H0271B0229A00460 DMS:EJH 03/17/17 #90 A00460
AMENDMENTS TO HOUSE BILL NO. 271
Sponsor: REPRESENTATIVE PETRI
Printer's No. 229
Amend Bill, page 1, line 2, by inserting after "Statutes,"
in general provisions, further providing for definitions; in
Pennsylvania Gaming Control Board, further providing for
general and specific powers, for regulatory authority of
board and for reports to board; in licensees, further
providing for supplier licenses and for manufacturer
licenses; providing for airport gaming; and,
Amend Bill, page 1, line 4, by inserting after "program"
and for prohibited acts and penalties
Amend Bill, page 1, lines 7 and 8, by striking out all of
said lines and inserting
Section 1. The definitions of "cheat," "cheating or thieving
device," "conduct of gaming," "counterfeit chip,"
"manufacturer," "player," "supplier" and "supplier license" in
Title 4 of the Pennsylvania Consolidated Statutes are amended
and the section is amended by adding definitions 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:
* * *
"Airport authority." The governing body of a municipal
authority organized and incorporated to oversee the operations
of a qualified airport under 53 Pa.C.S. Ch. 56 (relating to
municipal authorities) or the governing body of a city of the
first class that regulates the use and control of a qualified
airport.
"Airport game." A gambling game and associated software or
application offered through the use of a multi-use computing
device that allows a person, utilizing money, checks, electronic
checks, electronic transfers of money, credit cards or any other
instrumentality, to transmit electronic information to assist in
the placement of a bet or wager and corresponding information
related to the display of the game, game outcomes or other
similar information. The term shall not include:
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(1) A lottery game or Internet instant game as defined
in section 302 of the act of August 26, 1971 (P.L.351,
No.91), known as the State Lottery Law.
(2) Nongambling games that do not otherwise require a
license under the laws of this Commonwealth.
"Airport gaming." The placing of bets or wagers with a slot
machine licensee through the use of a multi-use computing device
to play an authorized airport game.
"Airport gaming area." A location or locations within a
qualified airport approved for the conduct of authorized airport
games through the use of multi-use computing devices by eligible
passengers as approved by the airport authority or, in the case
of a qualified airport located in a city of the first class, as
approved by the governing body of the city of the first class
and the Pennsylvania Gaming Control Board.
"Airport gaming certificate." The authorization issued to a
slot machine licensee by the Pennsylvania Gaming Control Board
authorizing the operation and conduct of airport gaming by a
slot machine licensee in accordance with Chapter 13B (relating
to airport gaming).
"Airport gaming certificate holder." A slot machine licensee
that has been granted authorization by the Pennsylvania Gaming
Control Board to operate authorized airport games in accordance
with Chapter 13B.
"Authorized Airport game." An airport game approved by
regulation of the Pennsylvania Gaming Control Board to be
suitable for use through a multi-use computing device offered by
an airport gaming certificate holder.
* * *
"Cheat." To defraud or steal from any player, slot machine
licensee or the Commonwealth while operating or playing a slot
machine [or], table game[,] or authorized airport game,
including causing, aiding, abetting or conspiring with another
person to do so. The term shall also mean to alter or causing,
aiding, abetting or conspiring with another person to alter the
elements of chance, method of selection or criteria which
determine:
(1) The result of a slot machine game [or], table game
or authorized airport game.
(2) The amount or frequency of payment in a slot machine
game [or], table game or authorized airport game.
(3) The value of a wagering instrument.
(4) The value of a wagering credit.
The term does not include altering a slot machine, table game
device or associated equipment or multiuse computing device for
maintenance or repair with the approval of a slot machine
licensee.
"Cheating or thieving device." A device, software or
hardware used or possessed with the intent to be used to cheat
during the operation or play of any slot machine [or], table
game or authorized airport game. The term shall also include any
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device used to alter a slot machine [or], a table game device an
authorized airport game or a multi-use computing device without
the slot machine licensee's approval.
* * *
"Concession operator." A person engaged in the sale or
offering for sale of consumer goods or services to the public at
a qualified airport or authorized to conduct other commercial
activities related to passenger services at a qualified airport
in accordance with the terms and conditions of an agreement or
contract with an airport authority, government entity or other
person.
"Conduct of gaming." The licensed placement, operation and
play of slot machines [and], table games and authorized airport
games under this part, as authorized and approved by the
Pennsylvania Gaming Control Board.
* * *
"Counterfeit chip." Any object or thing that is:
(1) used or intended to be used to play a table game at
a certificate holder's licensed facility and which was not
issued by that certificate holder for such use; [or]
(2) presented to a certificate holder for redemption if
the object was not issued by the certificate holder[.];
(3) used or intended to be used to play an authorized
airport game that was not approved by the slot machine
licensee for such use; or
(4) presented during play of an authorized airport game
for redemption, if the object or thing was not issued by the
slot machine licensee.
* * *
"Eligible passenger" or "passenger." An individual who is at
least 21 years of age and has cleared security check points with
a valid airline boarding pass for travel from one destination to
another by airplane.
* * *
"Gross airport gaming revenue." The total of all cash or
cash equivalent wagers paid by players to an airport gaming
certificate holder in consideration for the play of authorized
airport games, minus:
(1) the total of cash or cash equivalents paid out to
players as winnings; and
(2) the cash equivalent value of any personal property
or other noncash items or things of value included in a
drawing, contest or tournament and distributed to players as
a result of playing authorized airport games.
Amounts deposited with an airport gaming certificate holder for
purposes of airport gaming and amounts taken in fraudulent acts
perpetrated against an airport gaming certificate holder for
which the airport gaming certificate holder is not reimbursed
may not be considered to have been paid to the airport gaming
certificate holder for purposes of calculating gross airport
gaming revenue.
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* * *
"Manufacturer." A person who manufactures, builds, rebuilds,
fabricates, assembles, produces, programs, designs or otherwise
makes modifications to any slot machine, table game device or
associated equipment for use or play of slot machines [or],
table games or authorized airport games in this Commonwealth for
gaming purposes. The term does not include a person who
manufactures, builds, rebuilds, fabricates, assembles, produces,
programs, designs or otherwise makes modifications to multi-use
computing devices used in connection with the conduct of airport
gaming at a qualified airport.
* * *
"Multi-use computing device." A computing device, including,
but not limited to, a tablet computer, that:
(1) Allows a player to access an authorized airport
game .
(2) Is located and accessible to eligible passengers
only in an airport gaming area.
(3) Communicates with a server that is in a location
approved by the Pennsylvania Gaming Control Board.
(4) Is approved by the Pennsylvania Gaming Control
Board.
(5) Has the capability of being linked to and monitored
by the department's central control computer system, as
applicable for an authorized airport game in accordance with
section 1323 (relating to central control computer system).
(6) Offers a player additional functions that include
Internet browsing, the capability of checking flight status
and ordering food or beverages.
The term does not include a tablet or computing device that
restricts, prohibits or is incapable of providing access to
authorized airport games.
* * *
"Player." An individual wagering cash, a cash equivalent or
other thing of value in the play or operation of a slot machine
[or], an authorized airport game or a table game, including
during a contest or tournament, the play or operation of which
may deliver or entitle the individual playing or operating the
slot machine [or], authorized airport game or table game to
receive cash, a cash equivalent or other thing of value from
another player or a slot machine licensee.
* * *
"Qualified airport." A publicly owned commercial service
airport that is designated by the Federal Government as an
international airport.
* * *
"Supplier." A person that sells, leases, offers or otherwise
provides, distributes or services any slot machine, table game
device or associated equipment for use or play of slot machines
or table games in this Commonwealth. The term shall include a
person that sells, leases, offers or otherwise provides,
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distributes or services any multi-use computing device as
approved by the Pennsylvania Gaming Control Board.
"Supplier license." A license issued by the Pennsylvania
Gaming Control Board authorizing a supplier to provide products
or services related to slot machines, table game devices, multi-
use computing devices or associated equipment to slot machine
licensees for use in this Commonwealth for gaming purposes.
* * *
Section 2. Section 1202(a)(1) of Title 4 is amended and
subsection (b) is amended by adding a paragraph to read:
§ 1202. General and specific powers.
(a) General powers.--
(1) The board shall have general and sole regulatory
authority over the conduct of gaming [or] and related
activities as described in this part. The board shall ensure
the integrity of the acquisition and operation of slot
machines, table games, table game devices, authorized airport
games and multi-use computing devices and associated
equipment and shall have sole regulatory authority over every
aspect of the authorization, operation and play of slot
machines [and], table games and the implementation and
regulation of airport gaming.
* * *
(b) Specific powers.--The board shall have the specific
power and duty:
* * *
(12.2) At its discretion, to award, revoke, suspend,
condition or deny an airport gaming certificate in accordance
with Chapter 13B (relating to airport gaming).
* * *
Section 3. Section 1207(1), (8), (9) and (10) of Title 4 are
amended and the section is amended by adding a paragraph to
read:
§ 1207. Regulatory authority of board.
The board shall have the power and its duties shall be to:
(1) Deny, deny the renewal, revoke, condition or suspend
any license [or], permit, airport gaming certificate or other
authorization provided for in this part if the board finds in
its sole discretion that a licensee [or], permittee,
registrant or certificate holder , under this part, or its
officers, employees or agents, have furnished false or
misleading information to the board or failed to comply with
the provisions of this part or the rules and regulations of
the board and that it would be in the public interest to
deny, deny the renewal, revoke, condition or suspend the
license [or], permit, certificate, registration or other
authorization.
* * *
(8) Require that each licensed gaming entity prohibit
persons under 21 years of age from operating or using slot
machines [or], playing table games or using multi-use
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computing devices.
(9) Establish procedures for the inspection and
certification of compliance of each slot machine, table game,
table game device, airport game and multiuse computing device
and associated equipment prior to being placed into use by a
slot machine licensee.
(10) Require that no slot machine or authorized airport
game that replicates the play of a slot machine may be set to
pay out less than the theoretical payout percentage, which
shall be no less than 85%, as specifically approved by the
board. The board shall adopt regulations that define the
theoretical payout percentage of a slot machine game based on
the total value of the jackpots expected to be paid by a play
or a slot machine game divided by the total value of slot
machine wagers expected to be made on that play or slot
machine game during the same portion of the game cycle. In so
doing, the board shall decide whether the calculation shall
include the entire cycle of a slot machine game or any
portion thereof.
* * *
(22) License, regulate, investigate and take any other
action determined necessary regarding all aspects of airport
gaming.
Section 4. Section 1211 of Title 4 is amended by adding a
subsection to read:
§ 1211. Reports of board.
* * *
(a.4) Airport gaming reporting requirements.--
(1) The annual report submitted by the board in
accordance with subsection (a) shall include information on
the conduct of airport games as follows:
(i) Total gross airport gaming revenue.
(ii) All taxes, fees, fines and other revenue
collected and, where appropriate, revenue disbursed
during the previous year.
(2) The department shall collaborate with the board to
carry out paragraph (1)(ii).
* * *
Section 5. Sections 1317(a) and 1317.1(a) and (e)(1) and (2)
of Title 4 are amended to read:
§ 1317. Supplier licenses.
(a) Application.--A manufacturer that elects to contract
with a supplier under section 1317.1(d.1) (relating to
manufacturer licenses) shall ensure that the supplier is
appropriately licensed under this section. A person seeking to
provide slot machines, table game devices, multi-use computing
device or associated equipment to a slot machine licensee within
this Commonwealth through a contract with a licensed
manufacturer shall apply to the board for the appropriate
supplier license.
* * *
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§ 1317.1. Manufacturer licenses.
(a) Application.--A person seeking to manufacture slot
machines, table game devices, airport games and associated
equipment for use in this Commonwealth shall apply to the board
for a manufacturer license.
* * *
(e) Prohibitions.--
(1) No person may manufacture slot machines, table game
devices, airport games or associated equipment for use within
this Commonwealth by a slot machine licensee unless the
person has been issued the appropriate manufacturer license
under this section.
(2) Except as permitted in section 13A23.1 (relating to
training equipment), no slot machine licensee may use slot
machines, table game devices, authorized airport games or
associated equipment unless the slot machines, table game
devices, authorized airport games or associated equipment
were manufactured by a person that has been issued the
appropriate manufacturer license under this section.
* * *
Section 6. Title 4 is amended by adding a chapter to read:
CHAPTER 13B
AIRPORT GAMING
Sec.
13B01. Authorization.
13B02. Board authorization required.
13B03. Standard for review of petitions.
13B04. Fees.
13B05. Multi-use gaming device tax.
13B 06. Local share assessment.
13B 07. Regulations.
13B 08. Construction.
§ 13B 01. Authorization.
(a) Authority.--
(1) Notwithstanding any provision of this part or
regulation of the board, an airport gaming certificate holder
may provide authorized airport games at a qualified airport
through the use of multi-use computing devices.
(2) A slot machine licenseee seeking to make authorized
games available for play through the use of multi-use
computing devices at a qualified airport shall file a
petition for an airport gaming certificate with the board in
a form and manner that the board, through regulations, shall
require.
(b) Place of conduct.--The board, at its discretion, may
authorize an airport gaming certificate holder to place and make
authorized airport games available for play at a qualified
airport through the use of multi-use computing devices in one or
more airport gaming areas in accordance with the requirements of
this chapter and regulations of the board.
(c) Satisfaction of contingencies.--Authorization for a slot
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machine licensee to conduct airport gaming at a qualified
airport in accordance with subsection (a) shall be contingent
upon the following:
(1) The slot machine licensee has submitted a petition
to the board seeking authorization to manage the conduct of
airport gaming at the qualified airport and the board has
approved the petition.
(2) The slot machine licensee has entered into an
agreement with the concession operator at the qualified
airport for the conduct of airport gaming through the use of
multi-use computing devices within the airport gaming area.
(3) The slot machine licensee has provided adequate
assurances that the conduct of airport gaming at the
qualified airport will be conducted and operated in
accordance with this part and regulations promulgated by the
board.
(4) The slot machine licensee has paid or will pay all
applicable taxes and fees.
(5) In the case of a qualified airport that is governed
by a municipal authority or joint municipal authority
organized and incorporated to oversee the operations of an
airport in accordance with 53 Pa.C.S. Ch. 56 (relating to
municipal authorities), the slot machine licensee has entered
into an agreement with the municipal authority or joint
municipal authority for the conduct of airport gaming through
the use of multi-use computing devices within the gaming area
of the qualified airport and the board has approved the
agreement.
(6) The slot machine licensee is issued an airport
gaming certificate.
§ 13B 02. Board authorization required.
(a) Contents of petition.--A slot machine licensee seeking
authorization to conduct airport gaming at a qualified airport
through the use of a multi-use computing device shall petition
the board for an airport gaming certificate. The petition shall
include:
(1) The name, business address and contact information
of the slot machine licensee.
(2) The name and business address, job title and a
photograph of each principal and key employee of the slot
machine licensee who will be directly involved in the conduct
of authorized airport games at the qualified airport and who
is not currently licensed by the board, if known.
(3) The name and business address of the airport
authority, the location of the qualified airport and the
names of the governing body of the airport authority, if the
airport authority is incorporated in accordance with 53
Pa.C.S. Ch. 56 (relating to municipal authorities).
(4) If the use and control of a qualified airport is
regulated by a city of the first class, an identification of
the municipal agency and primary officials of a city of the
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first class that regulates the use and control of the
qualified airport.
(5) The name and job title of the person or persons who
will be responsible for ensuring the operation and integrity
of the conduct of airport gaming at the qualified airport and
reviewing reports of suspicious transactions.
(6) The brand name of the multi-use computing devices
that will be placed in operation at the qualified airport.
The board, at its discretion, may require any additional
information related to the conduct of airport gaming at the
qualified airport through the use of multi-use computing
devices or persons that manufacture or supply multi-use
computing devices that the board determines necessary and
appropriate to ensure the integrity of airport gaming at the
qualified airport and to protect the public interest.
(7) An itemized list of the airport games for which
authorization is being sought.
(8) Information, as the board may require, on computer
applications or applications that may be accessed on the
multi-use computing devices.
(9) Detailed site plans illustrating the location of the
proposed airport gaming area at the qualified airport.
(10) Information and documentation concerning financial
background and resources, as the board may require, to
establish by clear and convincing evidence the financial
stability, integrity and responsibility of the petitioner.
(11) Other information as the board may require.
(b) Confidentiality.--Information submitted to the board
under subsection (a) may be considered confidential by the board
if the information would be confidential under section 1206(f)
(relating to board minutes and records).
(c) Approval of petition.--(1) Upon approval of a petition
required under this section, the board shall issue the slot
machine licensee an airport gaming certificate and authorize the
airport gaming certificate holder to conduct airport gaming at a
qualified airport through the use of multi-use computing
devices.
(2) The issuance of an airport gaming certificate in
accordance with this chapter prior to the full payment of the
authorization fee under section 13B 04 (relating to fees) shall
not be construed to relieve the airport gaming certificate
holder from the obligation to pay the fee in accordance with
section 13B 04.
§ 13B 03. Standard for review of petitions.
The board shall approve a petition under section 13B 02
(relating to board authorization required) and issue an airport
gaming certificate to a slot machine licensee if the petitioner
establishes, by clear and convincing evidence, all of the
following:
(1) The slot machine licensee has entered into an
agreement that has been approved by the board with a
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concession operator for the conduct of airport gaming through
the use of multi-use computing devices within the airport
gaming area of the qualified airport.
(2) The proposed internal and external security and
surveillance measures within the airport gaming area of the
qualified airport are adequate.
(3) Multi-use computing devicese will only be accessible
to eligible passengers.
(4) The slot machine licensee will comply with all
regulations promulgated by the board under this chapter.
§ 13B 04. Fees.
(a) Required fees.--A slot machine licensee issued an
airport gaming certificate shall pay a one-time, nonrefundable
fee of $1,000,000 within 30 days of being issued an airport
gaming certificate
(b) Deposit of fees.--Notwithstanding section 1208 (relating
to collection of fees and fines), all fees or penalties received
by the board under this chapter shall be deposited in the
General Fund.
§ 13B 05. Multi-use gaming device tax.
(a) Imposition.--
(1) Each airport gaming certificate holder shall report
to the department and pay from its daily gross airport gaming
revenue, on a form and in the manner prescribed by the
department, a tax of 14% of its daily gross airport gaming
revenue generated from multi-use computing devices at the
qualified airport and a local share assessment.
(2) The tax imposed under paragraph (1) shall be payable
to the department on a daily basis and shall be based upon
the gross airport gaming revenue generated from multi-use
computing devices at the qualified airport derived during the
previous week.
(3) All funds owed to the Commonwealth under this
section shall be held in trust for the Commonwealth by the
airport gaming certificate holder until the funds are paid to
the department. An airport gaming certificate holder shall
establish a separate bank account into which gross airport
gaming revenue from multi-use computing devices shall be
deposited and maintained until such time as the funds are
paid to the department under this section.
(4) The department shall transfer the tax revenues
collected under this section to the General Fund.
§ 13B 06. Local share assessment.
(a) Required payment.--In addition to the tax imposed under
section 13B 05 (relating to multi-use gaming device tax), each
airport gaming certificate holder shall pay on a weekly basis
and on a form and in a manner prescribed by the department a
local share assessment into a restricted receipts account
established in the fund. All funds owed under this section shall
be held in trust by the airport gaming certificate holder until
the funds are paid into the account. Funds in the account are
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hereby appropriated to the department on a continuing basis for
the purposes specified in this section.
(b) Distributions to qualified airports.-- The department
shall make quarterly distributions from the local share
assessments deposited into the fund under subsection (a) to each
qualified airport in proportion to the multi-use computing
device local share assessment derived from each qualified
airport.
(c) Definition.--As used in this section, the term "multi-
use computing device local share assessment" means 20% of an
airport gaming certificate holder's gross airport gaming revenue
from multi-use computing devices at qualified airports.
§ 13B 07. Regulations.
(a) Regulations.--The board shall promulgate regulations
related to the operation of authorized airport games through the
use of multi-use computing devices at qualified airports.
(b) Temporary regulations.--In order to facilitate the
prompt implementation of this chapter, regulations promulgated
by the board in accordance with subsection (a) shall be deemed
temporary regulations. The board and the commission may
promulgate temporary regulations not subject to:
(1) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(2) Sections 204(b) and 301(10) of the act of October
15, 1980 (P.L.950, No.164), known as the Commonwealth
Attorneys Act.
(3) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
§ 13B 08. Construction.
Nothing in this chapter shall be construed to limit the
board's authority to determine the suitability of any person who
may be directly or indirectly involved in or associated with the
operation of airport gaming at a qualified airport to ensure the
integrity of authorized airport games and multi-use computing
devices and to protect the public interest.
Section 7. Section 1509 of Title 4 is amended to read:
Amend Bill, page 6, by inserting between lines 28 and 29
Section 8. Section 1518(b)(3) of Title 4 is amended and
subsection (a) is amended by adding paragraphs to read:
§ 1518. Prohibited acts; penalties.
(a) Criminal offenses.--
* * *
(13.2) It shall be unlawful for an individual who is
under 21 years of age to enter and remain in an airport
gaming area, except that an individual who is 18 years of age
and employed by a slot machine licensee, a gaming service
provider, the board or any other regulatory or emergency
response agency may enter and remain in the area while
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engaged in the performance of the individual's employment
duties.
(13.3) It shall be unlawful for an individual who is
under 21 years of age to wager, play or attempt to play an
authorized airport game.
* * *
(b) Criminal penalties and fines.--
* * *
(3) An individual who commits an offense in violation of
subsection (a)(13) [or], (13.1), (13.2) or (13.3) commits a
nongambling summary offense and upon conviction of a first
offense shall be sentenced to pay a fine of not less than
$200 nor more than $1,000. An individual that is convicted of
a second or subsequent offense under subsection (a)(13) [or],
(13.1), (13.2) or (13.3) shall be sentenced to pay a fine of
not less than $500 nor more than $1,500. In addition to the
fine imposed, an individual convicted of an offense under
subsection (a)(13) [or], (13.1), (13.2) or (13.3) may be
sentenced to perform a period of community service not to
exceed 40 hours.
* * *
Amend Bill, page 6, line 29, by striking out "2" and
inserting
9
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See A00460 in
the context
of HB0271