PRINTER'S NO. 4002
No. 2648 Session of 2006
INTRODUCED BY TURZAI, BAKER, BALDWIN, BOYD, CALTAGIRONE, CAUSER,
CLYMER, CRAHALLA, CREIGHTON, DENLINGER, GABIG, GILLESPIE,
GINGRICH, HUTCHINSON, KAUFFMAN, MARSICO, McILHATTAN,
METCALFE, R. MILLER, NAILOR, PETRARCA, REED, REICHLEY,
ROHRER, ROSS, RUBLEY, SCHRODER, STERN, R. STEVENSON,
T. STEVENSON, TANGRETTI, TRUE AND WILT, APRIL 27, 2006
REFERRED TO COMMITTEE ON TOURISM AND RECREATIONAL DEVELOPMENT,
APRIL 27, 2006
AN ACT
1 Amending Title 4 (Amusements) of the Pennsylvania Consolidated
2 Statutes, deleting provisions relating to supplier licenses.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. The definitions of "gaming employee," "licensed
6 entity," "supplier," "supplier license" and "supplier licensee"
7 in section 1103 of Title 4 of the Pennsylvania Consolidated
8 Statutes are amended to read:
9 § 1103. Definitions.
10 The following words and phrases when used in this part shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 * * *
14 "Gaming employee." Any employee of a slot machine licensee,
15 including, but not limited to:
1 (1) Cashiers.
2 (2) Change personnel.
3 (3) Counting room personnel.
4 (4) Slot attendants.
5 (5) Hosts or other persons authorized to extend
6 complimentary services.
7 (6) Machine mechanics or computer machine technicians.
8 (7) Security personnel.
9 (8) Surveillance personnel.
10 (9) Supervisors and managers.
11 [The term includes employees of a person holding a supplier's
12 license whose duties are directly involved with the repair or
13 distribution of slot machines and associated equipment sold or
14 provided to the licensed facility within this Commonwealth as
15 determined by the Pennsylvania Gaming Control Board.] The term
16 does not include bartenders, cocktail servers or other persons
17 engaged solely in preparing or serving food or beverages,
18 clerical or secretarial personnel, parking attendants,
19 janitorial, stage, sound and light technicians and other
20 nongaming personnel as determined by the board.
21 * * *
22 "Licensed entity." Any slot machine licensee, manufacturer
23 licensee[, supplier licensee] or other person licensed by the
24 Pennsylvania Gaming Control Board under this part.
25 * * *
26 ["Supplier." A person that sells, leases, offers or
27 otherwise provides, distributes or services any slot machine or
28 associated equipment for use or play of slot machines in this
29 Commonwealth.
30 "Supplier license." A license issued by the Pennsylvania
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1 Gaming Control Board authorizing a supplier to provide products
2 or services related to slot machines or associated equipment to
3 slot machine licensees.
4 "Supplier licensee." A supplier that holds a supplier
5 license.]
6 Section 2. Sections 1202(b)(5), 1208(1), 1306, 1317, 1320(a)
7 and (b), 1324, 1513(b) and (c) and 1518(b) of Title 4 are
8 amended to read:
9 § 1202. General and specific powers.
10 * * *
11 (b) Specific powers.--The board shall have the specific
12 power and duty:
13 * * *
14 (5) At its discretion, to issue, approve, renew, revoke,
15 suspend, condition or deny issuance or renewal of [supplier
16 and] manufacturer licenses.
17 * * *
18 § 1208. Collection of fees and fines.
19 The board has the following powers and duties:
20 (1) To levy and collect fees from the various
21 applicants, licensees and permittees to fund the operations
22 of the board. The fees shall be deposited into the State
23 Gaming Fund as established in section 1403 (relating to
24 establishment of State Gaming Fund and net slot machine
25 revenue distribution). In addition to the fees set forth in
26 sections 1209 (relating to slot machine license fee) and 1305
27 (relating to Category 3 slot machine license), the board
28 shall assess and collect fees as follows:
29 [(i) Supplier licensees shall pay a fee of $25,000
30 upon the issuance of a license and $10,000 for the annual
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1 renewal of a supplier license.]
2 (ii) Manufacturer licensees shall pay a fee of
3 $50,000 upon the issuance of a license and $25,000 for
4 the annual renewal of a manufacturer license.
5 (iii) Each application for a slot machine license[,
6 supplier license] or manufacturer license must be
7 accompanied by a nonrefundable fee set by the board for
8 the cost of each individual requiring a background
9 investigation. The reasonable and necessary costs and
10 expenses incurred in any background investigation or
11 other investigation or proceeding concerning any
12 applicant, licensee or permittee shall be reimbursed to
13 the board by those persons.
14 * * *
15 § 1306. Order of initial license issuance.
16 In order to facilitate the timely and orderly deployment of
17 licensed gaming operations in this Commonwealth, the board shall
18 adopt a schedule by which applicants for slot machine[,] and
19 manufacturer [and supplier] licenses shall be filed, considered
20 and resolved in accordance with the provisions of this part. In
21 so doing, the board shall consider, approve, condition or deny
22 the approval of all filed applications for manufacturer [and
23 supplier] licenses as soon as administratively possible and at
24 least three months prior to the board's approval, conditioning
25 or denial of the approval of any Category 1 license application
26 pursuant to section 1315 (relating to conditional Category 1
27 licenses) or any other category of slot machine license pursuant
28 to section 1301 (relating to authorized slot machine licenses).
29 [The board shall ensure that an adequate number of suppliers
30 have been licensed pursuant to section 1301 to meet market
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1 demand.]
2 § 1317. [Supplier and manufacturer] Manufacturer licenses
3 application.
4 (a) Application.--Any person seeking to [provide slot
5 machines or associated equipment to a slot machine licensee
6 within this Commonwealth or to] manufacture slot machines for
7 use in this Commonwealth shall apply to the board for [either a
8 supplier or] a manufacturer license. [No person, its affiliate,
9 intermediary, subsidiary or holding company who has applied for
10 or is a holder of a manufacturer or slot machine license shall
11 be eligible to apply for or hold a supplier license. A supplier
12 licensee shall establish a principle place of business in this
13 Commonwealth within one year of issuance of its supplier license
14 and maintain such during the period in which the license is
15 held. No slot machine licensee shall enter into any sale, lease,
16 contract or any other type of agreement providing slot machines,
17 progressive slot machines, parts or associated equipment for use
18 or play with any person other than a supplier licensed pursuant
19 to this section. Slot monitoring systems, casino management
20 systems, player tracking systems and wide-area progressive
21 systems are excluded from any requirements that they be provided
22 through a licensed supplier as set forth in this part.]
23 (b) Requirements.--The application for a [supplier or]
24 manufacturer license shall include, at a minimum:
25 (1) The name and business address of the applicant, the
26 directors and owners of the applicant and a list of employees
27 and their positions within the business, as well as any
28 financial information required by the board.
29 (2) The consent to a background investigation of the
30 applicant, its officers, directors, owners, key employees or
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1 other persons required by the board and a release to obtain
2 any and all information necessary for the completion of the
3 background investigation.
4 (3) The details of any equivalent license granted or
5 denied by
6 and consent for the board to acquire copies of applications
7 submitted or licenses issued in connection therewith.
8 (4) The type of goods and services to be [supplied or]
9 manufactured and whether those goods and services will be
10 provided through purchase, lease, contract or otherwise.
11 (5) Any other information determined by the board to be
12 appropriate.
13 § 1320. Slot machine testing and certification standards.
14 (a) Use of other state standards.--Until such time as the
15 board establishes an independent testing and certification
16 facility pursuant to subsection (b), the board may determine, at
17 its discretion, whether the slot machine testing and
18 certification standards of another jurisdiction within the
19 United States in which an applicant for a manufacturer license
20 is licensed are comprehensive and thorough and provide similar
21 adequate safeguards as those required by this part. If the board
22 makes that determination, it may permit a manufacturer [through
23 a licensed supplier as provided in section 1317 (relating to
24 supplier and manufacturer licenses application)] to deploy those
25 slot machines which have met the slot machine testing and
26 certification standards in such other jurisdictions without
27 undergoing the full testing and certification process by a
28 board-established independent facility. In the event slot
29 machines of an applicant for a manufacturer license are licensed
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1 in such other jurisdiction, the board may determine to use an
2 abbreviated process requiring only that information determined
3 by the board to be necessary to consider the issuance of a slot
4 machine certification to such an applicant. Alternatively, the
5 board in its discretion may also rely upon the certification of
6 a slot machine that has met the testing and certification
7 standards of a board-approved private testing and certification
8 facility until such time as the board establishes an independent
9 testing and certification facility pursuant to subsection (b).
10 Nothing in this section shall be construed to waive any fees
11 associated with obtaining a license through the normal
12 application process.
13 (b) Facility in Commonwealth.--Within three years
14 immediately following the effective date of this part, the board
15 shall establish and maintain an independent slot machine testing
16 and certification facility. The cost for the establishment and
17 operation of an independent slot machine testing and
18 certification facility shall be paid by each licensed
19 manufacturer in accordance with a schedule adopted by the board.
20 The facility shall be made available to each slot machine
21 manufacturer [and supplier] as determined by the board.
22 * * *
23 § 1324. Protocol information.
24 The department shall provide, upon request and in advance of
25 the operation of a central control computer, to a licensed slot
26 machine [supplier or] manufacturer the comprehensive protocol
27 specifications necessary to enable the respective slot machine
28 [suppliers or] manufacturers of slot machine terminals to
29 communicate with the department's central control computer for
30 the purpose of transmitting auditing program information and for
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1 activating and disabling of slot machine terminals.
2 Manufacturers [and suppliers] shall be afforded a reasonable
3 period of time to comment upon the protocol in advance of the
4 operation of the central control computer. Once adopted, the
5 department shall provide [suppliers and] manufacturers a
6 reasonable period of time to review and comment on any changes
7 and on documentation data for all proposed changes to the
8 original protocol specifications of the central control
9 computer. Manufacturers [and suppliers] shall be afforded a
10 reasonable period of time to comment upon and employ all
11 proposed changes to the protocol in advance of its
12 implementation and operation with the central control computer.
13 Notwithstanding the foregoing, the department may expedite
14 changes in the protocol as may be needed to ensure the integrity
15 and stability of the entire system.
16 § 1513. Political influence.
17 * * *
18 (b) Annual certification.--The chief executive officer, or
19 other appropriate individual, of each applicant for a slot
20 machine license[,] or manufacturer license [or supplier
21 license], licensed racing entity, [licensed supplier,] licensed
22 manufacturer or licensed gaming entity shall annually certify
23 under oath to the board and the Department of State that such
24 applicant or licensed racing entity, [licensed supplier,]
25 licensed manufacturer or licensed gaming entity has developed
26 and implemented internal safeguards and policies intended to
27 prevent a violation of this provision and that such applicant or
28 licensed racing entity or licensed gaming entity has conducted a
29 good faith investigation that has not revealed any violation of
30 this provision during the past year.
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1 (c) Penalties.--The first violation of this section by a
2 licensed gaming entity or any person that holds a controlling
3 interest in such gaming entity, or a subsidiary company thereof,
4 and any officer, director or management-level employee of such
5 licensee shall be punishable by a fine of not less than an
6 average single day's gross terminal revenue of the licensed
7 gaming entity derived from the operation of slot machines in
8 this Commonwealth; a second violation of this section, within
9 five years of the first violation, shall be punishable by at
10 least a one-day suspension of the license held by the licensed
11 gaming entity and a fine not less than an average two days'
12 gross revenue of the licensed gaming entity; a third violation
13 of this section within five years of the second violation shall
14 be punishable by the immediate revocation of the license held by
15 the licensed gaming entity. The first violation of this section
16 by a manufacturer [or supplier] licensed pursuant to this part
17 or by any person that holds a controlling interest in such
18 manufacturer [or supplier], or a subsidiary company thereof, and
19 any officer, director or management-level employee of such a
20 licensee shall be punishable by a fine of not less than one
21 day's average of the gross profit from sales made by the
22 manufacturer [or supplier] in Pennsylvania during the preceding
23 12-month period or portion thereof in the event the manufacturer
24 [or supplier] has not operated in Pennsylvania for 12 months; a
25 second violation of this section within five years of the first
26 violation shall be punishable by a one-month suspension of the
27 license held by the manufacturer [or supplier] and a fine of not
28 less than two times one day's average of the gross profit from
29 sales made by the manufacturer [or supplier] in Pennsylvania
30 during the preceding 12-month period or portion thereof in the
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1 event the manufacturer [or supplier] has not operated in
2 Pennsylvania for 12 months. In no event shall the fine imposed
3 under this section be in an amount less than $50,000 for each
4 violation. In addition to any fine or sanction that may be
5 imposed by the board, any person who makes a contribution in
6 violation of this section commits a misdemeanor of the third
7 degree.
8 § 1518. Prohibited acts; penalties.
9 * * *
10 (b) Criminal penalties and fines.--
11 (1) (i) A person that violates subsection (a)(1)
12 commits an offense to be graded in accordance with 18
13 Pa.C.S. § 4902, 4903 or 4904, as applicable, for a first
14 conviction. A person that is convicted of a second or
15 subsequent violation of subsection (a)(1) commits a
16 felony of the second degree.
17 (ii) A person that violates subsection (a)(2)
18 through (12) commits a misdemeanor of the first degree. A
19 person that is convicted of a second or subsequent
20 violation of subsection (a)(2) through (12) commits a
21 felony of the second degree.
22 (2) (i) For a first violation of subsection (a)(1)
23 through (12), a person shall be sentenced to pay a fine
24 of:
25 (A) not less than $75,000 nor more than $150,000
26 if the person is an individual;
27 (B) not less than $300,000 nor more than
28 $600,000 if the person is a licensed gaming entity;
29 or
30 (C) not less than $150,000 nor more than
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1 $300,000 if the person is a licensed manufacturer [or
2 supplier].
3 (ii) For a second or subsequent violation of
4 subsection (a)(1) through (12), a person shall be
5 sentenced to pay a fine of:
6 (A) not less than $150,000 nor more than
7 $300,000 if the person is an individual;
8 (B) not less than $600,000 nor more than
9 $1,200,000 if the person is a licensed gaming entity;
10 or
11 (C) not less than $300,000 nor more than
12 $600,000 if the person is a licensed manufacturer [or
13 supplier].
14 * * *
15 Section 3. This act shall take effect immediately.
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