $90,000 for the renewal.

(D)  Notwithstanding the fees established under

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

upon the board's determination that the fees will

unreasonably limit the availability of table game

devices or associated equipment used in connection

with table games or table game devices in this

Commonwealth.

(iii)  Each application for a slot machine license,

supplier license or manufacturer license must be

accompanied by a nonrefundable fee set by the board for

the cost of each individual requiring a background

investigation. The reasonable and necessary costs and

expenses incurred in any background investigation or

other investigation or proceeding concerning any

applicant, licensee, permittee or registrant shall be

reimbursed to the board or the division, as appropriate, 

by those persons.

* * *

§ 1211.  Reports of board.

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

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

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

the General Assembly on the general operation of the board and

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

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

terminal revenue at each licensed facility during the previous

year, all taxes, fees, fines and other revenues collected and,

where appropriate, disbursed, the costs of operation of the

board, all hearings conducted and the results of the hearings

and other information that the board deems necessary and

appropriate. The board shall include in its report a listing of

the number of executive sessions conducted by the board and a

brief explanation describing the location of executive session

agendas on its Internet website. The agenda for each executive

session shall be posted on its Internet website.

* * *

§ 1309.  Slot machine license application.

(a)  General requirements.--In addition to any other

information required under this part or as may be required by

the board, the application for any category of slot machine

license shall include at a minimum:

* * *

(9)  The consent to conduct a background investigation by

the [board] division, the scope of which shall be determined

by the [board] division in its discretion consistent with the

provisions of this part, and a release signed by all persons

subject to the investigation of all information required to

complete the investigation.

* * *

§ 1310.  Slot machine license application character

requirements.

* * *

(b)  Civil judgments and [law enforcement] gaming or casino

enforcement or control agency information.--Each applicant shall

notify the division and the board of any civil judgments

obtained against the applicant pertaining to antitrust or

security regulation laws of the Federal Government, this

Commonwealth or any other state, jurisdiction, province or

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

reference from [law enforcement] gaming or casino enforcement or

control agencies having jurisdiction in the applicant's place of

residence and principal place of business, which letter of

reference shall indicate that the [law enforcement] gaming or

casino enforcement or control agencies do not have any pertinent

information concerning the applicant or, if the [law

enforcement] gaming or casino enforcement or control agency does

have information pertaining to the applicant, shall specify the

nature and content of that information. If no letters are

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

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

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

that the applicant is or was during the period the activities

were conducted in good standing with the gaming or casino

enforcement or control agency.

* * *

§ 1311.  Additional slot machine license requirements.

* * *

(g)  Ongoing duty.--A person applying for a license, permit

or other authorization under this part shall have the continuing

duty to provide information required by the board or the

[bureau] division and to cooperate in any inquiry or

investigation.

(h)  Criminal history record check.--The [board] division 

shall conduct a criminal history record check on any person for

whom a waiver is granted under this section.

Section 6.  Section 1311.1 of Title 4 is amended by adding a

subsection to read:

§ 1311.1.  Licensing of principals.

* * *

(a.1)  Ineligibility.--

(1)  The following persons, or an immediate family member

thereof, shall not be eligible for licensing as a principal

during the person's term of office or employment and for a

two-year period following the termination of the term of

office or employment:

(i)  An executive-level public employee.

(ii)  A public official or party officer as defined

in section 1512 (relating to financial and employment

interests).

(2)  As used in this subsection, the term "immediate

family" shall have the same meaning as in section 1201(h)(6)

(relating to Pennsylvania Gaming Control Board established).

* * *

Section 7.  Sections 1318(b)(3), 1322(a) and (c), 1331,

13A24, 13A25(b)(17), 1512(a.1), 1514(f) and (g), 1516.1 and

1517(a), (a.1), (a.2), (b), (c), (e) and (f) of Title 4 are

amended to read:

§ 1318.  Occupation permit application.

* * *

(b)  Requirements.--The application for an occupation permit

shall include, at a minimum:

* * *

(3)  The criminal history record of the person, as well

as the person's consent for the [Pennsylvania State Police]

division to conduct a background investigation.

* * *

§ 1322.  Slot machine accounting controls and audits.

(a)  Approval.--Except as otherwise provided by this part,

each slot machine license applicant shall, in addition to

obtaining a slot machine license, obtain approval from the board

in consultation with the department, the division and the

Pennsylvania State Police of its proposed site plans and

internal control systems and audit protocols prior to the

installation and operation of slot machines at the licensed

facility.

* * *

(c)  Internal control.--Each slot machine license applicant

shall submit to the board [and], the division, the Pennsylvania

State Police and the department, in such manner as the board

shall require, a description of its administrative and

accounting procedures in detail, including its written system of

internal control. Each written system of internal control shall

include:

(1)  Records of direct and indirect ownership in the

proposed slot machine licensee, its affiliate, intermediary,

subsidiary or holding company.

(2)  An organizational chart depicting appropriate

segregation of functions and responsibilities.

(3)  A description of the duties and responsibilities of

each position shown on the organizational chart.

(4)  A detailed narrative description of the

administrative and accounting procedures designed to satisfy

the requirements of this section.

(5)  Record retention policy.

(6)  Procedure to ensure that assets are safeguarded,

including mandatory count procedures.

(7)  A statement signed by the chief financial officer of

the proposed licensed gaming entity or other competent person

and the chief executive officer of the proposed licensed

gaming entity or other competent person attesting that the

officer believes, in good faith, that the system satisfies

the requirements of this section.

(8)  Any other item that the board may require in its

discretion.

§ 1331.  Duty of licensees, key employees and gaming employees.

Any licensee, key employee or gaming employee shall have the

duty to:

(1)  provide any assistance or information required by

the board, the division, the department or the Pennsylvania

State Police and to cooperate in any inquiry, investigation

or hearing;

(2)  consent to inspections, searches and seizures;

(3)  inform the board of any actions which they believe

would constitute a violation of this part; and

(4)  inform the board of any arrests for any violations

of offenses enumerated under 18 Pa.C.S. (relating to crimes

and offenses).

§ 13A24.  Condition of continued operation.

As a condition of continued operation, a certificate holder

shall agree to maintain all books, records and documents

pertaining to table games in a manner and location within this

Commonwealth as approved by the board. All books, records and

documents related to table games shall:

(1)  be segregated by separate accounts within the slot

machine licensee's books, records and documents, except for

any books, records or documents that are common to both slot

machine and table game operations;

(2)  be immediately available for inspection upon request

of the board, the [bureau] division, the department, the

Pennsylvania State Police or the Attorney General, or agents

thereof, during all hours of operation of the licensed

facility in accordance with regulations promulgated by the

board; and

(3)  be maintained for a period as the board, by

regulation, may require.

§ 13A25.  Table game accounting controls and audit protocols.

* * *

(b)  Minimum requirements.--A certificate holder's internal

controls and audit protocols shall:

* * *

(17)  Permit use of its licensed facility by the board,

the [bureau] division and other persons authorized under this

part or by the board to facilitate their ability to perform

regulatory and oversight functions under this chapter.

* * *

§ 1512.  Financial and employment interests.

* * *

(a.1)  Employment.--Except as may be provided by rule or

order of the Pennsylvania Supreme Court and except as provided

in section 1202.1 (relating to code of conduct) or 1512.1

(relating to additional restrictions), no executive-level public

employee, public official or party officer, or an immediate

family member thereof, shall be employed by an applicant or a

slot machine licensee, manufacturer licensee, supplier licensee

or licensed racing entity, or by any holding company, affiliate,

intermediary or subsidiary thereof, while the individual is an

executive-level public employee, public official or party

officer and for [one year] four years following termination of

the individual's status as an executive-level public employee,

public official or party officer.

* * *

§ 1514.  Regulation requiring exclusion or ejection of certain

persons.

* * *

(f)  Notice.--Whenever the [bureau] division seeks to place 

the name of any person on a list pursuant to this section, the

[bureau] division shall serve notice of this fact to such person

by personal service or certified mail at the last known address

of the person. The notice shall inform the person of the right

to request a hearing under subsection (g).

(g)  Hearing.--Within 30 days after receipt of notice in

accordance with subsection (f), the person named for exclusion

or ejection may demand a hearing before the board, at which

hearing the [bureau] division shall have the affirmative

obligation to demonstrate that the person named for exclusion or

ejection satisfies the criteria for exclusion or ejection 

established by this section and the board's regulations. Failure

of the person to demand a hearing within 30 days after service

shall be deemed an admission of all matters and facts alleged in

the [bureau's] division's notice and shall preclude the person

from having an administrative hearing, but shall in no way

affect the right to judicial review as provided in this section.

* * *

§ 1516.1.  Prosecutorial and adjudicatory functions.

The [board] Attorney General shall promulgate regulations and

adopt procedures necessary to ensure that the [bureau] division 

is a distinct entity and to prevent commingling of the

investigatory and prosecutorial functions of the [bureau]

division under section 1517 (relating to investigations and

enforcement) and the adjudicatory functions of the board.

Regulations and procedures promulgated or adopted under this

section shall do all of the following:

(1)  Provide that neither the executive director nor the

chief counsel of the board shall direct or limit the scope of

a background investigation conducted by the [bureau]

division.

(2)  Incorporate section 1202.1(c.1) (relating to code of

conduct) and any other applicable provisions of section

1202.1.

§ 1517.  Investigations and enforcement.

(a)  Establishment.--There is hereby established within the

[board a Bureau of Investigations and Enforcement which shall be

independent of the board in matters relating to the enforcement

of this part. The bureau shall have the powers and duties set

forth in subsection (a.1)] Office of Attorney General the

Division of Gaming Enforcement. The division shall have the

powers and duties set forth in subsection (a.1).

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

Investigations and Enforcement] division shall have the

following powers and duties:

(1)  Enforce the provisions of this part.

(2)  Investigate and review all applicants and

applications for a license, permit or registration. The

[bureau] division shall be prohibited from disclosing any

portion of a background investigation report to any member

prior to the submission of the [bureau's] division's final

background investigation report relating to the applicant's

suitability for licensure to the board. The [Office of

Enforcement Counsel, on behalf of the bureau,] division shall

prepare the final background investigation report for

inclusion in a final report relating to the applicant's

suitability for licensure. Appended to each such report shall

be all information collected by the division that relates to

the applicant.

(3)  Investigate licensees, permittees, registrants and

other persons regulated by the board for noncriminal

violations of this part, including potential violations

referred to the [bureau] division by the board or other

person.

(4)  Monitor gaming operations to ensure all of the

following:

(i)  Compliance with this part, the act of April 12,

1951 (P.L.90, No.21), known as the Liquor Code, and the

other laws of this Commonwealth.

(ii)  The implementation of adequate security

measures by a licensed entity.

(5)  Inspect and examine licensed entities as provided in

subsection (e). Inspections may include the review and

reproduction of any document or record.

(6)  Conduct reviews of a licensed entity as necessary to

ensure compliance with this part. A review may include the

review of accounting, administrative and financial records,

management control systems, procedures and other records

utilized by a licensed entity.

(7)  Refer possible criminal violations to the

Pennsylvania State Police. [The bureau shall not have the

power of arrest.]

(8)  Cooperate in the investigation and prosecution of

criminal violations related to this part.

(9)  Be a criminal justice agency under 18 Pa.C.S. Ch. 91

(relating to criminal history record information).

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

(1)  There is established within the [bureau] division an

Office of Enforcement Counsel which shall act as the

prosecutor in all noncriminal enforcement actions initiated

by the [bureau] division under this part and shall have the

following powers and duties:

(i)  Advise the [bureau] division on all matters,

including the granting of licenses, permits or

registrations, the conduct of background investigations,

audits and inspections and the investigation of potential

violations of this part.

(ii)  File recommendations and objections relating to

the issuance of licenses, permits and registrations [on

behalf of the bureau].

(iii)  Initiate, in its sole discretion, proceedings

for noncriminal violations of this part by filing a

complaint or other pleading with the board.

(iv)  Petition the board for the appointment of a

trustee under section 1332 (relating to appointment of

trustee).

(2)  The director of the Office of Enforcement Counsel

shall report to the executive director of the board on

administrative matters. The director shall be selected by the

[board] Attorney General and shall be an attorney admitted to

practice before the Pennsylvania Supreme Court.

(b)  Powers and duties of department.--

(1)  The department shall at all times have the power of

access to examine and audit equipment and records relating to

all aspects of the operation of slot machines or table games 

under this part.

(2)  Notwithstanding the provisions of section 353(f) of

the act of March 4, 1971 (P.L.6, No.2), known as the Tax

Reform Code of 1971, the department shall supply the board,

the [bureau] division, the Pennsylvania State Police and the

Office of Attorney General with information concerning the

status of delinquent taxes owned by the applicant, licensee

or permittee.

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

Pennsylvania State Police shall have the following powers and

duties:

(1)  Promptly conduct background investigations on

persons as directed by the board in accordance with the

provisions of section 1202 (relating to general and specific

powers). The Pennsylvania State Police may contract with

other law enforcement annuitants to assist in the conduct of

investigations under this paragraph.

(1.1)  Promptly conduct a background investigation on an

individual selected by the board to fill the position of

executive director of the board, director of the [bureau]

division, chief counsel of the board or the director of the

Office of Enforcement Counsel and submit the results to the

board.

(3)  Initiate proceedings for criminal violations of this

part.

(4)  Provide the board with all information necessary for

all actions under this part for all proceedings involving

criminal enforcement of this part.

(5)  Inspect, when appropriate, a licensee's or

permittee's person and personal effects present in a licensed

facility under this part while that licensee or permittee is

present at a licensed facility.

(6)  Enforce the criminal provisions of this part and all

other criminal laws of the Commonwealth.

(7)  Fingerprint applicants for licenses and permits.

(8)  Exchange fingerprint data with and receive national

criminal history record information from the FBI for use in

investigating applications for any license or permit under

this part.

(9)  Receive and take appropriate action on any referral

from the board relating to criminal conduct.

(10)  Require the production of any information, material

and other data from any licensee, permittee or other

applicant seeking approval from the board.

(11)  Conduct administrative inspections on the premises

of licensed racetrack or nonprimary location or licensed

facility at such times, under such circumstances and to such

extent as the [bureau] division determines to ensure

compliance with this part and the regulations of the board

and, in the course of inspections, review and make copies of

all documents and records required by the inspection through

onsite observation and other reasonable means to assure

compliance with this part and regulations promulgated under

this part.

(12)  Conduct audits or verification of information of

slot machine or table game operations at such times, under

such circumstances and to such extent as the [bureau]

division determines. This paragraph includes reviews of

accounting, administrative and financial records and

management control systems, procedures and records utilized

by a slot machine licensee.

(13)  A member of the Pennsylvania State Police assigned

to duties of enforcement under this part shall not be counted

toward the complement as defined in the act of December 13,

2001 (P.L.903, No.100), entitled "An act repealing in part a

limitation on the complement of the Pennsylvania State

Police."

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

Pennsylvania State Police shall submit a report to the

Appropriations Committee of the Senate, the Community,

Economic and Recreational Development Committee of the

Senate, the Appropriations Committee of the House of

Representatives and the Gaming Oversight Committee of the

House of Representatives. The report shall summarize all law

enforcement activities at each licensed facility during the

previous calendar year and shall include all of the

following:

(i)  The number of arrests made and citations issued

at each licensed facility and the name of the law

enforcement agency making the arrest or issuing the

citation.

(ii)  A list of specific offenses charged for each

arrest made or citation issued.

(iii)  The number of criminal prosecutions resulting

from arrests made or citations issued.

(iv)  The number of convictions resulting from

prosecutions reported under subparagraph (iii).

(v)  The number of Pennsylvania State Police troopers

assigned to each licensed facility and to the gaming unit

at the Pennsylvania State Police headquarters.

(vi)  The number and the subject matter of complaints

made against Pennsylvania State Police troopers in

licensed facilities and the type of disciplinary actions

taken by the Pennsylvania State Police, if any, against

the Pennsylvania State Police troopers.

(vii)  The closest local police station, Pennsylvania

State Police station and regional Pennsylvania State

Police headquarters to each licensed facility.

* * *

(e)  Inspection, seizure and warrants.--

(1)  The [bureau] division, the department and the

Pennsylvania State Police shall have the authority without

notice and without warrant to do all of the following in the

performance of their duties:

(i)  Inspect and examine all premises where slot

machine or table game operations are conducted, slot

machines, table game devices and associated equipment are

manufactured, sold, distributed or serviced or where

records of these activities are prepared or maintained.

(ii)  Inspect all equipment and supplies in, about,

upon or around premises referred to in subparagraph (i).

(iii)  Seize, summarily remove and impound equipment

and supplies from premises referred to in subparagraph

(i) for the purposes of examination and inspection.

(iv)  Inspect, examine and audit all books, records

and documents pertaining to a slot machine licensee's

operation.

(v)  Seize, impound or assume physical control of any

book, record, ledger, game, device, cash box and its

contents, count room or its equipment or slot machine or

table game operations.

(2)  The provisions of paragraph (1) shall not be deemed

to limit warrantless inspections except in accordance with

constitutional requirements.

(3)  To further effectuate the purposes of this part, the

[bureau] division and the Pennsylvania State Police may

obtain administrative warrants for the inspection and seizure

of property possessed, controlled, bailed or otherwise held

by an applicant, licensee, permittee, intermediary,

subsidiary, affiliate or holding company.

(f)  Information sharing and enforcement referral.--With

respect to the administration, supervision and enforcement of

this part, the [bureau] division, the department, the

Pennsylvania State Police or the Office of Attorney General may

obtain or provide pertinent information regarding applicants,

licensees or permittees from or to law enforcement entities or

gaming authorities of the Commonwealth and other domestic,

foreign or federally approved jurisdictions, including the

Federal Bureau of Investigation, and may transmit such

information to each other electronically.

Section 8.  Section 1518(a)(1) and (b)(1) and (2) of Title 4

are amended and subsection (a) is amended by adding a paragraph

to read:

§ 1518.  Prohibited acts; penalties.

(a)  Criminal offenses.--

(1)  The provisions of 18 Pa.C.S. § 4902 (relating to

perjury), 4903 (relating to false swearing) or 4904 (relating

to unsworn falsification to authorities) shall apply to any

person providing information or making any statement, whether

written or oral, to the board, the [bureau] division, the

department, the Pennsylvania State Police or the Office of

Attorney General, as required by this part.

* * *

(18)  It shall be unlawful for any appointee, designee or

employee of the board, the division or the Office of

Enforcement Counsel to:

(i)  knowingly make a false entry in or false

alteration of any record, document or thing belonging to

or received or kept by the board or the department for

information or record;

(ii)  make, present or use any record, document or

thing knowing it to be false, in whole or in part, and

with intent that it be taken as a genuine part of

information or records referred to in subparagraph (i);

or

(iii)  intentionally and unlawfully destroy, conceal,

alter, modify, remove or otherwise impair the verity or

availability of any such record, document or thing.

(b)  Criminal penalties and fines.--

(1)  (i)  A person that commits a first offense in

violation of 18 Pa.C.S. § 4902, 4903 or 4904 in

connection with providing information or making any

statement, whether written or oral, to the board, the

[bureau] division, the department, the Pennsylvania State

Police, the Office of Attorney General or a district

attorney as required by this part commits an offense to

be graded in accordance with the applicable section

violated. A person that is convicted of a second or

subsequent violation of 18 Pa.C.S. § 4902, 4903 or 4904

in connection with providing information or making any

statement, whether written or oral, to the board, the

[bureau] division, the department, the Pennsylvania State

Police, the Office of Attorney General or a district

attorney as required by this part commits a felony of the

second degree.

(ii)  A person that violates subsection (a)(2)

through (12) [or (17)], (17) or (18) commits a

misdemeanor of the first degree. A person that is

convicted of a second or subsequent violation of

subsection (a)(2) through (12) [or (17)], (17) or (18) 

commits a felony of the second degree.

(2)  (i)  For a first violation of subsection (a)(1)

through (12) [or (17], (17) or (18), a person shall be

sentenced to pay a fine of:

(A)  not less than $75,000 nor more than $150,000

if the person is an individual;

(B)  not less than $300,000 nor more than

$600,000 if the person is a licensed gaming entity;

or

(C)  not less than $150,000 nor more than

$300,000 if the person is a licensed manufacturer or

supplier.

(ii)  For a second or subsequent violation of

subsection (a)(1) through (12) [or (17)], (17) or (18), a

person shall be sentenced to pay a fine of:

(A)  not less than $150,000 nor more than

$300,000 if the person is an individual;

(B)  not less than $600,000 nor more than

$1,200,000 if the person is a licensed gaming entity;

or

(C)  not less than $300,000 nor more than

$600,000 if the person is a licensed manufacturer or

supplier.

* * *

Section 9.  Sections 1518.1(a) and (c) and 1518.2(a) and (e)

of Title 4 are amended to read:

§ 1518.1.  Report of suspicious transactions.

(a)  Duty.--A slot machine licensee or a person acting on

behalf of a slot machine licensee shall file a report of any

suspicious transaction with the [bureau] division. The filing

with the [bureau] division of a copy of a report made under 31

CFR 103.21 (relating to reports by casinos of suspicious

transactions) shall satisfy this requirement.

* * *

(c)  [Bureau.--The bureau] Division.--The division shall

maintain a record of all reports made under this section for a

period of five years. The [bureau] division shall make the

reports available to any Federal or State law enforcement agency

upon written request and without necessity of subpoena.

* * *

§ 1518.2.  Additional authority.

(a)  General rule.--The director of the Office of Enforcement

Counsel [within the bureau] may petition a court of record

having jurisdiction over information in the possession of an

agency in this Commonwealth or, if there is no such court, then

the Commonwealth Court for authorization to review or obtain

information in the possession of an agency in this Commonwealth

by averring specific facts demonstrating that the agency has in

its possession information material to a pending investigation

or inquiry being conducted by the [bureau] division pursuant to

this part and that disclosure or release is in the best interest

of the Commonwealth. The petition shall request that the court

enter a rule upon the agency to show cause why the agency should

not be directed to disclose to the [bureau] division, or

identified agents thereof, information in its possession about

any pending matter under the jurisdiction of the bureau pursuant

to this part. If a respondent is a local agency, a copy of any

rule issued pursuant to this section shall be provided to the

district attorney of the county in which the local agency is

located and the Office of Attorney General. Upon request of a

local agency, the district attorney or the Attorney General may

elect to enter an appearance to represent the local agency in

the proceedings.

* * *

(e)  Modification of order.--If subsequent investigation or

inquiry by the [bureau] division warrants modification of any

order entered pursuant to this section, the director of the

Office of Enforcement Counsel may petition to request the

modification. Upon such request, the court may modify its orders

at any time and in any manner it deems necessary and

appropriate. The agency named in the original petition shall be

given notice and an opportunity to be heard.

* * *

Section 10.  Title 4 is amended by adding a section to read:

§ 1524.  Audit by Auditor General.

The Auditor General shall conduct a performance audit every

two years to determine program effectiveness and annual

compliance with the requirements of this part. The Auditor

General shall report every two years to the General Assembly the

audit findings and any action recommended to be taken by the

board to ensure compliance with this part.

Section 11.  Sections 1602(b), 1604(b), 1608, 1609, 1610,

1702(f) and 1801 of Title 4 are amended to read:

§ 1602.  Gaming junket enterprise license.

* * *

(b)  Application.-–A gaming junket enterprise license

application shall be in a form prescribed by the board and shall

include the following:

(1)  The name, address and photograph of the applicant

and all owners, directors, managers and supervisory employees

of a gaming junket enterprise.

(2)  The details of a gaming junket enterprise license or

similar license applied for or granted or denied to the

applicant by another jurisdiction.

(3)  Consent for the [bureau] division to conduct a

background investigation, the scope of which shall be

determined by the board.

(4)  All releases necessary for the [bureau] division and

the board to acquire licensing documents and other

information necessary to conduct a background investigation

or otherwise evaluate the application.

(5)  A list of all civil judgments obtained against the

applicant pertaining to any gaming junket enterprise with

which the applicant has been associated.

(6)  A description of the operation and organization of

the gaming junket enterprise.

(7)  Any additional information required by the board.

* * *

§ 1604.  Gaming junket representatives.

* * *

(b)  Application.-–In addition to the requirements of section

1308 (relating to applications for license or permit), the

application for a gaming junket representative occupation permit

shall be in a form prescribed by the board and shall include the

following:

(1)  Verification of employment status as a gaming junket

representative with a licensed gaming junket enterprise or an

applicant for a gaming junket enterprise license.

(2)  A description of employment responsibilities.

(3)  A consent form to allow the [bureau] division to

conduct a background investigation, the scope of which shall

be determined by the board.

(4)  A release for the [bureau] division and the board to

acquire copies of information from government agencies,

employers and others as necessary to complete the

investigation.

(5)  Fingerprints which shall be submitted to the

Pennsylvania State Police.

(6)  A photograph that meets the standards of the

Commonwealth Photo Imaging Network.

(7)  Details relating to a similar license, permit or

other authorization obtained in another jurisdiction, if any.

(8)  Any additional information required by the board.

* * *

§ 1608.  Records.

The board shall prescribe procedures and forms to retain

records relating to the conduct of a gaming junket by a slot

machine licensee. A slot machine licensee shall:

(1)  Maintain a current report of the operations of

gaming junkets conducted at its licensed facility.

(2)  Submit to the board and the [bureau] division a list

of all its employees who conduct business on behalf of the

slot machine licensee with gaming junket representatives on a

full-time, part-time or temporary basis.

(3)  Maintain records of all agreements entered into with

a gaming junket enterprise or gaming junket representative

for a minimum of five years.

(4)  Provide any other information relating to a gaming

junket required by the board or [bureau] division.

§ 1609.  Report.

A slot machine licensee, gaming junket representative or

gaming junket enterprise shall file a report with the [bureau]

division on each list of gaming junket participants or potential

gaming junket participants purchased by the slot machine

licensee, gaming junket representative or gaming junket

enterprise. The report shall include the source of the list and

zip codes of participants or potential participants on a list

purchased directly or indirectly by a slot machine licensee,

gaming junket representative or gaming junket enterprise.

Nothing in this section shall require the reporting or

maintenance of personal identifying information pertaining to

participants or potential participants.

§ 1610.  Gaming junket arrangement.

Upon petition by a slot machine licensee, the board may grant

an exemption from the permit requirements of this chapter to a

gaming junket representative. The board shall consult with the

[bureau] division prior to granting an exemption under this

section and shall consider the following:

(1)  The terms of the gaming junket arrangement.

(2)  The number and scope of gaming junkets.

(3)  Whether the exemption is consistent with the

policies and purposes of this part.

(4)  Any other factor deemed necessary by the [bureau]

division or board.

The board may condition, limit or restrict the exemption.

§ 1702.  Gaming school gaming equipment.

* * *

(f)  Notice to board and [bureau] division.--No gaming school

shall sell or transfer any slot machine, table game, table game

device or associated equipment except upon prior written notice

to the board and the [bureau] division.

* * *

§ 1801.  Duty to provide.

Notwithstanding the provisions of the Race Horse Industry

Reform Act or this part, the division, in cooperation with the 

Pennsylvania State Police, shall, at the request of the

commissions [or the board], provide criminal history background

investigations[,] and background investigation reports which

shall include records of criminal arrests and convictions, no

matter where occurring, including Federal criminal history

record information, on applicants for licensure and permit

applicants by the respective agencies pursuant to the Race Horse

Industry Reform Act or this part. Requests for criminal history

background investigations and background investigation reports 

may, at the direction of the commissions or the board, include,

but not be limited to, officers, directors and stockholders of

licensed corporations, key employees, financial backers,

principals, gaming employees, horse owners, trainers, jockeys,

drivers and other persons participating in thoroughbred or

harness horse meetings and other persons and vendors who

exercise their occupation or employment at such meetings,

licensed facilities or licensed racetracks. For the purposes of

this part, the board and commissions may receive and retain

information otherwise protected by 18 Pa.C.S. Ch. 91 (relating

to criminal history record information).

Section 12.  The amendment of 4 Pa.C.S. § 1201(b)(1) shall

apply to members appointed on or after the effective date of

this section.

Section 13.  The addition of 4 Pa.C.S. § 1201(h)(9.1) shall

not apply to any of the following:

(1)  An individual appointed to the board before July 1,

2010.

(2)  An individual identified under paragraph (1) who is

reappointed to the board.

Section 14.  On the effective date of this section, the

following shall apply:

(1)  The Bureau of Investigations and Enforcement of the

Pennsylvania Gaming Control Board and the Office of

Enforcement Counsel shall cease to exist.