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        PRIOR PRINTER'S NOS. 1105, 1241, 1302         PRINTER'S NO. 1319

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 862 Session of 2005


        INTRODUCED BY PIPPY, BRIGHTBILL, RHOADES, LAVALLE, CORMAN,
           RAFFERTY, EARLL, GORDNER, WONDERLING, KASUNIC, MADIGAN, PUNT,
           C. WILLIAMS, WENGER, PILEGGI, ORIE, THOMPSON, O'PAKE,
           ERICKSON, BOSCOLA, SCARNATI, D. WHITE, M. WHITE, WAUGH,
           REGOLA, ROBBINS, LEMMOND AND JUBELIRER, SEPTEMBER 14, 2005

        AS AMENDED ON THIRD CONSIDERATION, NOVEMBER 2, 2005

                                     AN ACT

     1  Amending Title 4 (Amusements) of the Pennsylvania Consolidated
     2     Statutes, further providing for definitions and for the
     3     Pennsylvania Gaming Control Board; providing for
     4     applicability of other statutes; further providing for powers
     5     and duties of board; providing for code of conduct; further
     6     providing for licensed entity application appeals from board,
     7     for license or permit application hearing process, for board
     8     minutes and records, for collection of fees and fines, for
     9     order of initial license issuance, for slot machine license
    10     application and for slot machine license application business
    11     entity requirements; providing for licensing of principals,
    12     for licensing of key employees, for recusal and
    13     disqualification of members, for alternate members, for
    14     initial applications and for code of conduct; and further
    15     providing for occupation permit application, for gross
    16     terminal revenue deductions, FOR TRANSFERS FROM THE STATE      <--
    17     GAMING FUND, for public official financial interests, for
    18     political influence and for enforcement.

    19     The General Assembly of the Commonwealth of Pennsylvania
    20  hereby enacts as follows:
    21     Section 1.  The definitions of "affiliate" or "affiliated
    22  company," "applicant," "controlling interest" and "licensed
    23  facility" in section 1103 of Title 4 of the Pennsylvania
    24  Consolidated Statutes are amended and the section is amended by


     1  adding definitions to read:
     2  § 1103.  Definitions.
     3     The following words and phrases when used in this part shall
     4  have the meanings given to them in this section unless the
     5  context clearly indicates otherwise:
     6     ["Affiliate" or "affiliated company."] "Affiliate of, or a
     7  person affiliated with, a specified person."  A person that
     8  directly or indirectly, through one or more intermediaries,
     9  controls, is controlled by or is under common control with a
    10  specified person.
    11     "Applicant."  Any person[, officer, director or key
    12  employee], who on his own behalf or on behalf of another, is
    13  applying for permission to engage in any act or activity which
    14  is regulated under the provisions of this part. In cases in
    15  which the applicant is a [corporation, foundation, organization,
    16  business trust, estate, limited liability company, trust,
    17  partnership, limited partnership, association or any other form
    18  of legal business entity,] person other than an individual, the
    19  Pennsylvania Gaming Control Board shall determine the associated
    20  persons whose qualifications are necessary as a precondition to
    21  the licensing of the applicant.
    22     * * *
    23     "Complimentary service or item."  Any lodging, service or
    24  item provided to an individual at no cost or at a reduced cost
    25  not generally available to the public under similar
    26  circumstances.
    27     "Controlling interest."  A person shall be deemed to have
    28  [the ability to control a publicly traded corporation, or to
    29  elect] a controlling interest in an entity if the person's sole
    30  voting rights, as provided by applicable State law or corporate
    20050S0862B1319                  - 2 -     

     1  articles or bylaws, entitle the person to elect or appoint one
     2  or more of the members of its board of directors[, if such
     3  holder] or other governing body or if the person owns or
     4  beneficially holds 5% or more of the securities of [such] a
     5  publicly traded domestic or foreign corporation[,] or holds 5%
     6  or more ownership or voting interest in a partnership, limited
     7  liability company or any other form of legal entity, unless such
     8  presumption of control or ability to elect is rebutted by clear
     9  and convincing evidence. A person who is a holder of securities
    10  of a privately held domestic or foreign corporation,
    11  partnership, limited liability company or any other form of
    12  legal entity shall be deemed to possess a controlling interest
    13  unless such presumption of control is rebutted by clear and
    14  convincing evidence.
    15     * * *
    16     "Holding company."  A person, other than a natural person,
    17  which, directly or indirectly, owns, has the power or right to
    18  control or to vote any significant part of the outstanding
    19  voting securities of a corporation or other form of business
    20  organization. A holding company indirectly has, holds or owns
    21  any such power, right or security if it does so through an
    22  interest in a subsidiary or successive subsidiaries.
    23     * * *
    24     "Independent contractor."  A person who performs
    25  professional, scientific, technical advisory or consulting
    26  services to the Pennsylvania Gaming Control Board for a fee,
    27  honorarium or similar compensation pursuant to a contract.
    28     * * *
    29     "Intermediary."  A person, other than a natural person,
    30  which:
    20050S0862B1319                  - 3 -     

     1         (1)  is a holding company with respect to a corporation
     2     or other form of business organization which holds or applies
     3     for a license under this part; and
     4         (2)  is a subsidiary with respect to any holding company.
     5     * * *
     6     "Licensed facility."  The physical land-based location and
     7  associated areas at which a licensed gaming entity is authorized
     8  to place and operate slot machines. An associated area shall
     9  include all parcels of land owned by the licensed gaming entity
    10  or its affiliate, intermediary, subsidiary or holding company
    11  contiguous to the licensed facility.
    12     * * *
    13     "Member."  An individual appointed to or sworn in as a member
    14  of the board in accordance with section 1201(b) (relating to
    15  Pennsylvania Gaming Control Board established).
    16     * * *
    17     "Principal."  An officer; director; person who directly or
    18  indirectly holds a beneficial interest in or ownership of an
    19  applicant or licensee; person who has a controlling interest in
    20  an applicant or licensee, or has the ability to elect a majority
    21  of the board of directors of the licensee or to otherwise
    22  control the licensee; lender or other licensed financial
    23  institution, other than a bank or lending institution which
    24  makes a loan or holds a mortgage or other lien acquired in the
    25  ordinary course of business; underwriter; or other person or
    26  employee of a slot machine licensee, manufacturer licensee or
    27  supplier licensee deemed to be a principal by the Pennsylvania
    28  Gaming Control Board.
    29     * * *
    30     "Publicly traded corporation."  An entity that:
    20050S0862B1319                  - 4 -     

     1         (1)  has a class or series of securities registered under
     2     the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C.
     3     § 78a et seq.);
     4         (2)  is a registered management company under the
     5     Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §
     6     80a-1 et seq.); or
     7         (3)  is subject to the reporting obligations imposed by
     8     section 15(d) of the Securities Exchange Act of 1934 by
     9     reason of having filed a registration statement which has
    10     become effective under the Securities Act of 1933 (48 Stat.
    11     74, 15 U.S.C. § 77a et seq.).
    12     * * *
    13     "Subsidiary."  The term shall include:
    14         (1)  a corporation, any significant part of whose
    15     outstanding equity securities are owned, subject to a power
    16     or right of control, or held with power to vote, by a holding
    17     company or an intermediary company; or
    18         (2)  a significant interest in a person, other than a
    19     natural person, which is owned, subject to a power or right
    20     of control, or held with power to vote, by a holding company
    21     or an intermediary company.
    22     * * *
    23     "Underwriter."  As defined in the act of December 5, 1972
    24  (P.L.1280, No.284), known as the Pennsylvania Securities Act of
    25  1972.
    26     Section 2.  Section 1201(a), (b), (c), (d), (e), (f), (h) and
    27  (k) of Title 4 are amended and the section is amended by adding
    28  subsections to read:
    29  § 1201.  Pennsylvania Gaming Control Board established.
    30     (a)  Board established.--There is established an independent
    20050S0862B1319                  - 5 -     

     1  [administrative] board which shall be a body corporate and
     2  politic to be known as the Pennsylvania Gaming Control Board[,
     3  which shall be implemented as set forth in this section].
     4     (b)  Membership.--The board shall consist of the following
     5  members[, who shall serve a set term and may not be removed
     6  except for good cause]:
     7         (1)  Three members appointed by the Governor.[, each
     8     being referred to as a "gubernatorial appointee."]
     9         (2)  One member appointed by each of the following
    10     [legislative caucus leaders, each being referred to as a
    11     "legislative appointee"]:
    12             (i)  The President pro tempore of the Senate.
    13             (ii)  The Minority Leader of the Senate.
    14             (iii)  The Speaker of the House of Representatives.
    15             (iv)  The Minority Leader of the House of
    16         Representatives.
    17     (b.1)  Removal.--A member of the board shall be removed from
    18  office by the appointing authority:
    19         (1)  for misconduct in office, willful neglect of duty or
    20     conduct evidencing unfitness for office or incompetence; or
    21         (2)  upon conviction of an offense graded as a felony, an
    22     infamous crime, an offense under this part or an equivalent
    23     offense under Federal law or the law of another jurisdiction.
    24     (c)  Initial appointments to board.--
    25         (1)  Gubernatorial [appointee members] appointees
    26     initially appointed under subsection (b)(1) shall serve an
    27     initial term of one, two and three years respectively as
    28     designated by the Governor at the time of appointment and
    29     until their successors are appointed and qualified.
    30         (2)  Legislative [appointee members] appointees initially
    20050S0862B1319                  - 6 -     

     1     appointed under subsection (b)(2) shall serve until the third
     2     Tuesday in January 2007 and until their successors are
     3     appointed and qualified.
     4         (3)  [Any] An appointment to fill a vacancy created by a
     5     member appointed under paragraph (1) or (2) shall be for the
     6     remainder of the unexpired term. [Members so appointed to
     7     fill the unexpired term of an initial appointee shall be
     8     subject to the provisions of subsection (d).]
     9     (d)  [Appointments after expiration of initial term or upon
    10  vacancy] Terms of office.--Upon the expiration of a term of a
    11  [member] gubernatorial or legislative appointee appointed under
    12  [this subsection or upon the existence of a vacancy of a member
    13  appointed pursuant to subsection (c) or this] subsection (b) or
    14  (c), the appointing authority shall appoint a member subject to
    15  the following:
    16         (1)  [For a gubernatorial appointment under subsection
    17     (b)(1), the term shall be for three years and until a
    18     successor is appointed and qualified.] The term of office of
    19     a gubernatorial appointee shall be three years and until a
    20     successor is appointed and qualified.
    21         (2)  [Terms for legislative appointee members appointed
    22     under subsection (b)(2) shall be for a two-year term and
    23     shall expire on the third Tuesday of January of such year,
    24     but such members shall continue to serve until their
    25     successors are appointed and qualified.] The term of office
    26     of a legislative appointee shall be two years and until a
    27     successor is appointed and qualified.
    28         (3)  [No] A legislative appointee [member] shall serve no
    29     more than three full [successive] consecutive terms.
    30         (4)  [No] A gubernatorial appointee [member] shall serve
    20050S0862B1319                  - 7 -     

     1     no more than two full [successive] consecutive terms.
     2         (5)  An appointment to fill a vacancy shall be for the
     3     remainder of the unexpired term.
     4         (6)  A member appointed to fill a vacancy under paragraph
     5     (3) may serve three full terms following the expiration of
     6     the term related to the vacancy.
     7         (7)  A member appointed to fill a vacancy under paragraph
     8     (4) may serve two full terms following the expiration of the
     9     term related to the vacancy.
    10     (e)  Ex officio members.--The Secretary of Revenue, the
    11  Secretary of Agriculture and the State Treasurer, or their
    12  designees, shall serve on the board as nonvoting ex officio
    13  members of the board. The designee shall be a deputy secretary
    14  or an equivalent position within the agency.
    15     (f)  Qualified majority vote.--
    16         (1)  Except as permitted in paragraphs (2) and (3), any
    17     action , including, but not limited to, the approval,
    18     issuance, denial or conditioning of any license by the board
    19     under this part or the making of any order or the
    20     ratification of any permissible act done or order made by one
    21     or more of the members, shall require a qualified majority
    22     vote consisting of at least one gubernatorial appointee and
    23     the four legislative appointees.
    24         (2)  Any action to suspend or revoke, not renew, void or
    25     require forfeiture of a license or permit issued under this
    26     part, to impose any administrative fine or penalty under this
    27     part or to issue cease and desist orders or similar
    28     enforcement actions shall require a majority vote of all the
    29     members appointed to the board.
    30         (3)  Notwithstanding any other provision [to the
    20050S0862B1319                  - 8 -     

     1     contrary] of this part or 65 Pa.C.S. § 1103(j) (relating to
     2     restricted activities), a member shall disclose [the nature
     3     of his] a disqualifying interest, disqualify himself and
     4     abstain from voting in a proceeding under this part in which
     5     his [or her] impartiality may be reasonably questioned,
     6     including, but not limited to, instances where he [or she]
     7     knows that [they possess] he or a member of his immediate
     8     family possesses a [substantial financial] direct or indirect
     9     financial, property, leasehold, ownership or other beneficial
    10     interest in the subject matter of the proceeding or any other
    11     interest that could be substantially affected by the outcome
    12     of the proceeding. [In such circumstances in which it is] If
    13     a legislative appointee [member that has disqualified himself
    14     or herself] and his alternate have both disqualified
    15     themselves, the qualified majority shall consist of all of
    16     the remaining [three] legislative appointees and at least two
    17     gubernatorial appointees. For purposes of this paragraph, the
    18     term "immediate family" shall mean spouse, parent, brother,
    19     sister or child.
    20         (4)  If a member is disqualified from voting on any
    21     matter, the provisions of subsection (f.1) shall apply.
    22         (5)  In the case of a collective vote on all initial
    23     applications for slot machine licenses under section 1301
    24     (relating to authorized slot machine licenses), a member who
    25     disqualifies himself from voting on a particular license
    26     shall be disqualified from voting on any other application
    27     for that category of license.
    28         (6)  Prior to the commencement of any proceeding under
    29     this part, the board shall conduct a conflict review to
    30     determine if a member has a conflict pursuant to paragraph
    20050S0862B1319                  - 9 -     

     1     (3) or section 1202.1 (relating to code of conduct) that
     2     requires disqualification from voting. The determination
     3     shall be in writing and shall be available to the public. If
     4     the board determines that there is a conflict requiring
     5     disqualification, an alternate member shall be appointed
     6     pursuant to subsection (f.1). The Attorney General or a party
     7     to the proceeding may appeal a determination by the board
     8     that does not require disqualification of a member.
     9     (f.1)  Alternate member.--Each appointing authority under
    10  subsection (b) shall appoint an alternate member who shall vote
    11  in any proceeding in which the member appointed by that
    12  authority has disqualified himself from voting pursuant to
    13  subsection (f)(3) or section 1202.1. The following shall apply
    14  to an alternate member:
    15         (1)  The Executive Board shall establish a per diem
    16     amount to be paid to alternate members, to include payment
    17     for time to review all materials necessary to make a
    18     decision.
    19         (2)  Alternate members shall be appointed within 30 days
    20     of the effective date of this subsection in order to enable a
    21     background investigation to occur prior to any vote to issue
    22     or deny a slot machine license, manufacturer license or
    23     supplier license.
    24         (3)  All other requirements and restrictions under this
    25     title which are applicable to board members shall apply to
    26     alternate members.
    27     * * *
    28     (h)  Qualifications and restrictions.--
    29         (1)  Each member at the time of appointment shall be at
    30     least 25 years of age and shall have been a resident of this
    20050S0862B1319                 - 10 -     

     1     Commonwealth for a period of at least one year immediately
     2     preceding appointment. Each member shall continue to remain a
     3     resident of this Commonwealth during the term of membership
     4     on the board.
     5         (2)  Except for ex officio members, no person shall be
     6     appointed a member of the board or [hold any place, position
     7     or office under the board if that person holds any other
     8     elected office or party office] be employed by or be an
     9     independent contractor of the board if that person is a
    10     public official or party officer as defined in section 1512
    11     (relating to [public official financial interest] financial
    12     interests, complimentary services and discounts) in this
    13     Commonwealth or any of its political subdivisions.
    14         [(3)  No member, appointee, employee or official shall
    15     hold any office or employment position, the duties of which
    16     are incompatible with the duties of the office.
    17         (4)  No member, employee, appointee or official engaged
    18     in the service of or in any manner connected with the board
    19     shall hold any office or position, or be engaged in any
    20     employment or vocation, the duties of which are incompatible
    21     with employment in the service of or in connection with the
    22     work of the board.]
    23         (3)  Each member, employee and independent contractor of
    24     the board shall sign an agreement not to disclose
    25     confidential information.
    26         (4)  No member, employee or independent contractor of the
    27     board or other agency with regulatory authority over the
    28     board or gaming shall be employed, hold any office or
    29     position or be engaged in any activity which is incompatible
    30     with the position or employment.
    20050S0862B1319                 - 11 -     

     1         (5)  No member shall be paid or [accept for any service
     2     connected with the office any fee other than the salary and
     3     expenses provided by law.] receive any fee or other
     4     compensation other than salary and expenses provided by law
     5     for any activity related to the duties or authority of the
     6     board. Nothing in this part shall prohibit a member from
     7     engaging in any employment [or vocation] or receiving any
     8     compensation for such employment [or vocation] that is not
     9     [otherwise] connected to or incompatible with his [or her]
    10     service as a member of the board.
    11         (6)  No member, employee[, appointee or official shall
    12     participate in any hearing or proceeding in which that person
    13     has any direct or indirect pecuniary interest.] or
    14     independent contractor of the board shall participate in a
    15     hearing, proceeding or other matter in which the member,
    16     employee or independent contractor of the board or the
    17     immediate family thereof has any direct or indirect
    18     financial, property, leasehold, ownership or other beneficial
    19     interest in the subject matter of the hearing or proceeding
    20     or other interest that could be substantially affected by the
    21     outcome of the hearing or proceeding, without first fully
    22     disclosing the nature of the interest to the board and other
    23     persons participating in the hearing or proceeding. The board
    24     shall determine if the interest is a disqualifying interest
    25     that requires the disqualification of the member or
    26     nonparticipation of the employee. For purposes of this
    27     paragraph, the term "immediate family" shall mean spouse,
    28     parent, brother, sister or child.
    29         (7)  At the time of appointment and annually thereafter,
    30     each member shall disclose the existence of [all ownership
    20050S0862B1319                 - 12 -     

     1     interests in licensed facilities and all securities in any
     2     licensed entity or applicant, its affiliates or subsidiaries
     3     held by the member, the member's spouse and any minor or
     4     unemancipated children and must divest such ownership
     5     interests in licensed facilities or securities prior to an
     6     appointment becoming final. A member may not acquire any
     7     security in any licensed entity, its affiliates or
     8     subsidiaries during the member's tenure.] any financial,
     9     property, leasehold, ownership or other beneficial interest
    10     in any applicant, licensed entity or licensed facility and in
    11     an affiliate, intermediary, subsidiary or holding company
    12     thereof held by the member or known to be held by the
    13     member's immediate family. The disclosure statement shall be
    14     filed with the executive director of the board and with the
    15     appointing authority for such member and shall be open to
    16     inspection by the public at the office of the board during
    17     the normal business hours of the board [during the tenure of
    18     the member] for the duration of the member's term and for two
    19     years after the member leaves office. For purposes of this
    20     paragraph, the term "immediate family" shall mean spouse,
    21     parent, brother, sister or child.
    22         (7.1)  Prior to being sworn as a member of the board, a
    23     member and his immediate family shall divest any financial,
    24     property, leasehold, ownership or other beneficial interest
    25     in any applicant, licensed facility or licensed entity and in
    26     an affiliate, intermediary, subsidiary or holding company
    27     owned or held by the member or known to be held by the
    28     member's immediate family. For the duration of the member's
    29     term, and for one year thereafter, the member and his
    30     immediate family may not acquire a financial, property,
    20050S0862B1319                 - 13 -     

     1     leasehold, ownership or other beneficial interest in any
     2     applicant, licensed facility or licensed entity or in an
     3     affiliate, intermediary, subsidiary or holding company
     4     thereof. For purposes of this paragraph, the term "immediate
     5     family" shall mean spouse and any minor or unemancipated
     6     child. For purposes of this paragraph, a "financial,
     7     property, leasehold, ownership or other beneficial interest"
     8     shall not include securities that are held in a pension plan,
     9     profit-sharing plan, individual retirement account, tax
    10     sheltered annuity, a plan established pursuant to section 457
    11     of the Internal Revenue Code of 1986 (Public Law 99-514, 26
    12     U.S.C. § 1 et seq.), or any successor provision, deferred
    13     compensation plan whether qualified or not qualified under
    14     the Internal Revenue Code of 1986, or any successor
    15     provision, or other retirement plan that is not self-directed
    16     by the individual and that is advised by an independent
    17     investment adviser who has sole authority to make investment
    18     decisions with respect to contributions made by the
    19     individual to these plans. For purposes of this paragraph, a
    20     "financial, property, leasehold, ownership or other
    21     beneficial interest" shall not include a tuition account plan
    22     organized and operated pursuant to section 529 of the
    23     Internal Revenue Code of 1986 (Public Law 99-514 26 U.S.C. §
    24     529) that is not self-directed by the individual.
    25         (7.2)  Prior to employment by the board and annually
    26     thereafter, an employee shall disclose the existence of any
    27     financial, property, leasehold, ownership or other beneficial
    28     interest in any applicant, licensed facility or licensed
    29     entity and in an affiliate, intermediary, subsidiary or
    30     holding company thereof owned or held by the employee or
    20050S0862B1319                 - 14 -     

     1     known to be held by the employee's immediate family. The
     2     disclosure statement shall be filed with the board and shall
     3     be open to inspection by the public at the office of the
     4     board during the normal business hours of the board and for
     5     two years after the individual terminates employment with the
     6     board. For purposes of this paragraph, the term "immediate
     7     family" shall mean spouse, parent, brother, sister or child.
     8         (7.3)  Prior to employment by the board, an employee and
     9     his immediate family shall divest any financial, property,
    10     leasehold, ownership or other beneficial interest in any
    11     applicant, licensed facility or licensed entity and in an
    12     affiliate, intermediary, subsidiary or holding company
    13     thereof owned or held by the employee or known to be held by
    14     the employee's immediate family. For the duration of the
    15     employee's employment and for one year thereafter, the
    16     employee and his immediate family shall not acquire, by
    17     purchase, gift, exchange or otherwise, any financial,
    18     property, leasehold, ownership or other beneficial interest
    19     in any applicant, licensed facility or licensed entity and in
    20     any affiliate, intermediary, subsidiary or holding company
    21     thereof. For purposes of this paragraph, the term "immediate
    22     family" shall mean spouse and any minor or unemancipated
    23     child. For purposes of this paragraph, a "financial,
    24     property, leasehold, ownership or other beneficial interest"
    25     shall not include securities that are held in a pension plan,
    26     profit-sharing plan, individual retirement account, tax
    27     sheltered annuity, a plan established pursuant to section 457
    28     of the Internal Revenue Code of 1986 (Public Law 99-514, 26
    29     U.S.C. § 1 et seq.), or any successor provision, deferred
    30     compensation plan whether qualified or not qualified under
    20050S0862B1319                 - 15 -     

     1     the Internal Revenue Code of 1986, or any successor
     2     provision, or other retirement plan that is not self-directed
     3     by the individual and that is advised by an independent
     4     investment adviser who has sole authority to make investment
     5     decisions with respect to contributions made by the
     6     individual to these plans. For purposes of this paragraph, a
     7     "financial, property, leasehold, ownership or other
     8     beneficial interest" shall not include a tuition account plan
     9     organized and operated pursuant to section 529 of the
    10     Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
    11     529) that is not self-directed by the individual.
    12         (8)  [Every member, employee, appointee or official of
    13     the board, in the service of or in connection with the work
    14     of the board, is forbidden, directly or indirectly, to
    15     solicit or request from or to suggest or recommend to any
    16     applicant, licensed entity, its] No member, employee or
    17     independent contractor of the board may, directly or
    18     indirectly, solicit, request, suggest or recommend to any
    19     applicant, licensed entity, licensed facility, or an
    20     affiliate, intermediary, subsidiary[,] or holding company
    21     thereof or to any [officer, attorney, agent or employee]
    22     principal, employee, attorney or agent thereof the
    23     appointment or employment of any individual [to any office,
    24     place or position in or the employment of any individual] in
    25     any capacity by the applicant, licensed entity, [its]
    26     licensed facility, or affiliate, intermediary, subsidiary or
    27     holding company thereof.
    28         [(9)  Every member, executive-level employee, appointee
    29     or official appointed to office in the service of or in
    30     connection with the work of the board is prohibited from
    20050S0862B1319                 - 16 -     

     1     accepting employment with any applicant, licensed gaming
     2     entity, its affiliate, intermediary, subsidiary or holding
     3     company for a period of one year from the termination of
     4     employment or service with the board. Every member,
     5     executive-level employee, appointee or official appointed to
     6     office in the service of or in connection with the work of
     7     the board is prohibited from appearing before the board on
     8     behalf of any applicant, licensed gaming entity, its
     9     affiliate, intermediary, subsidiary or holding company or
    10     other licensee or permittee of the board for a period of two
    11     years after terminating employment or service with the board.
    12         (10)  If any person employed or appointed in the service
    13     of the board violates any provision of this section, the
    14     appointing authority or the board shall forthwith remove the
    15     person from the office or employment and the person shall be
    16     ineligible for future employment or service with the board
    17     and shall be ineligible to be approved for any license or
    18     permit under this part for a period of two years thereafter.]
    19         (9)  No member of the board may accept employment with
    20     any applicant, licensed entity, licensed facility or an
    21     affiliate, intermediary, subsidiary or holding company
    22     thereof for a period of one year from the termination of
    23     membership.
    24         (10)  No member of the board may appear before the board
    25     on behalf of any applicant, licensed entity, licensed
    26     facility or an affiliate, intermediary, subsidiary or holding
    27     company thereof or any other licensee or permittee for a
    28     period of two years from the termination of membership.
    29         (11)  No member or employee of the board shall wager or
    30     be paid any prize from any wager at any licensed facility
    20050S0862B1319                 - 17 -     

     1     within this Commonwealth or at any other facility outside
     2     this Commonwealth which is owned or operated by a licensed
     3     gaming entity or any of its [affiliates or subsidiaries.]
     4     affiliates, intermediaries, subsidiaries or holding companies
     5     for the duration of their employment or term of office and
     6     for a period of one year from the termination of employment
     7     with the board. The provisions of this paragraph shall apply
     8     to an employee of the executive branch of the Commonwealth
     9     whose duties substantially involve the development or
    10     adoption of regulations or policy, licensing or enforcement,
    11     under this part. The provisions of this paragraph shall not
    12     apply to employees who utilize slot machines for testing
    13     purposes or to verify the performance of a machine as part of
    14     an enforcement investigation.
    15         (12)  A member of the board who has been convicted during
    16     his term in any domestic or foreign jurisdiction of a felony,
    17     infamous crime [of moral turpitude] or gambling offense
    18     shall, upon conviction, be automatically removed from the
    19     board and shall be ineligible to become a board member in the
    20     future. If an ex officio member of the board is convicted
    21     during his term in any domestic or foreign jurisdiction of a
    22     felony, infamous crime or gambling offense, the ex officio
    23     member shall, upon conviction, be automatically removed from
    24     the board, and a designee shall be designated pursuant to
    25     subsection (e) to serve the remainder of the ex officio
    26     member's term.
    27         (13)  No employee or independent contractor of the board
    28     or other employee of the executive branch of the Commonwealth
    29     or of a political subdivision whose duties substantially
    30     involve the development or adoption of regulations or policy,
    20050S0862B1319                 - 18 -     

     1     licensing or enforcement, under this part, shall:
     2             (i)  accept employment with an applicant, licensed
     3         entity, licensed facility or an affiliate, intermediary,
     4         subsidiary or holding company thereof for a period of one
     5         year after the termination of the employment or contract;
     6         or
     7             (ii)  appear before the board in any hearing or
     8         proceeding or participate in any other activity on behalf
     9         of any applicant, licensee, permittee, licensed entity,
    10         licensed facility or an affiliate, intermediary,
    11         subsidiary or holding company thereof for a period of two
    12         years after termination of the employment or contract.
    13         (14)  Upon the written request of an employee of the
    14     executive branch of the Commonwealth or a political
    15     subdivision or of the agency or political subdivision
    16     employing the employee, the State Ethics Commission shall
    17     determine whether the individual's duties substantially
    18     involve the development or adoption of regulations or policy,
    19     licensing or enforcement, under this part, and shall provide
    20     a written determination to the employee to include any
    21     prohibition under this paragraph. An individual who relies in
    22     good faith on a determination under this paragraph shall not
    23     be subject to any penalty for an action taken, provided that
    24     all material facts set forth in the request for a
    25     determination are correct.
    26         (15)  If a member, employee or independent contractor of
    27     the board violates any provision of this section, the
    28     appointing authority or the board may, upon notice and
    29     hearing, remove the person from the board, withdraw the
    30     appointment or terminate the employment or contract and the
    20050S0862B1319                 - 19 -     

     1     person shall be ineligible for future appointment or
     2     employment with the board and for approval of a license or
     3     permit under this part for a period of two years thereafter.
     4         (16)  As used in this subsection, the term "financial
     5     interest" shall mean owning or holding or being deemed to
     6     hold debt or equity securities or other ownership interest or
     7     profits interest in an applicant, licensed facility or
     8     licensed entity or an affiliate, intermediary, subsidiary or
     9     holding company thereof.
    10     (h.1)  Fiduciary relationship.--A member or employee of the
    11  board shall serve as a fiduciary of the Commonwealth.
    12     (h.2)  Standard of care.--The members of the board shall
    13  exercise the standard of care required by 20 Pa.C.S. Ch. 73
    14  (relating to municipalities investments) in the performance of
    15  their duties under this part.
    16     (h.3)  Liability.--Members of the board shall not be
    17  personally liable for any obligations of the board.
    18     * * *
    19     (k)  Appointments.--The appointing authorities shall make
    20  their initial appointments within 60 days of the effective date
    21  of this part. No appointment shall be final until receipt by the
    22  appointing authority of the required background investigation of
    23  the appointee by the Pennsylvania State Police which shall be
    24  completed within 30 days. No person who has been convicted in
    25  any domestic or foreign jurisdiction of a felony [or gambling],
    26  infamous crime or gaming offense shall be appointed to the
    27  board.
    28     * * *
    29     Section 3.  Title 4 is amended by adding a section to read:
    30  § 1201.1.  Applicability of other statutes.
    20050S0862B1319                 - 20 -     

     1     (a)  General rule.--The following acts shall apply to the
     2  board:
     3         (1)  The act of June 21, 1957 (P.L.390, No.212), referred
     4     to as the Right-to-Know Law.
     5         (2)  The act of July 19, 1957 (P.L.1017, No.451), known
     6     as the State Adverse Interest Act.
     7         (3)  The provisions of 65 Pa.C.S. Chs. 7 (relating to
     8     open meetings) and 11 (relating to ethics standards and
     9     financial disclosure).
    10     (b)  Status of board.--
    11         (1)  The board shall be considered an independent agency
    12     for the purposes of the following:
    13             (i)  62 Pa.C.S. Pt. I (relating to Commonwealth
    14         Procurement Code). The expediting of the remittance of
    15         revenue from licensed facilities to the Commonwealth
    16         shall not be grounds for an emergency procurement by the
    17         board.
    18             (ii)  The act of October 15, 1980 (P.L.950, No.164),
    19         known as the Commonwealth Attorneys Act.
    20         (2)  The board shall be considered an agency for the
    21     purposes of the following:
    22             (i)  The act of July 31, 1968 (P.L.769, No.240),
    23         referred to as the Commonwealth Documents Law.
    24             (ii)  The act of June 25, 1982 (P.L.633, No.181),
    25         known as the Regulatory Review Act.
    26     Section 4.  Section 1202 of Title 4 is amended to read:
    27  § 1202.  [General and specific powers] Powers and duties.
    28     (a)  General powers.--
    29         (1)  The board shall have general jurisdiction over all
    30     gaming activities or related activities as described in this
    20050S0862B1319                 - 21 -     

     1     part. The board shall [be responsible to] ensure the
     2     integrity of the acquisition and operation of slot machines
     3     and associated equipment and shall have jurisdiction over
     4     [every aspect of] the authorization and operation of slot
     5     machines.
     6         (2)  The board shall employ [an executive director, chief
     7     counsel, deputies, secretaries, officers, hearing officers
     8     and agents as it may deem necessary] individuals as necessary
     9     to carry out the powers and duties of the board, who shall
    10     serve at the board's pleasure. [The board shall also employ
    11     other employees as it deems appropriate whose duties shall be
    12     determined by the board. In order to ensure the ability of
    13     the board to recruit and retain individuals necessary to
    14     execute its responsibilities under this part, the board shall
    15     set the] An employee of the board shall be considered a State
    16     employee for purposes of 71 Pa.C.S. Pt. XXV (relating to
    17     retirement for State employees and officers).
    18         (3)  In addition to employees authorized by the board,
    19     each member of the board may employ two special assistants
    20     whose classification and compensation shall be established by
    21     the board. A special assistant shall be a State employee for
    22     purposes of 71 Pa.C.S. Pt. XXV, shall serve at the pleasure
    23     of the member and may only be removed by the board for cause.
    24         (4)  The board shall establish a system of classification
    25     and compensation of its employees and shall not be subject to
    26     the provisions of the act of April 9, 1929 (P.L.177, No.175),
    27     known as The Administrative Code of 1929, as to
    28     classification and compensation for its employees and conduct
    29     its activities consistent with the practices and procedures
    30     of Commonwealth agencies. [For the purposes of the act of
    20050S0862B1319                 - 22 -     

     1     October 15, 1980 (P.L.950, No.164), known as the Commonwealth
     2     Attorneys Act, the board shall not be considered an executive
     3     or independent agency. The board shall have such other powers
     4     and authority necessary to carry out its duties and the
     5     objectives of this part.]
     6         (5)  Within 90 days of the effective date of this
     7     paragraph, the board shall publish in the Pennsylvania
     8     Bulletin, and on its Internet website, the classification
     9     system for all employees.
    10     (b)  Specific powers.--The board shall have the specific
    11  power and duty:
    12         (1)  To retain consultants and providers of professional
    13     services.
    14         (2)  To pay or satisfy obligations of the board.
    15         (3)  To sue or be sued, implead and be impleaded, or
    16     interplead.
    17         (4)  To contract and execute instruments as necessary to
    18     carry out the powers and duties of the board. Contracts for
    19     the purchase of supplies, services and construction shall be
    20     for a term not to exceed two years.
    21         (5)  To sell, transfer, convey and dispose of tangible or
    22     intangible property owned by the board.
    23         (6)  To establish, charge and collect fees and fines as
    24     authorized by this part.
    25         (7)  To administer oaths, examine witnesses and issue
    26     subpoenas compelling the attendance of witnesses or the
    27     production of documents and records or other evidence.
    28         (8)  To purchase insurance against a loss related to the
    29     board's property or assets.
    30         (9)  To require background investigations on [prospective
    20050S0862B1319                 - 23 -     

     1     or existing] applicants, licensees, including principals and
     2     key employees, or permittees [or persons holding a
     3     controlling interest in any prospective or existing licensee
     4     or permittee] under the jurisdiction of the board.
     5         [(2)] (10)  To enter into an agreement with the
     6     Pennsylvania State Police for the reimbursement of actual
     7     costs as approved by the board to the Pennsylvania State
     8     Police for the investigations. Investigations shall include
     9     information in the possession of the Attorney General.
    10         [3] (11)  For purposes of enforcement and for purposes of
    11     the background investigation, the board may receive
    12     information otherwise protected by 18 Pa.C.S. Ch. 91
    13     (relating to criminal history record information).
    14         [(4)] (12)  At its discretion, to issue, approve, renew,
    15     revoke, suspend, condition or deny issuance or renewal of
    16     slot machine licenses.
    17         [(5)] (13)  At its discretion, to issue, approve, renew,
    18     revoke, suspend, condition or deny issuance or renewal of
    19     supplier and manufacturer licenses.
    20         [(6)] (14)  At its discretion, to issue, approve, renew,
    21     revoke, suspend, condition or deny issuance or renewal of
    22     [occupation permits] a license, permit or registration for
    23     various classes of employees as required under this part.
    24         [(7)] (15)  At its discretion, to issue, approve, renew,
    25     revoke, suspend, condition or deny issuance or renewal of any
    26     additional licenses [or permits], permits or registration
    27     certificates which may be required by the board under this
    28     part. [or by regulation, including, but not limited to,
    29     violations of sections 1328 (relating to change in ownership
    30     or control of slot machine licensee) and 1330 (relating to
    20050S0862B1319                 - 24 -     

     1     multiple slot machine license prohibition).]
     2         [(8)] (16)  At its discretion, to suspend, condition or
     3     deny the issuance or renewal of any license or permit or levy
     4     fines or other sanctions for any violation of this part.
     5         [(9)] (17)  To require prospective and existing
     6     employees, independent contractors, applicants [for licenses
     7     and permits], licensees, permittees and registrants to submit
     8     to fingerprinting by the Pennsylvania State Police. The
     9     Pennsylvania State Police shall submit the fingerprints to
    10     the Federal Bureau of Investigation for purposes of verifying
    11     the identity of the [applicants] individual and obtaining
    12     records of criminal arrests and convictions.
    13         [10] (18)  To require prospective and existing employees,
    14     applicants, licensees, permittees and registrants to submit
    15     photographs consistent with the standards of the Commonwealth
    16     Photo Imaging Network.
    17         (19)  To levy fines or other sanctions against an
    18     applicant, licensed entity or other licensee, permittee,
    19     registrant or employee of the board who possesses, uses,
    20     sells or offers for sale any device, equipment or material
    21     subject to this part in a manner which constitutes a
    22     violation of this part.
    23         (20)  In addition to the power of the board regarding
    24     license and permit applicants, to determine at its discretion
    25     the suitability of any person who furnishes or seeks to
    26     furnish to a slot machine licensee directly or indirectly any
    27     services or property related to slot machines or associated
    28     equipment or through any arrangements under which that person
    29     receives payment based directly or indirectly on earnings,
    30     profits or receipts from the slot machines and associated
    20050S0862B1319                 - 25 -     

     1     equipment. The board may require any such person to comply
     2     with the requirements of this part and the regulations of the
     3     board and may prohibit the person from furnishing the
     4     services or property.
     5         [(11)  As a board and through its designated officers,
     6     employees or agents, to administer oaths, examine witnesses
     7     and issue subpoenas to compel attendance of witnesses and
     8     production of all relevant and material reports, books,
     9     papers, documents and other evidence.
    10         (12)] (21)  Within six months after the effective date of
    11     this part, in a manner that does not impede the immediate
    12     implementation of the duties and responsibilities of the
    13     board under this part during the immediate two years after
    14     the effective date of this part, to develop and implement an
    15     affirmative action plan to assure that all persons are
    16     accorded equality of opportunity in employment and
    17     contracting by the board, its contractors, subcontractors,
    18     assignees, lessees, agents, vendors and suppliers.
    19         [(13)] (22)  Except for contracts related to the central
    20     control computer [and such other contracts as the board, in
    21     consultation with the Secretary of General Services,
    22     determines would result in substantial savings to the board
    23     if entered into for a longer period than provided in this
    24     paragraph], all contracts entered into by the board during
    25     the two-year period following the effective date of this part
    26     shall not exceed a term of two years.
    27         [(14)  To promulgate rules and regulations the board
    28     deems necessary to carry out the policy and purposes of this
    29     part and to enhance the credibility and the integrity of the
    30     licensed operation of slot machines and associated equipment
    20050S0862B1319                 - 26 -     

     1     in this Commonwealth.
     2         (15)] (23)  The board shall not issue or renew a license
     3     [or permit], permit, registration certificate or other
     4     authorization unless it is satisfied that the applicant is a
     5     person of good character, honesty and integrity and is a
     6     person whose prior activities, criminal record, if any,
     7     reputation, habits and associations do not pose a threat to
     8     the public interest or the effective regulation and control
     9     of slot machine operations or create or enhance the danger of
    10     unsuitable, unfair or illegal practices, methods and
    11     activities in the conduct of slot machine operations or the
    12     carrying on of the business and financial arrangements
    13     incidental thereto.
    14         [(16)] (24)  Notwithstanding any other provision of law,
    15     the board is authorized to sell, in whole or in part, the
    16     Commonwealth's right, title and interest in State gaming
    17     receipts to an authority created by the Commonwealth. The
    18     sale shall be subject to the terms and conditions contained
    19     in agreements between the board and the authority. Proceeds
    20     from the sale of State gaming receipts shall be allocated and
    21     used in the manner otherwise provided by this part for the
    22     distribution of State gaming receipts. The authority created
    23     by the Commonwealth is authorized to purchase State gaming
    24     receipts upon terms and conditions agreed to by the board and
    25     to issue bonds to fund the purchase of State gaming receipts
    26     in the manner provided for the issuance of authority
    27     indebtedness in the law establishing the authority. The State
    28     Treasurer is authorized and directed to enter into any
    29     agreements with the board and the authority and establish
    30     accounts and funds, that shall not be in the State Treasury,
    20050S0862B1319                 - 27 -     

     1     as the authority may direct as being necessary or appropriate
     2     to effect the sale of State gaming receipts to the authority
     3     and the collection and transfer of the State gaming receipts
     4     sold to the authority. State gaming receipts sold to the
     5     authority shall be the property of the authority and shall
     6     not be the property of the Commonwealth.
     7         [(17)] (25)  To create a Bureau of Investigations and
     8     Enforcement within the board. The board shall promulgate
     9     regulations pertaining to the operation of the bureau which
    10     shall insure separation of functions between the bureau and
    11     the board. The board shall provide the employees necessary to
    12     the bureau for enforcement of this part.
    13         [(18)] (26)  To enter into an agreement with the district
    14     attorneys of the counties wherein licensed facilities are
    15     located and the Office of Attorney General for the
    16     reimbursement of actual costs for prosecutions of criminal
    17     violations [of this part.] and for investigating a person
    18     applying for a determination that an individual has been
    19     rehabilitated under this part.
    20         (27)  To publish each January in the Pennsylvania
    21     Bulletin and on the board's Internet website a complete list
    22     of all persons or entities who applied for or held a slot
    23     machine license, manufacturer license, supplier license or
    24     racetrack license at any time during the preceding calendar
    25     year and all affiliates, intermediaries, subsidiaries and
    26     holding companies thereof and the status of the application
    27     or license.
    28         (28)  To promulgate rules and regulations necessary for
    29     the administration and enforcement of this part. Except as
    30     provided in section 1203 (relating to temporary regulations),
    20050S0862B1319                 - 28 -     

     1     regulations shall be adopted pursuant to the act of July 31,
     2     1968 (P.L.769, No.240), referred to as the Commonwealth
     3     Documents Law, and the act of June 25, 1982 (P.L.633,
     4     No.181), known as the Regulatory Review Act.
     5     Section 5.  Title 4 is amended by adding a section to read:
     6  § 1202.1.  Code of conduct.
     7     (a)  Scope.--The board shall adopt a comprehensive code of
     8  conduct prior to the consideration of any license or permit
     9  application. The code of conduct shall supplement all other
    10  requirements under this part and 65 Pa.C.S. Pt. II (relating to
    11  accountability) and shall provide guidelines applicable to
    12  members and their immediate families, employees and independent
    13  contractors of the board to enable these individuals to avoid
    14  any perceived or actual conflict of interest and to promote
    15  public confidence in the integrity and impartiality of the
    16  board. At a minimum, the code of conduct adopted under this
    17  section shall include registration under subsection (b) and the
    18  restrictions in subsection (c).
    19     (b)  Registration.--
    20         (1)  A licensed entity representative shall register with
    21     the board in a manner prescribed by the board, which shall
    22     include the name, employer or firm, address, telephone number
    23     and person being represented.
    24         (2)  A licensed entity representative shall have an
    25     ongoing duty to update its registration information on an
    26     ongoing basis.
    27         (3)  The registration list shall be available for public
    28     inspection at the offices of the board and on the board's
    29     Internet website.
    30     (c)  Restrictions.--A member of the board shall:
    20050S0862B1319                 - 29 -     

     1         (1)  Not engage in any ex parte communication.
     2         (2)  Not accept any gift, gratuity, compensation, travel,
     3     lodging or thing of value, directly or indirectly, from any
     4     applicant, licensee, permittee or licensed entity
     5     representative thereof.
     6         (3)  Disqualify himself from any proceeding in which the
     7     member's objectivity, impartiality or independence of
     8     judgment may be reasonably questioned due to the member's
     9     relationship or association with a party connected to any
    10     proceeding or a person appearing before the board.
    11         (4)  Refrain from any financial or business dealing which
    12     would tend to reflect adversely on the member's objectivity,
    13     impartiality or independence of judgment.
    14         (5)  Not hold or campaign for public office, hold an
    15     office in any political party or political committee,
    16     contribute to or solicit contributions to a political
    17     campaign, party, committee or candidate, publicly endorse a
    18     candidate or actively participate in a political campaign.
    19         (6)  Not solicit funds for any educational, religious,
    20     charitable, fraternal or civic purposes from any person or
    21     licensed entity representative regulated under this part. A
    22     member may be an officer, director or trustee of an
    23     educational, religious, charitable, fraternal or civic
    24     organization.
    25         (7)  Not meet with any applicant, person licensed under
    26     this part, or a licensed entity representative, or discuss
    27     any pending or anticipated application or other matter which
    28     may reasonably be expected to come before the board or member
    29     of the board unless the meeting or discussion occurs on the
    30     business premises of the board and is recorded in a log
    20050S0862B1319                 - 30 -     

     1     maintained for this purpose. The log shall be available for
     2     public inspection during the regular business hours of the
     3     board. The provisions of this paragraph shall not apply to
     4     meetings to consider matters requiring the physical
     5     inspection of the equipment or premises of a licensed entity
     6     at their location.
     7         (8)  Comply with any other laws, rules or regulations
     8     relating to the conduct of a member of the board.
     9     (d)  Ex officio members.--The restrictions under subsection
    10  (c)(6) shall not apply to ex officio members of the board.
    11     (e)  Definitions.--As used in this section, the following
    12  words and phrases shall have the meanings given to them in this
    13  subsection:
    14     "Compensation."  Any thing of value, money or a financial
    15  benefit conferred on or received by a person in return for
    16  services rendered, or to be rendered, whether by that person or
    17  another.
    18     "Licensed entity representative."  A person acting on behalf
    19  of or representing the interest of any applicant, licensee,
    20  permittee or registrant, including an attorney, agent or
    21  lobbyist regarding any matter which may reasonably be expected
    22  to come before the board.
    23     Section 6.  Sections 1204, 1205, 1206(a), (c), (d) and (f),
    24  1208(1), 1306, 1309(a)(1) and 1311 of Title 4 are amended to
    25  read:
    26  § 1204.  Licensed gaming entity application appeals from board.
    27     The Supreme Court of Pennsylvania shall be vested with
    28  exclusive appellate jurisdiction to consider appeals of any
    29  final order, determination or decision of the board involving
    30  the approval, issuance, denial or conditioning of [all licensed
    20050S0862B1319                 - 31 -     

     1  entity applications] a slot machine license. Notwithstanding the
     2  provisions of 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial
     3  review of Commonwealth agency action) and 42 Pa.C.S. § 763
     4  (relating to direct appeals from government agencies), the
     5  Supreme Court shall affirm all final orders, determinations or
     6  decisions of the board involving the approval, issuance, denial
     7  or conditioning of [all licensed entity applications] a slot
     8  machine license unless it shall find that the board committed an
     9  error of law or that the order, determination or decision of the
    10  board was arbitrary and there was a capricious disregard of the
    11  evidence.
    12  § 1205.  License or permit application hearing process.
    13     The board's consideration and resolution of all license or
    14  permit applications shall be conducted in accordance with 2
    15  Pa.C.S. (relating to administrative law and procedure) and with
    16  procedures adopted by order of the board. Notwithstanding [the
    17  mandates of] 2 Pa.C.S. §§ 504 (relating to hearing and record)
    18  and 505 (relating to evidence and cross-examination), [said] the
    19  procedures adopted by [order of] the board shall provide parties
    20  before it with a documentary hearing, but the board may[, at its
    21  discretion,] resolve disputed material facts without conducting
    22  an oral hearing where constitutionally permissible.
    23  § 1206.  Board minutes and records.
    24     [(a)  Open proceedings and records.--The proceedings of the
    25  board shall be conducted in accordance with the provisions of 65
    26  Pa.C.S. Ch. 7 (relating to open meetings). The board shall be an
    27  agency for purposes of the act of June 21, 1957 (P.L.390,
    28  No.212), referred to as the Right-to-Know Law. Notwithstanding
    29  any provision of law to the contrary, confidential documents
    30  relative to personal background information provided to the
    20050S0862B1319                 - 32 -     

     1  board pursuant to this part and any closed deliberations of the
     2  board, including disciplinary proceedings, shall be confidential
     3  and considered in closed executive session pursuant to
     4  subsection (f).]
     5     * * *
     6     [(c)  Information delivered to Governor and General
     7  Assembly.--A true copy of the minutes of every meeting of the
     8  board and of any regulations finally adopted by the board may be
     9  forthwith delivered, by and under the certification of the
    10  executive director, to the Governor, the Secretary of the Senate
    11  and the Chief Clerk of the House of Representatives.]
    12     (d)  Applicant information.--
    13         (1)  The board shall [keep and] maintain a list of all
    14     applicants for licenses [and permits under this part together
    15     with], permits and registrations. The list shall include a
    16     record of all actions taken with respect to [the applicants,
    17     which file and record] each applicant. The list shall be open
    18     to public inspection during the normal business hours of the
    19     board.
    20         (2)  Information under paragraph (1) regarding any
    21     applicant whose license [or], permit or registration has been
    22     denied, revoked or not renewed shall be removed from such
    23     list after seven years from the date of the action.
    24     * * *
    25     (f)  Confidentiality of information.--All information
    26  [contained in the application process] submitted by an applicant
    27  pursuant to section 1310(a) (relating to slot machine license
    28  application character requirements) [and the report of an
    29  applicant's background investigation furnished to] or obtained
    30  by the board or the bureau as part of a background investigation
    20050S0862B1319                 - 33 -     

     1  from any source shall be considered confidential [and]. The
     2  information shall be withheld from public disclosure in whole or
     3  in part, except that any information shall be released upon the
     4  lawful order of a court of competent jurisdiction or, with the
     5  approval of the Attorney General, to a duly authorized law
     6  enforcement agency or shall be released to the public, in whole
     7  or in part, to the extent that such release is requested by an
     8  applicant and does not otherwise contain confidential
     9  information about another person. The board may not require any
    10  applicant to waive any confidentiality provided for in this
    11  subsection as a condition for the approval of a license or any
    12  other action of the board. Any person who violates this
    13  subsection shall be administratively disciplined by discharge,
    14  suspension or other formal disciplinary action as the board
    15  deems appropriate.
    16     * * *
    17  § 1208.  Collection of fees and fines.
    18     The board has the following powers and duties:
    19         (1)  To levy and collect fees from the various
    20     applicants, licensees and permittees to fund the operations
    21     of the board. The fees shall be deposited into the State
    22     Gaming Fund as established in section 1403 (relating to
    23     establishment of State Gaming Fund and net slot machine
    24     revenue distribution) and distributed to the board upon
    25     appropriation by the General Assembly. In addition to the
    26     fees set forth in sections 1209 (relating to slot machine
    27     license fee) and 1305 (relating to Category 3 slot machine
    28     license), the board 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
    20050S0862B1319                 - 34 -     

     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,
    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 have
    30  been licensed pursuant to section 1301 to meet market demand.
    20050S0862B1319                 - 35 -     

     1  The board shall approve, approve with condition or deny all
     2  initial applications for conditional Category 1 licenses under
     3  section 1315 (relating to conditional Category 1 licenses) prior
     4  to accepting or considering any applications for Category 1,
     5  Category 2 or Category 3 slot machine licenses.
     6  § 1309.  Slot machine license application.
     7     (a)  General requirements.--In addition to any other
     8  information required under this part or as may be required by
     9  the board, the application for any category of slot machine
    10  license shall include at a minimum:
    11         (1)  The name, address[,] and photograph [and handwriting
    12     exemplar] of the applicant and of all directors and owners
    13     and key employees and their positions within the corporation
    14     or organization, as well as any additional financial
    15     information required by the board.
    16     * * *
    17  § 1311.  [Slot machine license application business entity
    18             requirements.
    19     (a)  Key employee requirement qualification.--No corporation
    20  or any other legal business entity shall be eligible to hold a
    21  slot machine license unless the following would individually be
    22  qualified for licensure as a key employee: each officer; each
    23  director; each person who directly or indirectly holds any
    24  beneficial interest or ownership of the securities in the
    25  entity; each person who in the opinion of the board has the
    26  ability to control the entity, has a controlling interest or
    27  elects a majority of the board of directors of that corporation
    28  or business entity, other than a banking or other licensed
    29  lending institution which makes a loan or holds a mortgage or
    30  other lien acquired in the ordinary course of business; each key
    20050S0862B1319                 - 36 -     

     1  employee; each lender, other than a banking or other licensed
     2  lending institution which makes a loan or holds a mortgage or
     3  other lien acquired in the ordinary course of business; each
     4  underwriter; each agent; each employee of the corporation or
     5  entity and each other person whom the board may consider
     6  appropriate for approval or qualification. The board may waive
     7  compliance with the provisions of this subsection on the part of
     8  a publicly traded corporation as to a person directly or
     9  indirectly holding ownership of securities of such corporation
    10  where the board is satisfied that the security holder is not
    11  significantly involved in the activities of the corporation and
    12  does not have the ability to control the corporation or elect
    13  one or more directors thereof.
    14     (b)  Slot machine license qualification requirement.--No
    15  corporation or any other legal business entity or other form of
    16  business organization which is a subsidiary shall be eligible to
    17  receive or hold a slot machine license unless each holding and
    18  intermediary company with respect thereto:
    19         (1)  if it is a corporation or other legal business
    20     entity, shall comply with the provisions of subsection (a) as
    21     if said holding or intermediary company were itself applying
    22     for a slot machine license. The board may waive compliance
    23     with the provisions of subsection (a) on the part of a
    24     publicly traded corporation which is a holding company as to
    25     any officer, director, lender, underwriter, agent or employee
    26     thereof, or person directly or indirectly holding a
    27     beneficial interest or ownership of the securities of such
    28     corporation, where the board is satisfied that such officer,
    29     director, lender, underwriter, agent or employee is not
    30     significantly involved in the activities of the corporate
    20050S0862B1319                 - 37 -     

     1     licensee and in the case of the security holder does not have
     2     the ability to control or possess a controlling interest in
     3     the holding company or elect one or more directors thereof;
     4     or
     5         (2)  if it is not a corporation, shall comply with the
     6     provisions of subsection (c) as if said company were itself
     7     applying for a slot machine license. The board may waive
     8     compliance with the provisions of subsection (c) on the part
     9     of a noncorporate business organization which is a holding
    10     company as to any person who directly or indirectly holds any
    11     beneficial interest or ownership in such company when the
    12     board is satisfied that such person does not have the ability
    13     to control the company.
    14     (c)  Noncorporate applicant requirement.--Any noncorporate
    15  applicant for a slot machine license shall provide the
    16  information required in this section in such form as may be
    17  required by the board. No such applicant shall be eligible to
    18  hold a slot machine license unless each person who directly or
    19  indirectly holds any beneficial interest or ownership in the
    20  applicant, or has the ability to control the applicant or whom
    21  the board may consider appropriate for approval or
    22  qualification, would individually be qualified for approval as a
    23  key employee pursuant to the provisions of this part.]
    24  Additional slot machine license requirements.
    25     (a)  Additional eligibility requirements.--In order to be
    26  eligible for a slot machine license under this part, the
    27  principals and key employees of the applicant shall be required
    28  to be licensed and to meet the character requirements of section
    29  1310 (relating to slot machine license application character
    30  requirements) or other eligibility requirements established by
    20050S0862B1319                 - 38 -     

     1  the board.
     2     (b)  Classification system.--The board shall develop a
     3  classification system for other agents, employees or persons who
     4  directly or indirectly hold or are deemed to be holding debt or
     5  equity securities or other financial interest in the applicant,
     6  and other persons which the board considers appropriate for
     7  review under section 1310.
     8     (c)  Related entities.--No person shall be eligible to
     9  receive a slot machine license unless the principals and key
    10  employees, lenders and underwriters of each intermediary,
    11  subsidiary or holding company of the person meet the
    12  requirements of subsection (a).
    13     (d)  Revocable privilege.--The issuance or renewal of a
    14  license, permit or registration certificate by the board under
    15  this section shall be a revocable privilege.
    16     (e)  Waiver for publicly traded corporations.--The board may
    17  waive the requirements of subsection (a) for a person directly
    18  or indirectly holding ownership of securities in a publicly
    19  traded corporation if the board determines that the holder of
    20  the securities is not significantly involved in the activities
    21  of the corporation and does not have the ability to control the
    22  corporation or elect one or more directors thereof.
    23     (f)  Waiver for subsidiaries.--If the applicant is a
    24  subsidiary, the board may waive the requirements of subsection
    25  (a) for a holding company or intermediary as follows:
    26         (1)  If the applicant is a publicly traded corporation,
    27     the board may issue a waiver under this subsection if it
    28     determines that the principal or key employee does not have
    29     the ability to control, have a controlling interest in or
    30     elect one or more directors of the holding company or
    20050S0862B1319                 - 39 -     

     1     intermediary and is not actively involved in the activities
     2     of the applicant.
     3         (2)  If the applicant is a noncorporate organization, the
     4     board may issue a waiver under this subsection for a person
     5     who directly or indirectly holds a beneficial or ownership
     6     interest in the applicant if it determines that the person
     7     does not have the ability to control the applicant.
     8     (g)  Ongoing duty.--A person applying for a license, permit
     9  or registration certificate under this part shall have the
    10  continuing duty to provide information required by the board or
    11  the bureau and to cooperate in any inquiry or investigation.
    12     (h)  Criminal history record check.--The board shall conduct
    13  a criminal history record check on any person for whom a waiver
    14  is granted under this section.
    15     Section 7.  Title 4 is amended by adding sections to read:
    16  § 1311.1.  Licensing of principals.
    17     (a)  License required.--All principals shall obtain a
    18  principal license from the board.
    19     (b)  Application.--A principal license application shall be
    20  in a form prescribed by the board and shall include the
    21  following:
    22         (1)  Verification of status as a principal from a slot
    23     machine licensee, manufacturer licensee or supplier licensee.
    24         (2)  A description of responsibilities as a principal.
    25         (3)  All releases necessary to obtain information from
    26     governmental agencies, employers and other organizations.
    27         (4)  Fingerprints, which shall be submitted to the
    28     Pennsylvania State Police.
    29         (5)  A photograph that meets the standards of the
    30     Commonwealth Photo Imaging Network.
    20050S0862B1319                 - 40 -     

     1         (6)  Details relating to a similar license obtained in
     2     another jurisdiction.
     3         (7)  Any additional information required by the board.
     4     (c)  Issuance.--Following review of the application and the
     5  background investigation, the board may issue a principal
     6  license if the applicant has proven by clear and convincing
     7  evidence that the applicant is a person of good character,
     8  honesty and integrity and is eligible and suitable to be
     9  licensed as a principal.
    10     (d)  Nontransferability.--A license issued under this section
    11  shall be nontransferable.
    12     (e)  Principals.--An individual who receives a principal
    13  license need not obtain a key employee license.
    14  § 1311.2.  Licensing of key employees.
    15     (a)  License required.--All key employees shall obtain a key
    16  employee license from the board.
    17     (b)  Application.--A key employee license application shall
    18  be in a form prescribed by the board and shall include the
    19  following:
    20         (1)  Verification of status as a key employee from a slot
    21     machine licensee, manufacturer licensee or supplier licensee.
    22         (2)  A description of employment responsibilities.
    23         (3)  All releases necessary to obtain information from
    24     governmental agencies, employers and other organizations.
    25         (4)  Fingerprints, which shall be submitted to the
    26     Pennsylvania State Police.
    27         (5)  A photograph that meets the standards of the
    28     Commonwealth Photo Imaging Network.
    29         (6)  Details relating to a similar license obtained in
    30     another jurisdiction.
    20050S0862B1319                 - 41 -     

     1         (7)  Any additional information required by the board.
     2     (c)  Issuance.--Following review of the application and the
     3  background investigation, the board may issue a key employee
     4  license if the applicant has proven by clear and convincing
     5  evidence that the applicant is a person of good character,
     6  honesty and integrity and is eligible and suitable to be
     7  licensed as a key employee.
     8     (d)  Nontransferability.--A license issued under this section
     9  shall be nontransferable.
    10     Section 8.  Sections 1318(b)(4), 1402, 1408 and 1512 of Title  <--
    11  4 are amended to read:
    12  § 1318.  Occupation permit application.
    13     * * *
    14     (b)  Requirements.--The application for an occupation permit
    15  shall include, at a minimum:
    16         * * *
    17         (4)  A photograph [and handwriting exemplar] of the
    18     person.
    19         * * *
    20  § 1402.  Gross terminal revenue deductions.
    21     (a)  Deductions.--After determining the appropriate
    22  assessments for each slot machine licensee, the department shall
    23  [deduct the following] determine costs, expenses or payments
    24  from each account established under section 1401 (relating to
    25  slot machine licensee deposits). The following costs and
    26  expenses shall be transferred to the appropriate agency upon
    27  appropriation by the General Assembly:
    28         (1)  The costs and expenses to be incurred by the
    29     department in administering this part at each slot machine
    30     licensee's licensed facility based upon a budget submitted by
    20050S0862B1319                 - 42 -     

     1     the department to and approved by the board.
     2         (2)  The other costs and expenses to be incurred by the
     3     department in administering this part based upon a budget
     4     submitted by the department to and approved by the board.
     5         (3)  Sums necessary to repay any loans made by the
     6     General Fund to the department in connection with carrying
     7     out its responsibilities under this part, including the costs
     8     of the initial acquisition of the central control computer
     9     and any accessories or associated equipment.
    10         (4)  The costs and expenses to be incurred by the
    11     Pennsylvania State Police and the Office of Attorney General
    12     and not otherwise reimbursed under this part in carrying out
    13     their respective responsibilities under this part based upon
    14     a budget submitted by the Pennsylvania State Police and the
    15     Attorney General to and approved by the board.
    16         (5)  Sums necessary to repay any loans made by the
    17     General Fund to the Pennsylvania State Police in connection
    18     with carrying out its responsibilities under this part.
    19         (6)  The costs and expenses to be incurred by the board
    20     in carrying out its responsibilities under this part based
    21     upon a budget approved by the board.
    22         (7)  Sums necessary to repay any loans made by the
    23     General Fund to the board in connection with carrying out its
    24     responsibilities under this part.
    25     * * *
    26  § 1408.  TRANSFERS FROM STATE GAMING FUND.                        <--
    27     (A)  TRANSFER FOR COMPULSIVE PROBLEM GAMBLING TREATMENT.--
    28  EACH YEAR, THE SUM OF $1,500,000 OR AN AMOUNT EQUAL TO .001
    29  MULTIPLIED BY THE TOTAL GROSS TERMINAL REVENUE OF ALL ACTIVE AND
    30  OPERATING LICENSED GAMING ENTITIES, WHICHEVER IS GREATER, SHALL
    20050S0862B1319                 - 43 -     

     1  BE TRANSFERRED INTO THE COMPULSIVE PROBLEM GAMBLING TREATMENT
     2  FUND ESTABLISHED IN SECTION 1509 (RELATING TO COMPULSIVE AND
     3  PROBLEM GAMBLING PROGRAM).
     4     (B)  TRANSFER FOR VOLUNTEER FIRE COMPANY GRANT PROGRAM.--
     5  ANNUALLY, THE SUM OF $25,000,000 SHALL BE TRANSFERRED FROM THE
     6  STATE GAMING FUND TO THE VOLUNTEER FIRE COMPANY GRANT PROGRAM
     7  ESTABLISHED UNDER THE ACT OF JULY 31, 2003 (P.L.73, NO.17),
     8  KNOWN AS THE VOLUNTEER FIRE COMPANY AND VOLUNTEER AMBULANCE
     9  SERVICE GRANT ACT.
    10     (C)  LOCAL LAW ENFORCEMENT GRANTS.--ANNUALLY, THE SUM OF
    11  $5,000,000 SHALL BE TRANSFERRED TO THE BOARD FOR THE PURPOSE OF
    12  ISSUING GRANTS TO LOCAL LAW ENFORCEMENT AGENCIES TO ENFORCE AND
    13  PREVENT THE UNLAWFUL OPERATION OF SLOT MACHINES IN THIS
    14  COMMONWEALTH.
    15     (C.1)  TRANSFER FOR VICTIMS OF DOMESTIC VIOLENCE.--EACH YEAR
    16  THE SUM OF $3,500,000 SHALL BE TRANSFERRED FROM THE FUND TO THE
    17  DEPARTMENT OF PUBLIC WELFARE TO BE USED FOR DOMESTIC VIOLENCE
    18  PROGRAMS.
    19     (D)  ANNUAL TRANSFERS.--ANNUALLY, THE FOLLOWING SUMS SHALL BE
    20  TRANSFERRED FROM THE STATE GAMING FUND AS FOLLOWS:
    21         (1)  TO EACH COUNTY, 80¢ PER ACRE FOR EACH ACRE OF LAND
    22     IN THE COUNTY FOR WHICH A PAYMENT IS MADE UNDER THE ACT OF
    23     MAY 17, 1929 (P.L.1798, NO.591), REFERRED TO AS THE FOREST
    24     RESERVES MUNICIPAL FINANCIAL RELIEF LAW, OR UNDER 34 PA.C.S.
    25     § 708 (RELATING TO PAYMENTS IN LIEU OF TAXES).
    26         (2)  TO EACH SCHOOL DISTRICT, 80¢ PER ACRE FOR EACH ACRE
    27     OF LAND IN THE SCHOOL DISTRICT FOR WHICH A PAYMENT IS MADE
    28     UNDER THE FOREST RESERVES MUNICIPAL FINANCIAL RELIEF LAW OR
    29     UNDER 34 PA.C.S. § 708.
    30         (3)  TO EACH TOWNSHIP, 80¢ PER ACRE FOR EACH ACRE OF LAND
    20050S0862B1319                 - 44 -     

     1     IN THE TOWNSHIP FOR WHICH A PAYMENT IS MADE UNDER THE FOREST
     2     RESERVES MUNICIPAL FINANCIAL RELIEF LAW OR UNDER 34 PA.C.S. §
     3     708.
     4     (E)  TRANSFER TO PROPERTY TAX RELIEF FUND.--MONTHLY, THE
     5  STATE TREASURER SHALL TRANSFER THE REMAINING BALANCE IN THE
     6  STATE GAMING FUND WHICH IS NOT ALLOCATED IN SUBSECTIONS (A),
     7  (B), (C), (C.1) AND (D) TO THE PROPERTY TAX RELIEF FUND
     8  ESTABLISHED IN SECTION 1409 (RELATING TO PROPERTY TAX RELIEF
     9  FUND).
    10  § 1512.  [Public official financial interest.] Financial
    11             interests, complimentary services and discounts.
    12     [(a)  General rule.--Except as may be provided by rule or
    13  order of the Pennsylvania Supreme Court, no executive-level
    14  State employee, public official, party officer or immediate
    15  family member thereof shall have, at or following the effective
    16  date of this part, a financial interest in or be employed,
    17  directly or indirectly, by any licensed racing entity or
    18  licensed gaming entity, or any holding, affiliate, intermediary
    19  or subsidiary company, thereof, or any such applicant, nor
    20  solicit or accept, directly or indirectly, any complimentary
    21  service or discount from any licensed racing entity or licensed
    22  gaming entity which he or she knows or has reason to know is
    23  other than a service or discount that is offered to members of
    24  the general public in like circumstances during his or her
    25  status as an executive-level State employee, public official or
    26  party officer and for one year following termination of the
    27  person's status as an executive-level State employee, public
    28  official or party officer.]
    29     (a)  Financial interests.--Except as may be provided by rule
    30  or order of the Pennsylvania Supreme Court, an executive-level
    20050S0862B1319                 - 45 -     

     1  public employee, public official or party officer, or an
     2  immediate family member thereof, shall not intentionally or
     3  knowingly hold a financial interest in any slot machine
     4  licensee, manufacturer licensee, supplier licensee, licensed
     5  racing entity or in an applicant seeking to become any of the
     6  foregoing, or in a holding company, affiliate, intermediary or
     7  subsidiary of any of the foregoing, while the individual is an
     8  executive-level public employee, public official or party
     9  officer and for one year following termination of the
    10  individual's status as an executive-level public employee,
    11  public official or party officer.
    12     (a.1)  Employment.--Except as may be provided by rule or
    13  order of the Pennsylvania Supreme Court, no executive-level
    14  public employee, public official or party officer, or an
    15  immediate family member thereof, shall be employed by an
    16  applicant, a slot machine licensee, manufacturer licensee,
    17  supplier licensee, racing entity licensee or by an affiliate,
    18  intermediary, subsidiary or holding company thereof while the
    19  individual is an executive-level public employee, public
    20  official or party officer and for one year following termination
    21  of the individual's status as an executive-level public
    22  employee, public official or party officer.
    23     (a.2)  Complimentary services and discounts.--
    24         (1)  No executive-level public employee, public official
    25     or party officer, or an immediate family member thereof,
    26     shall solicit or accept, directly or indirectly, any
    27     complimentary service or discount from any applicant, slot
    28     machine licensee, manufacturer licensee, supplier licensee,
    29     licensed racing entity or from an affiliate, intermediary,
    30     subsidiary or holding company thereof which the executive-
    20050S0862B1319                 - 46 -     

     1     level public employee, public official or party officer, or
     2     an immediate family member thereof, knows or has reason to
     3     know is other than a service or discount that is offered to
     4     members of the general public in like circumstances.
     5         (2)  No applicant, slot machine licensee, manufacturer
     6     licensee, supplier licensee or licensed racing entity or any
     7     affiliate, intermediary, subsidiary or holding company
     8     thereof shall offer or deliver, directly or indirectly, to an
     9     executive-level public employee, public official, party
    10     officer, or an immediate family member thereof, any
    11     complimentary service or discount from the applicant or
    12     licensee or an affiliate, intermediary, subsidiary or holding
    13     company thereof that the applicant or licensee knows or has
    14     reason to know is other than a service or discount that is
    15     offered to members of the general public in like
    16     circumstances.
    17     (a.3)  Grading.--An individual who violates this section
    18  commits a misdemeanor and shall, upon conviction, be sentenced
    19  to pay a fine of not more than $1,000 or to imprisonment for not
    20  more than one year, or both.
    21     (a.4)  Divestiture.--An executive-level public employee,
    22  public official or party officer, or an immediate family member
    23  thereof, who holds a financial interest prohibited by this
    24  section shall divest the financial interest within three months
    25  of the effective date of the restrictions set forth in
    26  subsection (a), as applicable. Thereafter, an executive-level
    27  public employee, public official, party officer or immediate
    28  family member shall have 30 days from the date the person knew
    29  or had reason to know of the violation or 30 days from the
    30  annual publication in the Pennsylvania Bulletin under section
    20050S0862B1319                 - 47 -     

     1  1202(b)(19) (relating to powers and duties), whichever occurs
     2  earlier.
     3     (a.5)  Ethics Commission.--The Ethics Commission shall
     4  publish a list of all State, county, municipal and other
     5  government positions that meet the definitions of "public
     6  official"  or "executive-level public employee" under this
     7  subsection. The Office of Administration shall assist the Ethics
     8  Commission in the development of the list, which shall be
     9  published in the Pennsylvania Bulletin biennially and on the
    10  board's website. Each public official shall have a duty to
    11  provide the Ethics Commission with adequate information to
    12  accurately develop and maintain the list. The Ethics Commission
    13  may impose a civil penalty under 65 Pa.C.S. section 1109(f)
    14  (relating to penalties) upon any public official or executive-
    15  level employee who fails to cooperate with the commission under
    16  this subsection.
    17     (b)  Definitions.--As used in this section, the following
    18  words and phrases shall have the meanings given to them in this
    19  subsection:
    20     "Executive-level [State] public employee."  The Governor,
    21  Lieutenant Governor, cabinet members, deputy secretaries[,] and
    22  the Governor's office executive staff[, any State employee]. The
    23  term shall also include any other Commonwealth employee in the
    24  executive branch with discretionary powers which may affect or
    25  influence the outcome of a State agency's [decision in relation
    26  to a private corporation or business, with respect to any matter
    27  covered by this part or any executive employee who by virtue of
    28  his job function could influence the outcome of such a
    29  decision.] action or decision relating to any matter under this
    30  part. The term also shall include an employee of a county,
    20050S0862B1319                 - 48 -     

     1  municipality, authority, commission or other local governmental
     2  entity with discretionary powers which may affect or influence
     3  the outcome of an action or decision relating to a slot machine
     4  licensee or any matter under this part.
     5     "Financial interest."  Owning or holding, or being deemed to
     6  hold, debt or equity securities [exceeding 1% of the equity or
     7  fair market value of the licensed racing entity or licensed
     8  gaming entity, its holding company, affiliate, intermediary or
     9  subsidiary business.] or other ownership interest or profits
    10  interest. A financial interest shall not include any [such stock
    11  that is held in a blind trust over which the executive-level
    12  State employee, public official, party officer or immediate
    13  family member thereof may not exercise any managerial control or
    14  receive income during the tenure of office and the period under
    15  subsection (a).] debt or equity security, or other ownership
    16  interest or profits interest, which is held or deemed to be held
    17  in any of the following:
    18         (1)  A blind trust over which the executive-level public
    19     employee, public official or party officer, or an immediate
    20     family member thereof, does not exercise managerial or
    21     investment control or receive income therefrom during the
    22     tenure of office and the period under subsection (a).
    23         (2)  Securities that are held in a pension plan, profit-
    24     sharing plan, individual retirement account, tax sheltered
    25     annuity, a plan established pursuant to section 457 of the
    26     Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
    27     1 et seq.), or any successor provision, deferred compensation
    28     plan whether qualified or not qualified under the Internal
    29     Revenue Code of 1986, or any successor provision, or other
    30     retirement plan that:
    20050S0862B1319                 - 49 -     

     1             (i)  is not self-directed by the individual; and
     2             (ii)  is advised by an independent investment adviser
     3         who has sole authority to make investment decisions with
     4         respect to contributions made by the individual to these
     5         plans.
     6         (3)  A tuition account plan organized and operated
     7     pursuant to section 529 of the Internal Revenue Code of 1986
     8     (Public Law 99-514, 26 U.S.C. § 529) that is not self-
     9     directed by the individual.
    10         (4)  A mutual fund where the interest owned by the mutual
    11     fund in a licensed entity does not constitute a controlling
    12     interest as defined in this part.
    13         (5)  Any other investment over which the executive-level
    14     public employee, public official or party officer, or an
    15     immediate family member thereof, does not exercise managerial
    16     or investment control during the tenure of office and the
    17     period under subsection (a).
    18     "Immediate family."  A [parent,] spouse, minor child or
    19  unemancipated child[, brother or sister].
    20     "Law enforcement authority."  The term shall include the
    21  authority of a State or local police force, the Attorney General
    22  or a district attorney.
    23     "Party officer."  A member of a national committee; a
    24  chairman, vice chairman, secretary, treasurer or counsel of a
    25  State committee or member of the executive committee of a State
    26  committee; a county chairman, vice chairman, counsel, secretary
    27  or treasurer of a county committee in which a licensed facility
    28  is located; or a city chairman, vice chairman, counsel,
    29  secretary or treasurer of a city committee of a city in which a
    30  licensed facility is located.
    20050S0862B1319                 - 50 -     

     1     ["Public official."  Any person elected by the public or
     2  elected or appointed by a governmental body or an appointed
     3  official in the executive, legislative or judicial branch of
     4  this Commonwealth or any political subdivision thereof, provided
     5  that it shall not include members of advisory boards that have
     6  no authority to expend public funds other than reimbursement for
     7  personal expense or to otherwise exercise the power of the
     8  Commonwealth or any political subdivision or commissioner of any
     9  authority or joint-state commission.]
    10     "Public official."  The term shall include the following:
    11         (1)  The Governor, Lieutenant Governor, Treasurer,
    12     Auditor General and Attorney General of the Commonwealth.
    13         (2)  A member of the Senate or House of Representatives
    14     of the Commonwealth.
    15         (3)  An individual elected to any office of a county or
    16     municipality that receives a distribution of money or revenue
    17     under this part.
    18         (4)  An executive-level public employee of a county or
    19     municipality that receives a distribution of money or revenue
    20     under this part.
    21         (5)  An individual elected or appointed to a governmental
    22     body that receives a distribution of money or revenue under
    23     this part.
    24         (6)  An executive-level public employee of a department,
    25     agency, board, commission, authority or other governmental
    26     body that receives a distribution of money or revenue under
    27     this part.
    28         (7)  An individual elected or appointed to a department,
    29     agency, board, commission, authority or other governmental
    30     body that possesses regulatory or law enforcement authority
    20050S0862B1319                 - 51 -     

     1     over a licensed entity.
     2         (8)  An executive-level public employee of a department,
     3     agency, board, commission, authority or other governmental
     4     body that possesses regulatory or law enforcement authority
     5     over a licensed entity.
     6  The term does not include a member of a school board. The term
     7  includes a member of an advisory board or commission which makes
     8  recommendations relating to a licensed facility.
     9     Section 9.  Section 1513(a) of Title 4 is amended and the
    10  section is amended by adding subsections to read:
    11  § 1513.  Political influence.
    12     [(a)  Contribution restriction.--An applicant for a slot
    13  machine license, manufacturer license or supplier license,
    14  licensed racing entity licensee, licensed manufacturer, licensed
    15  supplier or licensed gaming entity, or a person that holds a
    16  similar gaming license or permit or a controlling interest in a
    17  gaming license or permit in another jurisdiction, or any
    18  holding, affiliate, intermediary or subsidiary company thereof,
    19  or any officer, director or key employee of such applicant
    20  licensed manufacturer or licensed supplier, licensed racing
    21  entity or licensed gaming entity or any holding, affiliate,
    22  intermediary or subsidiary company thereof, shall be prohibited
    23  from contributing any money or in-kind contribution to a
    24  candidate for nomination or election to any public office in
    25  this Commonwealth, or to any political committee or State party
    26  in this Commonwealth or to any group, committee or association
    27  organized in support of any such candidate, political committee
    28  or State party.]
    29     (a)  Contribution restriction.--The following persons shall
    30  be prohibited from contributing any money or in-kind
    20050S0862B1319                 - 52 -     

     1  contribution to a candidate for nomination or election to any
     2  public office in this Commonwealth, or to any political party
     3  committee or other political committee in this Commonwealth or
     4  to any group, committee or association organized in support of a
     5  candidate, political party committee or other political
     6  committee in this Commonwealth:
     7         (1)  An applicant.
     8         (2)  A slot machine licensee, licensed manufacturer,
     9     licensed supplier or licensed racing entity.
    10         (3)  An officer, director or person with a controlling
    11     interest in or key employee of a slot machine licensee,
    12     licensed manufacturer, licensed supplier or licensed racing
    13     entity.
    14         (4)  An affiliate, intermediary, subsidiary or holding
    15     company of a slot machine licensee, licensed manufacturer,
    16     licensed supplier or licensed racing entity.
    17         (5)  An officer, director or person with a controlling
    18     interest in or key employee of an affiliate, intermediary,
    19     subsidiary or holding company of a slot machine licensee,
    20     licensed manufacturer, licensed supplier or licensed racing
    21     entity.
    22         (6)  A person who holds a similar gaming license in
    23     another jurisdiction and the affiliates, intermediaries,
    24     subsidiaries, holding companies, officers, directors or
    25     persons with a controlling interest therein or key employees
    26     thereof.
    27     (a.1)  Contributions to certain associations and
    28  organizations barred.--The individuals prohibited from making
    29  political contributions under subsection (a) shall not make a
    30  political contribution of money or an in-kind contribution to
    20050S0862B1319                 - 53 -     

     1  any association or organization, including a nonprofit
     2  organization, that has been solicited by, or knowing that the
     3  contribution or a portion thereof will be contributed to the
     4  elected official, executive-level public employee or candidate
     5  for nomination or election to a public office in this
     6  Commonwealth.
     7     (a.2)  Internet website.--
     8         (1)  The board shall establish an Internet website that
     9     includes a list of all applicants for and holders of a slot
    10     machine license, manufacturer license, supplier license or
    11     racing entity license, and the affiliates, intermediaries,
    12     subsidiaries, holding companies, officers, directors or
    13     persons with a controlling interest therein and key employees
    14     thereof, all persons and officers, directors or persons with
    15     a controlling interest holding a similar gaming license in
    16     another jurisdiction and the affiliates, intermediaries,
    17     subsidiaries, holding companies, officers, directors or
    18     persons with a controlling interest therein and key employees
    19     thereof, and any other entity in which the applicant or
    20     licensee has any debt or equity security or other ownership
    21     or profits interest. An applicant or licensee shall notify
    22     the board within seven days of the discovery of any change in
    23     or addition to the information. The list shall be published
    24     semiannually in the Pennsylvania Bulletin.
    25         (2)  An individual who acts in good faith and in reliance
    26     on the information on the Internet website shall not be
    27     subject to any penalties or liability imposed for a violation
    28     of this section.
    29         (3)  The board shall request the information required
    30     under paragraph (1) from persons licensed in another
    20050S0862B1319                 - 54 -     

     1     jurisdiction who do not hold a license in this Commonwealth
     2     and from regulatory agencies in the other jurisdiction. If a
     3     licensee in another jurisdiction refuses to provide the
     4     information required under paragraph (1), the person and its
     5     officers, directors or persons with a controlling interest
     6     shall be ineligible to receive any license under this part.
     7     * * *
     8     Section 10.  Section 1517(d) of Title 4 is amended and the
     9  section is amended by adding a subsection to read:
    10  § 1517.  Enforcement.
    11     * * *
    12     (c.1)  Powers and duties of Attorney General.--Within the
    13  Office of Attorney General, the Attorney General shall establish
    14  a gaming unit. The unit shall investigate and institute criminal
    15  proceedings as authorized by subsection (d).
    16     (d)  Criminal action.--
    17         (1)  The district attorneys of the several counties shall
    18     have authority to investigate and to institute criminal
    19     proceedings for [any] a violation of this part.
    20         (2)  In addition to the authority conferred upon the
    21     Attorney General [by] under the act of October 15, 1980
    22     (P.L.950, No.164), known as the Commonwealth Attorneys Act,
    23     the Attorney General shall have the authority to investigate
    24     and, following consultation with the appropriate district
    25     attorney, to institute criminal proceedings for [any] a
    26     violation of this part. [or any series of such violations
    27     involving any county of this Commonwealth and another state.
    28     No] A person charged with a violation of this part by the
    29     Attorney General shall not have standing to challenge the
    30     authority of the Attorney General to investigate or prosecute
    20050S0862B1319                 - 55 -     

     1     the case, and, if any such challenge is made, the challenge
     2     shall be dismissed and no relief shall be available in the
     3     courts of this Commonwealth to the person making the
     4     challenge.
     5     * * *
     6     Section 11.  This act shall take effect in 60 days.
















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