PRINTER'S NO. 1065
No. 831 Session of 2003
INTRODUCED BY HUGHES, JULY 8, 2003
REFERRED TO FINANCE, JULY 8, 2003
AN ACT
1 Providing for gaming in cities of the first class; establishing
2 the Pennsylvania Gaming Commission, Gaming Commission Fund
3 and the Riverboat and Hotel Gaming Fund; levying a tax; and
4 imposing penalties.
5 TABLE OF CONTENTS
6 Chapter 1. Preliminary Provisions
7 Section 101. Short title.
8 Section 102. Definitions.
9 Chapter 3. Pennsylvania Gaming Commission
10 Section 301. Pennsylvania Gaming Commission established.
11 Section 302. Composition and governance of Pennsylvania
12 Gaming Commission.
13 Section 303. Meetings of Pennsylvania Gaming Commission.
14 Section 304. Ethics.
15 Section 305. Powers and duties.
16 Section 306. Executive director.
17 Section 307. Criminal history information.
18 Section 308. Exemptions to disclosure rules.
1 Section 309. Administrative procedures.
2 Section 310. Establishment and use of Gaming Commission Fund;
3 fiscal affairs of Pennsylvania Gaming Commission.
4 Chapter 5. Gaming Licenses
5 Subchapter A. Preliminary Provisions
6 Section 501. Authorized riverboat gaming licenses;
7 applications.
8 Section 502. Qualifications for licenses or findings of
9 suitability.
10 Section 503. Investigations for licenses, action of
11 commission and further investigation.
12 Section 504. Disclosure of records.
13 Section 505. License not a property right.
14 Subchapter B. Operator Licenses
15 Section 511. Operator license authorized.
16 Section 512. Distribution of operator licenses; limitation.
17 Section 513. Application for operator license; application fee.
18 Section 514. Suitability for operator license.
19 Section 515. Criteria for award of operator licenses.
20 Section 516. Award and appeal of operator licenses.
21 Section 517. Terms and conditions of operator licenses.
22 Section 518. Obligations of operator licensees.
23 Section 519. Prohibition on assignment; exception.
24 Section 520. Renewal of operator licenses.
25 Section 521. Denial of license; revocation for unsuitability;
26 forfeiture.
27 Subchapter C. Supplier Licenses
28 Section 541. Supplier licenses authorized.
29 Section 542. Application for supplier license; application
30 fee.
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1 Section 543. Background investigation.
2 Section 544. Suitability for supplier license.
3 Section 545. Terms and conditions of supplier licenses.
4 Section 546. Renewal of supplier licenses.
5 Section 547. Denial of license; revocation for unsuitability.
6 Subchapter D. Occupational Licenses
7 Section 561. Occupational license authorized.
8 Section 562. Application for occupation license; application
9 fee.
10 Section 563. Background investigation.
11 Section 564. Standards for award of license.
12 Section 565. Reasons for refusing occupational license.
13 Section 566. Terms and conditions of occupational licenses.
14 Section 567. Training of occupational licensees.
15 Section 568. Renewal of occupational licenses.
16 Section 569. Right to organize.
17 Subchapter E. Miscellaneous Provisions
18 Section 581. Denial of license; revocation for unsuitability.
19 Section 582. Requirement to register and qualify.
20 Section 583. Transfers of interests in operator licensee.
21 Section 584. Finding of suitability; divestiture by persons
22 found unsuitable.
23 Chapter 7. Hotel Gaming Licenses
24 Section 701. Hotel gaming license authorized.
25 Section 702. Distribution of hotel gaming licenses; limitation.
26 Section 703. Applications.
27 Chapter 9. Gaming Regulation
28 Section 901. Power to regulate method and timing of riverboat
29 and casino operations.
30 Section 902. Wagering.
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1 Section 903. Use of chips, tokens, etc.
2 Section 904. Age requirement for patrons and gaming employees.
3 Section 905. Gaming debts.
4 Section 906. Exclusion or ejection of certain persons from
5 riverboats and hotels.
6 Section 907. Detention of persons.
7 Section 908. Exemption from civil and criminal liability.
8 Chapter 11. Records and Auditing
9 Section 1101. Recordkeeping and reporting.
10 Section 1102. Internal control systems; internal audits.
11 Chapter 13. Gaming Tax
12 Section 1301. Responsibilities of Department of Revenue.
13 Section 1302. Gaming Tax.
14 Section 1303. Monthly reports.
15 Section 1304. Limitations on taxes and license fees; exception.
16 Chapter 15. Riverboat and Hotel Gaming Fund
17 Section 1501. Riverboat and Hotel Gaming Fund.
18 Chapter 17. Women, Minority and Disadvantaged Business
19 Enterprise Fund
20 Section 1701. Women, Minority and Disadvantaged Business
21 Enterprise Fund.
22 Chapter 19. Community Housing and Economic Development Fund
23 Section 1901. Community Housing and Economic Development Fund.
24 Chapter 21. Prohibited Activities
25 Section 2101. Prohibited activities; penalties.
26 Chapter 23. Liquor Licenses
27 Section 2301. Riverboat liquor license.
28 Section 2302. Cooperation.
29 Chapter 31. Administration
30 Section 3101. Administrative procedures.
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1 Chapter 51. Miscellaneous Provisions
2 Section 5101. Effective date.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 CHAPTER 1
6 PRELIMINARY PROVISIONS
7 Section 101. Short title.
8 This act shall be known and may be cited as the Riverboat and
9 Hotel Gaming in First Class Cities Act.
10 Section 102. Definitions.
11 The following words and phrases when used in this act shall
12 have the meanings given to them in this section unless the
13 context clearly indicates otherwise:
14 "Adjusted gross receipts." The total of cash or cash
15 equivalent spent by riverboat and casino patrons on games minus
16 the total of:
17 (1) Cash or the cash equivalent paid out to riverboat or
18 casino patrons as a result of playing a game.
19 (2) Cash paid to purchase annuities to fund cash paid to
20 riverboat or casino patrons over several years by independent
21 administrators as a result of playing a game.
22 (3) Any personal property distributed to a riverboat or
23 casino patron as a result of playing a game.
24 "Affiliate" or "affiliated company." A person that directly
25 or indirectly, through one or more intermediaries, controls, is
26 controlled by or is under common control with a specified
27 person.
28 "Applicant." A person, including a company, who has applied
29 for a license or a finding of suitability under this act.
30 "Application." A request for the issuance of a license or a
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1 finding of suitability under this act.
2 "Board." The Board of Finance and Revenue.
3 "Chairman." The chairman of the Pennsylvania Gaming
4 Commission.
5 "Cheat." To alter the selection of criteria which determine
6 the result of a game or the amount or frequency of payment in a
7 game.
8 "Commission." The Pennsylvania Gaming Commission established
9 in section 301.
10 "Commissioner." A member of the Pennsylvania Gaming
11 Commission.
12 "Company." A corporation, partnership, limited partnership,
13 trust, association, joint stock company, joint venture, limited
14 liability company or other form of business organization which
15 is not a natural person.
16 "Creditor interest." With respect to any person, any right
17 or claim of whatever character against such person for the
18 payment of money borrowed, whether secured or unsecured, matured
19 or unmatured, liquidated, absolute, fixed or contingent and
20 including obligations based upon such person's earnings, profits
21 or receipts.
22 "Department." The Department of Revenue of the Commonwealth.
23 "Dock." The location where a riverboat gaming watercraft is
24 moored for the purpose of embarking and disembarking patrons and
25 for the conduct of dockside gaming.
26 "Eligible city." Any city of the first class in which an
27 operator or hotel gaming license can be issued under this act.
28 "Eligible waters." Any rivers or lakes existing within the
29 territorial limits of a city of the first class on the effective
30 date of this act which are used or are susceptible to being used
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1 as arteries of navigation or commerce, including any natural or
2 artificial space, inlet, hollow or basin, in or adjacent to a
3 bank of such rivers or lakes, but shall not include any
4 artificial space which is located more than 500 feet from the
5 closest edge of the main channel of the river or lake, as
6 established by the United States Army Corps of Engineers or the
7 Pennsylvania Department of Environmental Protection.
8 "Equity interest." With respect to any company, any
9 proprietary right or claim allowing the holder either to vote
10 with respect to matters of organizational governance or
11 participate in the profits and residual assets of such company.
12 The term includes, without limitation:
13 (1) Common and preferred stock in a corporation.
14 (2) General and limited partnership interests in a
15 partnership and similar interests in any other form of
16 business organization.
17 (3) Any warrant, right or similar interest convertible
18 into, or to subscribe for any of the foregoing, with or
19 without payment of additional consideration.
20 "Executive director." The executive director of the
21 Pennsylvania Gaming Commission, including, where appropriate,
22 his employees.
23 "Family." The spouse, parents, children and siblings of a
24 natural person.
25 "Finding of suitability." A determination by the
26 Pennsylvania Gaming Commission under section 584.
27 "Game." Any banking, nonbanking or percentage game played
28 with cards, with dice or with any mechanical, electromechanical
29 or electronic device or machine for money, property, checks,
30 credit or any representation of value, including, without
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1 limiting the generality of the foregoing, acey-deucey, beat the
2 dealer, bouncing ball, faro, monte, roulette, keno, fan-tan,
3 twenty-one, blackjack, Caribbean poker, seven-and-a-half, 12
4 klondike, craps, poker, Red-dog sic bo, chuck-a-luck (dai shu),
5 wheel of fortune, big six wheel, chemin de fer, baccarat,
6 minibaccarat, paigow, beat the banker, panguingui, slot machine
7 (including progressive slot machines) or any other game or
8 device approved by the Pennsylvania Gaming Commission. The term
9 does not include:
10 (1) The Pennsylvania State Lottery as authorized under
11 the act of August 26, 1971 (P.L.351, No.91), known as the
12 State Lottery Law.
13 (2) Bingo as authorized under the act of July 10, 1981
14 (P.L.214, No.67), known as the Bingo Law.
15 (3) Pari-mutuel betting on the outcome of horse racing
16 as authorized under the act of December 17, 1981 (P.L.435,
17 No.135), known as the Race Horse Industry Reform Act.
18 (4) Small games of chance as authorized by the act of
19 December 19, 1988 (P.L.1262, No.156), known as the Local
20 Option Small Games of Chance Act.
21 "Gaming." To deal, operate, carry on, conduct, maintain or
22 expose for play any game.
23 "Gaming device." Any mechanical, electromechanical or
24 electronic contrivance, component or machine used in connection
25 with gaming or any game which affects the result of a wager by
26 determining win or loss. The term includes, without limitation,
27 slot machines and video lottery terminals, but does not include
28 dice, cards or other nonmechanical instrumentalities that may be
29 used in a game.
30 "Gaming employee." Any person connected directly with the
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1 operation of a gaming establishment licensed to conduct any
2 game, including:
3 (1) Boxmen.
4 (2) Cashiers.
5 (3) Change personnel.
6 (4) Counting room personnel.
7 (5) Dealers or croupiers.
8 (6) Floormen.
9 (7) Hosts or other persons empowered to extend credit or
10 complimentary services.
11 (8) Keno runners.
12 (9) Keno writers.
13 (10) Machine mechanics.
14 (11) Security personnel.
15 (12) Shift or pit bosses.
16 (13) Supervisors, managers, assistant supervisors and
17 assistant managers.
18 (14) Ticket writers.
19 (15) Cage personnel.
20 (16) Collection personnel.
21 (17) Credit executives.
22 (18) Accounting or internal auditing personnel who are
23 directly involved in any recordkeeping or the examination of
24 records associated with revenue from gaming.
25 (19) Bartenders.
26 (20) Employees of a person holding a supplier license
27 whose duties are directly involved with manufacture, repair
28 or distribution of slot machines or gaming devices within
29 this Commonwealth.
30 The term does not include cocktail servers or other persons
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1 engaged in preparing or serving food or beverages, secretarial
2 and janitorial personnel, stage, sound and light technicians and
3 other nongaming personnel.
4 "Gross receipts." The total amount of money spent by
5 riverboat or hotel patrons on games.
6 "Hotel." A hotel, motel, inn, guest house or other building
7 located within a city of the first class which holds itself out
8 by any means, including advertising, license, registration with
9 any innkeeper's group, convention listing association, travel
10 publication or similar association or with any government
11 agency, as being available to provide overnight lodging or use
12 of facility space for consideration to persons seeking temporary
13 accommodation; any place which advertises to the public at large
14 or any segment thereof that it will provide beds, sanitary
15 facilities or other space for a temporary period to members of
16 the public at large; any place recognized as a hostelry.
17 However, portions of such facility which are devoted to persons
18 who have established permanent residence shall not be included
19 in this definition.
20 "Institutional investor" or "institutional lender." These
21 terms shall mean:
22 (1) A bank as defined in section 3(a)(6) of the
23 Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. §
24 78c(a)(6)).
25 (2) An insurance company as defined in section 2(a)(17)
26 of the Investment Company Act of 1940 (54 Stat. 789, 15
27 U.S.C. § 80a-1 et seq.).
28 (3) An investment company registered under section 8 of
29 the Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §
30 80a-1 et seq.).
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1 (4) An investment adviser registered under section 203
2 of the Investment Advisers Act of 1940 (54 Stat. 847, 15
3 U.S.C. § 80b-3).
4 (5) Collective trust funds as defined in section
5 3(c)(11) of the Investment Company Act of 1940 (54 Stat. 789,
6 15 U.S.C. § 80a-1 et seq.).
7 (6) An employee benefit plan or pension fund that is
8 subject to the Employee Retirement Income Security Act of
9 1974 (Public Law 93-406, 88 Stat. 829), excluding an employee
10 benefit plan or pension fund sponsored by a publicly traded
11 corporation licensed by the Pennsylvania Gaming Commission.
12 (7) A Federal or State Government pension plan.
13 (8) A group comprised entirely of institutional
14 investors or institutional lenders specified in paragraphs
15 (1) through (7).
16 (9) Such other persons as the Pennsylvania Gaming
17 Commission may determine for reasons consistent with the
18 Commonwealth policies expressed in section 301. To qualify as
19 an institutional investor or lender, a person other than a
20 Federal or State pension plan must meet the requirements of a
21 "qualified institutional buyer" as defined by the Securities
22 Exchange Commission.
23 "Key executive." Any executive who is a department head of
24 an operator licensee or has the power to exercise a significant
25 influence over decisions concerning any part of the gaming
26 operations of the operator licensee and whose compensation
27 exceeds an amount determined by regulation of the Pennsylvania
28 Gaming Commission.
29 "License." Any temporary or permanent license awarded
30 pursuant to this act.
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1 "Licensee." Any person to whom a valid license has been
2 awarded pursuant to this act.
3 "Negotiable instrument." A writing which evidences a gaming
4 debt owed to a person who holds an operator or hotel gaming
5 license at the time the debt is created and includes any writing
6 taken in consolidation, redemption or payment of a prior
7 negotiable instrument.
8 "Occupational license." A license awarded under this act as
9 required by section 561.
10 "Occupational licensee." Any person holding an occupational
11 license.
12 "Operator license." A license issued by the Pennsylvania
13 Gaming Commission under this act which authorizes the person who
14 holds the license to engage in gaming.
15 "Operator licensee." Any person holding an operator license.
16 "Party officer." The following members or officers of any
17 political party:
18 (1) A member of a national committee.
19 (2) A chairman, vice chairman, secretary, treasurer or
20 counsel of a Commonwealth committee or member of the
21 executive committee of a Commonwealth committee.
22 (3) A county chairman or vice chairman or counsel,
23 secretary or treasurer of a county committee.
24 (4) A city chairman or vice chairman or counsel,
25 secretary or treasurer of a city committee.
26 (5) A borough chairman or vice chairman or counsel,
27 secretary or treasurer of a borough committee.
28 (6) A town chairman or vice chairman or counsel,
29 secretary or treasurer of a town committee.
30 (7) A township chairman or vice chairman or counsel,
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1 secretary or treasurer of a township committee.
2 "Person." A natural person or a company.
3 "Public official." Any elected or appointed official or
4 employee in the executive, legislative or judicial branch of the
5 Commonwealth or any political subdivision. The term does not
6 include members of advisory boards which have no authority to
7 expend public funds other than reimbursement for personal
8 expense or to otherwise exercise the power of the Commonwealth
9 or any political subdivision; nor does the term include any
10 appointed official who receives no compensation other than
11 reimbursement for actual expenses.
12 "Publicly traded corporation." A company which:
13 (1) has one or more classes of securities registered
14 pursuant to section 12 of the Securities Exchange Act of 1934
15 (48 Stat. 881, 15 U.S.C. § 78l et seq.);
16 (2) is an issuer subject to section 15(d) of the
17 Securities Exchange Act of 1934.
18 The term does not include any company or other legal entity
19 which has securities registered or is an issuer under paragraph
20 (1) solely because it guaranteed a security issued by an
21 affiliated company pursuant to a public offering or is
22 considered by the Securities and Exchange Commission to be a
23 coissuer of a public offering of securities pursuant to 17 CFR §
24 230.140 (relating to definition of "distribution" in section
25 2(11) for certain transactions).
26 "Regulation." A rule, regulation, standard, directive or
27 statement of general applicability which is promulgated under
28 this act in the administration of this act or under any other
29 act conferring jurisdiction on the Pennsylvania Gaming
30 Commission and which effectuates the law or policy or which
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1 describes the procedure or requirements of the Pennsylvania
2 Gaming Commission. The term does not include:
3 (1) A statement concerning only the internal management
4 of the Pennsylvania Gaming Commission and not affecting the
5 rights or procedures available to any licensee or other
6 person.
7 (2) A declaratory ruling or order.
8 (3) An interagency memorandum.
9 (4) The Pennsylvania Gaming Commission's decision or
10 order in a contested case or relating to an application for a
11 license.
12 "Riverboat." Every description of watercraft on which
13 gaming, dockside or otherwise, is conducted in accordance with
14 this act. The watercraft need not be self-propelled and may be
15 permanently moored.
16 "Slot machine." Any mechanical, electrical,
17 electromechanical or other device, contrivance or machine
18 (including video lottery terminals) which, upon insertion of a
19 coin, token or object of value, including, without limitation,
20 paper tickets, magnetically striped cards, cards with embedded
21 chips or other media, which may be exchanged for currency or
22 entered into another game for game credits, if upon payment of
23 any consideration, is available to play or operate, the play or
24 operation of which, whether by reason of the skill of the
25 operator or application of the element of chance, or both, may
26 deliver or entitle the person playing or operating the machine
27 to receive cash, premiums, merchandise, tokens or anything of
28 value whether the payoff is made automatically from the machine
29 or in any other manner.
30 "Supplier." Any person who manufactures, distributes,
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1 assembles, produces, sells, leases or otherwise provides gaming
2 devices.
3 "Supplier license." A license awarded under this act.
4 "Supplier licensee." Any person holding a supplier license.
5 CHAPTER 3
6 PENNSYLVANIA GAMING COMMISSION
7 Section 301. Pennsylvania Gaming Commission established.
8 An independent commission to be known as the Pennsylvania
9 Gaming Commission is hereby established to regulate and oversee
10 the conducting of riverboat and hotel gaming in cities of the
11 first class.
12 Section 302. Composition and governance of Pennsylvania Gaming
13 Commission.
14 (a) Composition of commission.--The commission shall consist
15 of seven members, one of whom shall be appointed by the
16 Governor, one of whom shall be appointed by the President pro
17 tempore of the Senate, one of whom shall be appointed by the
18 Minority Leader of the Senate, one of whom shall be appointed by
19 the Speaker of the House of Representatives, one of whom shall
20 be appointed by the Minority Leader of the House of
21 Representatives, one of whom shall be appointed by the mayor of
22 a city of the first class and one of whom shall be appointed by
23 the city council of a city of the first class. Any appointment
24 by the Governor, other than initial appointment to the
25 commission, shall comply with the provisions of section 207.1(d)
26 of the act of April 9, 1929 (P.L.177, No.175), known as The
27 Administrative Code of 1929. The appointing authorities shall
28 appoint each of the initial members of the commission within 30
29 days of the effective date of this act.
30 (b) Terms of office.--The members of the commission shall
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1 serve three-year terms, except that the terms of the initial
2 appointments shall be staggered with the terms of the three
3 members appointed by the Governor, the mayor and the city
4 council expiring two years after their initial appointments.
5 Commissioners may not serve on the commission for more than two
6 terms, consecutively or otherwise.
7 (c) Vacancies.--Vacancies in the commission occurring
8 otherwise than by expiration of term shall be filled for the
9 unexpired term in the same manner as original appointments.
10 (d) Qualifications.--The members of the commission shall
11 meet the following requirements:
12 (1) Each member shall be a United States citizen and
13 resident of this Commonwealth.
14 (2) The member shall not hold any elective or appointed
15 office in the executive, legislative or judicial branch of
16 the Commonwealth or any political subdivision.
17 (3) The member shall not be a party officer.
18 (4) The member shall not during the period commencing
19 two years prior to the appointment have held a direct or
20 indirect interest in a person licensed by or subject to
21 regulation by the commission.
22 (5) The member shall not have any direct or indirect
23 financial interest in any gaming activity regulated by the
24 commission or in any person holding a license awarded by the
25 commission; nor shall any member of the commissioner's family
26 have such an interest.
27 (6) No member shall be appointed who has been convicted
28 of any crime, excluding summary convictions.
29 (e) Officers.--The Governor shall designate one member to
30 serve as chairman of the commission. The commission shall select
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1 from its membership a vice chairman and whatever other officers
2 the commission deems necessary.
3 (f) Oath of office.--An appointee before entering upon the
4 duties of the commissioner shall swear that he is not
5 financially interested in any person holding a license issued by
6 the commission or subject to regulation by the commission and
7 that he will abide by the terms of this act and regulations
8 promulgated by the commission and all statutory and regulatory
9 provisions of this Commonwealth that apply to the commission.
10 The oath shall be filed with the Secretary of State.
11 (g) Removal.--Any member of the commission shall be removed
12 from office, by the authority that appointed him, regardless of
13 any unexpired term of appointment for incompetency, misconduct,
14 willful neglect of duty or other conduct evidencing unfitness
15 for the office, including, but not limited to, violation of the
16 oath of office.
17 (h) Compensation and expenses.--The executive board shall
18 establish the compensation of the commission members and
19 employees in accordance with section 709 of the act of April 9,
20 1929 (P.L.177, No.175), known as The Administrative Code of
21 1929. Members shall receive reimbursement for their actual and
22 necessary expenses while performing the business of the
23 commission.
24 Section 303. Meetings of Pennsylvania Gaming Commission
25 (a) Regular and special meetings.--Regular and special
26 meetings of the commission may be held at the discretion of the
27 commission and at such times and places as it may deem
28 convenient, but at least one regular meeting shall be held each
29 month. The provisions of 65 Pa.C.S. Ch. 7 (relating to open
30 meetings) shall apply to the commission, except that commission
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1 meetings may be closed to discuss information deemed
2 confidential pursuant to section 504 or 65 Pa.C.S. Ch. 7.
3 (b) Voting requirements.--Four members shall constitute a
4 quorum for the purpose of conducting the business of the
5 commission and for all other purposes. All actions of the
6 commission shall be taken by a majority of the members, and in
7 no event fewer than four members.
8 Section 304. Ethics.
9 (a) Code of ethics.--The commission shall adopt a code of
10 ethics for commission members, employees and agents and shall
11 provide that none of these shall be permitted to engage in
12 gaming activities in an establishment licensed by the
13 commission, except in the course of a person's duties. No person
14 who has served as a commissioner shall accept employment from a
15 person licensed by the commission for a period of two years
16 after termination of his duties as a commissioner.
17 (b) Statutes applying to commission.--The commission, its
18 members and all of its employees shall be subject to 65 Pa.C.S.
19 Ch. 11 (relating to ethics standards and financial disclosure)
20 and the act of July 19, 1957 (P.L.1017, No.451), known as the
21 State Adverse Interest Act, except that, if any provision of
22 this act is in conflict with the provisions of either 65 Pa.C.S.
23 Ch. 11 or the State Adverse Interest Act, the provision
24 requiring the more restrictive conduct shall control.
25 Section 305. Powers and duties.
26 (a) General powers and duties.--
27 (1) Except as provided in subsection (b), the commission
28 shall have full jurisdiction over and shall supervise,
29 license and regulate all gaming activities in this
30 Commonwealth as provided in this act and any other act.
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1 (2) The board shall require all licensees in cities of
2 the first class to commit to making a good faith effort in
3 the hiring of disadvantaged employees for their operations
4 and small and disadvantaged businesses for procurement of
5 services including:
6 (i) Expend at least 30% of the dollar value of
7 purchases for goods and services with minority or
8 disadvantaged-owned businesses and at least 5% with
9 women-owned businesses.
10 (ii) Purchase at least 75% of goods and services
11 from businesses based in this Commonwealth, businesses
12 residing in this Commonwealth, small businesses,
13 disadvantaged businesses or women-owned businesses.
14 (iii) Only purchases made from certified women,
15 minority and disadvantaged business enterprises or from
16 businesses that have completed the application for
17 certification and certification is pending may be counted
18 toward credit for compliance with the purchasing
19 requirements in subparagraphs (i) and (ii). In order to
20 be certified, a business must be 51% minority,
21 disadvantaged or women-owned and the business must be
22 controlled and the daily operations managed by the owners
23 who make up that 51%.
24 (iv) The Department of Community and Economic
25 Development and the commission shall be responsible for
26 certifying the businesses that meet the requirements in
27 subparagraph (iii). The Department of Community and
28 Economic Development shall maintain a list of certified
29 businesses and make this list available to licensees. The
30 commission shall enter into a memorandum of understanding
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1 with the Department of Community and Economic Development
2 to review and certify applications submitted by business
3 entities wishing to purchase licenses in cities of the
4 first class.
5 (v) In January of each year, licensees are required
6 to file a report containing all expenditures made in the
7 previous calendar year with the commission. This report
8 must identify which expenditures were purchased from
9 certified women, minority and disadvantaged business
10 enterprises. These annual reports are subject to audit by
11 the Auditor General. The Auditor General shall verify
12 that the businesses listed as women, minority and
13 disadvantaged business enterprises are certified and that
14 the dollar amounts of the purported expenditures match
15 the billing records of the certified businesses.
16 (vi) Licensees shall file an biannual report with
17 the commission detailing the certified women, minority
18 and disadvantaged business enterprises that they are
19 currently doing business with and include the previous
20 six-month expenditure totals made from each of these
21 businesses.
22 (vii) Failure to comply or make a good faith effort
23 to comply with the requirements of paragraph (2) may
24 result in disciplinary action and fines by the
25 commission. The commission shall predetermine a good
26 faith effort by a formula designated by the Auditor
27 General of available participation and capacity of
28 current certified women, minority and disadvantaged
29 business enterprises available to that licensee, plus a
30 3% penalty. Additionally, a licensee found in
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1 noncompliance with the requirements of paragraph (2)
2 shall be required to submit a plan of corrective measures
3 and shall be placed on probation for two years.
4 (viii) After two consecutive years of noncompliance
5 and demonstration of lack of good faith efforts as to be
6 determined by the Auditor General, a licensee shall be
7 fined no less than 6% of the good faith effort total
8 mentioned in subparagraph (vii), placed under direct
9 probationary supervision and a mandatory license review
10 by the commission.
11 (3) All licensees of licenses located in cities of the
12 first class must allocate total employee work hours as
13 follows:
14 (i) 50% to employees who reside in the city in which
15 the license is located;
16 (ii) 25% to minority employees; and
17 (iii) 5% to female employees.
18 (4) Require that owners of licenses located in cities of
19 the first class to form partnerships that give disadvantaged
20 investors no less than a 51% stake in this new enterprise.
21 (b) Exceptions.--The powers and duties of the commission
22 under subsection (a) shall not include:
23 (1) The Pennsylvania State Lottery as authorized under
24 the act of August 26, 1971 (P.L.351, No.91), known as the
25 State Lottery Law.
26 (2) Bingo as authorized under the act of July 10, 1981
27 (P.L.214, No.67), known as the Bingo Law.
28 (3) Small games of chance as authorized by the act of
29 December 19, 1988 (P.L.1262, No.156), known as the Local
30 Option Small Games of Chance Act.
20030S0831B1065 - 21 -
1 (4) Any gaming regulated pursuant to the act of ,
2 (P.L. , No. ), known as the Racetrack Gaming Act.
3 (c) Specific duties.--The commission shall have the powers
4 and its duties shall be:
5 (1) To investigate and determine the eligibility of
6 applicants for licenses and to select from among competing
7 applicants the applicant or applicants which best serve the
8 interests of the citizens of this Commonwealth.
9 (2) To regulate and adopt standards for all gaming
10 activities conducted on riverboats and in hotels within a
11 city of the first class.
12 (3) To establish specifications for the design,
13 appearance, accommodation and construction of any riverboats
14 and to require mandatory inspections to insure compliance.
15 Under no circumstances shall this power supersede any
16 provision of any zoning ordinance adopted in conformity with
17 the act of July 31, 1968 (P.L.805, No.247), known as the
18 Pennsylvania Municipalities Planning Code.
19 (4) To determine in accordance with this act which games
20 may be played on riverboats and in hotels and ensure that the
21 games so authorized are conducted fairly. No gaming device
22 shall be set to pay out less than 80% of all wagers.
23 (5) To maintain accurate and complete records of the
24 proceedings of the commission and to certify such records as
25 may be appropriate. The provisions of the act of June 21,
26 1957 (P.L.390, No.212), referred to as the Right-to-Know Act,
27 shall apply to the commission, except that the provisions of
28 this act shall be deemed to control with respect to any
29 documents or communications deemed confidential or privileged
30 pursuant to section 504.
20030S0831B1065 - 22 -
1 (6) To levy and provide for the collection of
2 application fees and license fees and of fines and penalties
3 for violations of this act and any other law conferring
4 jurisdiction on the commission or the rules and regulations
5 promulgated by the commission. All such fees, fines and
6 penalties shall be paid to the Commonwealth or to the city of
7 the first class through the commission for use as provided in
8 this act or in any other law.
9 (7) To enforce the civil provisions of this act or any
10 other law conferring jurisdiction on the commission and to
11 prosecute violations of those provisions.
12 (8) To cooperate with and assist the Pennsylvania State
13 Police and the district attorney of the county of the first
14 class, who shall have primary responsibility for the
15 enforcement of the criminal provisions of this act and any
16 other law conferring jurisdiction on the commission.
17 (9) To cooperate with the department in administering
18 the collection of taxes under this act or any other gaming
19 activities subject to the jurisdiction of the commission.
20 (10) To conduct hearings pertaining to civil violations
21 of this act and any other law conferring jurisdiction on the
22 commission or rules and regulations promulgated by the
23 commission.
24 (11) To enhance the representation of minority groups in
25 the operation of riverboats and hotel gaming activities and
26 through ownership and operation of business activities
27 utilized by the riverboats and hotel gaming activities in
28 this Commonwealth.
29 (12) To submit to the Governor and to the General
30 Assembly an annual report which shall include a statement of
20030S0831B1065 - 23 -
1 receipts and disbursements by the commission, including any
2 special account or fund under its control, an account of the
3 commission's actions and any other information which the
4 commission deems significant or which the Governor and the
5 General Assembly may request.
6 (13) To take any and all actions it deems appropriate to
7 achieve the purposes of this act and any other law over which
8 it has jurisdiction.
9 (14) To promulgate such regulations as may be necessary
10 to achieve the purposes of this act and any other law
11 conferring jurisdiction on the commission and regulations it
12 deems necessary for the protection of the health, safety,
13 morals and general welfare of this Commonwealth and for the
14 reputation of this Commonwealth's gaming industry.
15 (d) Specific powers.--In addition to the powers and duties
16 set forth elsewhere in this act and any other law, the
17 commission shall have, without limitation, the following
18 specific powers:
19 (1) To have jurisdiction over all riverboat and hotel
20 gaming operations in a city of the first class.
21 (2) To adopt regulations for the issuance of licenses or
22 determinations of suitability consistent with the standards
23 set forth in this act or any other law conferring
24 jurisdiction on the commission.
25 (3) To classify licenses and to establish regulations
26 relating to the issuance of the various classes of licenses.
27 (4) To prescribe rules and regulations governing the
28 manufacture, distribution, sale, operation and servicing of
29 gaming devices.
30 (5) To prescribe, where appropriate, the manner in which
20030S0831B1065 - 24 -
1 winnings, compensation from games and gaming devices and
2 gaming revenue must be computed and reported by licensees.
3 (6) To prescribe, where appropriate, financial reporting
4 requirements for licensees.
5 (7) To approve, where appropriate, internal control
6 procedures for licensees that are within accepted industry
7 standards.
8 (8) To conduct audits of licensees.
9 (9) To prescribe in conjunction with the department the
10 manner of computing and collecting taxes on gaming activities
11 authorized by this act or otherwise subject to the
12 jurisdiction of the commission.
13 (10) To require any applicant for a license or a finding
14 of suitability under this act or any other law conferring
15 jurisdiction on the commission to pay the costs of a
16 background investigation which are not covered by the
17 application fee.
18 (11) To require any applicant for a license or a finding
19 of suitability to provide one or more sets of fingerprints
20 and to require the applicant to bear the costs associated
21 with the search and classification of the fingerprints.
22 (12) To enter riverboats, hotels, offices, facilities
23 and other places of business of a licensee to obtain evidence
24 of compliance or noncompliance with and to enforce the
25 provisions of this act and any other law conferring
26 jurisdiction on the commission.
27 (13) To investigate alleged violations of this act or
28 commission rules, and any other law conferring jurisdiction
29 on the commission, regulations, orders or decisions and, in
30 the course of such investigations, to copy, seize and impound
20030S0831B1065 - 25 -
1 books and records of operations, supplies, equipment, cash
2 boxes, counting rooms, games or gaming devices and to take
3 appropriate disciplinary action against a licensee for a
4 violation or refer the same to the appropriate law
5 enforcement agency.
6 (14) To adopt, where appropriate, regulations
7 establishing the reasons for and the procedures by which
8 persons may be ejected from riverboats and hotel gaming areas
9 and providing for the establishment of a list of persons to
10 be excluded from riverboats and hotel gaming areas. The
11 regulations may provide for ejectment or exclusion of persons
12 who have violated this act or any other law authorizing
13 gaming activities in this Commonwealth or regulations
14 promulgated by the commission or when the person's presence
15 is deemed detrimental to the best interests of gaming.
16 (15) To impose civil fines and penalties for violations
17 of this act or any other law conferring jurisdiction on the
18 commission.
19 (16) To issue emergency orders regarding the
20 navigability of eligible waters in the event of extreme
21 weather conditions, acts of God and similar circumstances
22 should an operator licensee offer excursions for the purpose
23 of conducting gaming activities.
24 (17) To issue subpoenas requiring the attendance of
25 witnesses and subpoenas duces tecum requiring the production
26 of documents, to appoint hearing officers and to administer
27 oaths and affirmations to witnesses, as may be required to
28 administer and enforce this act or any other law conferring
29 jurisdiction on the commission.
30 (18) To prescribe, where necessary, the manner and
20030S0831B1065 - 26 -
1 method of alcohol and drug testing for employees of the
2 commission and for persons employed in connection with gaming
3 activities.
4 (19) To issue orders in accordance with this act and any
5 other law conferring jurisdiction on the commission and
6 regulations promulgated by the commission, granting,
7 revoking, suspending, limiting or making conditional any
8 license or finding of suitability issued by the commission.
9 (20) To suspend a license or finding of suitability
10 issued under this act or any other law conferring
11 jurisdiction on the commission without notice or hearing if
12 the commission finds that the safety or health of patrons or
13 employees is imminently jeopardized by the licensee's
14 continued operation or if the issuance of an emergency order
15 is otherwise warranted under circumstances set forth in
16 regulations and procedures promulgated by the commission.
17 (21) To delegate to the executive director and staff of
18 the commission the execution of any of its powers under this
19 act or any other law conferring jurisdiction on the
20 commission for the purpose of administering and enforcing
21 this act or any other law conferring jurisdiction on the
22 commission and its rules and regulations, provided that such
23 delegation shall be in accordance with standards established
24 by the commission and the laws of this Commonwealth.
25 (22) To develop and implement forms to be used for the
26 purposes of this act and any other law conferring
27 jurisdiction on the commission.
28 (23) To adopt, use and alter at will a corporate seal.
29 (24) To sue and be sued, implead and be impleaded,
30 complain and defend in all courts.
20030S0831B1065 - 27 -
1 (25) To make and enter into contracts and other
2 instruments necessary or convenient for the conduct of its
3 business and the exercise of the powers of the commission.
4 (26) To retain counsel and auditors to render such
5 professional services as the commission deems appropriate.
6 The commission shall not be considered either an executive
7 agency or an independent agency for the purpose of the act of
8 October 15, 1980 (P.L.950, No.164), known as the Commonwealth
9 Attorneys Act, but shall possess the same status for such
10 purpose as the Auditor General, the State Treasurer and the
11 Pennsylvania Public Utility Commission. The commission,
12 through its legal counsel after consultation with the
13 Attorney General, shall defend actions brought against the
14 commission or its members, officers, officials and employees
15 when acting within the scope of their official duties.
16 (27) To acquire, by gift or otherwise, purchase, hold,
17 receive, lease, sublease and use any franchise, license or
18 property, real, personal or mixed, tangible or intangible, or
19 any interest in such property, and to sell, transfer, lease,
20 convey and dispose of any property, real, personal or mixed,
21 tangible or intangible, or any interest in such property, all
22 as may be necessary or convenient to implement this act or
23 any other law conferring jurisdiction on the commission.
24 (28) To accept from, purchase or borrow equipment,
25 supplies, services or other things necessary or convenient to
26 the work of the commission from any government agencies, and
27 all government agencies are authorized to sell, lend or grant
28 to the commission the equipment, supplies, services or other
29 things necessary or convenient for the work of the
30 commission. In addition, the commission is authorized to
20030S0831B1065 - 28 -
1 reimburse any government agency and any government agency is
2 authorized to accept reimbursement from the commission for
3 any equipment, supplies, services or other things provided by
4 any government agency that are utilized by the commission.
5 (29) To purchase or lease such furniture, furnishings,
6 stationery supplies, materials, equipment, fuel, motor
7 vehicles and printing and binding materials as may be
8 necessary to conduct the work of the commission.
9 (30) To enter into contracts for individual or group
10 insurance and to contribute to retirement plans for the
11 benefit of its employees and to enroll its employees in an
12 existing retirement system of a government agency.
13 (31) To take any other action that may be reasonable or
14 appropriate to implement and enforce this act and any other
15 law conferring jurisdiction on the commission and commission
16 regulations, orders, decisions and rulings.
17 (32) To employ an executive director, deputies,
18 secretaries, officers and representatives as it may deem
19 necessary, who shall serve at the commission's pleasure. The
20 commission shall also employ other employees as it sees fit
21 and whose duties and compensation shall be prescribed by the
22 commission. The commission shall be subject to the provisions
23 of the act of April 9, 1929 (P.L.177, No.175), known as The
24 Administrative Code of 1929, as to classification and
25 compensation for all its employees and conduct its activities
26 consistent with the practices and procedures of Commonwealth
27 agencies.
28 Section 306. Executive director.
29 (a) Appointment.--The commission shall appoint an executive
30 director who shall serve at the pleasure of the commission.
20030S0831B1065 - 29 -
1 (b) Qualifications.--The person appointed by the commission
2 as executive director shall:
3 (1) Have at least ten years of responsible
4 administrative experience in public or business
5 administration or possess broad and recognized management
6 skills.
7 (2) Meet the same qualification criteria and be subject
8 to the same disqualification criteria as required of
9 appointees to the commission under section 302.
10 (3) Take the same oath of office as appointees to the
11 commission and abide by the same statutes and codes referred
12 to in that oath.
13 (4) Devote full time and attention to the duties
14 assigned under this act and any other law conferring
15 jurisdiction on the commission and not hold any other
16 employment.
17 (c) Background investigation.--The Pennsylvania State Police
18 shall conduct a thorough background investigation of any person
19 under consideration for the position of executive director prior
20 to his appointment and provide the results of the investigation
21 to the commission.
22 (d) Salary.--The annual salary and other compensation of the
23 executive director shall be set by the commission.
24 (e) Duties.--The executive director shall have the following
25 duties:
26 (1) To maintain all commission records and preserve all
27 applications, records, books and other documents submitted to
28 the commission or entrusted to its care.
29 (2) To administer the provisions of this act and any
30 other law conferring jurisdiction on the commission and the
20030S0831B1065 - 30 -
1 regulations of the commission relating to the confidentiality
2 and disclosure of documents and information.
3 (3) To hire personnel necessary to implement and
4 accomplish the purposes of this act and any other law
5 conferring jurisdiction on the commission.
6 (4) To develop a commission budget which will be
7 submitted to and approved by the commission.
8 (5) To sign contracts on behalf of the commission which
9 the commission has approved by resolution or otherwise.
10 (6) To make purchases authorized by the commission.
11 (7) To perform any and all duties assigned by the
12 commission.
13 Section 307. Criminal history information.
14 When the commission is authorized or required to consider an
15 applicant's criminal history, the commission shall initiate a
16 criminal history record investigation to obtain any information
17 in the possession of the Pennsylvania State Police or the
18 Federal Bureau of Investigation or other relevant law
19 enforcement agencies. The Pennsylvania State Police shall be
20 authorized to and shall provide, at the commission's request,
21 information concerning any criminal charges and their
22 disposition which have been filed against an applicant for or
23 holder of a license issued by the commission. The commission
24 shall use the information obtained as a result of any
25 investigation under this section in determining the eligibility
26 of a person for a license or a finding of suitability. The
27 applicant shall be responsible for the payment of all costs
28 incurred for the investigation which are not covered by the
29 application fee.
30 Section 308. Exemptions to disclosure rules.
20030S0831B1065 - 31 -
1 (a) General rule.--The commission shall not be required to
2 disclose any information, the disclosure of which would not be
3 required by the act of June 21, 1957 (P.L.390, No.212), referred
4 to as the Right-to-Know Law, or would be prohibited by the
5 statutes, rules, regulations or intergovernmental agreements of
6 any jurisdiction.
7 (b) Confidential information.--Notwithstanding any provision
8 of the Right-to-Know Law and subject to the provisions of this
9 section, the commission shall not, except subject to a court
10 order or with the prior written consent of a licensee or
11 applicant and after notice, disclose any information or data
12 required under this act or any other law conferring jurisdiction
13 on the commission or pursuant to regulations promulgated by the
14 commission to be designated and maintained as confidential.
15 (c) Categories of confidential information.--The following
16 types of documents or information concerning an applicant or a
17 licensee shall be designated and maintained as confidential
18 pursuant to this section:
19 (1) Financial information, including statements, audits
20 and financing applications, including, but not limited to,
21 offering memoranda, placement documents and purchase
22 agreements.
23 (2) Marketing information, business plans and
24 proprietary information, including, without limitation, trade
25 secrets.
26 (3) Investigatory materials developed by or provided to
27 the commission during an investigation of an applicant for or
28 holder of a license or a finding of suitability.
29 (4) Books and records kept by a licensee relating to
30 gaming revenues as required by the commission are not to be
20030S0831B1065 - 32 -
1 considered public records. The commission may, however,
2 publish and disseminate gaming revenues of each licensee at
3 such frequency and in such detail as it deems appropriate.
4 Section 309. Administrative procedures.
5 Except as provided in this act or any other law conferring
6 jurisdiction on the commission, a person may appeal from any
7 final order, decree, decision, determination or ruling of the
8 commission as provided in 2 Pa.C.S. (relating to administrative
9 law and procedure).
10 Section 310. Establishment and use of Gaming Commission Fund;
11 fiscal affairs of Pennsylvania Gaming Commission.
12 (a) Establishment of fund.--All fees, fines, penalties and
13 other moneys paid, received, recovered and collected under the
14 provisions of this act shall be placed in a separate fund by the
15 State Treasurer to be known as the Riverboat and Hotel Gaming
16 Fund established under section 1501. Twenty million dollars
17 shall be allocated annually to a separate fund to be known as
18 the Gaming Commission Fund. All interest received on the Gaming
19 Commission Fund shall be credited to the Gaming Commission Fund.
20 (b) Purposes of fund.--The Gaming Commission Fund shall be
21 used for the following purposes:
22 (1) Payment of all administrative expenses of the
23 commission, including, without limitation, expenses incident
24 to processing, investigating and issuing licenses and
25 determinations of suitability.
26 (2) Payment of the salaries, wages, compensation and
27 expenses of the commissioners, the executive director and the
28 agents, employees and other persons who may be required to
29 perform work for the commission pursuant to this act.
30 (3) Purchase of such furniture, furnishings, stationery
20030S0831B1065 - 33 -
1 supplies, materials, equipment, fuel, motor vehicles and
2 printing and binding materials as may be necessary to the
3 conduct of the work of the commission.
4 (4) Payment of moneys due for the purchase, lease or
5 rental of any offices required by the commission.
6 (5) Payment of contingent, incidental or other expenses
7 reasonably necessary to carry on the work of the commission.
8 (6) Allocation by the commission of at least $1,000,000
9 annually for the purpose of treating compulsive gambling in
10 Pennsylvania. Approximately one-half of this amount should be
11 earmarked for treatment, and the remainder directed toward
12 prevention, education, training, research and intervention.
13 (c) Payment from fund.--All moneys in the Gaming Commission
14 Fund shall be appropriated annually by the General Assembly to
15 the commission and may be expended for the purposes authorized
16 under this section.
17 CHAPTER 5
18 GAMING LICENSES
19 SUBCHAPTER A
20 PRELIMINARY PROVISIONS
21 Section 501. Authorized riverboat gaming licenses;
22 applications.
23 (a) Authorized licenses.--
24 (1) The commission shall be authorized to promulgate
25 regulations concerning, to accept applications for and to
26 award the following types of licenses relating to riverboat
27 gaming in cities of the first class:
28 (i) Operator licenses.
29 (ii) Supplier licenses.
30 (iii) Occupational licenses.
20030S0831B1065 - 34 -
1 (2) The commission is also authorized to promulgate
2 regulations concerning, to accept applications for and to
3 make findings of suitability under section 584.
4 (b) Temporary licenses.--A temporary occupational license
5 awarded by the commission shall continue in effect until the
6 commission awards or denies a final license. The commission may
7 promulgate regulations concerning the experience and training
8 that the holder of a temporary occupational license must possess
9 in order to obtain a permanent license.
10 (c) Fees.--Except for any fee which is specifically set
11 forth in this act, the commission shall have the power and the
12 duty to establish and amend fees for initial applications,
13 periodic renewals and for other purposes the commission deems
14 necessary to effectively and efficiently implement and
15 administer the provisions of this act. All fees shall be
16 established to cover all costs incurred by the commission in the
17 administration of this act.
18 (d) Forms.--Applications for licenses and findings of
19 suitability shall be made to the commission on forms furnished
20 by the commission according to the regulations of the
21 commission.
22 Section 502. Qualifications for licenses or findings of
23 suitability.
24 (a) General standard for licensing.--Any person whom the
25 commission determines to be qualified to receive a license or
26 whom the commission finds to be suitable under the provisions of
27 this act and the regulations adopted under this act, having due
28 consideration for the proper protection of the health, safety,
29 morals and general welfare of this Commonwealth and the declared
30 policy of this Commonwealth, may be awarded a license or be
20030S0831B1065 - 35 -
1 found suitable. The applicant bears the burden of establishing
2 that he is qualified to receive and hold any license.
3 (b) Specific findings.--An application for a license or to
4 be found suitable shall not be approved unless the commission is
5 satisfied that the applicant is a person:
6 (1) Of good character, honesty and integrity.
7 (2) Whose prior activities, criminal record, if any,
8 reputation, habits and associations do not pose a threat to
9 the public interest of this Commonwealth or to the effective
10 regulation and control of gaming or create or enhance the
11 dangers of unsuitable, unfair or illegal practices, methods
12 and activities in the conduct of gaming or the carrying on of
13 the business and financial arrangements incidental thereto.
14 (3) Who possesses the knowledge, experience and
15 qualifications necessary to perform the tasks required by the
16 position for which licensing or a finding of suitability has
17 been requested.
18 (4) Who in all other respects is qualified to be
19 licensed or found suitable under the laws of this
20 Commonwealth.
21 (c) Criminal history information.--When the commission is
22 authorized or required to consider an applicant's criminal
23 history, the commission shall initiate a criminal history record
24 investigation to obtain any information in the possession of the
25 Pennsylvania State Police or the Federal Bureau of Investigation
26 or other relevant law enforcement agencies. The Pennsylvania
27 State Police shall be authorized to and shall provide at the
28 commission's request information concerning any criminal charges
29 and their disposition which have been filed against an applicant
30 for or holder of a license. The commission shall use the
20030S0831B1065 - 36 -
1 information obtained as a result of any investigation under this
2 section in determining the eligibility of a person for a license
3 or a finding of suitability. The applicant shall be responsible
4 for the payment of all costs incurred for the investigation
5 which are not covered by the application fee.
6 Section 503. Investigations for licenses, action of commission
7 and further investigation.
8 (a) Investigations.--The commission shall, as required by
9 this act, investigate the qualifications of each applicant
10 before any license or finding of suitability is issued by the
11 commission. Information provided on the application may be used
12 as a basis for a background investigation.
13 (b) Commencement of investigation.--The commission shall
14 commence the investigation of the applicant within 30 days after
15 the filing of an application and such supplemental information
16 as the commission may require.
17 (c) Completion of investigation.--If a person has applied
18 for a position which cannot be held pending licensure or a
19 finding of suitability by the commission, the commission shall
20 use its best efforts to complete the investigation and file a
21 written report concerning the application within three months
22 after the application and supporting data are completed and
23 filed with the commission.
24 Section 504. Disclosure of records.
25 (a) Mandated disclosures.--Notwithstanding any statutory
26 provision to the contrary, the commission shall, upon written
27 request from any person and in accordance with procedures
28 established by regulation, provide the following types of
29 information furnished by an applicant for or holder of an
30 operator license concerning the applicant or licensee, his
20030S0831B1065 - 37 -
1 products, services or gaming enterprises and his business
2 holdings:
3 (1) The name, business address and business telephone
4 number of any applicant or licensee.
5 (2) An identification of any applicant or licensee,
6 including, if the person is not an individual, the state of
7 incorporation, the corporate officers and the identity of all
8 shareholders or participants. If an applicant or licensee is
9 a publicly traded corporation, only the names of those
10 persons or entities holding an interest of 5% or more must be
11 provided.
12 (3) Identification of any company, including, if
13 applicable, the state of incorporation in which an applicant
14 or licensee or an applicant's or licensee's family has an
15 equity interest of 5% or more.
16 (4) Whether an applicant or licensee has been indicted,
17 convicted, pleaded guilty or nolo contendere or forfeited
18 bail concerning any criminal offense under the laws of any
19 jurisdiction, either felony or misdemeanor but not summary
20 offenses, including the date, name and location of the court,
21 arresting agency and prosecuting agency, case number, the
22 offense, disposition and location and length of
23 incarceration.
24 (5) Whether an application for any license or
25 certificate in this Commonwealth or any other jurisdiction
26 was denied, restricted, suspended, revoked or not renewed,
27 and a statement describing the facts and circumstances
28 concerning the denial, restriction, suspension, revocation or
29 nonrenewal, including the licensing authority, the date each
30 such action was taken and the reason for each such action.
20030S0831B1065 - 38 -
1 (6) A statement listing the names and titles of all
2 public officials or officers of any unit of government and of
3 their adult family members who, directly or indirectly, own
4 any financial interest in, have any beneficial interest in,
5 are the creditors of or hold any debt instrument issued by or
6 hold or have any interest in any contractual or service
7 relationship with an applicant or licensee.
8 (7) The amount of gaming tax paid to the Commonwealth by
9 the holder of an operator license.
10 (b) Exemptions to disclosure rules.--Subject to the
11 provisions of subsection (a), the commission shall not be
12 required to disclose any information, the disclosure of which
13 would not be required by the act of June 21, 1957 (P.L.390,
14 No.212), referred to as the Right-to-Know Law, or would be
15 prohibited by the statutes, rules, regulations or
16 intergovernmental agreements of any jurisdiction.
17 (c) Confidential information.--Notwithstanding any provision
18 of the Right-to-Know Law and subject to the provisions of this
19 section, the commission shall not, except subject to a court
20 order or with the prior written consent of a licensee or
21 applicant and after notice, disclose any information or data
22 required under this act or pursuant to regulations promulgated
23 by the commission to be designated and maintained as
24 confidential.
25 (d) Categories of confidential information.--The following
26 types of documents or information concerning an applicant or a
27 licensee shall be designated and maintained as confidential
28 pursuant to this section:
29 (1) Financial information, including statements, audits
30 and financing applications, including, but not limited to,
20030S0831B1065 - 39 -
1 offering memoranda, placement documents and purchase
2 agreements.
3 (2) Marketing information, business plans and
4 proprietary information, including, without limitation, trade
5 secrets.
6 (3) Investigatory materials developed by or provided to
7 the commission during an investigation of an applicant for or
8 holder of a license or a finding of suitability.
9 Section 505. License not a property right.
10 Any license awarded by the commission pursuant to this act is
11 a revocable privilege and not a right, property or otherwise,
12 under the Constitution of the United States or the Constitution
13 of Pennsylvania, and no applicant for or holder of any license
14 has any vested interest or right in any license granted under
15 this act.
16 SUBCHAPTER B
17 OPERATOR LICENSES
18 Section 511. Operator license authorized.
19 The commission is authorized to award operator licenses
20 authorizing persons to conduct riverboat gaming in a city of the
21 first class under this act. It shall be unlawful for a person to
22 conduct riverboat gaming in a city of the first class without an
23 operator license.
24 Section 512. Distribution of operator licenses; limitation.
25 (a) Allocation.--The commission shall allocate two operator
26 licenses for riverboat gaming in a city of the first class.
27 (b) Restriction.--The operator license issued under this act
28 restricts the licensee to operate one riverboat per license in a
29 city of the first class.
30 (c) Ownership interest.--No person may beneficially own,
20030S0831B1065 - 40 -
1 directly or indirectly, an equity interest in more than one
2 operator license under this act, provided that equity interests
3 not exceeding 5% of the total equity interest in any operator
4 license shall be excluded for purposes of computing the
5 foregoing. No person may operate more than one riverboat
6 licensed under this act.
7 Section 513. Application for operator license; application fee.
8 (a) Required information.--Application for an operator
9 license shall be in a form and contain such information as the
10 commission prescribes, including, but not limited to, all of the
11 following:
12 (1) The name of the proposed licensee.
13 (2) The proposed location where the riverboat will be
14 docked.
15 (3) Evidence necessary to determine the compliance of
16 the proposed riverboat with the specifications prescribed by
17 the commission for the design, appearance, accommodation and
18 construction of any riverboat on which gaming is to be
19 conducted.
20 (4) Evidence that the applicant possesses or has the
21 right to acquire sufficient title to the proposed site
22 contiguous to eligible waters.
23 (5) A site development plan including lighted parking,
24 traffic patterns, shelter facilities and a permanent docking
25 structure at a minimum. The development of the site,
26 including these facilities and structures, shall be in
27 accordance with zoning, building, occupancy and other
28 applicable codes as defined by municipal or county
29 ordinances.
30 (6) Evidence that the applicant possesses or reasonably
20030S0831B1065 - 41 -
1 expects to obtain all funds or financing necessary for the
2 entire proposed operation.
3 (7) The names of all persons who have a direct or
4 indirect ownership interest of 5% or more in the riverboat
5 gaming operation for which the license is sought. If the
6 applicant is a trust, the application shall disclose the
7 names and addresses of the trustees and beneficiaries; if a
8 corporation, the names and addresses of stockholders,
9 officers and directors; if a partnership, the names and
10 addresses of partners, both general and limited; or, if a
11 limited liability company, the names and addresses of
12 members.
13 (8) Such other information and details as the commission
14 may require by regulation.
15 (b) Application fee.--An applicant for an operator license
16 must pay a nonrefundable application fee as determined by the
17 commission, but no less than $250,000.
18 (c) Notification as to completeness.--The commission shall
19 notify an applicant for an operator license within 30 days of
20 the filing of an application whether the application is complete
21 or additional information will be required. The commission shall
22 notify an applicant within 30 days of receiving a supplemental
23 submission whether the application is complete or additional
24 information will be required.
25 Section 514. Suitability for operator license.
26 (a) General criteria.--The commission shall determine the
27 suitability of each applicant for or holder of an operator
28 license based upon such suitability criteria as the commission
29 shall prescribe to ensure that:
30 (1) The applicant is of good character, has honesty and
20030S0831B1065 - 42 -
1 integrity.
2 (2) The applicant's prior activities, including criminal
3 record, if any, reputation, habits and associations do not
4 pose a threat to the public interest of this Commonwealth or
5 to the effective regulation and control of gaming.
6 (3) The applicant has adequate business probity,
7 competence and experience in gaming.
8 (b) Additional criteria.--In considering the suitability of
9 an applicant for or holder of an operator license, the
10 commission may concurrently consider the suitability of any
11 person:
12 (1) who holds any equity interest or creditor interest
13 in the applicant or holder;
14 (2) who holds or is proposed to receive any supplier
15 license or occupation license with respect to the applicant
16 or holder; or
17 (3) who is affiliated with the applicant or holder.
18 (c) Exception.--Notwithstanding any other provisions of this
19 act, the commission shall not award operator licenses to any
20 persons who have been convicted of any felony criminal violation
21 in this or any other jurisdiction.
22 Section 515. Criteria for award of operator licenses.
23 In determining whether or, in the case of multiple applicants
24 competing for a limited number of operator licenses within the
25 city of the first class, to whom to grant an operator license,
26 the commission shall consider the following factors:
27 (1) the location of the proposed riverboat operation,
28 including the site development plan;
29 (2) the financial ability of the applicant to meet
30 commitments made pursuant to its application under this act;
20030S0831B1065 - 43 -
1 (3) the commitment and successful operations of the
2 applicant in other gaming jurisdictions;
3 (4) the potential for new job creation that will result
4 from granting a license to the applicant;
5 (5) the applicant's good faith affirmative action plan
6 to recruit, train and upgrade minorities in all employment
7 classifications therein;
8 (6) the facilities or proposed facilities for the
9 conduct of riverboat operations, including the size,
10 suitability and quality of the proposed facilities;
11 (7) the extent to which the applicant's proposed
12 riverboat operations and any associated nongaming businesses
13 could reasonably be expected to encourage interstate tourism
14 to this Commonwealth;
15 (8) the highest prospective total revenue to be
16 collected by the Commonwealth from the conduct of riverboat
17 gaming as determined by studies and projections done either
18 in accordance with standards and regulations of the
19 commission or by an independent organization approved by the
20 commission;
21 (9) the level of local governmental support for the
22 riverboat operation;
23 (10) the history of the applicant's financial stability;
24 (11) the background and history of the applicant's
25 operations in other gaming jurisdictions, including, but not
26 limited to, the applicant's history of compliance with the
27 laws of the jurisdictions in which it operates;
28 (12) the history and success of the applicant in
29 developing tourism facilities ancillary to gaming
30 development; and
20030S0831B1065 - 44 -
1 (13) such other factors as the commission may determine
2 are relevant to the policies of this act, such factors having
3 been set forth by regulations adopted pursuant to the
4 provisions of this act.
5 Section 516. Award and appeal of operator licenses.
6 (a) Award of license.--The following procedures shall govern
7 the award of operator licenses and appeals from decisions of the
8 commission with respect to operator licenses:
9 (1) Applicants for an operator license who complete the
10 application process shall have an opportunity to make a
11 presentation at a hearing before the commission within 90
12 days after the application is complete. The commission shall
13 establish procedures for the hearings and shall allow
14 applicants for operator licenses to present oral and written
15 information to assist the commission in evaluating the merits
16 of the application. The commission shall also establish rules
17 and procedures to enable members of the public, including,
18 but not limited to, elected public officials, to comment on
19 the various applications for operator licenses.
20 (2) The commission shall review all information
21 available to it concerning applicants for operator licenses,
22 including, but not limited to, application materials, the
23 results of background investigations that shall be conducted
24 of all applicants and information presented at the
25 presentations described in paragraph (1).
26 (3) The commission shall have full and absolute power
27 and authority to award operator licenses in the manner it
28 determines best satisfies the standards and criteria and
29 implements the purposes and legislative intent of this act
30 after a thorough evaluation of all relevant information and
20030S0831B1065 - 45 -
1 circumstances. All decisions by the commission to grant an
2 operator license shall be by majority vote.
3 (4) If the commission awards an operator license, the
4 commission shall prepare an award notification stating that
5 the commission has complied with the procedures set forth in
6 this section and has determined that the applicant satisfies
7 the criteria set forth in this act and that the award is
8 consistent with the purposes and policies of this act. The
9 commission shall notify all applicants for operator licenses
10 of the awards and provide for notice to members of the
11 public.
12 (5) The commission's award of an operator license shall
13 not be stayed during the pendency of a review of the
14 commission's award of the license unless otherwise ordered by
15 the Commonwealth Court and upon the posting of a bond by the
16 protestant in an amount approved by the court, with
17 appropriate security, conditioned that, if the protestant's
18 protest of the commission's award of an operator license is
19 denied, the protestant shall pay all damages to any party
20 resulting from delays occasioned by the litigation.
21 (b) Right to protest.--An applicant who has been denied the
22 award of an operator license by the commission and who is
23 aggrieved in connection therewith may protest to the commission
24 in writing. All protests under this subsection must be made
25 within seven days after the denial of or failure to award an
26 operator license to the protestant. No person other than a
27 denied applicant shall have standing to protest any license
28 award or denial by the commission.
29 (c) Authority to resolve protest.--The commission shall have
30 the authority to settle and resolve a protest of an aggrieved
20030S0831B1065 - 46 -
1 applicant concerning the denial of the application or failure to
2 award an operator license to the aggrieved applicant.
3 (d) Decision.--If the protest is not resolved by mutual
4 agreement, the commission shall promptly, but in no event later
5 than 30 days from the filing of the protest, issue a decision in
6 writing. The decision shall:
7 (1) State the reasons for the action taken.
8 (2) Inform the protestant of his right to file an action
9 in Commonwealth Court as provided in subsection (f).
10 (e) Notice of decision.--A copy of the decision under
11 subsection (d) shall be delivered by registered or certified
12 mail to the protestant and any other person determined by the
13 commission to be affected by the decision.
14 (f) Finality of decision.--A decision under subsection (d)
15 shall be final and conclusive unless the aggrieved applicant
16 files an action challenging the decision of the commission in
17 Commonwealth Court within 14 days of receipt of the decision. No
18 action may be commenced in Commonwealth Court under this
19 subsection until the protestant has exhausted the administrative
20 remedies provided for in this section.
21 (g) Affirmation of commission actions.--If an action under
22 subsection (f) is timely filed in Commonwealth Court, the court
23 shall affirm the commission's actions in connection with the
24 denial of an operator license or failure to award an operator
25 license to the aggrieved applicant if it determines that the
26 commission has made no errors of law and that its findings are
27 not arbitrary or capricious.
28 Section 517. Terms and conditions of operator licenses.
29 (a) Issuance.--The commission may issue a license to an
30 operator if it is satisfied that the applicant has complied with
20030S0831B1065 - 47 -
1 all of the appropriate requirements for licensure and the
2 commission determines that the issuance of the license best
3 satisfies the standards and criteria and implements the purposes
4 and legislative intent of this act.
5 (b) Contents of operator licenses.--An operator license
6 awarded by the commission shall specify:
7 (1) The name of the licensee.
8 (2) The place where the riverboat will operate.
9 (3) Such other information as the commission by
10 regulation shall require.
11 (c) Transferability of operator license.--An operator
12 license is not transferable and relates only to the specific
13 site and operator identified therein.
14 (d) Term of operator license.--The term of an operator
15 license shall be two years from the date of issuance or most
16 recent renewal, as applicable.
17 (e) Limitation on operator license.--An operator license
18 awarded by the commission shall limit the operator to conduct
19 riverboat gaming only on eligible waters located in a city of
20 the first class.
21 (f) Permanent docking.--All operator licenses shall permit
22 continuous docking of riverboats and dockside gaming, including
23 riverboats or barges within basins which are adjacent to such
24 eligible waters.
25 (g) Improvements permitted.--Improvements made to or
26 adjacent to eligible waters shall be permitted and may be
27 required by the commission to minimize navigational hazards and
28 maximize public safety. All improvements shall be subject to
29 commission approval. All improvements shall satisfy all
30 environmental standards and requirements mandated by applicable
20030S0831B1065 - 48 -
1 Federal and State law and regulations.
2 Section 518. Obligations of operator licensees.
3 Any person who holds an operator license issued under this
4 act shall:
5 (1) Be incorporated or otherwise organized and in good
6 standing in this Commonwealth or incorporated or otherwise
7 organized in another state and qualified to do business in
8 this Commonwealth. For the purpose of the corporate net
9 income tax, such corporation shall be considered a
10 "corporation" as defined in Article IV of the act of March 4,
11 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.
12 Such corporation, limited liability company or business trust
13 shall not elect to be treated as a Pennsylvania S
14 corporation.
15 (2) Maintain an office in this Commonwealth.
16 (3) Comply with all of the requirements of this act, the
17 regulations of the commission and the laws of this
18 Commonwealth.
19 (4) Maintain a ledger in the principal office of the
20 company in this Commonwealth which shall:
21 (i) At all times reflect the ownership of interests
22 in the licensee, including every class of security issued
23 by the licensee, provided that, with respect to a
24 publicly traded corporation, the ledger may initially
25 consist of a copy of its latest list of record equity
26 securityholders and thereafter be maintained by adding a
27 copy of such material as it regularly receives from the
28 transfer agent for its equity securities of any class
29 which is outstanding.
30 (ii) Be available for inspection by the commission
20030S0831B1065 - 49 -
1 at all reasonable times without notice.
2 (5) Conduct gaming only as authorized under this act and
3 by regulations of the commission.
4 (6) Purchase or lease gaming devices only from the
5 holder of a valid supplier license. However, a holder of an
6 operator license may transfer and receive properly obtained
7 gaming devices between affiliated companies that hold gaming
8 licenses in other jurisdictions.
9 (7) To the extent required by this act, employ only
10 persons who hold valid occupational licenses.
11 (8) Adopt, subject to the approval of the commission, an
12 internal control system designed to safeguard assets and
13 revenues.
14 (9) Maintain books and records in accordance with
15 regulations promulgated by the commission and prepare such
16 reports as the commission may require.
17 (10) Cooperate fully in any background or other
18 investigation conducted by the commission or by any law
19 enforcement agency.
20 (11) Provide all financial, management, background and
21 other information as may be requested by the commission
22 regarding itself and any affiliated company.
23 (12) Seek approval for any assignment or transfer of an
24 ownership interest of 5% or more in a licensee, except as
25 otherwise permitted by regulations or orders of the
26 commission.
27 (13) Notify the commission within 30 days of any
28 transaction involving the incurrence of any indebtedness in
29 connection with the construction, operation or expansion of a
30 riverboat gaming facility in a city of the first class when
20030S0831B1065 - 50 -
1 such indebtedness exceeds $300,000.
2 (14) Report any change of personnel among the licensee's
3 officers, board of directors or key executives.
4 (15) To the extent allowed by applicable law, use the
5 licensee's best efforts to give priority to residents of a
6 city of the first class in the hiring of employees.
7 Section 519. Prohibition on assignment; exception.
8 An operator licensee shall not grant, assign or contract to
9 turn over the license or right to operate a riverboat to another
10 person, except that an operator licensee may make collateral
11 assignment of the license to a financing institution or lender
12 with the approval of the commission.
13 Section 520. Renewal of operator licenses.
14 Subject to the power of the commission to deny, revoke or
15 suspend licenses, any operator license in force shall be renewed
16 biannually by the commission upon the proper application for
17 renewal and payment of a license renewal fee of $25,000. The
18 application for renewal and application fee shall be filed with
19 the commission no later than 120 days before the expiration of
20 the current license, and all license fees and taxes as required
21 by law shall be paid to the commission on or before the date of
22 expiration of the current license.
23 Section 521. Denial of license; revocation for unsuitability;
24 forfeiture.
25 (a) Denial of license.--The commission shall have full
26 authority to deny any application or revoke any operator license
27 for any cause which it deems reasonable.
28 (b) Revocation for unsuitability.--If at any time the
29 commission determines that it has reasonable grounds to believe
30 that any holder of an operator license may be unsuitable to
20030S0831B1065 - 51 -
1 continue to hold an operator license under this act having due
2 consideration for the protection of the health, safety, morals
3 and general welfare of this Commonwealth and for the reputation
4 of the Commonwealth's gaming industry, the commission shall
5 initiate an investigation and hearing and may, based upon its
6 determination thereupon, suspend, limit or revoke any license.
7 Upon suspension or revocation of an operator license, the
8 licensee must immediately cease all gaming.
9 (c) Forfeiture.--If the recipient of any operator license
10 fails to begin development of the site to which the license
11 relates within one year of the receipt of such license or fails
12 to begin gaming operations within three years of the receipt of
13 such license, then the license shall be deemed to be forfeited
14 unless, for good cause, the commission has previously granted an
15 appropriate extension of time.
16 SUBCHAPTER C
17 SUPPLIER LICENSES
18 Section 541. Supplier licenses authorized.
19 The commission is authorized to award supplier licenses to
20 suppliers. It shall be unlawful to manufacture, distribute,
21 assemble, produce, sell, lease or otherwise provide gaming
22 devices without a supplier license.
23 Section 542. Application for supplier license; application fee.
24 (a) Required information.--Application for a supplier
25 license shall be in a form and contain such information the
26 commission prescribes, including, but not limited to, all of the
27 following:
28 (1) The name of the proposed licensee.
29 (2) The location of the proposed operation.
30 (3) The names of all persons who have a direct or
20030S0831B1065 - 52 -
1 indirect ownership interest of 5% or more in the supplier's
2 operation for which the license is sought. If the applicant
3 is a trust, the application shall disclose the names and
4 addresses of the trustee and beneficiaries; if a corporation,
5 the names and addresses of officers, directors and
6 stockholders; if a partnership, the names and addresses of
7 partners, both general and limited; or, if a limited
8 liability company, the names and addresses of the members.
9 (4) The nature of the gaming devices to be sold, leased
10 or provided.
11 (5) Such other information and details as the commission
12 may require by regulation.
13 (b) Application fee.--An applicant for a supplier license
14 must pay a nonrefundable application fee as determined by the
15 commission.
16 (c) Notification as to completeness.--The commission shall
17 notify an applicant for a supplier license within 60 days of the
18 filing of an application whether the application is complete or
19 additional information will be required. The commission shall
20 notify applicants within 30 days of receiving a supplemental
21 submission whether the application is complete or additional
22 information will be required.
23 Section 543. Background investigation.
24 The commission shall require an applicant for a supplier
25 license to undergo a complete background investigation. The
26 applicant shall be responsible for the payment of all costs
27 incurred for the investigation which are not covered by the
28 application fee.
29 Section 544. Suitability for supplier license.
30 (a) General criteria.--The commission shall determine the
20030S0831B1065 - 53 -
1 suitability of each applicant for or holder of a supplier
2 license based upon such suitability criteria as the commission
3 shall prescribe to ensure that:
4 (1) The applicant is of good character, has honesty and
5 integrity.
6 (2) The applicant's prior activities, including criminal
7 record, if any, reputation, habits and associations do not
8 pose a threat to the public interest of the Commonwealth or
9 to the effective regulation and control of gaming.
10 (3) The applicant possesses the knowledge, experience
11 and qualifications that the commission deems necessary to
12 perform the tasks for which the supplier license is sought.
13 (b) Additional criteria.--In considering the suitability of
14 an applicant for or holder of a supplier license, the commission
15 may concurrently consider the suitability of any person:
16 (1) who holds any equity interest or creditor interest
17 in the applicant or holder;
18 (2) who is a principal manager to the applicant or
19 holder; or
20 (3) who is affiliated with or involved in the business
21 affairs of the applicant or holder.
22 Section 545. Terms and conditions of supplier licenses.
23 (a) Issuance.--The commission shall issue a license to a
24 supplier if it is satisfied that the applicant has complied with
25 all of the appropriate requirements for licensure. Supplier
26 licenses shall be personal to the licensee and shall entitle the
27 licensee to do business with any riverboat in a city of the
28 first class.
29 (b) Term of supplier licenses.--The term of a supplier
30 license shall be one year from the date of issuance or most
20030S0831B1065 - 54 -
1 recent renewal, as applicable.
2 (c) Supplies, devices and equipment must conform to
3 requirements.--A person holding a supplier license may not
4 distribute gaming supplies, devices and equipment unless those
5 supplies, devices and equipment conform to standards adopted by
6 the commission.
7 Section 546. Renewal of supplier licenses.
8 Subject to the power of the commission to deny, revoke or
9 suspend licenses, any supplier license in force shall be renewed
10 annually by the commission upon the proper application for
11 renewal and payment of a license renewal fee to be determined by
12 the commission. The application for renewal and application fee
13 shall be filed with the commission no later than 120 days before
14 the expiration of the current license, and all license fees and
15 taxes as required by law shall be paid to the commission on or
16 before the date of expiration of the current license.
17 Section 547. Denial of license; revocation for unsuitability.
18 (a) Authority.--The commission shall have full authority to
19 deny any application or revoke any supplier license for any
20 cause which it deems reasonable.
21 (b) Investigation and hearing.--If at any time the
22 commission determines that it has reasonable grounds to believe
23 that any licensee may be unsuitable to continue to hold a
24 supplier license, the commission shall initiate an investigation
25 and hearing and may, based upon its determination thereupon,
26 suspend, limit or revoke any license. Upon suspension or
27 revocation of a supplier license, the licensee must cease the
28 performance of any activity requiring a supplier license under
29 this act. From and after the revocation or suspension of a
30 licensee's license, the affected licensee shall not receive,
20030S0831B1065 - 55 -
1 directly or indirectly, any compensation, consideration or
2 payment of any kind relating to any activity requiring a
3 supplier license under this act, other than in payment for goods
4 or services provided prior to such suspension or revocation.
5 SUBCHAPTER D
6 OCCUPATIONAL LICENSES
7 Section 561. Occupational license authorized.
8 The commission is authorized to award occupational licenses
9 for gaming employees. A person, including a company employed by
10 an operator licensee to manage all or any part of its gaming
11 operations, shall not be employed as a gaming employee or a key
12 executive unless the person holds a valid occupational license
13 awarded by the commission.
14 Section 562. Application for occupation license; application
15 fee.
16 (a) Required information.--Application for an occupation
17 license shall be in a form and contain such information the
18 commission prescribes, including, but not limited to, all of the
19 following:
20 (1) The name and address of the applicant.
21 (2) Whether the applicant has been awarded prior
22 occupational licenses related to gaming in this or any other
23 state or nation under this or another name and, if so, the
24 name and state or nation.
25 (3) Whether any license or permit awarded to the
26 applicant has been suspended, restricted, revoked or denied
27 and, if so, the reason for the action and the period of time.
28 (4) If the applicant is a company, the disclosures
29 required by an operator license in section 513(a)(7).
30 (5) Such other information and details as the commission
20030S0831B1065 - 56 -
1 may require by regulation.
2 (b) Application fee.--An applicant for an occupational
3 license must pay a nonrefundable application fee, the amount of
4 which shall be determined by the commission.
5 Section 563. Background investigation.
6 A person seeking an occupational license, including a license
7 for the purpose of managing all or a part of a riverboat gaming
8 operation, shall be required to undergo a background
9 investigation. The applicant shall be responsible for the
10 payment of all costs incurred for the investigation which are
11 not covered by the application fee.
12 Section 564. Standards for award of license.
13 The commission may award an occupational license to an
14 applicant if the applicant:
15 (1) Has paid a nonrefundable fee set by the commission.
16 (2) Is at least 21 years of age if the applicant is to
17 perform any function involving gaming by patrons.
18 (3) Has not been convicted of a felony or any crime
19 involving dishonesty, false statement or moral turpitude
20 under the laws of this Commonwealth, the laws of any other
21 state or the laws of the United States.
22 (4) Has demonstrated a level of skill or knowledge that
23 the commission determines to be sufficient to perform the
24 tasks for which the occupational license is sought.
25 (5) Has satisfied regulations for holding an
26 occupational license as adopted by the commission.
27 Section 565. Reasons for refusing occupational license.
28 The commission may refuse to award an occupational license to
29 a person:
30 (1) who is unqualified to perform the duties required of
20030S0831B1065 - 57 -
1 the applicant;
2 (2) who does not disclose or states falsely any
3 information required by the application;
4 (3) who has been found guilty of a violation of this act
5 or whose gaming-related license in another state or nation
6 has been suspended, restricted, revoked or denied for just
7 cause; or
8 (4) whose licensing would, in the opinion of the
9 commission, not be in the best interests of gaming in this
10 Commonwealth.
11 Section 566. Terms and conditions of occupational licenses.
12 (a) Issuance.--The commission shall issue an occupational
13 license to a person if it is satisfied that the applicant has
14 complied with all of the appropriate requirements for licensure.
15 (b) Term.--The term of an occupational license shall be one
16 year from the date of issuance or most recent renewal, as
17 applicable.
18 (c) Temporary occupational licenses.--The commission may
19 issue a temporary occupational license pending issuance of a
20 final license.
21 Section 567. Training of occupational licensees.
22 An operator licensee may enter into an agreement with a
23 school that has been approved by the commission for the training
24 of occupational licensees. Any training program conducted by a
25 school shall be approved by the commission and conducted in
26 accordance with a written agreement between the operator
27 licensee and the school. The training program may be conducted
28 on a riverboat.
29 Section 568. Renewal of occupational licenses.
30 Subject to the power of the commission to deny, revoke or
20030S0831B1065 - 58 -
1 suspend licenses, any occupational license in force shall be
2 renewed annually by the commission upon the proper application
3 for renewal and payment of a license renewal fee to be
4 determined by the commission. The application for renewal and
5 application fee shall be filed with the commission no later than
6 120 days before the expiration of the current license, and all
7 license fees and taxes as required by law shall be paid to the
8 commission on or before the date of expiration of the current
9 license.
10 Section 569. Right to organize.
11 Nothing in this act shall be construed to limit the rights of
12 employees to organize.
13 SUBCHAPTER E
14 MISCELLANEOUS PROVISIONS
15 Section 581. Denial of license; revocation for unsuitability.
16 (a) Denial of license.--The commission shall have full
17 authority to deny any application or revoke any occupational
18 license for any cause which it deems reasonable.
19 (b) Revocation for unsuitability.--If at any time the
20 commission determines that it has reasonable grounds to believe
21 that any licensee may be unsuitable to continue to hold an
22 occupational license under this act having due consideration for
23 the protection of the health, safety, morals and general welfare
24 of this Commonwealth and for the reputation of this
25 Commonwealth's gaming industry, the commission shall initiate an
26 investigation and hearing and may, based upon its determination
27 thereupon, suspend, limit or revoke any license. Upon suspension
28 or revocation of an occupational licensee's license, the
29 licensee must cease the provision of all services in any
30 capacity requiring an occupational license under this act. From
20030S0831B1065 - 59 -
1 and after the revocation or suspension of an occupational
2 licensee's license, the affected licensee shall not receive,
3 directly or indirectly, any compensation, consideration or
4 payment of any kind relating to the conduct of gaming in any
5 capacity requiring an occupational license other than in payment
6 for services rendered prior to such suspension or revocation.
7 Section 582. Requirement to register and qualify.
8 (a) General rule.--Except as provided in subsection (b),
9 every person who directly or indirectly owns any equity or
10 creditor interest in any applicant for or holder of an operator
11 license under this act shall register and qualify with the
12 commission in accordance with regulations prescribed by the
13 commission and shall provide such information as the commission
14 deems necessary to determine the suitability and eligibility of
15 such person to retain such interest.
16 (b) Exceptions.--The following persons are not required to
17 register or qualify under this section:
18 (1) an institutional investor;
19 (2) a person who beneficially owns less than 5% of the
20 total equity or creditor interest of the operator licensee;
21 or
22 (3) any other group or class of persons which the
23 commission shall by regulation identify in light of the
24 purpose of this act.
25 (c) Fee.--Each registration filed under this section shall
26 be accompanied by an application fee determined by the
27 commission.
28 Section 583. Transfers of interests in operator licensee.
29 (a) Commission approval required.--No operator licensee may
30 issue any equity or creditor interest to any person prior to the
20030S0831B1065 - 60 -
1 commission's determination of the qualification of the proposed
2 subscriber or purchaser to hold the interest under this act.
3 Notwithstanding the foregoing, an operator licensee which is a
4 publicly held company may issue equity or creditor interests not
5 exceeding 5% of its equity or creditor interest to any person
6 without the consent of the commission.
7 (b) Certain transfers prohibited.--No person beneficially
8 owning in excess of 5% of the equity or creditor interest of an
9 operator licensee shall transfer all or any portion of its
10 interest in such licensee to any person prior to the
11 commission's determination of the qualification of the proposed
12 transferee to hold such interest under this act.
13 (c) Information.--A subscriber or proposed transferee of an
14 interest by an operator licensee shall provide the commission
15 with such information as the commission deems necessary to
16 determine the qualification of the person to whom the interest
17 is proposed to be issued or transferred. The commission shall
18 have 90 days within which to determine the qualification of any
19 subscriber or proposed transferee and to approve or deny the
20 issuance or transfer.
21 Section 584. Finding of suitability; divestiture by persons
22 found unsuitable.
23 (a) Finding of suitability.--The commission shall determine
24 the qualification of any person to acquire or continue to hold
25 any equity or creditor interest in an applicant for or holder of
26 an operator license under this act based upon such criteria as
27 the commission shall prescribe for the protection of the public
28 interest in order to ensure that the persons holding securities
29 issued by licensees are of good character, honesty, integrity
30 and financial stability and that they are otherwise qualified to
20030S0831B1065 - 61 -
1 hold the interest, in all cases having due consideration for the
2 protection of the health, safety, morals and general welfare of
3 this Commonwealth and for the reputation of this Commonwealth's
4 gaming industry. The burden of proving qualification to acquire
5 or hold any equity or creditor interest in a licensee shall be
6 on the person acquiring or holding such interest.
7 (b) Unsuitable.--A person shall be conclusively deemed
8 unsuitable to acquire or retain an equity or creditor interest
9 in any applicant for or holder of an operator license if such
10 qualified persons would be unsuitable to receive an operator
11 license under this act.
12 (c) Investigation and hearing.--If at any time the
13 commission has reasonable grounds to believe that any person
14 holding any equity or creditor interest in an applicant for or
15 holder of an operator license may be unqualified to retain its
16 interest, the commission shall initiate an investigation and
17 hearing and may, based upon its determination, issue an
18 unsuitability finding and divestiture order to the holder of
19 such interest and the issuer thereof. Upon receipt of a
20 divestiture order, the person holding the interest shall tender
21 its entire interest for purchase to the issuer thereof or a
22 third party on such terms as the commission shall approve.
23 (d) Restrictions.--From and after the time that the
24 commission issues an unsuitability finding and divestiture order
25 to a holder of an equity interest or creditor interest, the
26 person subject to the order shall not:
27 (1) receive, directly or indirectly, any dividend,
28 interest, payment or distribution of any kind with respect to
29 the security to which the order relates; or
30 (2) exercise, directly or indirectly, any voting power
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1 or other right with respect to the security to which the
2 order relates. The person subject to the order may, however,
3 receive payment for the sale of its interest on such terms as
4 the commission has approved.
5 CHAPTER 7
6 HOTEL GAMING LICENSES
7 Section 701. Hotel gaming license authorized.
8 The commission is authorized to award operator licenses
9 authorizing persons to conduct hotel gaming in cities of the
10 first class under this act. It shall be unlawful for a person to
11 conduct hotel gaming in a city of the first class without a
12 hotel gaming license.
13 Section 702. Distribution of hotel gaming licenses; limitation.
14 (a) Allocation.--The commission shall allocate two operator
15 licenses for hotel gaming in cities of the first class.
16 (b) Restriction.--The hotel gaming license issued under this
17 act restricts the licensee to operate one hotel per license in a
18 city of the first class.
19 (c) Ownership interest.--No person may beneficially own,
20 directly or indirectly, a equity interest in more than one hotel
21 gaming license under this act, provided that equity interests
22 not exceeding 5% of the total equity interest in any operator
23 license shall be excluded for purposes of computing the
24 foregoing. No person may operate more than one hotel licensed
25 under this act.
26 Section 703. Applications.
27 Any hotel seeking a hotel gaming license shall apply in a
28 manner prescribed by the commission. The commission shall review
29 applications and award licenses based on the criteria set forth
30 in Chapter 5.
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1 CHAPTER 9
2 GAMING REGULATION
3 Section 901. Power to regulate method and timing of riverboat
4 and hotel operations.
5 (a) Regulations.--The commission shall promulgate
6 regulations applicable to the operation of riverboat and hotel
7 gaming in a city of the first class as the commission deems
8 necessary for the protection of the health, safety, morals and
9 general welfare of this Commonwealth and for the reputation of
10 this Commonwealth's gaming industry.
11 (b) Hours and days of operation.--Riverboats and hotel
12 gaming establishments shall be allowed to operate 24 hours a
13 day, seven days per week. Operator licensees may, at their
14 option, select hours of operation.
15 Section 902. Wagering.
16 (a) Wagering prohibited except as provided.--Persons
17 licensed under this act shall permit no form of wagering except
18 as provided by this act.
19 (b) Wagering allowed only on riverboats or at hotels.--
20 Persons licensed pursuant to this act shall receive wagers only
21 from persons present on a riverboat or at a hotel with a valid
22 hotel gaming license.
23 (c) Gaffed games.--Gaffed games are prohibited.
24 (d) Wagering by gaming employees.--A gaming employee shall
25 not wager on a riverboat or in a hotel where that person is
26 employed.
27 (e) Minimum and maximum wagers.--An operator licensee shall
28 set minimum and maximum wagers on games which may be adjusted
29 from time to time by the operator in the normal course of
30 conducting business. However, changes in minimum wagers at any
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1 given table shall not apply to persons already engaged in
2 wagering at that table when the minimum wager is changed.
3 Section 903. Use of chips, tokens, etc.
4 (a) General rule.--All wagering must be conducted with
5 chips, tokens, any object of value including, without
6 limitation, paper tickets, magnetically striped cards, cards
7 with embedded chips or other media which may be exchanged for
8 currency or entered into another game for game credits, or other
9 forms of credit approved by the commission. In addition to the
10 aforementioned methods of wagering, United States coins in the
11 denominations of one cent, five cents, ten cents, twenty-five
12 cents, fifty cents and one dollar may be used to wager.
13 (b) Exchanges.--
14 (1) The operator shall exchange United States currency
15 or other bearer instruments or debit cards of each wagerer
16 for approved chips, tokens or other forms of credit for
17 purposes of wagering on the games.
18 (2) At the request of the wagerer, the operator shall
19 exchange the approved chips, tokens or other forms of credit
20 for United States currency.
21 (c) Prohibition.--No wagering shall be conducted with United
22 States currency or the currency of any other nation except
23 United States coins in the denominations of one cent, five
24 cents, ten cents, twenty-five cents, fifty cents and one dollar.
25 Section 904. Age requirement for patrons and gaming employees.
26 (a) Wagering.--No person under 21 years of age shall be
27 permitted to place, win, lose or collect any wager. Any person
28 under 21 years of age attempting to place, win, lose or collect
29 a wager or any person attempting to assist a person under 21
30 years of age to place, win, lose or collect a wager will be
20030S0831B1065 - 65 -
1 guilty of committing a misdemeanor of the third degree.
2 (b) Patrons.--Except as provided in subsection (c), no
3 person under 21 years of age shall be permitted in the area of a
4 riverboat or hotel where gaming is being conducted.
5 (c) Employees.--No person under 18 years of age shall be
6 employed in any capacity at a riverboat or hotel gaming
7 operation. Employees under 21 years of age shall not participate
8 directly or indirectly in any function related to gaming by the
9 patrons.
10 Section 905. Gaming debts.
11 (a) Gaming debts enforceable.--A negotiable instrument
12 evidencing a gaming debt incurred pursuant to this act may be
13 enforced by legal process.
14 (b) Incomplete negotiable instruments.--An operator licensee
15 or an agent of a licensee may accept an incomplete negotiable
16 instrument which:
17 (1) Is signed by a patron.
18 (2) States the amount of the debt in figures. An
19 operator licensee or an agent may complete the instrument as
20 is necessary for the instrument to be presented for payment.
21 (c) Conditions of acceptance; refusal of instruments.--An
22 operator licensee or agent of such licensee:
23 (1) Shall not accept a negotiable instrument which is
24 incomplete, except as authorized in subsection (b).
25 (2) May accept a negotiable instrument that is payable
26 to an affiliate or affiliated company or may complete a
27 negotiable instrument in the name of an affiliate or
28 affiliated company as payee if the negotiable instrument
29 otherwise complies with this subsection and the records of
30 the affiliate or an affiliated company pertaining to the
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1 negotiable instrument are made available to the commission
2 upon request.
3 (d) Establishment of accounts.--This section does not
4 prohibit the establishment of an account by a deposit of cash,
5 recognized traveler's check or any other instrument which is
6 generally recognized as equivalent to cash.
7 (e) Unenforceable debts.--Except as provided in this act,
8 gaming debts not evidenced by a negotiable instrument are void
9 and unenforceable and do not give rise to any administrative or
10 civil cause of action.
11 (f) Claims resolution.--A claim by a patron of an operator
12 licensee for payment of a gaming debt not evidenced by a
13 negotiable instrument may be resolved by the commission in
14 accordance with its regulations.
15 Section 906. Exclusion or ejection of certain persons from
16 riverboats and hotels.
17 The commission shall by regulation provide for the
18 establishment a list of persons who are to be excluded or
19 ejected from any riverboat or hotel gaming area. The list may
20 include any person whose presence in the establishment is
21 determined by the commission to pose a threat to the interest of
22 this Commonwealth or to licensed gaming, or both.
23 Section 907. Detention of persons.
24 (a) General rule.--Any operator licensee or any of its
25 officers or employees who have probable cause for believing that
26 there has been a violation of this act on its riverboat or in
27 its hotel by any person may take that person into custody and
28 detain him on the riverboat or in the hotel in a reasonable
29 manner and for a reasonable length of time. Such a taking into
30 custody and detention do not render the operator licensee or its
20030S0831B1065 - 67 -
1 officers, employees or agents criminally or civilly liable
2 unless it is established by clear and convincing evidence that
3 the taking into custody and detention are unreasonable under all
4 the circumstances.
5 (b) Posting requirement.--An operator licensee or its
6 officers or employees is not entitled to the immunity from
7 liability provided in subsection (a) unless there is displayed
8 in a conspicuous place in the establishment a notice in boldface
9 type clearly legible and in substantially this form:
10 Any operator licensee or any officers or employees of a
11 licensee having probable cause to believe that any person has
12 violated any provision of the Riverboat and Hotel Gaming in
13 First Class Cities Act may detain that person in the
14 establishment.
15 Section 908. Exemption from civil and criminal liability.
16 An operator licensee or its officers, employees or agents may
17 question any person on a riverboat or in a hotel suspected of
18 violating any provision of this act. An operator licensee or its
19 officers, employees or agents is not criminally or civilly
20 liable:
21 (1) on account of any such questioning; or
22 (2) for reporting to the commission or law enforcement
23 authorities the person suspected of the violation.
24 CHAPTER 11
25 RECORDS AND AUDITING
26 Section 1101. Recordkeeping and reporting.
27 (a) Records.--Each operator licensee shall keep its books
28 and records to clearly show the total amount of gross gaming
29 revenue, adjusted gross receipts and other revenues received.
30 (b) Not public records.--The books and records kept by an
20030S0831B1065 - 68 -
1 operator licensee relating to gaming operations as provided by
2 this section are not to be considered public records. The
3 commission may, however, publish and disseminate gaming revenues
4 of each operator licensee at such frequency and in such detail
5 as it deems appropriate.
6 Section 1102. Internal control systems; internal audits.
7 (a) Elements.--Each operator licensee shall adopt an
8 internal control system which shall include, without limitation,
9 provisions for:
10 (1) the safeguarding of its assets and revenues,
11 especially the recording of cash and evidences of
12 indebtedness; and
13 (2) the provision of reliable records, accounts and
14 reports of transactions, operations and events, including
15 reports to the commission.
16 (b) Purposes.--The internal control system must be designed
17 to reasonably ensure that:
18 (1) Assets are safeguarded.
19 (2) Financial records are accurate and reliable.
20 (3) Transactions are performed only in accordance with
21 management's general or specific authorization.
22 (4) Transactions are recorded adequately to permit
23 proper reporting of gaming revenue and of fees and taxes and
24 to maintain accountability for assets.
25 (5) Access to assets is permitted only in accordance
26 with management's specific authorization.
27 (6) Recorded accountability for assets is compared with
28 actual assets at reasonable intervals and appropriate action
29 is taken with respect to any discrepancies.
30 (7) Functions, duties and responsibilities are
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1 appropriately segregated and performed in accordance with
2 sound practices by competent, qualified personnel.
3 (c) Written internal control procedures.--Each operator
4 licensee and each applicant for an operator license shall
5 describe, in such manner as the commission may approve or
6 require, its administrative and accounting procedures in detail
7 in a written system of internal control. Each operator licensee
8 and applicant for an operator license shall submit a copy of its
9 written system to the commission. Each written system must
10 include:
11 (1) An organizational chart depicting appropriate
12 segregation of functions and responsibilities.
13 (2) A description of the duties and responsibilities of
14 each position shown on the organizational chart.
15 (3) A detailed, narrative description of the
16 administrative and accounting procedures designed to satisfy
17 the requirements of section 1101.
18 (4) A written statement signed by the licensee's chief
19 financial officer and the licensee's chief executive officer
20 attesting that the system satisfies the requirements of this
21 section.
22 (5) If the written system is submitted by an applicant,
23 a letter from an independent certified public accountant
24 stating that the applicant's written system has been reviewed
25 by the certified public accountant and complies with the
26 requirements of this section.
27 (6) Such other items as the commission may require.
28 (d) Minimum standards.--The commission shall adopt and
29 publish minimum standards for internal control procedures.
30 CHAPTER 13
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1 GAMING TAX
2 Section 1301. Responsibilities of Department of Revenue.
3 The department is charged with the administration and
4 collection of the taxes imposed under this act. The department
5 shall have the power to prescribe the forms to be employed.
6 Section 1302. Gaming Tax.
7 A tax to be known as the Gaming Tax is imposed on the
8 adjusted gross receipts received from games authorized by this
9 act at the rate of 35%. This tax shall be paid by all operator
10 licensees 20 days after the close of each month in which wagers
11 were made. Twenty million dollars from all fees, fines,
12 penalties, gaming taxes and other moneys paid, received,
13 recovered and collected under the provisions of this act shall
14 be placed in the Gaming Commission Fund by the State Treasurer.
15 All other money collected under this act shall be placed in the
16 Riverboat and Hotel Gaming Fund.
17 Section 1303. Monthly reports.
18 In order to determine the amount of tax payable under this
19 act, it shall be the duty of every operator licensee to submit
20 to the department, upon forms prepared and furnished by the
21 department, monthly reports under oath or affirmation of an
22 operator licensee's principal officer, setting forth the
23 following financial information concerning the preceding fiscal
24 month:
25 (1) The number of admissions.
26 (2) The amount of gross receipts.
27 (3) The amount of adjusted gross receipts.
28 (4) The amount of taxes paid to the department.
29 (5) Such other information as the department shall
30 require.
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1 Section 1304. Limitations on taxes and license fees; exception.
2 No political subdivision, authority or governmental or quasi-
3 governmental instrumentality or taxing authority of this
4 Commonwealth shall impose any tax, fee or assessment on the
5 conduct of gaming or on operator licensees except as authorized
6 under this act, including, without limitation, a permit,
7 privilege, docking, gaming device, occupation or excursion tax
8 or fee. Nothing in this act precludes the imposition of local
9 real property taxes, sales taxes, hotel taxes or normal fees for
10 standard municipal services. This section shall not be deemed to
11 exempt operator licensees from taxes imposed under the act of
12 March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
13 1971.
14 CHAPTER 15
15 RIVERBOAT AND HOTEL GAMING FUND
16 Section 1501. Riverboat and Hotel Gaming Fund.
17 (a) Fund established.--There is hereby established the
18 Riverboat and Hotel Gaming Fund. Revenues from the Riverboat and
19 Hotel Gaming Fund shall be used for the purposes provided in
20 subsection (b) The State Treasurer shall be custodian of the
21 Riverboat and Hotel Gaming Fund, which shall be subject to the
22 provisions of law applicable to funds listed in section 302 of
23 the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal
24 Code. Taxes and other revenues imposed and collected pursuant to
25 this act shall be received by the department and paid to the
26 State Treasurer and, along with interest and penalties, less any
27 refunds and credits paid, shall be credited to the Riverboat and
28 Hotel Gaming Fund not less frequently than monthly. During any
29 period before the credit of moneys to the Riverboat and Hotel
30 Gaming Fund, interest earned on moneys received by the
20030S0831B1065 - 72 -
1 department and paid to the State Treasurer under this section
2 shall be deposited into the Riverboat and Hotel Gaming Fund.
3 (b) Distribution of revenue.--
4 (1) In cities of the first class, the State Treasurer
5 shall make distributions according to the following schedule:
6 (i) Thirty-five percent of the revenues in the
7 Riverboat and Hotel Gaming Fund should be distributed as
8 follows:
9 (A) Ninety-two and one-half percent shall be
10 directed toward mandatory local tax relief, to be
11 implemented for the fiscal year commencing July 1,
12 2004. Each board of school directors and the city
13 council of a city of the first class shall reduce any
14 local taxes levied for the purpose of funding school
15 district programs by the following amounts upon
16 payment by the Commonwealth in an amount to be
17 calculated as follows:
18 (I) If the school district's school tax
19 ratio is equal to or less than 0.0321, multiply
20 the school district's 2003-2004 average daily
21 membership by $25,000,000 and divide the product
22 by the sum of the 2003-2004 average daily
23 membership for all school districts that qualify
24 under this subsection.
25 (II) If the school district's school tax
26 ratio is greater than 0.0321 and equal to or less
27 than 0.0370, multiply the school district's 2003-
28 2004 average daily membership by $75,000,000 and
29 divide the product by the sum of the 2003-2004
30 average daily membership for all school districts
20030S0831B1065 - 73 -
1 that qualify under this subsection.
2 (III) If the school district's school tax
3 ratio is greater than 0.0370 and equal to or less
4 than 0.0424, multiply the school district's 2003-
5 2004 average daily membership by $100,000,000 and
6 divide the product by the sum of 2003-2004
7 average daily membership for all school districts
8 that qualify under this subsection.
9 (IV) If the school district's school tax
10 ratio is greater than 0.0424, multiply the school
11 district's 2003-20004 average daily membership by
12 $200,000,000 and divide the product by the sum of
13 the 2003-2004 average daily membership for all
14 school districts that qualify under this
15 subsection.
16 (V) The Department of Education shall
17 annually calculate the school tax ratio for each
18 school district.
19 (VI) As used in this subsection, the
20 following words and phrases shall have the
21 meanings given to them in this subparagraph:
22 "Average daily membership." The average daily
23 membership of a school district shall be determined
24 as required under section 2501 of the act of March
25 10, 1949 (P.L.30, No.14), known as the Public School
26 Code of 1949.
27 "Personal income valuation." The personal income
28 valuation of a school district shall be determined as
29 required under section 2501 of the act of March 10,
30 1949 (P.L.30, No.14), known as the Public School Code
20030S0831B1065 - 74 -
1 of 1949.
2 "School tax ratio." The school tax ratio shall
3 be determined by dividing the personal income
4 valuation of the school district by the total dollar
5 value of revenue derived from any taxes levied by the
6 school district for the school year two years prior
7 to the school year in which payments under this
8 subsection are made.
9 (B) Four and one-half percent to municipalities
10 hosting racetracks.
11 (C) Three percent to the school districts
12 hosting racetracks.
13 (ii) Thirty-eight percent to the licensees.
14 (iii) Twelve percent to modernization and school
15 construction in cities of the first class.
16 (iv) Six percent to the adult basic insurance
17 coverage program established in section 1303 of the act
18 of June 26, 2001 (P.L.755, No.77), known as the Tobacco
19 Settlement Act.
20 (v) Three percent to the Women, Minorities and
21 Disadvantaged Business Enterprise Collateral Fund as
22 established in section 1701.
23 (vi) Three percent to the Community and Housing
24 Economic Development Fund as established in section 1901.
25 (vii) Three percent to the Department of Health to
26 be expended for programs for the prevention and treatment
27 of gambling addiction and other emotional and behavioral
28 problems associated with or related to gambling and for
29 the administration of the compulsive and problem gambling
30 program.
20030S0831B1065 - 75 -
1 (2) The revenue in the Riverboat and Hotel Gaming Fund
2 shall not be used to replace Federal or State funds.
3 CHAPTER 17
4 WOMEN, MINORITY AND DISADVANTAGED BUSINESS
5 ENTERPRISE FUND
6 Section 1701. Women, Minority and Disadvantaged Business
7 Enterprise Fund.
8 (a) Fund established.--The Women, Minority and Disadvantaged
9 Business Enterprise Fund is established under the Department of
10 Community and Economic Development.
11 (b) Purpose.--The purpose of this fund is to assist small
12 and disadvantaged businesses with start-up collateral for
13 businesses which provide or procure services for licensees under
14 this act. The board and the Department of Community and Economic
15 Development shall work in conjunction to promulgate regulations
16 in accordance with this section.
17 CHAPTER 19
18 COMMUNITY HOUSING AND ECONOMIC DEVELOPMENT FUND
19 Section 1901. Community Housing and Economic Development Fund.
20 (a) Fund established.--The Community Housing and Economic
21 Development Fund is established under the Department of
22 Community and Economic Development.
23 (b) Purpose.--The purpose of this fund is to engage in
24 economic stimulus and assist in the development of housing and
25 economic development projects in cities of the first class. The
26 board and the Department of Community and Economic Development
27 shall work in conjunction to promulgate regulations in
28 accordance with this section.
29 CHAPTER 21
30 PROHIBITED ACTIVITIES
20030S0831B1065 - 76 -
1 Section 2101. Prohibited activities; penalties.
2 (a) Exclusion of persons.--A person who uses or possesses,
3 with intent to use, a device or system to assist in the
4 following activities shall be ejected from a riverboat or hotel
5 and may be excluded from a riverboat or hotel pursuant to
6 regulations established by the commission:
7 (1) Projecting the outcome of a game.
8 (2) Keeping track of cards played other than by a
9 person's own mental abilities.
10 (3) Analyzing the probability of the occurrence of an
11 event relating to a game.
12 (b) Misdemeanor offenses.--A person commits a misdemeanor of
13 the first degree for any of the following:
14 (1) Wagering or accepting a wager in violation of any
15 provision of section 902.
16 (2) Cheating at a game.
17 (3) Instructing another person in cheating or in the use
18 of any device for that purpose with the knowledge or intent
19 that the information or use so conveyed may be employed to
20 violate any provision of this act.
21 (4) Making a false statement on any application
22 submitted pursuant to this act.
23 (5) Knowingly permitting a person under 21 years of age
24 to wager in violation of section 904.
25 (c) Felony offenses.--A person commits a felony of the third
26 degree for any of the following:
27 (1) Offering, promising or giving anything of value or
28 benefit to a person who is connected with a riverboat or
29 hotel gaming operation, including, but not limited to, an
30 officer or employee of any person licensed under this act, as
20030S0831B1065 - 77 -
1 part of an agreement or arrangement or with the intent that
2 the promise or thing of value or benefit will influence the
3 actions of the person to whom the offer, promise or gift was
4 made in order to influence or attempt to influence the
5 outcome of a game or to influence official action of a member
6 of the commission.
7 (2) Soliciting or knowingly accepting or receiving a
8 promise of anything of value or benefit while the person is
9 connected with a riverboat or hotel, including, but not
10 limited to, an officer or employee of any person licensed
11 under this act, pursuant to an understanding or arrangement
12 or with the intent that the promise or thing of value or
13 benefit will influence the actions of the person to affect or
14 attempt to affect the outcome of a game or to influence
15 official action of a member of the commission.
16 (3) Manufacturing, selling or distributing any card,
17 chip or gaming device which is intended to be used to violate
18 any provision of this act.
19 (4) Placing a bet after acquiring knowledge not
20 available to all players of the outcome of the game which is
21 the subject of the bet or aiding a person to acquire
22 knowledge for the purpose of placing a bet contingent on that
23 outcome.
24 (5) Knowingly using:
25 (i) a counterfeit chip or token in a game;
26 (ii) a chip or token which has not been approved by
27 the commission; or
28 (iii) a coin not of the same denomination as the
29 coin intended to be used in the game.
30 (6) Possession of a slug or paraphernalia for the
20030S0831B1065 - 78 -
1 manufacturing of slugs.
2 (7) Possession of:
3 (i) a key or device designed for the purpose of
4 opening, entering or affecting the operation of a game,
5 drop box or electronic or mechanical device connected
6 with a game or for removing coins, tokens, chips or other
7 contents of a game; or
8 (ii) any other device intended to be used to violate
9 a provision of this act.
10 Subparagraphs (i) and (ii) do not apply to an operator
11 licensee or to an employee of an operator licensee acting in
12 furtherance of the employee's employment.
13 (8) Claiming, collecting or taking or attempting to
14 claim, collect or take money or anything of value in or from
15 a game with intent to defraud, without having made a wager
16 contingent on winning a game or claiming, collecting or
17 taking an amount of money or thing of value of greater value
18 than the amount won.
19 (9) Reducing the amount wagered or canceling the bet
20 after acquiring knowledge of the outcome of the game or other
21 event which is the subject of the bet, including pinching
22 bets.
23 (10) Manipulating with the intent to cheat any component
24 of a gaming device in a manner contrary to the designed and
25 normal operational purpose of the component, including, but
26 not limited to, varying the pull of the handle of a slot
27 machine, with knowledge that the manipulation affects the
28 outcome of the game or with knowledge of any event that
29 affects the outcome of the game.
30 (11) Marking, altering or otherwise modifying any gaming
20030S0831B1065 - 79 -
1 device in a manner that:
2 (i) affects the result of a wager by determining win
3 or loss; or
4 (ii) alters the normal criteria of random selection
5 which affects the operation of a game or which determines
6 the outcome of a game.
7 (12) Willfully failing to report, account for or pay any
8 license fee, tax or other payment required by this act.
9 (13) Knowingly possessing any slot machine or gaming
10 device which has been manufactured, sold or distributed in
11 violation of this act.
12 (d) Civil penalties.--In addition to other penalties
13 provided, any person who:
14 (1) conducts a gaming operation without first obtaining
15 a license to do so;
16 (2) continues to conduct such games after revocation of
17 his license; or
18 (3) conducts or allows to be conducted any unauthorized
19 games on a riverboat
20 shall be subject to a civil penalty equal to the amount of gross
21 receipts derived from wagering on the games, whether authorized
22 or unauthorized, conducted on that day, as well as confiscation
23 and forfeiture of all game equipment used in the conduct of
24 unauthorized games.
25 (e) Rebuttable inference of intent to cheat.--Possession of
26 any of the devices described in subsection (a) or (c)(3), (5),
27 (7) or (8) permits a rebuttable inference that the possessor
28 intended to use them for cheating.
29 (f) Certain persons barred from riverboat or hotel gaming
30 areas.--A person convicted of a felony under this section shall
20030S0831B1065 - 80 -
1 be excluded from all riverboat and hotel gaming areas.
2 (g) Venue.--An action to prosecute a crime occurring on a
3 riverboat shall be tried in the county where the riverboat is
4 docked.
5 CHAPTER 23
6 LIQUOR LICENSES
7 Section 2301. Riverboat liquor license.
8 (a) Establishment.--There is hereby established, and the
9 Pennsylvania Liquor Control Board shall have the authority to
10 issue, a retail liquor license known as a riverboat liquor
11 license for the brewing and sale of liquor, alcohol and malt or
12 brewed beverages for consumption only on the premises of a
13 riverboat and its adjacent support facilities licensed and
14 operated under the provisions of this act.
15 (b) Hours of operation.--The holder of a riverboat liquor
16 license may sell and serve liquor, alcohol and malt or brewed
17 beverages only during the hours of operation of the riverboat as
18 approved by the commission.
19 (c) License conversion.--Upon receipt of written
20 notification from the commission of the successful applicants
21 for operator licenses issued under this act, the Pennsylvania
22 Liquor Control Board shall convert any restaurant liquor license
23 held by or transferred to the successful applicant into a
24 riverboat liquor license.
25 Section 2302. Cooperation.
26 The Pennsylvania Liquor Control Board and the commission
27 shall enter into cooperative agreements to facilitate the
28 effective and efficient administration of the provisions of this
29 act.
30 CHAPTER 31
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1 ADMINISTRATION
2 Section 3101. Administrative procedures.
3 Except with respect to the award of operator licenses under
4 this act, a person may appeal from any final order, decree,
5 decision, determination or ruling of the commission as provided
6 in 2 Pa.C.S. (relating to administrative law and procedure).
7 CHAPTER 51
8 MISCELLANEOUS PROVISIONS
9 Section 5101. Effective date.
10 This act shall take effect in 60 days.
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