S0711B1468A04613     JKL:CDM  11/09/09     #90        A04613

  

  

  

  

AMENDMENTS TO SENATE BILL NO. 711

Printer's No. 1468

  

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Amend Bill, page 112, line 19, by striking out "1313(c)" and

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inserting

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1313 

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Amend Bill, page 114, line 24, by striking out all of said

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line and inserting

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(a)  Applicant financial information.--[The board shall

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require each] Each applicant for a slot machine license shall be

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required to produce [the] information, documentation and

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assurances concerning financial background and resources [as the

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board deems necessary to establish by clear and convincing

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evidence] and provide it to the bureau. The information,

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documentation and assurance must be sufficient to allow the

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board to determine if the applicant has established, by clear

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and convincing evidence, the financial stability, integrity and

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responsibility of the applicant, its affiliate, intermediary,

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subsidiary or holding company, including, but not limited to,

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bank references, business and personal income and disbursement

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schedules, tax returns and other reports filed with governmental

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agencies, and business and personal accounting and check records

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and ledgers. In addition, each applicant shall in writing

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authorize the examination of all bank accounts and records as

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may be deemed necessary by the board.

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(a.1)  Minimum financial standard.--Each applicant shall be

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required to demonstrate to the board and to the bureau that no

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more than 66.6% of the operating funds consists of borrowed

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funds. For the purposes of this subsection, the term "operating

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funds" shall be defined to include the aggregate of all funds

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necessary to:

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(1)  purchase, construct, renovate or develop a licensed

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facility; and

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(2)  operate the licensed facility for one year.

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(b)  Financial backer information.--[The board shall require

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each] Each applicant for a slot machine license shall be

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required to produce and provide to the bureau the information,

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documentation and assurances as may be necessary to establish by

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clear and convincing evidence the integrity of all financial

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backers, investors, mortgagees, bondholders and holders of

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indentures, notes or other evidences of indebtedness, either in

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effect or proposed. Any such banking or lending institution and

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institutional investors may be waived from the qualification

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requirements by the board in consultation with the bureau. A

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banking or lending institution or institutional investor shall,

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however, produce for the board upon request any document or

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information which bears any relation to the proposal submitted

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by the applicant or applicants. The integrity of the financial

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sources shall be judged upon the same standards as the

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applicant. Any such person or entity shall produce for the board

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upon request any document or information which bears any

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relation to the application. In addition, the applicant shall

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produce [whatever] any information, documentation or assurances

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[the board requires to establish] needed to allow the board to

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determine if the applicant has established, by clear and

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convincing evidence, the adequacy of financial resources.

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Amend Bill, page 114, line 27, by inserting a bracket before

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"post"

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Amend Bill, page 114, line 28, by inserting a bracket after

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"to"

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Amend Bill, page 115, line 3, by inserting a bracket before

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"post"

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Amend Bill, page 115, line 4, by inserting a bracket after

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"to" where it occurs the first time

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Amend Bill, page 115, line 11, by striking out all of said

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line

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Amend Bill, page 115, line 15, by striking out all of said

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line and inserting

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(d)  Applicant's business experience.--The board shall

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require each applicant for a slot machine license to produce the

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information, documentation and assurances as the board may

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require to establish by clear and convincing evidence that the

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applicant has sufficient business ability and experience to

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create and maintain a successful, efficient operation.

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Applicants shall produce the names of all proposed key employees

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and a description of their respective or proposed

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responsibilities as they become known.

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(e)  Applicant's operational viability.--In assessing the

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financial viability of the proposed licensed facility, the board

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shall make a finding, after review of the application, that the

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applicant is likely to maintain a financially successful, viable

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and efficient business operation and will likely be able to

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maintain a steady level of growth of revenue to the Commonwealth

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pursuant to section 1403 (relating to establishment of State

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Gaming Fund and net slot machine revenue distribution).

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Notwithstanding any provision of this part to the contrary, an

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applicant that includes a commitment or promise to pay a slot

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machine license fee in excess of the amount provided in section

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1209 or a distribution of terminal revenue in excess of the

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amounts provided in sections 1403, 1405 (relating to

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Pennsylvania Race Horse Development Fund) and 1407 (relating to

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Pennsylvania Gaming Economic Development and Tourism Fund) shall

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not be deemed a financially successful, viable or efficient

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business operation and shall not be approved for a slot machine

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license.

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(f)  Additional information.--In addition to other

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information required by this part, a person applying for a slot

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machine license shall provide the following information:

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(1)  The organization, financial structure and nature of

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all businesses operated by the person, including any

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affiliate, intermediary, subsidiary or holding companies, the

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names and personal employment and criminal histories of all

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officers, directors and key employees of the corporation; the

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names of all holding, intermediary, affiliate and subsidiary

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companies of the corporation; and the organization, financial

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structure and nature of all businesses operated by such

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holding, intermediary and subsidiary companies as the board

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may require, including names and personal employment and

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criminal histories of such officers, directors and principal

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employees of such corporations and companies as the board may

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require.

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(2)  The extent of securities held in the corporation by

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all officers, directors and underwriters and their

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remuneration in the form of salary, wages, fees or otherwise.

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(3)  Copies of all management and service contracts.

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