HOUSE AMENDED
PRIOR PRINTER'S NOS. 1105, 1241, 1302, PRINTER'S NO. 1553
1319
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, HOUSE OF REPRESENTATIVES,
MARCH 14, 2006
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 AMENDING TITLES 4 (AMUSEMENTS) AND 18 (CRIMES AND OFFENSES) OF <--
20 THE PENNSYLVANIA CONSOLIDATED STATUTES, FURTHER PROVIDING FOR
21 DEFINITIONS AND FOR THE PENNSYLVANIA GAMING CONTROL BOARD;
22 PROVIDING FOR APPLICABILITY OF OTHER STATUTES; FURTHER
23 PROVIDING FOR POWERS AND DUTIES OF BOARD; PROVIDING FOR CODE
24 OF CONDUCT; FURTHER PROVIDING FOR TEMPORARY REGULATIONS, FOR
25 LICENSED ENTITY APPLICATION APPEALS FROM BOARD, FOR LICENSE
26 OR PERMIT APPLICATION HEARING PROCESS, FOR BOARD MINUTES AND
27 RECORDS, FOR COLLECTION OF FEES AND FINES, FOR CATEGORY 2
28 SLOT MACHINE LICENSES, FOR CATEGORY 3 SLOT MACHINE LICENSES,
1 FOR ORDER OF INITIAL LICENSE ISSUANCE, FOR SLOT MACHINE
2 LICENSE APPLICATION AND FOR SLOT MACHINE LICENSE APPLICATION
3 BUSINESS ENTITY REQUIREMENTS; PROVIDING FOR LICENSING OF
4 PRINCIPALS, FOR LICENSING OF KEY EMPLOYEES AND FOR RECUSAL
5 AND DISQUALIFICATION OF MEMBERS; FURTHER PROVIDING FOR
6 SUPPLIER AND MANUFACTURER LICENSES; PROVIDING FOR
7 MANUFACTURER LICENSES; FURTHER PROVIDING FOR OCCUPATION
8 PERMIT APPLICATION, FOR NONTRANSFERABILITY OF LICENSES, FOR
9 GROSS TERMINAL REVENUE DEDUCTIONS, FOR ESTABLISHMENT OF STATE
10 GAMING FUND AND NET SLOT MACHINE REVENUE DISTRIBUTION, FOR
11 THE PENNSYLVANIA GAMING ECONOMIC DEVELOPMENT AND TOURISM
12 FUND, FOR TRANSFERS FROM THE STATE GAMING FUND, FOR THE
13 COMPULSIVE AND PROBLEM GAMBLING PROGRAM, FOR PUBLIC OFFICIAL
14 FINANCIAL INTEREST, FOR POLITICAL INFLUENCE AND FOR
15 ENFORCEMENT; PROVIDING FOR PROCEDURES, FOR HEARING OFFICERS
16 AND FOR CONDUCT OF PUBLIC OFFICIALS AND EMPLOYEES; FURTHER
17 PROVIDING FOR PROHIBITED ACTS AND PENALTIES; PROVIDING FOR
18 DETENTION AND FOR INTERCEPTION OF ORAL COMMUNICATIONS;
19 FURTHER PROVIDING FOR DUTY TO PROVIDE AND FOR SUBMISSION OF
20 FINGERPRINTS; PROVIDING FOR PREEMPTION IN CITIES OF THE FIRST
21 CLASS; FURTHER PROVIDING FOR CORRUPT ORGANIZATIONS; AND
22 MAKING A RELATED REPEAL.
23 The General Assembly of the Commonwealth of Pennsylvania
24 hereby enacts as follows:
25 Section 1. The definitions of "affiliate" or "affiliated <--
26 company," "applicant," "controlling interest" and "licensed
27 facility" in section 1103 of Title 4 of the Pennsylvania
28 Consolidated Statutes are amended and the section is amended by
29 adding definitions to read:
30 § 1103. Definitions.
31 The following words and phrases when used in this part shall
32 have the meanings given to them in this section unless the
33 context clearly indicates otherwise:
34 ["Affiliate" or "affiliated company."] "Affiliate of, or a
35 person affiliated with, a specified person." A person that
36 directly or indirectly, through one or more intermediaries,
37 controls, is controlled by or is under common control with a
38 specified person.
39 "Applicant." Any person[, officer, director or key
40 employee], who on his own behalf or on behalf of another, is
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1 applying for permission to engage in any act or activity which
2 is regulated under the provisions of this part. In cases in
3 which the applicant is a [corporation, foundation, organization,
4 business trust, estate, limited liability company, trust,
5 partnership, limited partnership, association or any other form
6 of legal business entity,] person other than an individual, the
7 Pennsylvania Gaming Control Board shall determine the associated
8 persons whose qualifications are necessary as a precondition to
9 the licensing of the applicant.
10 * * *
11 "Complimentary service or item." Any lodging, service or
12 item provided to an individual at no cost or at a reduced cost
13 not generally available to the public under similar
14 circumstances.
15 "Controlling interest." A person shall be deemed to have
16 [the ability to control a publicly traded corporation, or to
17 elect] a controlling interest in an entity if the person's sole
18 voting rights, as provided by applicable State law or corporate
19 articles or bylaws, entitle the person to elect or appoint one
20 or more of the members of its board of directors[, if such
21 holder] or other governing body or if the person owns or
22 beneficially holds 5% or more of the securities of [such] a
23 publicly traded domestic or foreign corporation[,] or holds 5%
24 or more ownership or voting interest in a partnership, limited
25 liability company or any other form of legal entity, unless such
26 presumption of control or ability to elect is rebutted by clear
27 and convincing evidence. A person who is a holder of securities
28 of a privately held domestic or foreign corporation,
29 partnership, limited liability company or any other form of
30 legal entity shall be deemed to possess a controlling interest
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1 unless such presumption of control is rebutted by clear and
2 convincing evidence.
3 * * *
4 "Holding company." A person, other than a natural person,
5 which, directly or indirectly, owns, has the power or right to
6 control or to vote any significant part of the outstanding
7 voting securities of a corporation or other form of business
8 organization. A holding company indirectly has, holds or owns
9 any such power, right or security if it does so through an
10 interest in a subsidiary or successive subsidiaries.
11 * * *
12 "Independent contractor." A person who performs
13 professional, scientific, technical advisory or consulting
14 services to the Pennsylvania Gaming Control Board for a fee,
15 honorarium or similar compensation pursuant to a contract.
16 * * *
17 "Intermediary." A person, other than a natural person,
18 which:
19 (1) is a holding company with respect to a corporation
20 or other form of business organization which holds or applies
21 for a license under this part; and
22 (2) is a subsidiary with respect to any holding company.
23 * * *
24 "Licensed facility." The physical land-based location and
25 associated areas at which a licensed gaming entity is authorized
26 to place and operate slot machines. An associated area shall
27 include all parcels of land owned by the licensed gaming entity
28 or its affiliate, intermediary, subsidiary or holding company
29 contiguous to the licensed facility.
30 * * *
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1 "Member." An individual appointed to or sworn in as a member
2 of the board in accordance with section 1201(b) (relating to
3 Pennsylvania Gaming Control Board established).
4 * * *
5 "Principal." An officer; director; person who directly or
6 indirectly holds a beneficial interest in or ownership of an
7 applicant or licensee; person who has a controlling interest in
8 an applicant or licensee, or has the ability to elect a majority
9 of the board of directors of the licensee or to otherwise
10 control the licensee; lender or other licensed financial
11 institution, other than a bank or lending institution which
12 makes a loan or holds a mortgage or other lien acquired in the
13 ordinary course of business; underwriter; or other person or
14 employee of a slot machine licensee, manufacturer licensee or
15 supplier licensee deemed to be a principal by the Pennsylvania
16 Gaming Control Board.
17 * * *
18 "Publicly traded corporation." An entity that:
19 (1) has a class or series of securities registered under
20 the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C.
21 § 78a et seq.);
22 (2) is a registered management company under the
23 Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §
24 80a-1 et seq.); or
25 (3) is subject to the reporting obligations imposed by
26 section 15(d) of the Securities Exchange Act of 1934 by
27 reason of having filed a registration statement which has
28 become effective under the Securities Act of 1933 (48 Stat.
29 74, 15 U.S.C. § 77a et seq.).
30 * * *
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1 "Subsidiary." The term shall include:
2 (1) a corporation, any significant part of whose
3 outstanding equity securities are owned, subject to a power
4 or right of control, or held with power to vote, by a holding
5 company or an intermediary company; or
6 (2) a significant interest in a person, other than a
7 natural person, which is owned, subject to a power or right
8 of control, or held with power to vote, by a holding company
9 or an intermediary company.
10 * * *
11 "Underwriter." As defined in the act of December 5, 1972
12 (P.L.1280, No.284), known as the Pennsylvania Securities Act of
13 1972.
14 Section 2. Section 1201(a), (b), (c), (d), (e), (f), (h) and
15 (k) of Title 4 are amended and the section is amended by adding
16 subsections to read:
17 § 1201. Pennsylvania Gaming Control Board established.
18 (a) Board established.--There is established an independent
19 [administrative] board which shall be a body corporate and
20 politic to be known as the Pennsylvania Gaming Control Board[,
21 which shall be implemented as set forth in this section].
22 (b) Membership.--The board shall consist of the following
23 members[, who shall serve a set term and may not be removed
24 except for good cause]:
25 (1) Three members appointed by the Governor.[, each
26 being referred to as a "gubernatorial appointee."]
27 (2) One member appointed by each of the following
28 [legislative caucus leaders, each being referred to as a
29 "legislative appointee"]:
30 (i) The President pro tempore of the Senate.
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1 (ii) The Minority Leader of the Senate.
2 (iii) The Speaker of the House of Representatives.
3 (iv) The Minority Leader of the House of
4 Representatives.
5 (b.1) Removal.--A member of the board shall be removed from
6 office by the appointing authority:
7 (1) for misconduct in office, willful neglect of duty or
8 conduct evidencing unfitness for office or incompetence; or
9 (2) upon conviction of an offense graded as a felony, an
10 infamous crime, an offense under this part or an equivalent
11 offense under Federal law or the law of another jurisdiction.
12 (c) Initial appointments to board.--
13 (1) Gubernatorial [appointee members] appointees
14 initially appointed under subsection (b)(1) shall serve an
15 initial term of one, two and three years respectively as
16 designated by the Governor at the time of appointment and
17 until their successors are appointed and qualified.
18 (2) Legislative [appointee members] appointees initially
19 appointed under subsection (b)(2) shall serve until the third
20 Tuesday in January 2007 and until their successors are
21 appointed and qualified.
22 (3) [Any] An appointment to fill a vacancy created by a
23 member appointed under paragraph (1) or (2) shall be for the
24 remainder of the unexpired term. [Members so appointed to
25 fill the unexpired term of an initial appointee shall be
26 subject to the provisions of subsection (d).]
27 (d) [Appointments after expiration of initial term or upon
28 vacancy] Terms of office.--Upon the expiration of a term of a
29 [member] gubernatorial or legislative appointee appointed under
30 [this subsection or upon the existence of a vacancy of a member
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1 appointed pursuant to subsection (c) or this] subsection (b) or
2 (c), the appointing authority shall appoint a member subject to
3 the following:
4 (1) [For a gubernatorial appointment under subsection
5 (b)(1), the term shall be for three years and until a
6 successor is appointed and qualified.] The term of office of
7 a gubernatorial appointee shall be three years and until a
8 successor is appointed and qualified.
9 (2) [Terms for legislative appointee members appointed
10 under subsection (b)(2) shall be for a two-year term and
11 shall expire on the third Tuesday of January of such year,
12 but such members shall continue to serve until their
13 successors are appointed and qualified.] The term of office
14 of a legislative appointee shall be two years and until a
15 successor is appointed and qualified.
16 (3) [No] A legislative appointee [member] shall serve no
17 more than three full [successive] consecutive terms.
18 (4) [No] A gubernatorial appointee [member] shall serve
19 no more than two full [successive] consecutive terms.
20 (5) An appointment to fill a vacancy shall be for the
21 remainder of the unexpired term.
22 (6) A member appointed to fill a vacancy under paragraph
23 (3) may serve three full terms following the expiration of
24 the term related to the vacancy.
25 (7) A member appointed to fill a vacancy under paragraph
26 (4) may serve two full terms following the expiration of the
27 term related to the vacancy.
28 (e) Ex officio members.--The Secretary of Revenue, the
29 Secretary of Agriculture and the State Treasurer, or their
30 designees, shall serve on the board as nonvoting ex officio
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1 members of the board. The designee shall be a deputy secretary
2 or an equivalent position within the agency.
3 (f) Qualified majority vote.--
4 (1) Except as permitted in paragraphs (2) and (3), any
5 action , including, but not limited to, the approval,
6 issuance, denial or conditioning of any license by the board
7 under this part or the making of any order or the
8 ratification of any permissible act done or order made by one
9 or more of the members, shall require a qualified majority
10 vote consisting of at least one gubernatorial appointee and
11 the four legislative appointees.
12 (2) Any action to suspend or revoke, not renew, void or
13 require forfeiture of a license or permit issued under this
14 part, to impose any administrative fine or penalty under this
15 part or to issue cease and desist orders or similar
16 enforcement actions shall require a majority vote of all the
17 members appointed to the board.
18 (3) Notwithstanding any other provision [to the
19 contrary] of this part or 65 Pa.C.S. § 1103(j) (relating to
20 restricted activities), a member shall disclose [the nature
21 of his] a disqualifying interest, disqualify himself and
22 abstain from voting in a proceeding under this part in which
23 his [or her] impartiality may be reasonably questioned,
24 including, but not limited to, instances where he [or she]
25 knows that [they possess] he or a member of his immediate
26 family possesses a [substantial financial] direct or indirect
27 financial, property, leasehold, ownership or other beneficial
28 interest in the subject matter of the proceeding or any other
29 interest that could be substantially affected by the outcome
30 of the proceeding. [In such circumstances in which it is] If
20050S0862B1553 - 9 -
1 a legislative appointee [member that has disqualified himself
2 or herself] and his alternate have both disqualified
3 themselves, the qualified majority shall consist of all of
4 the remaining [three] legislative appointees and at least two
5 gubernatorial appointees. For purposes of this paragraph, the
6 term "immediate family" shall mean spouse, parent, brother,
7 sister or child.
8 (4) If a member is disqualified from voting on any
9 matter, the provisions of subsection (f.1) shall apply.
10 (5) In the case of a collective vote on all initial
11 applications for slot machine licenses under section 1301
12 (relating to authorized slot machine licenses), a member who
13 disqualifies himself from voting on a particular license
14 shall be disqualified from voting on any other application
15 for that category of license.
16 (6) Prior to the commencement of any proceeding under
17 this part, the board shall conduct a conflict review to
18 determine if a member has a conflict pursuant to paragraph
19 (3) or section 1202.1 (relating to code of conduct) that
20 requires disqualification from voting. The determination
21 shall be in writing and shall be available to the public. If
22 the board determines that there is a conflict requiring
23 disqualification, an alternate member shall be appointed
24 pursuant to subsection (f.1). The Attorney General or a party
25 to the proceeding may appeal a determination by the board
26 that does not require disqualification of a member.
27 (f.1) Alternate member.--Each appointing authority under
28 subsection (b) shall appoint an alternate member who shall vote
29 in any proceeding in which the member appointed by that
30 authority has disqualified himself from voting pursuant to
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1 subsection (f)(3) or section 1202.1. The following shall apply
2 to an alternate member:
3 (1) The Executive Board shall establish a per diem
4 amount to be paid to alternate members, to include payment
5 for time to review all materials necessary to make a
6 decision.
7 (2) Alternate members shall be appointed within 30 days
8 of the effective date of this subsection in order to enable a
9 background investigation to occur prior to any vote to issue
10 or deny a slot machine license, manufacturer license or
11 supplier license.
12 (3) All other requirements and restrictions under this
13 title which are applicable to board members shall apply to
14 alternate members.
15 * * *
16 (h) Qualifications and restrictions.--
17 (1) Each member at the time of appointment shall be at
18 least 25 years of age and shall have been a resident of this
19 Commonwealth for a period of at least one year immediately
20 preceding appointment. Each member shall continue to remain a
21 resident of this Commonwealth during the term of membership
22 on the board.
23 (2) Except for ex officio members, no person shall be
24 appointed a member of the board or [hold any place, position
25 or office under the board if that person holds any other
26 elected office or party office] be employed by or be an
27 independent contractor of the board if that person is a
28 public official or party officer as defined in section 1512
29 (relating to [public official financial interest] financial
30 interests, complimentary services and discounts) in this
20050S0862B1553 - 11 -
1 Commonwealth or any of its political subdivisions.
2 [(3) No member, appointee, employee or official shall
3 hold any office or employment position, the duties of which
4 are incompatible with the duties of the office.
5 (4) No member, employee, appointee or official engaged
6 in the service of or in any manner connected with the board
7 shall hold any office or position, or be engaged in any
8 employment or vocation, the duties of which are incompatible
9 with employment in the service of or in connection with the
10 work of the board.]
11 (3) Each member, employee and independent contractor of
12 the board shall sign an agreement not to disclose
13 confidential information.
14 (4) No member, employee or independent contractor of the
15 board or other agency with regulatory authority over the
16 board or gaming shall be employed, hold any office or
17 position or be engaged in any activity which is incompatible
18 with the position or employment.
19 (5) No member shall be paid or [accept for any service
20 connected with the office any fee other than the salary and
21 expenses provided by law.] receive any fee or other
22 compensation other than salary and expenses provided by law
23 for any activity related to the duties or authority of the
24 board. Nothing in this part shall prohibit a member from
25 engaging in any employment [or vocation] or receiving any
26 compensation for such employment [or vocation] that is not
27 [otherwise] connected to or incompatible with his [or her]
28 service as a member of the board.
29 (6) No member, employee[, appointee or official shall
30 participate in any hearing or proceeding in which that person
20050S0862B1553 - 12 -
1 has any direct or indirect pecuniary interest.] or
2 independent contractor of the board shall participate in a
3 hearing, proceeding or other matter in which the member,
4 employee or independent contractor of the board or the
5 immediate family thereof has any direct or indirect
6 financial, property, leasehold, ownership or other beneficial
7 interest in the subject matter of the hearing or proceeding
8 or other interest that could be substantially affected by the
9 outcome of the hearing or proceeding, without first fully
10 disclosing the nature of the interest to the board and other
11 persons participating in the hearing or proceeding. The board
12 shall determine if the interest is a disqualifying interest
13 that requires the disqualification of the member or
14 nonparticipation of the employee. For purposes of this
15 paragraph, the term "immediate family" shall mean spouse,
16 parent, brother, sister or child.
17 (7) At the time of appointment and annually thereafter,
18 each member shall disclose the existence of [all ownership
19 interests in licensed facilities and all securities in any
20 licensed entity or applicant, its affiliates or subsidiaries
21 held by the member, the member's spouse and any minor or
22 unemancipated children and must divest such ownership
23 interests in licensed facilities or securities prior to an
24 appointment becoming final. A member may not acquire any
25 security in any licensed entity, its affiliates or
26 subsidiaries during the member's tenure.] any financial,
27 property, leasehold, ownership or other beneficial interest
28 in any applicant, licensed entity or licensed facility and in
29 an affiliate, intermediary, subsidiary or holding company
30 thereof held by the member or known to be held by the
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1 member's immediate family. The disclosure statement shall be
2 filed with the executive director of the board and with the
3 appointing authority for such member and shall be open to
4 inspection by the public at the office of the board during
5 the normal business hours of the board [during the tenure of
6 the member] for the duration of the member's term and for two
7 years after the member leaves office. For purposes of this
8 paragraph, the term "immediate family" shall mean spouse,
9 parent, brother, sister or child.
10 (7.1) Prior to being sworn as a member of the board, a
11 member and his immediate family shall divest any financial,
12 property, leasehold, ownership or other beneficial interest
13 in any applicant, licensed facility or licensed entity and in
14 an affiliate, intermediary, subsidiary or holding company
15 owned or held by the member or known to be held by the
16 member's immediate family. For the duration of the member's
17 term, and for one year thereafter, the member and his
18 immediate family may not acquire a financial, property,
19 leasehold, ownership or other beneficial interest in any
20 applicant, licensed facility or licensed entity or in an
21 affiliate, intermediary, subsidiary or holding company
22 thereof. For purposes of this paragraph, the term "immediate
23 family" shall mean spouse and any minor or unemancipated
24 child. For purposes of this paragraph, a "financial,
25 property, leasehold, ownership or other beneficial interest"
26 shall not include securities that are held in a pension plan,
27 profit-sharing plan, individual retirement account, tax
28 sheltered annuity, a plan established pursuant to section 457
29 of the Internal Revenue Code of 1986 (Public Law 99-514, 26
30 U.S.C. § 1 et seq.), or any successor provision, deferred
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1 compensation plan whether qualified or not qualified under
2 the Internal Revenue Code of 1986, or any successor
3 provision, or other retirement plan that is not self-directed
4 by the individual and that is advised by an independent
5 investment adviser who has sole authority to make investment
6 decisions with respect to contributions made by the
7 individual to these plans. For purposes of this paragraph, a
8 "financial, property, leasehold, ownership or other
9 beneficial interest" shall not include a tuition account plan
10 organized and operated pursuant to section 529 of the
11 Internal Revenue Code of 1986 (Public Law 99-514 26 U.S.C. §
12 529) that is not self-directed by the individual.
13 (7.2) Prior to employment by the board and annually
14 thereafter, an employee shall disclose the existence of any
15 financial, property, leasehold, ownership or other beneficial
16 interest in any applicant, licensed facility or licensed
17 entity and in an affiliate, intermediary, subsidiary or
18 holding company thereof owned or held by the employee or
19 known to be held by the employee's immediate family. The
20 disclosure statement shall be filed with the board and shall
21 be open to inspection by the public at the office of the
22 board during the normal business hours of the board and for
23 two years after the individual terminates employment with the
24 board. For purposes of this paragraph, the term "immediate
25 family" shall mean spouse, parent, brother, sister or child.
26 (7.3) Prior to employment by the board, an employee and
27 his immediate family shall divest any financial, property,
28 leasehold, ownership or other beneficial interest in any
29 applicant, licensed facility or licensed entity and in an
30 affiliate, intermediary, subsidiary or holding company
20050S0862B1553 - 15 -
1 thereof owned or held by the employee or known to be held by
2 the employee's immediate family. For the duration of the
3 employee's employment and for one year thereafter, the
4 employee and his immediate family shall not acquire, by
5 purchase, gift, exchange or otherwise, any financial,
6 property, leasehold, ownership or other beneficial interest
7 in any applicant, licensed facility or licensed entity and in
8 any affiliate, intermediary, subsidiary or holding company
9 thereof. For purposes of this paragraph, the term "immediate
10 family" shall mean spouse and any minor or unemancipated
11 child. For purposes of this paragraph, a "financial,
12 property, leasehold, ownership or other beneficial interest"
13 shall not include securities that are held in a pension plan,
14 profit-sharing plan, individual retirement account, tax
15 sheltered annuity, a plan established pursuant to section 457
16 of the Internal Revenue Code of 1986 (Public Law 99-514, 26
17 U.S.C. § 1 et seq.), or any successor provision, deferred
18 compensation plan whether qualified or not qualified under
19 the Internal Revenue Code of 1986, or any successor
20 provision, or other retirement plan that is not self-directed
21 by the individual and that is advised by an independent
22 investment adviser who has sole authority to make investment
23 decisions with respect to contributions made by the
24 individual to these plans. For purposes of this paragraph, a
25 "financial, property, leasehold, ownership or other
26 beneficial interest" shall not include a tuition account plan
27 organized and operated pursuant to section 529 of the
28 Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
29 529) that is not self-directed by the individual.
30 (8) [Every member, employee, appointee or official of
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1 the board, in the service of or in connection with the work
2 of the board, is forbidden, directly or indirectly, to
3 solicit or request from or to suggest or recommend to any
4 applicant, licensed entity, its] No member, employee or
5 independent contractor of the board may, directly or
6 indirectly, solicit, request, suggest or recommend to any
7 applicant, licensed entity, licensed facility, or an
8 affiliate, intermediary, subsidiary[,] or holding company
9 thereof or to any [officer, attorney, agent or employee]
10 principal, employee, attorney or agent thereof the
11 appointment or employment of any individual [to any office,
12 place or position in or the employment of any individual] in
13 any capacity by the applicant, licensed entity, [its]
14 licensed facility, or affiliate, intermediary, subsidiary or
15 holding company thereof.
16 [(9) Every member, executive-level employee, appointee
17 or official appointed to office in the service of or in
18 connection with the work of the board is prohibited from
19 accepting employment with any applicant, licensed gaming
20 entity, its affiliate, intermediary, subsidiary or holding
21 company for a period of one year from the termination of
22 employment or service with the board. Every member,
23 executive-level employee, appointee or official appointed to
24 office in the service of or in connection with the work of
25 the board is prohibited from appearing before the board on
26 behalf of any applicant, licensed gaming entity, its
27 affiliate, intermediary, subsidiary or holding company or
28 other licensee or permittee of the board for a period of two
29 years after terminating employment or service with the board.
30 (10) If any person employed or appointed in the service
20050S0862B1553 - 17 -
1 of the board violates any provision of this section, the
2 appointing authority or the board shall forthwith remove the
3 person from the office or employment and the person shall be
4 ineligible for future employment or service with the board
5 and shall be ineligible to be approved for any license or
6 permit under this part for a period of two years thereafter.]
7 (9) No member of the board may accept employment with
8 any applicant, licensed entity, licensed facility or an
9 affiliate, intermediary, subsidiary or holding company
10 thereof for a period of one year from the termination of
11 membership.
12 (10) No member of the board may appear before the board
13 on behalf of any applicant, licensed entity, licensed
14 facility or an affiliate, intermediary, subsidiary or holding
15 company thereof or any other licensee or permittee for a
16 period of two years from the termination of membership.
17 (11) No member or employee of the board shall wager or
18 be paid any prize from any wager at any licensed facility
19 within this Commonwealth or at any other facility outside
20 this Commonwealth which is owned or operated by a licensed
21 gaming entity or any of its [affiliates or subsidiaries.]
22 affiliates, intermediaries, subsidiaries or holding companies
23 for the duration of their employment or term of office and
24 for a period of one year from the termination of employment
25 with the board. The provisions of this paragraph shall apply
26 to an employee of the executive branch of the Commonwealth
27 whose duties substantially involve the development or
28 adoption of regulations or policy, licensing or enforcement,
29 under this part. The provisions of this paragraph shall not
30 apply to employees who utilize slot machines for testing
20050S0862B1553 - 18 -
1 purposes or to verify the performance of a machine as part of
2 an enforcement investigation.
3 (12) A member of the board who has been convicted during
4 his term in any domestic or foreign jurisdiction of a felony,
5 infamous crime [of moral turpitude] or gambling offense
6 shall, upon conviction, be automatically removed from the
7 board and shall be ineligible to become a board member in the
8 future. If an ex officio member of the board is convicted
9 during his term in any domestic or foreign jurisdiction of a
10 felony, infamous crime or gambling offense, the ex officio
11 member shall, upon conviction, be automatically removed from
12 the board, and a designee shall be designated pursuant to
13 subsection (e) to serve the remainder of the ex officio
14 member's term.
15 (13) No employee or independent contractor of the board
16 or other employee of the executive branch of the Commonwealth
17 or of a political subdivision whose duties substantially
18 involve the development or adoption of regulations or policy,
19 licensing or enforcement, under this part, shall:
20 (i) accept employment with an applicant, licensed
21 entity, licensed facility or an affiliate, intermediary,
22 subsidiary or holding company thereof for a period of one
23 year after the termination of the employment or contract;
24 or
25 (ii) appear before the board in any hearing or
26 proceeding or participate in any other activity on behalf
27 of any applicant, licensee, permittee, licensed entity,
28 licensed facility or an affiliate, intermediary,
29 subsidiary or holding company thereof for a period of two
30 years after termination of the employment or contract.
20050S0862B1553 - 19 -
1 (14) Upon the written request of an employee of the
2 executive branch of the Commonwealth or a political
3 subdivision or of the agency or political subdivision
4 employing the employee, the State Ethics Commission shall
5 determine whether the individual's duties substantially
6 involve the development or adoption of regulations or policy,
7 licensing or enforcement, under this part, and shall provide
8 a written determination to the employee to include any
9 prohibition under this paragraph. An individual who relies in
10 good faith on a determination under this paragraph shall not
11 be subject to any penalty for an action taken, provided that
12 all material facts set forth in the request for a
13 determination are correct.
14 (15) If a member, employee or independent contractor of
15 the board violates any provision of this section, the
16 appointing authority or the board may, upon notice and
17 hearing, remove the person from the board, withdraw the
18 appointment or terminate the employment or contract and the
19 person shall be ineligible for future appointment or
20 employment with the board and for approval of a license or
21 permit under this part for a period of two years thereafter.
22 (16) As used in this subsection, the term "financial
23 interest" shall mean owning or holding or being deemed to
24 hold debt or equity securities or other ownership interest or
25 profits interest in an applicant, licensed facility or
26 licensed entity or an affiliate, intermediary, subsidiary or
27 holding company thereof.
28 (h.1) Fiduciary relationship.--A member or employee of the
29 board shall serve as a fiduciary of the Commonwealth.
30 (h.2) Standard of care.--The members of the board shall
20050S0862B1553 - 20 -
1 exercise the standard of care required by 20 Pa.C.S. Ch. 73
2 (relating to municipalities investments) in the performance of
3 their duties under this part.
4 (h.3) Liability.--Members of the board shall not be
5 personally liable for any obligations of the board.
6 * * *
7 (k) Appointments.--The appointing authorities shall make
8 their initial appointments within 60 days of the effective date
9 of this part. No appointment shall be final until receipt by the
10 appointing authority of the required background investigation of
11 the appointee by the Pennsylvania State Police which shall be
12 completed within 30 days. No person who has been convicted in
13 any domestic or foreign jurisdiction of a felony [or gambling],
14 infamous crime or gaming offense shall be appointed to the
15 board.
16 * * *
17 Section 3. Title 4 is amended by adding a section to read:
18 § 1201.1. Applicability of other statutes.
19 (a) General rule.--The following acts shall apply to the
20 board:
21 (1) The act of June 21, 1957 (P.L.390, No.212), referred
22 to as the Right-to-Know Law.
23 (2) The act of July 19, 1957 (P.L.1017, No.451), known
24 as the State Adverse Interest Act.
25 (3) The provisions of 65 Pa.C.S. Chs. 7 (relating to
26 open meetings) and 11 (relating to ethics standards and
27 financial disclosure).
28 (b) Status of board.--
29 (1) The board shall be considered an independent agency
30 for the purposes of the following:
20050S0862B1553 - 21 -
1 (i) 62 Pa.C.S. Pt. I (relating to Commonwealth
2 Procurement Code). The expediting of the remittance of
3 revenue from licensed facilities to the Commonwealth
4 shall not be grounds for an emergency procurement by the
5 board.
6 (ii) The act of October 15, 1980 (P.L.950, No.164),
7 known as the Commonwealth Attorneys Act.
8 (2) The board shall be considered an agency for the
9 purposes of the following:
10 (i) The act of July 31, 1968 (P.L.769, No.240),
11 referred to as the Commonwealth Documents Law.
12 (ii) The act of June 25, 1982 (P.L.633, No.181),
13 known as the Regulatory Review Act.
14 Section 4. Section 1202 of Title 4 is amended to read:
15 § 1202. [General and specific powers] Powers and duties.
16 (a) General powers.--
17 (1) The board shall have general jurisdiction over all
18 gaming activities or related activities as described in this
19 part. The board shall [be responsible to] ensure the
20 integrity of the acquisition and operation of slot machines
21 and associated equipment and shall have jurisdiction over
22 [every aspect of] the authorization and operation of slot
23 machines.
24 (2) The board shall employ [an executive director, chief
25 counsel, deputies, secretaries, officers, hearing officers
26 and agents as it may deem necessary] individuals as necessary
27 to carry out the powers and duties of the board, who shall
28 serve at the board's pleasure. [The board shall also employ
29 other employees as it deems appropriate whose duties shall be
30 determined by the board. In order to ensure the ability of
20050S0862B1553 - 22 -
1 the board to recruit and retain individuals necessary to
2 execute its responsibilities under this part, the board shall
3 set the] An employee of the board shall be considered a State
4 employee for purposes of 71 Pa.C.S. Pt. XXV (relating to
5 retirement for State employees and officers).
6 (3) In addition to employees authorized by the board,
7 each member of the board may employ two special assistants
8 whose classification and compensation shall be established by
9 the board. A special assistant shall be a State employee for
10 purposes of 71 Pa.C.S. Pt. XXV, shall serve at the pleasure
11 of the member and may only be removed by the board for cause.
12 (4) The board shall establish a system of classification
13 and compensation of its employees and shall not be subject to
14 the provisions of the act of April 9, 1929 (P.L.177, No.175),
15 known as The Administrative Code of 1929, as to
16 classification and compensation for its employees and conduct
17 its activities consistent with the practices and procedures
18 of Commonwealth agencies. [For the purposes of the act of
19 October 15, 1980 (P.L.950, No.164), known as the Commonwealth
20 Attorneys Act, the board shall not be considered an executive
21 or independent agency. The board shall have such other powers
22 and authority necessary to carry out its duties and the
23 objectives of this part.]
24 (5) Within 90 days of the effective date of this
25 paragraph, the board shall publish in the Pennsylvania
26 Bulletin, and on its Internet website, the classification
27 system for all employees.
28 (b) Specific powers.--The board shall have the specific
29 power and duty:
30 (1) To retain consultants and providers of professional
20050S0862B1553 - 23 -
1 services.
2 (2) To pay or satisfy obligations of the board.
3 (3) To sue or be sued, implead and be impleaded, or
4 interplead.
5 (4) To contract and execute instruments as necessary to
6 carry out the powers and duties of the board. Contracts for
7 the purchase of supplies, services and construction shall be
8 for a term not to exceed two years.
9 (5) To sell, transfer, convey and dispose of tangible or
10 intangible property owned by the board.
11 (6) To establish, charge and collect fees and fines as
12 authorized by this part.
13 (7) To administer oaths, examine witnesses and issue
14 subpoenas compelling the attendance of witnesses or the
15 production of documents and records or other evidence.
16 (8) To purchase insurance against a loss related to the
17 board's property or assets.
18 (9) To require background investigations on [prospective
19 or existing] applicants, licensees, including principals and
20 key employees, or permittees [or persons holding a
21 controlling interest in any prospective or existing licensee
22 or permittee] under the jurisdiction of the board.
23 [(2)] (10) To enter into an agreement with the
24 Pennsylvania State Police for the reimbursement of actual
25 costs as approved by the board to the Pennsylvania State
26 Police for the investigations. Investigations shall include
27 information in the possession of the Attorney General.
28 [3] (11) For purposes of enforcement and for purposes of
29 the background investigation, the board may receive
30 information otherwise protected by 18 Pa.C.S. Ch. 91
20050S0862B1553 - 24 -
1 (relating to criminal history record information).
2 [(4)] (12) At its discretion, to issue, approve, renew,
3 revoke, suspend, condition or deny issuance or renewal of
4 slot machine licenses.
5 [(5)] (13) At its discretion, to issue, approve, renew,
6 revoke, suspend, condition or deny issuance or renewal of
7 supplier and manufacturer licenses.
8 [(6)] (14) At its discretion, to issue, approve, renew,
9 revoke, suspend, condition or deny issuance or renewal of
10 [occupation permits] a license, permit or registration for
11 various classes of employees as required under this part.
12 [(7)] (15) At its discretion, to issue, approve, renew,
13 revoke, suspend, condition or deny issuance or renewal of any
14 additional licenses [or permits], permits or registration
15 certificates which may be required by the board under this
16 part. [or by regulation, including, but not limited to,
17 violations of sections 1328 (relating to change in ownership
18 or control of slot machine licensee) and 1330 (relating to
19 multiple slot machine license prohibition).]
20 [(8)] (16) At its discretion, to suspend, condition or
21 deny the issuance or renewal of any license or permit or levy
22 fines or other sanctions for any violation of this part.
23 [(9)] (17) To require prospective and existing
24 employees, independent contractors, applicants [for licenses
25 and permits], licensees, permittees and registrants to submit
26 to fingerprinting by the Pennsylvania State Police. The
27 Pennsylvania State Police shall submit the fingerprints to
28 the Federal Bureau of Investigation for purposes of verifying
29 the identity of the [applicants] individual and obtaining
30 records of criminal arrests and convictions.
20050S0862B1553 - 25 -
1 [10] (18) To require prospective and existing employees,
2 applicants, licensees, permittees and registrants to submit
3 photographs consistent with the standards of the Commonwealth
4 Photo Imaging Network.
5 (19) To levy fines or other sanctions against an
6 applicant, licensed entity or other licensee, permittee,
7 registrant or employee of the board who possesses, uses,
8 sells or offers for sale any device, equipment or material
9 subject to this part in a manner which constitutes a
10 violation of this part.
11 (20) In addition to the power of the board regarding
12 license and permit applicants, to determine at its discretion
13 the suitability of any person who furnishes or seeks to
14 furnish to a slot machine licensee directly or indirectly any
15 services or property related to slot machines or associated
16 equipment or through any arrangements under which that person
17 receives payment based directly or indirectly on earnings,
18 profits or receipts from the slot machines and associated
19 equipment. The board may require any such person to comply
20 with the requirements of this part and the regulations of the
21 board and may prohibit the person from furnishing the
22 services or property.
23 [(11) As a board and through its designated officers,
24 employees or agents, to administer oaths, examine witnesses
25 and issue subpoenas to compel attendance of witnesses and
26 production of all relevant and material reports, books,
27 papers, documents and other evidence.
28 (12)] (21) Within six months after the effective date of
29 this part, in a manner that does not impede the immediate
30 implementation of the duties and responsibilities of the
20050S0862B1553 - 26 -
1 board under this part during the immediate two years after
2 the effective date of this part, to develop and implement an
3 affirmative action plan to assure that all persons are
4 accorded equality of opportunity in employment and
5 contracting by the board, its contractors, subcontractors,
6 assignees, lessees, agents, vendors and suppliers.
7 [(13)] (22) Except for contracts related to the central
8 control computer [and such other contracts as the board, in
9 consultation with the Secretary of General Services,
10 determines would result in substantial savings to the board
11 if entered into for a longer period than provided in this
12 paragraph], all contracts entered into by the board during
13 the two-year period following the effective date of this part
14 shall not exceed a term of two years.
15 [(14) To promulgate rules and regulations the board
16 deems necessary to carry out the policy and purposes of this
17 part and to enhance the credibility and the integrity of the
18 licensed operation of slot machines and associated equipment
19 in this Commonwealth.
20 (15)] (23) The board shall not issue or renew a license
21 [or permit], permit, registration certificate or other
22 authorization unless it is satisfied that the applicant is a
23 person of good character, honesty and integrity and is a
24 person whose prior activities, criminal record, if any,
25 reputation, habits and associations do not pose a threat to
26 the public interest or the effective regulation and control
27 of slot machine operations or create or enhance the danger of
28 unsuitable, unfair or illegal practices, methods and
29 activities in the conduct of slot machine operations or the
30 carrying on of the business and financial arrangements
20050S0862B1553 - 27 -
1 incidental thereto.
2 [(16)] (24) Notwithstanding any other provision of law,
3 the board is authorized to sell, in whole or in part, the
4 Commonwealth's right, title and interest in State gaming
5 receipts to an authority created by the Commonwealth. The
6 sale shall be subject to the terms and conditions contained
7 in agreements between the board and the authority. Proceeds
8 from the sale of State gaming receipts shall be allocated and
9 used in the manner otherwise provided by this part for the
10 distribution of State gaming receipts. The authority created
11 by the Commonwealth is authorized to purchase State gaming
12 receipts upon terms and conditions agreed to by the board and
13 to issue bonds to fund the purchase of State gaming receipts
14 in the manner provided for the issuance of authority
15 indebtedness in the law establishing the authority. The State
16 Treasurer is authorized and directed to enter into any
17 agreements with the board and the authority and establish
18 accounts and funds, that shall not be in the State Treasury,
19 as the authority may direct as being necessary or appropriate
20 to effect the sale of State gaming receipts to the authority
21 and the collection and transfer of the State gaming receipts
22 sold to the authority. State gaming receipts sold to the
23 authority shall be the property of the authority and shall
24 not be the property of the Commonwealth.
25 [(17)] (25) To create a Bureau of Investigations and
26 Enforcement within the board. The board shall promulgate
27 regulations pertaining to the operation of the bureau which
28 shall insure separation of functions between the bureau and
29 the board. The board shall provide the employees necessary to
30 the bureau for enforcement of this part.
20050S0862B1553 - 28 -
1 [(18)] (26) To enter into an agreement with the district
2 attorneys of the counties wherein licensed facilities are
3 located and the Office of Attorney General for the
4 reimbursement of actual costs for prosecutions of criminal
5 violations [of this part.] and for investigating a person
6 applying for a determination that an individual has been
7 rehabilitated under this part.
8 (27) To publish each January in the Pennsylvania
9 Bulletin and on the board's Internet website a complete list
10 of all persons or entities who applied for or held a slot
11 machine license, manufacturer license, supplier license or
12 racetrack license at any time during the preceding calendar
13 year and all affiliates, intermediaries, subsidiaries and
14 holding companies thereof and the status of the application
15 or license.
16 (28) To promulgate rules and regulations necessary for
17 the administration and enforcement of this part. Except as
18 provided in section 1203 (relating to temporary regulations),
19 regulations shall be adopted pursuant to the act of July 31,
20 1968 (P.L.769, No.240), referred to as the Commonwealth
21 Documents Law, and the act of June 25, 1982 (P.L.633,
22 No.181), known as the Regulatory Review Act.
23 Section 5. Title 4 is amended by adding a section to read:
24 § 1202.1. Code of conduct.
25 (a) Scope.--The board shall adopt a comprehensive code of
26 conduct prior to the consideration of any license or permit
27 application. The code of conduct shall supplement all other
28 requirements under this part and 65 Pa.C.S. Pt. II (relating to
29 accountability) and shall provide guidelines applicable to
30 members and their immediate families, employees and independent
20050S0862B1553 - 29 -
1 contractors of the board to enable these individuals to avoid
2 any perceived or actual conflict of interest and to promote
3 public confidence in the integrity and impartiality of the
4 board. At a minimum, the code of conduct adopted under this
5 section shall include registration under subsection (b) and the
6 restrictions in subsection (c).
7 (b) Registration.--
8 (1) A licensed entity representative shall register with
9 the board in a manner prescribed by the board, which shall
10 include the name, employer or firm, address, telephone number
11 and person being represented.
12 (2) A licensed entity representative shall have an
13 ongoing duty to update its registration information on an
14 ongoing basis.
15 (3) The registration list shall be available for public
16 inspection at the offices of the board and on the board's
17 Internet website.
18 (c) Restrictions.--A member of the board shall:
19 (1) Not engage in any ex parte communication.
20 (2) Not accept any gift, gratuity, compensation, travel,
21 lodging or thing of value, directly or indirectly, from any
22 applicant, licensee, permittee or licensed entity
23 representative thereof.
24 (3) Disqualify himself from any proceeding in which the
25 member's objectivity, impartiality or independence of
26 judgment may be reasonably questioned due to the member's
27 relationship or association with a party connected to any
28 proceeding or a person appearing before the board.
29 (4) Refrain from any financial or business dealing which
30 would tend to reflect adversely on the member's objectivity,
20050S0862B1553 - 30 -
1 impartiality or independence of judgment.
2 (5) Not hold or campaign for public office, hold an
3 office in any political party or political committee,
4 contribute to or solicit contributions to a political
5 campaign, party, committee or candidate, publicly endorse a
6 candidate or actively participate in a political campaign.
7 (6) Not solicit funds for any educational, religious,
8 charitable, fraternal or civic purposes from any person or
9 licensed entity representative regulated under this part. A
10 member may be an officer, director or trustee of an
11 educational, religious, charitable, fraternal or civic
12 organization.
13 (7) Not meet with any applicant, person licensed under
14 this part, or a licensed entity representative, or discuss
15 any pending or anticipated application or other matter which
16 may reasonably be expected to come before the board or member
17 of the board unless the meeting or discussion occurs on the
18 business premises of the board and is recorded in a log
19 maintained for this purpose. The log shall be available for
20 public inspection during the regular business hours of the
21 board. The provisions of this paragraph shall not apply to
22 meetings to consider matters requiring the physical
23 inspection of the equipment or premises of a licensed entity
24 at their location.
25 (8) Comply with any other laws, rules or regulations
26 relating to the conduct of a member of the board.
27 (d) Ex officio members.--The restrictions under subsection
28 (c)(6) shall not apply to ex officio members of the board.
29 (e) Definitions.--As used in this section, the following
30 words and phrases shall have the meanings given to them in this
20050S0862B1553 - 31 -
1 subsection:
2 "Compensation." Any thing of value, money or a financial
3 benefit conferred on or received by a person in return for
4 services rendered, or to be rendered, whether by that person or
5 another.
6 "Licensed entity representative." A person acting on behalf
7 of or representing the interest of any applicant, licensee,
8 permittee or registrant, including an attorney, agent or
9 lobbyist regarding any matter which may reasonably be expected
10 to come before the board.
11 Section 6. Sections 1204, 1205, 1206(a), (c), (d) and (f),
12 1208(1), 1306, 1309(a)(1) and 1311 of Title 4 are amended to
13 read:
14 § 1204. Licensed gaming entity application appeals from board.
15 The Supreme Court of Pennsylvania shall be vested with
16 exclusive appellate jurisdiction to consider appeals of any
17 final order, determination or decision of the board involving
18 the approval, issuance, denial or conditioning of [all licensed
19 entity applications] a slot machine license. Notwithstanding the
20 provisions of 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial
21 review of Commonwealth agency action) and 42 Pa.C.S. § 763
22 (relating to direct appeals from government agencies), the
23 Supreme Court shall affirm all final orders, determinations or
24 decisions of the board involving the approval, issuance, denial
25 or conditioning of [all licensed entity applications] a slot
26 machine license unless it shall find that the board committed an
27 error of law or that the order, determination or decision of the
28 board was arbitrary and there was a capricious disregard of the
29 evidence.
30 § 1205. License or permit application hearing process.
20050S0862B1553 - 32 -
1 The board's consideration and resolution of all license or
2 permit applications shall be conducted in accordance with 2
3 Pa.C.S. (relating to administrative law and procedure) and with
4 procedures adopted by order of the board. Notwithstanding [the
5 mandates of] 2 Pa.C.S. §§ 504 (relating to hearing and record)
6 and 505 (relating to evidence and cross-examination), [said] the
7 procedures adopted by [order of] the board shall provide parties
8 before it with a documentary hearing, but the board may[, at its
9 discretion,] resolve disputed material facts without conducting
10 an oral hearing where constitutionally permissible.
11 § 1206. Board minutes and records.
12 [(a) Open proceedings and records.--The proceedings of the
13 board shall be conducted in accordance with the provisions of 65
14 Pa.C.S. Ch. 7 (relating to open meetings). The board shall be an
15 agency for purposes of the act of June 21, 1957 (P.L.390,
16 No.212), referred to as the Right-to-Know Law. Notwithstanding
17 any provision of law to the contrary, confidential documents
18 relative to personal background information provided to the
19 board pursuant to this part and any closed deliberations of the
20 board, including disciplinary proceedings, shall be confidential
21 and considered in closed executive session pursuant to
22 subsection (f).]
23 * * *
24 [(c) Information delivered to Governor and General
25 Assembly.--A true copy of the minutes of every meeting of the
26 board and of any regulations finally adopted by the board may be
27 forthwith delivered, by and under the certification of the
28 executive director, to the Governor, the Secretary of the Senate
29 and the Chief Clerk of the House of Representatives.]
30 (d) Applicant information.--
20050S0862B1553 - 33 -
1 (1) The board shall [keep and] maintain a list of all
2 applicants for licenses [and permits under this part together
3 with], permits and registrations. The list shall include a
4 record of all actions taken with respect to [the applicants,
5 which file and record] each applicant. The list shall be open
6 to public inspection during the normal business hours of the
7 board.
8 (2) Information under paragraph (1) regarding any
9 applicant whose license [or], permit or registration has been
10 denied, revoked or not renewed shall be removed from such
11 list after seven years from the date of the action.
12 * * *
13 (f) Confidentiality of information.--All information
14 [contained in the application process] submitted by an applicant
15 pursuant to section 1310(a) (relating to slot machine license
16 application character requirements) [and the report of an
17 applicant's background investigation furnished to] or obtained
18 by the board or the bureau as part of a background investigation
19 from any source shall be considered confidential [and]. The
20 information shall be withheld from public disclosure in whole or
21 in part, except that any information shall be released upon the
22 lawful order of a court of competent jurisdiction or, with the
23 approval of the Attorney General, to a duly authorized law
24 enforcement agency or shall be released to the public, in whole
25 or in part, to the extent that such release is requested by an
26 applicant and does not otherwise contain confidential
27 information about another person. The board may not require any
28 applicant to waive any confidentiality provided for in this
29 subsection as a condition for the approval of a license or any
30 other action of the board. Any person who violates this
20050S0862B1553 - 34 -
1 subsection shall be administratively disciplined by discharge,
2 suspension or other formal disciplinary action as the board
3 deems appropriate.
4 * * *
5 § 1208. Collection of fees and fines.
6 The board has the following powers and duties:
7 (1) To levy and collect fees from the various
8 applicants, licensees and permittees to fund the operations
9 of the board. The fees shall be deposited into the State
10 Gaming Fund as established in section 1403 (relating to
11 establishment of State Gaming Fund and net slot machine
12 revenue distribution) and distributed to the board upon
13 appropriation by the General Assembly. In addition to the
14 fees set forth in sections 1209 (relating to slot machine
15 license fee) and 1305 (relating to Category 3 slot machine
16 license), the board shall assess and collect fees as follows:
17 (i) Supplier licensees shall pay a fee of $25,000
18 upon the issuance of a license and $10,000 for the annual
19 renewal of a supplier license.
20 (ii) Manufacturer licensees shall pay a fee of
21 $50,000 upon the issuance of a license and $25,000 for
22 the annual renewal of a manufacturer license.
23 (iii) Each application for a slot machine license,
24 supplier license or manufacturer license must be
25 accompanied by a nonrefundable fee set by the board for
26 the cost of each individual requiring a background
27 investigation. The reasonable and necessary costs and
28 expenses incurred in any background investigation or
29 other investigation or proceeding concerning any
30 applicant, licensee or permittee shall be reimbursed to
20050S0862B1553 - 35 -
1 the board by those persons.
2 * * *
3 § 1306. Order of initial license issuance.
4 In order to facilitate the timely and orderly deployment of
5 licensed gaming operations in this Commonwealth, the board shall
6 adopt a schedule by which applicants for slot machine,
7 manufacturer and supplier licenses shall be filed, considered
8 and resolved in accordance with the provisions of this part. In
9 so doing, the board shall consider, approve, condition or deny
10 the approval of all filed applications for manufacturer and
11 supplier licenses as soon as administratively possible and at
12 least three months prior to the board's approval, conditioning
13 or denial of the approval of any Category 1 license application
14 pursuant to section 1315 (relating to conditional Category 1
15 licenses) or any other category of slot machine license pursuant
16 to section 1301 (relating to authorized slot machine licenses).
17 The board shall ensure that an adequate number of suppliers have
18 been licensed pursuant to section 1301 to meet market demand.
19 The board shall approve, approve with condition or deny all
20 initial applications for conditional Category 1 licenses under
21 section 1315 (relating to conditional Category 1 licenses) prior
22 to accepting or considering any applications for Category 1,
23 Category 2 or Category 3 slot machine licenses.
24 § 1309. Slot machine license application.
25 (a) General requirements.--In addition to any other
26 information required under this part or as may be required by
27 the board, the application for any category of slot machine
28 license shall include at a minimum:
29 (1) The name, address[,] and photograph [and handwriting
30 exemplar] of the applicant and of all directors and owners
20050S0862B1553 - 36 -
1 and key employees and their positions within the corporation
2 or organization, as well as any additional financial
3 information required by the board.
4 * * *
5 § 1311. [Slot machine license application business entity
6 requirements.
7 (a) Key employee requirement qualification.--No corporation
8 or any other legal business entity shall be eligible to hold a
9 slot machine license unless the following would individually be
10 qualified for licensure as a key employee: each officer; each
11 director; each person who directly or indirectly holds any
12 beneficial interest or ownership of the securities in the
13 entity; each person who in the opinion of the board has the
14 ability to control the entity, has a controlling interest or
15 elects a majority of the board of directors of that corporation
16 or business entity, other than a banking or other licensed
17 lending institution which makes a loan or holds a mortgage or
18 other lien acquired in the ordinary course of business; each key
19 employee; each lender, other than a banking or other licensed
20 lending institution which makes a loan or holds a mortgage or
21 other lien acquired in the ordinary course of business; each
22 underwriter; each agent; each employee of the corporation or
23 entity and each other person whom the board may consider
24 appropriate for approval or qualification. The board may waive
25 compliance with the provisions of this subsection on the part of
26 a publicly traded corporation as to a person directly or
27 indirectly holding ownership of securities of such corporation
28 where the board is satisfied that the security holder is not
29 significantly involved in the activities of the corporation and
30 does not have the ability to control the corporation or elect
20050S0862B1553 - 37 -
1 one or more directors thereof.
2 (b) Slot machine license qualification requirement.--No
3 corporation or any other legal business entity or other form of
4 business organization which is a subsidiary shall be eligible to
5 receive or hold a slot machine license unless each holding and
6 intermediary company with respect thereto:
7 (1) if it is a corporation or other legal business
8 entity, shall comply with the provisions of subsection (a) as
9 if said holding or intermediary company were itself applying
10 for a slot machine license. The board may waive compliance
11 with the provisions of subsection (a) on the part of a
12 publicly traded corporation which is a holding company as to
13 any officer, director, lender, underwriter, agent or employee
14 thereof, or person directly or indirectly holding a
15 beneficial interest or ownership of the securities of such
16 corporation, where the board is satisfied that such officer,
17 director, lender, underwriter, agent or employee is not
18 significantly involved in the activities of the corporate
19 licensee and in the case of the security holder does not have
20 the ability to control or possess a controlling interest in
21 the holding company or elect one or more directors thereof;
22 or
23 (2) if it is not a corporation, shall comply with the
24 provisions of subsection (c) as if said company were itself
25 applying for a slot machine license. The board may waive
26 compliance with the provisions of subsection (c) on the part
27 of a noncorporate business organization which is a holding
28 company as to any person who directly or indirectly holds any
29 beneficial interest or ownership in such company when the
30 board is satisfied that such person does not have the ability
20050S0862B1553 - 38 -
1 to control the company.
2 (c) Noncorporate applicant requirement.--Any noncorporate
3 applicant for a slot machine license shall provide the
4 information required in this section in such form as may be
5 required by the board. No such applicant shall be eligible to
6 hold a slot machine license unless each person who directly or
7 indirectly holds any beneficial interest or ownership in the
8 applicant, or has the ability to control the applicant or whom
9 the board may consider appropriate for approval or
10 qualification, would individually be qualified for approval as a
11 key employee pursuant to the provisions of this part.]
12 Additional slot machine license requirements.
13 (a) Additional eligibility requirements.--In order to be
14 eligible for a slot machine license under this part, the
15 principals and key employees of the applicant shall be required
16 to be licensed and to meet the character requirements of section
17 1310 (relating to slot machine license application character
18 requirements) or other eligibility requirements established by
19 the board.
20 (b) Classification system.--The board shall develop a
21 classification system for other agents, employees or persons who
22 directly or indirectly hold or are deemed to be holding debt or
23 equity securities or other financial interest in the applicant,
24 and other persons which the board considers appropriate for
25 review under section 1310.
26 (c) Related entities.--No person shall be eligible to
27 receive a slot machine license unless the principals and key
28 employees, lenders and underwriters of each intermediary,
29 subsidiary or holding company of the person meet the
30 requirements of subsection (a).
20050S0862B1553 - 39 -
1 (d) Revocable privilege.--The issuance or renewal of a
2 license, permit or registration certificate by the board under
3 this section shall be a revocable privilege.
4 (e) Waiver for publicly traded corporations.--The board may
5 waive the requirements of subsection (a) for a person directly
6 or indirectly holding ownership of securities in a publicly
7 traded corporation if the board determines that the holder of
8 the securities is not significantly involved in the activities
9 of the corporation and does not have the ability to control the
10 corporation or elect one or more directors thereof.
11 (f) Waiver for subsidiaries.--If the applicant is a
12 subsidiary, the board may waive the requirements of subsection
13 (a) for a holding company or intermediary as follows:
14 (1) If the applicant is a publicly traded corporation,
15 the board may issue a waiver under this subsection if it
16 determines that the principal or key employee does not have
17 the ability to control, have a controlling interest in or
18 elect one or more directors of the holding company or
19 intermediary and is not actively involved in the activities
20 of the applicant.
21 (2) If the applicant is a noncorporate organization, the
22 board may issue a waiver under this subsection for a person
23 who directly or indirectly holds a beneficial or ownership
24 interest in the applicant if it determines that the person
25 does not have the ability to control the applicant.
26 (g) Ongoing duty.--A person applying for a license, permit
27 or registration certificate under this part shall have the
28 continuing duty to provide information required by the board or
29 the bureau and to cooperate in any inquiry or investigation.
30 (h) Criminal history record check.--The board shall conduct
20050S0862B1553 - 40 -
1 a criminal history record check on any person for whom a waiver
2 is granted under this section.
3 Section 7. Title 4 is amended by adding sections to read:
4 § 1311.1. Licensing of principals.
5 (a) License required.--All principals shall obtain a
6 principal license from the board.
7 (b) Application.--A principal license application shall be
8 in a form prescribed by the board and shall include the
9 following:
10 (1) Verification of status as a principal from a slot
11 machine licensee, manufacturer licensee or supplier licensee.
12 (2) A description of responsibilities as a principal.
13 (3) All releases necessary to obtain information from
14 governmental agencies, employers and other organizations.
15 (4) Fingerprints, which shall be submitted to the
16 Pennsylvania State Police.
17 (5) A photograph that meets the standards of the
18 Commonwealth Photo Imaging Network.
19 (6) Details relating to a similar license obtained in
20 another jurisdiction.
21 (7) Any additional information required by the board.
22 (c) Issuance.--Following review of the application and the
23 background investigation, the board may issue a principal
24 license if the applicant has proven by clear and convincing
25 evidence that the applicant is a person of good character,
26 honesty and integrity and is eligible and suitable to be
27 licensed as a principal.
28 (d) Nontransferability.--A license issued under this section
29 shall be nontransferable.
30 (e) Principals.--An individual who receives a principal
20050S0862B1553 - 41 -
1 license need not obtain a key employee license.
2 § 1311.2. Licensing of key employees.
3 (a) License required.--All key employees shall obtain a key
4 employee license from the board.
5 (b) Application.--A key employee license application shall
6 be in a form prescribed by the board and shall include the
7 following:
8 (1) Verification of status as a key employee from a slot
9 machine licensee, manufacturer licensee or supplier licensee.
10 (2) A description of employment responsibilities.
11 (3) All releases necessary to obtain information from
12 governmental agencies, employers and other organizations.
13 (4) Fingerprints, which shall be submitted to the
14 Pennsylvania State Police.
15 (5) A photograph that meets the standards of the
16 Commonwealth Photo Imaging Network.
17 (6) Details relating to a similar license obtained in
18 another jurisdiction.
19 (7) Any additional information required by the board.
20 (c) Issuance.--Following review of the application and the
21 background investigation, the board may issue a key employee
22 license if the applicant has proven by clear and convincing
23 evidence that the applicant is a person of good character,
24 honesty and integrity and is eligible and suitable to be
25 licensed as a key employee.
26 (d) Nontransferability.--A license issued under this section
27 shall be nontransferable.
28 Section 8. Sections 1318(b)(4), 1402, 1408 and 1512 of Title
29 4 are amended to read:
30 § 1318. Occupation permit application.
20050S0862B1553 - 42 -
1 * * *
2 (b) Requirements.--The application for an occupation permit
3 shall include, at a minimum:
4 * * *
5 (4) A photograph [and handwriting exemplar] of the
6 person.
7 * * *
8 § 1402. Gross terminal revenue deductions.
9 (a) Deductions.--After determining the appropriate
10 assessments for each slot machine licensee, the department shall
11 [deduct the following] determine costs, expenses or payments
12 from each account established under section 1401 (relating to
13 slot machine licensee deposits). The following costs and
14 expenses shall be transferred to the appropriate agency upon
15 appropriation by the General Assembly:
16 (1) The costs and expenses to be incurred by the
17 department in administering this part at each slot machine
18 licensee's licensed facility based upon a budget submitted by
19 the department to and approved by the board.
20 (2) The other costs and expenses to be incurred by the
21 department in administering this part based upon a budget
22 submitted by the department to and approved by the board.
23 (3) Sums necessary to repay any loans made by the
24 General Fund to the department in connection with carrying
25 out its responsibilities under this part, including the costs
26 of the initial acquisition of the central control computer
27 and any accessories or associated equipment.
28 (4) The costs and expenses to be incurred by the
29 Pennsylvania State Police and the Office of Attorney General
30 and not otherwise reimbursed under this part in carrying out
20050S0862B1553 - 43 -
1 their respective responsibilities under this part based upon
2 a budget submitted by the Pennsylvania State Police and the
3 Attorney General to and approved by the board.
4 (5) Sums necessary to repay any loans made by the
5 General Fund to the Pennsylvania State Police in connection
6 with carrying out its responsibilities under this part.
7 (6) The costs and expenses to be incurred by the board
8 in carrying out its responsibilities under this part based
9 upon a budget approved by the board.
10 (7) Sums necessary to repay any loans made by the
11 General Fund to the board in connection with carrying out its
12 responsibilities under this part.
13 * * *
14 § 1408. Transfers from State Gaming Fund.
15 (a) Transfer for compulsive problem gambling treatment.--
16 Each year, the sum of $1,500,000 or an amount equal to .001
17 multiplied by the total gross terminal revenue of all active and
18 operating licensed gaming entities, whichever is greater, shall
19 be transferred into the Compulsive Problem Gambling Treatment
20 Fund established in section 1509 (relating to compulsive and
21 problem gambling program).
22 (b) Transfer for Volunteer Fire Company Grant Program.--
23 Annually, the sum of $25,000,000 shall be transferred from the
24 State Gaming Fund to the Volunteer Fire Company Grant Program
25 established under the act of July 31, 2003 (P.L.73, No.17),
26 known as the Volunteer Fire Company and Volunteer Ambulance
27 Service Grant Act.
28 (c) Local law enforcement grants.--Annually, the sum of
29 $5,000,000 shall be transferred to the board for the purpose of
30 issuing grants to local law enforcement agencies to enforce and
20050S0862B1553 - 44 -
1 prevent the unlawful operation of slot machines in this
2 Commonwealth.
3 (c.1) Transfer for victims of domestic violence.--Each year
4 the sum of $3,500,000 shall be transferred from the fund to the
5 Department of Public Welfare to be used for domestic violence
6 programs.
7 (d) Annual transfers.--Annually, the following sums shall be
8 transferred from the State Gaming Fund as follows:
9 (1) To each county, 80¢ per acre for each acre of land
10 in the county for which a payment is made under the act of
11 May 17, 1929 (P.L.1798, No.591), referred to as the Forest
12 Reserves Municipal Financial Relief Law, or under 34 Pa.C.S.
13 § 708 (relating to payments in lieu of taxes).
14 (2) To each school district, 80¢ per acre for each acre
15 of land in the school district for which a payment is made
16 under the Forest Reserves Municipal Financial Relief Law or
17 under 34 Pa.C.S. § 708.
18 (3) To each township, 80¢ per acre for each acre of land
19 in the township for which a payment is made under the Forest
20 Reserves Municipal Financial Relief Law or under 34 Pa.C.S. §
21 708.
22 (e) Transfer to Property Tax Relief Fund.--Monthly, the
23 State Treasurer shall transfer the remaining balance in the
24 State Gaming Fund which is not allocated in subsections (a),
25 (b), (c), (c.1) and (d) to the Property Tax Relief Fund
26 established in section 1409 (relating to Property Tax Relief
27 Fund).
28 § 1512. [Public official financial interest.] Financial
29 interests, complimentary services and discounts.
30 [(a) General rule.--Except as may be provided by rule or
20050S0862B1553 - 45 -
1 order of the Pennsylvania Supreme Court, no executive-level
2 State employee, public official, party officer or immediate
3 family member thereof shall have, at or following the effective
4 date of this part, a financial interest in or be employed,
5 directly or indirectly, by any licensed racing entity or
6 licensed gaming entity, or any holding, affiliate, intermediary
7 or subsidiary company, thereof, or any such applicant, nor
8 solicit or accept, directly or indirectly, any complimentary
9 service or discount from any licensed racing entity or licensed
10 gaming entity which he or she knows or has reason to know is
11 other than a service or discount that is offered to members of
12 the general public in like circumstances during his or her
13 status as an executive-level State employee, public official or
14 party officer and for one year following termination of the
15 person's status as an executive-level State employee, public
16 official or party officer.]
17 (a) Financial interests.--Except as may be provided by rule
18 or order of the Pennsylvania Supreme Court, an executive-level
19 public employee, public official or party officer, or an
20 immediate family member thereof, shall not intentionally or
21 knowingly hold a financial interest in any slot machine
22 licensee, manufacturer licensee, supplier licensee, licensed
23 racing entity or in an applicant seeking to become any of the
24 foregoing, or in a holding company, affiliate, intermediary or
25 subsidiary of any of the foregoing, while the individual is an
26 executive-level public employee, public official or party
27 officer and for one year following termination of the
28 individual's status as an executive-level public employee,
29 public official or party officer.
30 (a.1) Employment.--Except as may be provided by rule or
20050S0862B1553 - 46 -
1 order of the Pennsylvania Supreme Court, no executive-level
2 public employee, public official or party officer, or an
3 immediate family member thereof, shall be employed by an
4 applicant, a slot machine licensee, manufacturer licensee,
5 supplier licensee, racing entity licensee or by an affiliate,
6 intermediary, subsidiary or holding company thereof while the
7 individual is an executive-level public employee, public
8 official or party officer and for one year following termination
9 of the individual's status as an executive-level public
10 employee, public official or party officer.
11 (a.2) Complimentary services and discounts.--
12 (1) No executive-level public employee, public official
13 or party officer, or an immediate family member thereof,
14 shall solicit or accept, directly or indirectly, any
15 complimentary service or discount from any applicant, slot
16 machine licensee, manufacturer licensee, supplier licensee,
17 licensed racing entity or from an affiliate, intermediary,
18 subsidiary or holding company thereof which the executive-
19 level public employee, public official or party officer, or
20 an immediate family member thereof, knows or has reason to
21 know is other than a service or discount that is offered to
22 members of the general public in like circumstances.
23 (2) No applicant, slot machine licensee, manufacturer
24 licensee, supplier licensee or licensed racing entity or any
25 affiliate, intermediary, subsidiary or holding company
26 thereof shall offer or deliver, directly or indirectly, to an
27 executive-level public employee, public official, party
28 officer, or an immediate family member thereof, any
29 complimentary service or discount from the applicant or
30 licensee or an affiliate, intermediary, subsidiary or holding
20050S0862B1553 - 47 -
1 company thereof that the applicant or licensee knows or has
2 reason to know is other than a service or discount that is
3 offered to members of the general public in like
4 circumstances.
5 (a.3) Grading.--An individual who violates this section
6 commits a misdemeanor and shall, upon conviction, be sentenced
7 to pay a fine of not more than $1,000 or to imprisonment for not
8 more than one year, or both.
9 (a.4) Divestiture.--An executive-level public employee,
10 public official or party officer, or an immediate family member
11 thereof, who holds a financial interest prohibited by this
12 section shall divest the financial interest within three months
13 of the effective date of the restrictions set forth in
14 subsection (a), as applicable. Thereafter, an executive-level
15 public employee, public official, party officer or immediate
16 family member shall have 30 days from the date the person knew
17 or had reason to know of the violation or 30 days from the
18 annual publication in the Pennsylvania Bulletin under section
19 1202(b)(19) (relating to powers and duties), whichever occurs
20 earlier.
21 (a.5) Ethics Commission.--The Ethics Commission shall
22 publish a list of all State, county, municipal and other
23 government positions that meet the definitions of "public
24 official" or "executive-level public employee" under this
25 subsection. The Office of Administration shall assist the Ethics
26 Commission in the development of the list, which shall be
27 published in the Pennsylvania Bulletin biennially and on the
28 board's website. Each public official shall have a duty to
29 provide the Ethics Commission with adequate information to
30 accurately develop and maintain the list. The Ethics Commission
20050S0862B1553 - 48 -
1 may impose a civil penalty under 65 Pa.C.S. section 1109(f)
2 (relating to penalties) upon any public official or executive-
3 level employee who fails to cooperate with the commission under
4 this subsection.
5 (b) Definitions.--As used in this section, the following
6 words and phrases shall have the meanings given to them in this
7 subsection:
8 "Executive-level [State] public employee." The Governor,
9 Lieutenant Governor, cabinet members, deputy secretaries[,] and
10 the Governor's office executive staff[, any State employee]. The
11 term shall also include any other Commonwealth employee in the
12 executive branch with discretionary powers which may affect or
13 influence the outcome of a State agency's [decision in relation
14 to a private corporation or business, with respect to any matter
15 covered by this part or any executive employee who by virtue of
16 his job function could influence the outcome of such a
17 decision.] action or decision relating to any matter under this
18 part. The term also shall include an employee of a county,
19 municipality, authority, commission or other local governmental
20 entity with discretionary powers which may affect or influence
21 the outcome of an action or decision relating to a slot machine
22 licensee or any matter under this part.
23 "Financial interest." Owning or holding, or being deemed to
24 hold, debt or equity securities [exceeding 1% of the equity or
25 fair market value of the licensed racing entity or licensed
26 gaming entity, its holding company, affiliate, intermediary or
27 subsidiary business.] or other ownership interest or profits
28 interest. A financial interest shall not include any [such stock
29 that is held in a blind trust over which the executive-level
30 State employee, public official, party officer or immediate
20050S0862B1553 - 49 -
1 family member thereof may not exercise any managerial control or
2 receive income during the tenure of office and the period under
3 subsection (a).] debt or equity security, or other ownership
4 interest or profits interest, which is held or deemed to be held
5 in any of the following:
6 (1) A blind trust over which the executive-level public
7 employee, public official or party officer, or an immediate
8 family member thereof, does not exercise managerial or
9 investment control or receive income therefrom during the
10 tenure of office and the period under subsection (a).
11 (2) Securities that are held in a pension plan, profit-
12 sharing plan, individual retirement account, tax sheltered
13 annuity, a plan established pursuant to section 457 of the
14 Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
15 1 et seq.), or any successor provision, deferred compensation
16 plan whether qualified or not qualified under the Internal
17 Revenue Code of 1986, or any successor provision, or other
18 retirement plan that:
19 (i) is not self-directed by the individual; and
20 (ii) is advised by an independent investment adviser
21 who has sole authority to make investment decisions with
22 respect to contributions made by the individual to these
23 plans.
24 (3) A tuition account plan organized and operated
25 pursuant to section 529 of the Internal Revenue Code of 1986
26 (Public Law 99-514, 26 U.S.C. § 529) that is not self-
27 directed by the individual.
28 (4) A mutual fund where the interest owned by the mutual
29 fund in a licensed entity does not constitute a controlling
30 interest as defined in this part.
20050S0862B1553 - 50 -
1 (5) Any other investment over which the executive-level
2 public employee, public official or party officer, or an
3 immediate family member thereof, does not exercise managerial
4 or investment control during the tenure of office and the
5 period under subsection (a).
6 "Immediate family." A [parent,] spouse, minor child or
7 unemancipated child[, brother or sister].
8 "Law enforcement authority." The term shall include the
9 authority of a State or local police force, the Attorney General
10 or a district attorney.
11 "Party officer." A member of a national committee; a
12 chairman, vice chairman, secretary, treasurer or counsel of a
13 State committee or member of the executive committee of a State
14 committee; a county chairman, vice chairman, counsel, secretary
15 or treasurer of a county committee in which a licensed facility
16 is located; or a city chairman, vice chairman, counsel,
17 secretary or treasurer of a city committee of a city in which a
18 licensed facility is located.
19 ["Public official." Any person elected by the public or
20 elected or appointed by a governmental body or an appointed
21 official in the executive, legislative or judicial branch of
22 this Commonwealth or any political subdivision thereof, provided
23 that it shall not include members of advisory boards that have
24 no authority to expend public funds other than reimbursement for
25 personal expense or to otherwise exercise the power of the
26 Commonwealth or any political subdivision or commissioner of any
27 authority or joint-state commission.]
28 "Public official." The term shall include the following:
29 (1) The Governor, Lieutenant Governor, Treasurer,
30 Auditor General and Attorney General of the Commonwealth.
20050S0862B1553 - 51 -
1 (2) A member of the Senate or House of Representatives
2 of the Commonwealth.
3 (3) An individual elected to any office of a county or
4 municipality that receives a distribution of money or revenue
5 under this part.
6 (4) An executive-level public employee of a county or
7 municipality that receives a distribution of money or revenue
8 under this part.
9 (5) An individual elected or appointed to a governmental
10 body that receives a distribution of money or revenue under
11 this part.
12 (6) An executive-level public employee of a department,
13 agency, board, commission, authority or other governmental
14 body that receives a distribution of money or revenue under
15 this part.
16 (7) An individual elected or appointed to a department,
17 agency, board, commission, authority or other governmental
18 body that possesses regulatory or law enforcement authority
19 over a licensed entity.
20 (8) An executive-level public employee of a department,
21 agency, board, commission, authority or other governmental
22 body that possesses regulatory or law enforcement authority
23 over a licensed entity.
24 The term does not include a member of a school board. The term
25 includes a member of an advisory board or commission which makes
26 recommendations relating to a licensed facility.
27 Section 9. Section 1513(a) of Title 4 is amended and the
28 section is amended by adding subsections to read:
29 § 1513. Political influence.
30 [(a) Contribution restriction.--An applicant for a slot
20050S0862B1553 - 52 -
1 machine license, manufacturer license or supplier license,
2 licensed racing entity licensee, licensed manufacturer, licensed
3 supplier or licensed gaming entity, or a person that holds a
4 similar gaming license or permit or a controlling interest in a
5 gaming license or permit in another jurisdiction, or any
6 holding, affiliate, intermediary or subsidiary company thereof,
7 or any officer, director or key employee of such applicant
8 licensed manufacturer or licensed supplier, licensed racing
9 entity or licensed gaming entity or any holding, affiliate,
10 intermediary or subsidiary company thereof, shall be prohibited
11 from contributing any money or in-kind contribution to a
12 candidate for nomination or election to any public office in
13 this Commonwealth, or to any political committee or State party
14 in this Commonwealth or to any group, committee or association
15 organized in support of any such candidate, political committee
16 or State party.]
17 (a) Contribution restriction.--The following persons shall
18 be prohibited from contributing any money or in-kind
19 contribution to a candidate for nomination or election to any
20 public office in this Commonwealth, or to any political party
21 committee or other political committee in this Commonwealth or
22 to any group, committee or association organized in support of a
23 candidate, political party committee or other political
24 committee in this Commonwealth:
25 (1) An applicant.
26 (2) A slot machine licensee, licensed manufacturer,
27 licensed supplier or licensed racing entity.
28 (3) An officer, director or person with a controlling
29 interest in or key employee of a slot machine licensee,
30 licensed manufacturer, licensed supplier or licensed racing
20050S0862B1553 - 53 -
1 entity.
2 (4) An affiliate, intermediary, subsidiary or holding
3 company of a slot machine licensee, licensed manufacturer,
4 licensed supplier or licensed racing entity.
5 (5) An officer, director or person with a controlling
6 interest in or key employee of an affiliate, intermediary,
7 subsidiary or holding company of a slot machine licensee,
8 licensed manufacturer, licensed supplier or licensed racing
9 entity.
10 (6) A person who holds a similar gaming license in
11 another jurisdiction and the affiliates, intermediaries,
12 subsidiaries, holding companies, officers, directors or
13 persons with a controlling interest therein or key employees
14 thereof.
15 (a.1) Contributions to certain associations and
16 organizations barred.--The individuals prohibited from making
17 political contributions under subsection (a) shall not make a
18 political contribution of money or an in-kind contribution to
19 any association or organization, including a nonprofit
20 organization, that has been solicited by, or knowing that the
21 contribution or a portion thereof will be contributed to the
22 elected official, executive-level public employee or candidate
23 for nomination or election to a public office in this
24 Commonwealth.
25 (a.2) Internet website.--
26 (1) The board shall establish an Internet website that
27 includes a list of all applicants for and holders of a slot
28 machine license, manufacturer license, supplier license or
29 racing entity license, and the affiliates, intermediaries,
30 subsidiaries, holding companies, officers, directors or
20050S0862B1553 - 54 -
1 persons with a controlling interest therein and key employees
2 thereof, all persons and officers, directors or persons with
3 a controlling interest holding a similar gaming license in
4 another jurisdiction and the affiliates, intermediaries,
5 subsidiaries, holding companies, officers, directors or
6 persons with a controlling interest therein and key employees
7 thereof, and any other entity in which the applicant or
8 licensee has any debt or equity security or other ownership
9 or profits interest. An applicant or licensee shall notify
10 the board within seven days of the discovery of any change in
11 or addition to the information. The list shall be published
12 semiannually in the Pennsylvania Bulletin.
13 (2) An individual who acts in good faith and in reliance
14 on the information on the Internet website shall not be
15 subject to any penalties or liability imposed for a violation
16 of this section.
17 (3) The board shall request the information required
18 under paragraph (1) from persons licensed in another
19 jurisdiction who do not hold a license in this Commonwealth
20 and from regulatory agencies in the other jurisdiction. If a
21 licensee in another jurisdiction refuses to provide the
22 information required under paragraph (1), the person and its
23 officers, directors or persons with a controlling interest
24 shall be ineligible to receive any license under this part.
25 * * *
26 Section 10. Section 1517(d) of Title 4 is amended and the
27 section is amended by adding a subsection to read:
28 § 1517. Enforcement.
29 * * *
30 (c.1) Powers and duties of Attorney General.--Within the
20050S0862B1553 - 55 -
1 Office of Attorney General, the Attorney General shall establish
2 a gaming unit. The unit shall investigate and institute criminal
3 proceedings as authorized by subsection (d).
4 (d) Criminal action.--
5 (1) The district attorneys of the several counties shall
6 have authority to investigate and to institute criminal
7 proceedings for [any] a violation of this part.
8 (2) In addition to the authority conferred upon the
9 Attorney General [by] under the act of October 15, 1980
10 (P.L.950, No.164), known as the Commonwealth Attorneys Act,
11 the Attorney General shall have the authority to investigate
12 and, following consultation with the appropriate district
13 attorney, to institute criminal proceedings for [any] a
14 violation of this part. [or any series of such violations
15 involving any county of this Commonwealth and another state.
16 No] A person charged with a violation of this part by the
17 Attorney General shall not have standing to challenge the
18 authority of the Attorney General to investigate or prosecute
19 the case, and, if any such challenge is made, the challenge
20 shall be dismissed and no relief shall be available in the
21 courts of this Commonwealth to the person making the
22 challenge.
23 * * *
24 Section 11. This act shall take effect in 60 days.
25 SECTION 1. THE DEFINITIONS OF "AFFILIATE" OR "AFFILIATED <--
26 COMPANY," "APPLICANT," "CONTROLLING INTEREST" AND "GROSS
27 TERMINAL REVENUE" IN SECTION 1103 OF TITLE 4 OF THE PENNSYLVANIA
28 CONSOLIDATED STATUTES ARE AMENDED AND THE SECTION IS AMENDED BY
29 ADDING DEFINITIONS TO READ:
30 § 1103. DEFINITIONS.
20050S0862B1553 - 56 -
1 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS PART SHALL
2 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
3 CONTEXT CLEARLY INDICATES OTHERWISE:
4 "AFFILIATE[" OR "AFFILIATED COMPANY]," "AFFILIATE OF" OR
5 "PERSON AFFILIATED WITH." A PERSON THAT DIRECTLY OR INDIRECTLY,
6 THROUGH ONE OR MORE INTERMEDIARIES, CONTROLS, IS CONTROLLED BY
7 OR IS UNDER COMMON CONTROL WITH A SPECIFIED PERSON.
8 "APPLICANT." ANY PERSON[, OFFICER, DIRECTOR OR KEY
9 EMPLOYEE], WHO ON HIS OWN BEHALF OR ON BEHALF OF ANOTHER, IS
10 APPLYING FOR PERMISSION TO ENGAGE IN ANY ACT OR ACTIVITY WHICH
11 IS REGULATED UNDER THE PROVISIONS OF THIS PART. IN CASES IN
12 WHICH THE APPLICANT IS A [CORPORATION, FOUNDATION, ORGANIZATION,
13 BUSINESS TRUST, ESTATE, LIMITED LIABILITY COMPANY, TRUST,
14 PARTNERSHIP, LIMITED PARTNERSHIP, ASSOCIATION OR ANY OTHER FORM
15 OF LEGAL BUSINESS ENTITY,] PERSON OTHER THAN AN INDIVIDUAL, THE
16 PENNSYLVANIA GAMING CONTROL BOARD SHALL DETERMINE THE ASSOCIATED
17 PERSONS WHOSE QUALIFICATIONS ARE NECESSARY AS A PRECONDITION TO
18 THE LICENSING OF THE APPLICANT.
19 * * *
20 "ASSOCIATED AREA." ALL PARCELS OF LAND OWNED BY THE LICENSED
21 GAMING ENTITY OR ITS AFFILIATE, INTERMEDIARY, SUBSIDIARY OR
22 HOLDING COMPANY CONTIGUOUS TO THE LICENSED FACILITY.
23 * * *
24 "COMPENSATION." INCLUDES SALARY AND BENEFITS.
25 "COMPLIMENTARY SERVICE." ANY LODGING, SERVICE OR ITEM WHICH
26 IS PROVIDED TO AN INDIVIDUAL AT NO COST AND WHICH IS NOT
27 GENERALLY AVAILABLE TO THE PUBLIC UNDER SIMILAR CIRCUMSTANCES.
28 "CONTROLLING INTEREST." [A PERSON SHALL BE DEEMED TO HAVE
29 THE ABILITY TO CONTROL A PUBLICLY TRADED CORPORATION, OR TO
30 ELECT] AN INTEREST IN AN ENTITY IF A PERSON'S SOLE VOTING
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1 RIGHTS, AS PROVIDED BY APPLICABLE STATE LAW OR CORPORATE
2 ARTICLES OR BYLAWS, ENTITLE THE PERSON TO ELECT OR APPOINT ONE
3 OR MORE OF THE MEMBERS OF [ITS] THE ENTITY'S BOARD OF
4 DIRECTORS[, IF SUCH HOLDER] OR OTHER GOVERNING BODY OR IF THE
5 PERSON OWNS OR BENEFICIALLY HOLDS 5% OR MORE OF THE SECURITIES
6 OF [SUCH] A PUBLICLY TRADED DOMESTIC OR FOREIGN CORPORATION[,]
7 OR HOLDS 5% OR MORE OWNERSHIP OR VOTING INTEREST IN A
8 PARTNERSHIP, LIMITED LIABILITY COMPANY OR ANY OTHER FORM OF
9 LEGAL ENTITY, UNLESS SUCH PRESUMPTION OF CONTROL OR ABILITY TO
10 ELECT IS REBUTTED BY CLEAR AND CONVINCING EVIDENCE. A PERSON WHO
11 IS A HOLDER OF SECURITIES OF A PRIVATELY HELD DOMESTIC OR
12 FOREIGN CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY OR
13 ANY OTHER FORM OF LEGAL ENTITY SHALL BE DEEMED TO POSSESS A
14 CONTROLLING INTEREST UNLESS SUCH PRESUMPTION OF CONTROL IS
15 REBUTTED BY CLEAR AND CONVINCING EVIDENCE.
16 * * *
17 "CORPORATION." INCLUDES A PUBLICLY TRADED CORPORATION.
18 * * *
19 "GROSS TERMINAL REVENUE." THE TOTAL OF CASH OR CASH
20 EQUIVALENT WAGERS RECEIVED BY A SLOT MACHINE MINUS THE TOTAL OF:
21 (1) CASH OR CASH EQUIVALENTS PAID OUT TO PATRONS AS A
22 RESULT OF PLAYING A SLOT MACHINE WHICH ARE PAID TO PATRONS
23 EITHER MANUALLY OR PAID OUT BY THE SLOT MACHINE.
24 (2) CASH PAID TO PURCHASE ANNUITIES TO FUND PRIZES
25 PAYABLE TO PATRONS OVER A PERIOD OF TIME AS A RESULT OF
26 PLAYING A SLOT MACHINE.
27 (3) ANY PERSONAL PROPERTY DISTRIBUTED TO A PATRON AS THE
28 RESULT OF PLAYING A SLOT MACHINE. THIS DOES NOT INCLUDE
29 TRAVEL EXPENSES, FOOD, REFRESHMENTS, LODGING OR SERVICES.
30 THE TERM DOES NOT INCLUDE COUNTERFEIT MONEY OR TOKENS, COINS OR
20050S0862B1553 - 58 -
1 CURRENCY OF OTHER COUNTRIES WHICH ARE RECEIVED IN SLOT MACHINES,
2 EXCEPT TO THE EXTENT THAT THEY ARE READILY CONVERTIBLE TO UNITED
3 STATES CURRENCY, CASH TAKEN IN FRAUDULENT ACTS PERPETRATED
4 AGAINST A SLOT MACHINE LICENSEE FOR WHICH THE LICENSEE IS NOT
5 REIMBURSED OR CASH RECEIVED AS ENTRY FEES FOR CONTESTS OR
6 TOURNAMENTS IN WHICH THE PATRONS COMPETE FOR PRIZES.
7 "HOLDING COMPANY." AN ENTITY, OTHER THAN AN INDIVIDUAL,
8 WHICH, DIRECTLY OR INDIRECTLY, OWNS, HAS THE POWER OR RIGHT TO
9 CONTROL OR TO VOTE ANY SIGNIFICANT PART OF THE OUTSTANDING
10 VOTING SECURITIES OF A CORPORATION OR OTHER FORM OF BUSINESS
11 ORGANIZATION. A HOLDING COMPANY INDIRECTLY HAS, HOLDS OR OWNS
12 ANY SUCH POWER, RIGHT OR SECURITY IF IT DOES SO THROUGH AN
13 INTEREST IN A SUBSIDIARY OR SUCCESSIVE SUBSIDIARIES.
14 * * *
15 "INDEPENDENT CONTRACTOR." A PERSON WHO PERFORMS
16 PROFESSIONAL, SCIENTIFIC, TECHNICAL ADVISORY OR CONSULTING
17 SERVICES TO THE PENNSYLVANIA GAMING CONTROL BOARD FOR A FEE,
18 HONORARIUM OR SIMILAR COMPENSATION PURSUANT TO A CONTRACT.
19 * * *
20 "INTERMEDIARY." AN ENTITY, OTHER THAN AN INDIVIDUAL, WHICH:
21 (1) IS A HOLDING COMPANY WITH RESPECT TO A CORPORATION
22 OR OTHER FORM OF BUSINESS ORGANIZATION, WHICH HOLDS OR
23 APPLIES FOR A LICENSE UNDER THIS PART; AND
24 (2) IS A SUBSIDIARY WITH RESPECT TO ANY HOLDING COMPANY.
25 * * *
26 "MEMBER." AN INDIVIDUAL APPOINTED TO AND SWORN IN AS A
27 MEMBER OF THE BOARD IN ACCORDANCE WITH SECTION 1201(B) (RELATING
28 TO PENNSYLVANIA GAMING CONTROL BOARD ESTABLISHED).
29 * * *
30 "PRINCIPAL." AN OFFICER; DIRECTOR; PERSON WHO DIRECTLY OR
20050S0862B1553 - 59 -
1 INDIRECTLY HOLDS A BENEFICIAL INTEREST IN OR OWNERSHIP OF AN
2 AMOUNT EQUAL TO 5% OR MORE OF THE SECURITIES OF AN APPLICANT OR
3 LICENSEE; PERSON WHO HAS A CONTROLLING INTEREST IN AN APPLICANT
4 OR LICENSEE, OR HAS THE ABILITY TO ELECT A MAJORITY OF THE BOARD
5 OF DIRECTORS OF A LICENSEE OR TO OTHERWISE CONTROL A LICENSEE;
6 LENDER OR OTHER LICENSED FINANCIAL INSTITUTION OF AN APPLICANT
7 OR LICENSEE, OTHER THAN A BANK OR LENDING INSTITUTION WHICH
8 MAKES A LOAN OR HOLDS A MORTGAGE OR OTHER LIEN ACQUIRED IN THE
9 ORDINARY COURSE OF BUSINESS; UNDERWRITER OF AN APPLICANT OR
10 LICENSEE; OR OTHER PERSON OR EMPLOYEE OF A SLOT MACHINE
11 LICENSEE, MANUFACTURER LICENSEE OR SUPPLIER LICENSEE DEEMED TO
12 BE A PRINCIPAL BY THE PENNSYLVANIA GAMING CONTROL BOARD.
13 * * *
14 "PUBLICLY TRADED CORPORATION." AN ENTITY WHICH:
15 (1) HAS A CLASS OR SERIES OF SECURITIES REGISTERED UNDER
16 THE SECURITIES EXCHANGE ACT OF 1934 (48 STAT. 881, 15 U.S.C.
17 § 78A ET SEQ.);
18 (2) IS A REGISTERED MANAGEMENT COMPANY UNDER THE
19 INVESTMENT COMPANY ACT OF 1940 (54 STAT. 789, 15 U.S.C. §
20 80A-1 ET SEQ.); OR
21 (3) IS SUBJECT TO THE REPORTING OBLIGATIONS IMPOSED BY
22 SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 BY
23 REASON OF HAVING FILED A REGISTRATION STATEMENT WHICH HAS
24 BECOME EFFECTIVE UNDER THE SECURITIES ACT OF 1933 (48 STAT.
25 74, 15 U.S.C. § 77A ET SEQ.).
26 * * *
27 "REGISTRANT." A PERSON ISSUED A REGISTRATION PURSUANT TO
28 THIS PART.
29 * * *
30 "SUBSIDIARY." AN ENTITY OTHER THAN AN INDIVIDUAL. THE TERM
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1 INCLUDES:
2 (1) A CORPORATION, ANY SIGNIFICANT PART OF WHOSE
3 OUTSTANDING EQUITY SECURITIES ARE OWNED, SUBJECT TO A POWER
4 OR RIGHT OF CONTROL, OR HELD WITH POWER TO VOTE, BY A HOLDING
5 COMPANY OR AN INTERMEDIARY COMPANY; OR
6 (2) A SIGNIFICANT INTEREST IN A PERSON, OTHER THAN AN
7 INDIVIDUAL, WHICH IS OWNED, SUBJECT TO A POWER OR RIGHT OF
8 CONTROL, OR HELD WITH POWER TO VOTE, BY A HOLDING COMPANY OR
9 AN INTERMEDIARY COMPANY.
10 * * *
11 "UNDERWRITER." AS DEFINED IN THE ACT OF DECEMBER 5, 1972
12 (P.L.1280, NO.284), KNOWN AS THE PENNSYLVANIA SECURITIES ACT OF
13 1972.
14 SECTION 2. SECTION 1201 OF TITLE 4 IS AMENDED TO READ:
15 § 1201. PENNSYLVANIA GAMING CONTROL BOARD ESTABLISHED.
16 (A) BOARD ESTABLISHED.--THERE IS ESTABLISHED AN INDEPENDENT
17 [ADMINISTRATIVE] BOARD WHICH SHALL BE A BODY CORPORATE AND
18 POLITIC TO BE KNOWN AS THE PENNSYLVANIA GAMING CONTROL BOARD[,
19 WHICH SHALL BE IMPLEMENTED AS SET FORTH IN THIS SECTION].
20 (B) MEMBERSHIP.--THE BOARD SHALL CONSIST OF THE FOLLOWING
21 MEMBERS[, WHO SHALL SERVE A SET TERM AND MAY NOT BE REMOVED
22 EXCEPT FOR GOOD CAUSE]:
23 (1) THREE MEMBERS APPOINTED BY THE GOVERNOR.[, EACH
24 BEING REFERRED TO AS A "GUBERNATORIAL APPOINTEE."]
25 (2) ONE MEMBER APPOINTED BY EACH OF THE FOLLOWING
26 [LEGISLATIVE CAUCUS LEADERS, EACH BEING REFERRED TO AS A
27 "LEGISLATIVE APPOINTEE"]:
28 (I) THE PRESIDENT PRO TEMPORE OF THE SENATE.
29 (II) THE MINORITY LEADER OF THE SENATE.
30 (III) THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.
20050S0862B1553 - 61 -
1 (IV) THE MINORITY LEADER OF THE HOUSE OF
2 REPRESENTATIVES.
3 (B.1) REMOVAL.--A MEMBER OF THE BOARD SHALL BE REMOVED FROM
4 OFFICE BY THE APPOINTING AUTHORITY:
5 (1) FOR MISCONDUCT IN OFFICE, WILLFUL NEGLECT OF DUTY OR
6 CONDUCT EVIDENCING UNFITNESS FOR OFFICE OR INCOMPETENCE; OR
7 (2) UPON CONVICTION OF AN OFFENSE GRADED AS A FELONY, AN
8 INFAMOUS CRIME, AN OFFENSE UNDER THIS PART OR AN EQUIVALENT
9 OFFENSE UNDER FEDERAL LAW OR THE LAW OF ANOTHER JURISDICTION.
10 (C) INITIAL APPOINTMENTS TO BOARD.--
11 (1) GUBERNATORIAL [APPOINTEE MEMBERS] APPOINTEES
12 INITIALLY APPOINTED UNDER SUBSECTION (B)(1) SHALL SERVE AN
13 INITIAL TERM OF ONE, TWO AND THREE YEARS RESPECTIVELY AS
14 DESIGNATED BY THE GOVERNOR AT THE TIME OF APPOINTMENT AND
15 UNTIL THEIR SUCCESSORS ARE APPOINTED AND QUALIFIED.
16 (2) LEGISLATIVE [APPOINTEE MEMBERS] APPOINTEES INITIALLY
17 APPOINTED UNDER SUBSECTION (B)(2) SHALL SERVE UNTIL THE THIRD
18 TUESDAY IN JANUARY 2007 AND UNTIL THEIR SUCCESSORS ARE
19 APPOINTED AND QUALIFIED.
20 (3) [ANY] AN APPOINTMENT TO FILL A VACANCY CREATED BY A
21 MEMBER APPOINTED IN ACCORDANCE WITH PARAGRAPH (1) OR (2)
22 SHALL BE FOR THE REMAINDER OF THE UNEXPIRED TERM. [MEMBERS SO
23 APPOINTED TO FILL THE UNEXPIRED TERM OF AN INITIAL APPOINTEE
24 SHALL BE SUBJECT TO THE PROVISIONS OF SUBSECTION (D).]
25 (D) [APPOINTMENTS AFTER EXPIRATION OF INITIAL TERM OR UPON
26 VACANCY] TERMS OF OFFICE.--UPON THE EXPIRATION OF A TERM OF A
27 MEMBER APPOINTED UNDER [THIS SUBSECTION OR UPON THE EXISTENCE OF
28 A VACANCY OF A MEMBER APPOINTED PURSUANT TO SUBSECTION (C) OR
29 THIS] SUBSECTION (C), [THE APPOINTING AUTHORITY SHALL APPOINT A
30 MEMBER SUBJECT TO THE FOLLOWING:
20050S0862B1553 - 62 -
1 (1) FOR A GUBERNATORIAL APPOINTMENT UNDER SUBSECTION
2 (B)(1), THE TERM SHALL BE FOR THREE YEARS AND UNTIL A
3 SUCCESSOR IS APPOINTED AND QUALIFIED.] THE FOLLOWING SHALL
4 APPLY:
5 (1) THE TERM OF OFFICE OF A GUBERNATORIAL APPOINTEE
6 SHALL BE THREE YEARS AND UNTIL A SUCCESSOR IS APPOINTED AND
7 QUALIFIED.
8 (2) [TERMS FOR LEGISLATIVE APPOINTEE MEMBERS APPOINTED
9 UNDER SUBSECTION (B)(2) SHALL BE FOR A TWO-YEAR TERM AND
10 SHALL EXPIRE ON THE THIRD TUESDAY OF JANUARY OF SUCH YEAR,
11 BUT SUCH MEMBERS SHALL CONTINUE TO SERVE UNTIL THEIR
12 SUCCESSORS ARE APPOINTED AND QUALIFIED.] THE TERM OF OFFICE
13 OF A LEGISLATIVE APPOINTEE SHALL BE TWO YEARS AND UNTIL A
14 SUCCESSOR IS APPOINTED AND QUALIFIED.
15 (3) [NO] A LEGISLATIVE APPOINTEE [MEMBER] SHALL SERVE NO
16 MORE THAN THREE FULL [SUCCESSIVE] CONSECUTIVE TERMS.
17 (4) [NO] A GUBERNATORIAL APPOINTEE [MEMBER] SHALL SERVE
18 NO MORE THAN TWO FULL [SUCCESSIVE] CONSECUTIVE TERMS.
19 (5) AN APPOINTMENT TO FILL A VACANCY SHALL BE FOR THE
20 REMAINDER OF THE UNEXPIRED TERM.
21 (6) A MEMBER APPOINTED TO FILL A VACANCY UNDER PARAGRAPH
22 (3) MAY SERVE THREE FULL TERMS FOLLOWING THE EXPIRATION OF
23 THE TERM RELATED TO THE VACANCY.
24 (7) A MEMBER APPOINTED TO FILL A VACANCY UNDER PARAGRAPH
25 (4) MAY SERVE TWO FULL TERMS FOLLOWING THE EXPIRATION OF THE
26 TERM RELATED TO THE VACANCY.
27 (E) EX OFFICIO MEMBERS.--THE SECRETARY OF REVENUE, THE
28 SECRETARY OF AGRICULTURE AND THE STATE TREASURER, OR THEIR
29 DESIGNEES, SHALL SERVE ON THE BOARD AS NONVOTING EX OFFICIO
30 MEMBERS OF THE BOARD. THE DESIGNEE SHALL BE A DEPUTY SECRETARY
20050S0862B1553 - 63 -
1 OR AN EQUIVALENT POSITION WITHIN THE AGENCY.
2 (F) QUALIFIED MAJORITY VOTE.--
3 (1) EXCEPT AS PERMITTED IN PARAGRAPHS (2) AND (3), ANY
4 ACTION , INCLUDING, BUT NOT LIMITED TO, THE APPROVAL,
5 ISSUANCE, DENIAL OR CONDITIONING OF ANY LICENSE BY THE BOARD
6 UNDER THIS PART OR THE MAKING OF ANY ORDER OR THE
7 RATIFICATION OF ANY PERMISSIBLE ACT DONE OR ORDER MADE BY ONE
8 OR MORE OF THE MEMBERS, SHALL REQUIRE A QUALIFIED MAJORITY
9 VOTE CONSISTING OF AT LEAST ONE GUBERNATORIAL APPOINTEE AND
10 THE FOUR LEGISLATIVE APPOINTEES.
11 (2) ANY ACTION TO SUSPEND OR REVOKE, NOT RENEW, VOID OR
12 REQUIRE FORFEITURE OF A LICENSE OR PERMIT ISSUED UNDER THIS
13 PART, TO IMPOSE ANY ADMINISTRATIVE FINE OR PENALTY UNDER THIS
14 PART OR TO ISSUE CEASE AND DESIST ORDERS OR SIMILAR
15 ENFORCEMENT ACTIONS SHALL REQUIRE A MAJORITY VOTE OF ALL THE
16 MEMBERS APPOINTED TO THE BOARD.
17 (3) NOTWITHSTANDING ANY OTHER PROVISION [TO THE
18 CONTRARY] OF THIS PART OR 65 PA.C.S. § 1103(J) (RELATING TO
19 RESTRICTED ACTIVITIES), A MEMBER SHALL DISCLOSE [THE NATURE
20 OF HIS DISQUALIFYING INTEREST], DISQUALIFY HIMSELF AND
21 ABSTAIN FROM VOTING IN A PROCEEDING UNDER THIS PART IN WHICH
22 HIS [OR HER] IMPARTIALITY MAY BE REASONABLY QUESTIONED,
23 INCLUDING, BUT NOT LIMITED TO, INSTANCES WHERE HE [OR SHE]
24 KNOWS THAT [THEY POSSESS] HE OR A MEMBER OF HIS IMMEDIATE
25 FAMILY POSSESSES A [SUBSTANTIAL] FINANCIAL INTEREST IN THE
26 SUBJECT MATTER OF THE PROCEEDING OR ANY OTHER INTEREST THAT
27 COULD BE SUBSTANTIALLY AFFECTED BY THE OUTCOME OF THE
28 PROCEEDING. [IN SUCH CIRCUMSTANCES IN WHICH IT IS] IF A
29 LEGISLATIVE APPOINTEE [MEMBER THAT HAS DISQUALIFIED HIMSELF
30 OR HERSELF] AND HIS ALTERNATE HAVE BOTH DISQUALIFIED
20050S0862B1553 - 64 -
1 THEMSELVES, THE QUALIFIED MAJORITY SHALL CONSIST OF ALL OF
2 THE REMAINING [THREE] LEGISLATIVE APPOINTEES AND AT LEAST TWO
3 GUBERNATORIAL APPOINTEES. FOR PURPOSES OF THIS PARAGRAPH, THE
4 TERM "IMMEDIATE FAMILY" SHALL MEAN SPOUSE, PARENT, BROTHER,
5 SISTER OR CHILD.
6 (4) IF A MEMBER DISCLOSES A DISQUALIFYING INTEREST AND
7 ABSTAINS FROM VOTING ON ANY MATTER, THE PROVISIONS OF
8 SUBSECTION (F.1) SHALL APPLY.
9 (5) IN THE CASE OF A COLLECTIVE VOTE ON ALL INITIAL
10 APPLICATIONS FOR SLOT MACHINE LICENSES UNDER SECTION 1301
11 (RELATING TO AUTHORIZED SLOT MACHINE LICENSES), IF A MEMBER
12 DISQUALIFIES HIMSELF AND ABSTAINS FROM VOTING ON A PARTICULAR
13 LICENSE, A COLLECTIVE VOTE FOR THAT CATEGORY OF LICENSE MAY
14 NOT BE TAKEN AND EACH LICENSE MUST BE VOTED UPON
15 INDIVIDUALLY.
16 (6) PRIOR TO THE COMMENCEMENT OF ANY PROCEEDING UNDER
17 THIS PART, THE BOARD SHALL CONDUCT A CONFLICT REVIEW TO
18 DETERMINE IF A MEMBER HAS A CONFLICT PURSUANT TO PARAGRAPH
19 (3) OR SECTION 1202.1 (RELATING TO CODE OF CONDUCT) THAT
20 REQUIRES DISQUALIFICATION FROM VOTING. THE DETERMINATION
21 SHALL BE IN WRITING AND SHALL BE AVAILABLE TO THE PUBLIC. IF
22 THE BOARD DETERMINES THAT THERE IS A CONFLICT REQUIRING A
23 MEMBER'S DISQUALIFICATION, THAT MEMBER'S ALTERNATE MEMBER
24 SHALL BE ELIGIBLE TO CAST A VOTE. THE ATTORNEY GENERAL OR A
25 PARTY TO THE PROCEEDING MAY APPEAL A DETERMINATION BY THE
26 BOARD THAT DOES NOT REQUIRE DISQUALIFICATION OF A MEMBER.
27 (F.1) ALTERNATE MEMBER.--EACH APPOINTING AUTHORITY UNDER
28 SUBSECTION (B) SHALL APPOINT ONE ALTERNATE MEMBER WHO SHALL VOTE
29 IN ANY PROCEEDING TO APPROVE, ISSUE, DENY OR CONDITION A LICENSE
30 IN WHICH THE MEMBER APPOINTED BY THAT AUTHORITY HAS DISQUALIFIED
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1 HIMSELF AND ABSTAINED FROM VOTING PURSUANT TO SUBSECTION (F)(3)
2 OR SECTION 1202.1. THE FOLLOWING SHALL APPLY TO AN ALTERNATE
3 MEMBER:
4 (1) THE EXECUTIVE BOARD SHALL ESTABLISH A PER DIEM
5 AMOUNT TO BE PAID TO ALTERNATE MEMBERS, TO INCLUDE PAYMENT
6 FOR TIME TO REVIEW ALL MATERIALS NECESSARY TO MAKE A
7 DECISION.
8 (2) ALTERNATE MEMBERS SHALL BE APPOINTED WITHIN 30 DAYS
9 OF THE EFFECTIVE DATE OF THIS SUBSECTION IN ORDER TO ENABLE A
10 BACKGROUND INVESTIGATION TO OCCUR PRIOR TO ANY VOTE TO ISSUE
11 OR DENY A SLOT MACHINE LICENSE, MANUFACTURER LICENSE OR
12 SUPPLIER LICENSE.
13 (3) ALL OTHER REQUIREMENTS AND RESTRICTIONS UNDER THIS
14 TITLE WHICH ARE APPLICABLE TO MEMBERS SHALL APPLY TO
15 ALTERNATE MEMBERS.
16 (G) BACKGROUND INVESTIGATION.--APPOINTEES SHALL BE SUBJECT
17 TO A BACKGROUND INVESTIGATION CONDUCTED BY THE PENNSYLVANIA
18 STATE POLICE IN ACCORDANCE WITH THIS PART.
19 (H) QUALIFICATIONS AND RESTRICTIONS.--
20 (1) EACH MEMBER AT THE TIME OF APPOINTMENT SHALL BE AT
21 LEAST 25 YEARS OF AGE AND SHALL HAVE BEEN A RESIDENT OF THIS
22 COMMONWEALTH FOR A PERIOD OF AT LEAST ONE YEAR IMMEDIATELY
23 PRECEDING APPOINTMENT. EACH MEMBER SHALL CONTINUE TO REMAIN A
24 RESIDENT OF THIS COMMONWEALTH DURING THE TERM OF MEMBERSHIP
25 ON THE BOARD.
26 (2) EXCEPT FOR EX OFFICIO MEMBERS, NO PERSON SHALL BE
27 APPOINTED A MEMBER OF THE BOARD OR [HOLD ANY PLACE, POSITION
28 OR OFFICE UNDER THE BOARD IF THAT PERSON HOLDS ANY OTHER
29 ELECTED OFFICE OR PARTY OFFICE] BE EMPLOYED BY OR BE AN
30 INDEPENDENT CONTRACTOR OF THE BOARD IF THAT PERSON IS A
20050S0862B1553 - 66 -
1 PUBLIC OFFICIAL OR PARTY OFFICER AS DEFINED IN SECTION 1512
2 (RELATING TO [PUBLIC OFFICIAL FINANCIAL INTEREST] FINANCIAL
3 INTERESTS, EMPLOYMENT AND COMPLIMENTARY SERVICES AND
4 DISCOUNTS) IN THIS COMMONWEALTH OR ANY OF ITS POLITICAL
5 SUBDIVISIONS.
6 [(3) NO MEMBER, APPOINTEE, EMPLOYEE OR OFFICIAL SHALL
7 HOLD ANY OFFICE OR EMPLOYMENT POSITION, THE DUTIES OF WHICH
8 ARE INCOMPATIBLE WITH THE DUTIES OF THE OFFICE.
9 (4) NO MEMBER, EMPLOYEE, APPOINTEE OR OFFICIAL ENGAGED
10 IN THE SERVICE OF OR IN ANY MANNER CONNECTED WITH THE BOARD
11 SHALL HOLD ANY OFFICE OR POSITION, OR BE ENGAGED IN ANY
12 EMPLOYMENT OR VOCATION, THE DUTIES OF WHICH ARE INCOMPATIBLE
13 WITH EMPLOYMENT IN THE SERVICE OF OR IN CONNECTION WITH THE
14 WORK OF THE BOARD.]
15 (3) EACH MEMBER, EMPLOYEE AND INDEPENDENT CONTRACTOR OF
16 THE BOARD SHALL SIGN AN AGREEMENT NOT TO DISCLOSE
17 CONFIDENTIAL INFORMATION.
18 (4) NO MEMBER, EMPLOYEE OR INDEPENDENT CONTRACTOR OF THE
19 BOARD OR OTHER AGENCY HAVING REGULATORY AUTHORITY OVER THE
20 BOARD OR OVER FORMS OF GAMING REGULATED BY THIS PART SHALL BE
21 EMPLOYED, HOLD ANY OFFICE OR POSITION OR BE ENGAGED IN ANY
22 ACTIVITY WHICH IS INCOMPATIBLE WITH THE POSITION, EMPLOYMENT
23 OR CONTRACT.
24 (5) NO MEMBER SHALL BE PAID OR [ACCEPT FOR ANY SERVICE
25 CONNECTED WITH THE OFFICE ANY FEE OTHER THAN THE SALARY AND
26 EXPENSES PROVIDED BY LAW.] RECEIVE ANY FEE OR OTHER
27 COMPENSATION OTHER THAN SALARY AND EXPENSES PROVIDED BY LAW
28 FOR ANY ACTIVITY RELATED TO THE DUTIES OR AUTHORITY OF THE
29 BOARD. NOTHING IN THIS PART SHALL PROHIBIT A MEMBER FROM
30 ENGAGING IN ANY EMPLOYMENT [OR VOCATION] OR RECEIVING ANY
20050S0862B1553 - 67 -
1 COMPENSATION FOR SUCH EMPLOYMENT [OR VOCATION] THAT IS NOT
2 [OTHERWISE] CONNECTED TO OR INCOMPATIBLE WITH HIS [OR HER]
3 SERVICE AS A MEMBER OF THE BOARD.
4 (6) NO MEMBER, EMPLOYEE[, APPOINTEE OR OFFICIAL SHALL
5 PARTICIPATE IN ANY HEARING OR PROCEEDING IN WHICH THAT PERSON
6 HAS ANY DIRECT OR INDIRECT PECUNIARY INTEREST.] OR
7 INDEPENDENT CONTRACTOR OF THE BOARD SHALL PARTICIPATE IN A
8 HEARING, PROCEEDING OR OTHER MATTER IN WHICH THE MEMBER,
9 EMPLOYEE OR INDEPENDENT CONTRACTOR, OR THE IMMEDIATE FAMILY
10 THEREOF, HAS A FINANCIAL INTEREST IN THE SUBJECT MATTER OF
11 THE HEARING OR PROCEEDING OR OTHER INTEREST THAT COULD BE
12 SUBSTANTIALLY AFFECTED BY THE OUTCOME OF THE HEARING OR
13 PROCEEDING, WITHOUT FIRST FULLY DISCLOSING THE NATURE OF THE
14 INTEREST TO THE BOARD AND OTHER PERSONS PARTICIPATING IN THE
15 HEARING OR PROCEEDING. THE BOARD SHALL DETERMINE IF THE
16 INTEREST IS A DISQUALIFYING INTEREST THAT REQUIRES THE
17 DISQUALIFICATION OF THE MEMBER OR NONPARTICIPATION OF THE
18 EMPLOYEE. FOR PURPOSES OF THIS PARAGRAPH, THE TERM "IMMEDIATE
19 FAMILY" SHALL MEAN SPOUSE, PARENT, BROTHER, SISTER OR CHILD.
20 (7) AT THE TIME OF APPOINTMENT AND ANNUALLY THEREAFTER,
21 EACH MEMBER SHALL DISCLOSE THE EXISTENCE OF [ALL OWNERSHIP
22 INTERESTS IN LICENSED FACILITIES AND ALL SECURITIES IN ANY
23 LICENSED ENTITY OR APPLICANT, ITS AFFILIATES OR SUBSIDIARIES
24 HELD BY THE MEMBER, THE MEMBER'S SPOUSE AND ANY MINOR OR
25 UNEMANCIPATED CHILDREN AND MUST DIVEST SUCH OWNERSHIP
26 INTERESTS IN LICENSED FACILITIES OR SECURITIES PRIOR TO AN
27 APPOINTMENT BECOMING FINAL. A MEMBER MAY NOT ACQUIRE ANY
28 SECURITY IN ANY LICENSED ENTITY, ITS AFFILIATES OR
29 SUBSIDIARIES DURING THE MEMBER'S TENURE.] ANY FINANCIAL
30 INTEREST IN ANY APPLICANT, LICENSED ENTITY OR LICENSED
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1 FACILITY AND IN AN AFFILIATE, INTERMEDIARY, SUBSIDIARY OR
2 HOLDING COMPANY THEREOF HELD BY THE MEMBER OR KNOWN TO BE
3 HELD BY THE MEMBER'S IMMEDIATE FAMILY. THE DISCLOSURE
4 STATEMENT SHALL BE FILED WITH THE EXECUTIVE DIRECTOR OF THE
5 BOARD AND WITH THE APPOINTING AUTHORITY FOR SUCH MEMBER AND
6 SHALL BE OPEN TO INSPECTION BY THE PUBLIC AT THE OFFICE OF
7 THE BOARD DURING THE NORMAL BUSINESS HOURS OF THE BOARD
8 [DURING THE TENURE OF THE MEMBER] FOR THE DURATION OF THE
9 MEMBER'S TERM AND FOR TWO YEARS AFTER THE MEMBER LEAVES
10 OFFICE. FOR PURPOSES OF THIS PARAGRAPH, THE TERM "IMMEDIATE
11 FAMILY" SHALL MEAN SPOUSE, PARENT, BROTHER, SISTER OR CHILD.
12 (7.1) PRIOR TO BEING SWORN AS A MEMBER, A MEMBER AND HIS
13 IMMEDIATE FAMILY SHALL DIVEST ANY FINANCIAL INTEREST IN ANY
14 APPLICANT, LICENSED FACILITY OR LICENSED ENTITY AND IN AN
15 AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY
16 THEREOF OWNED OR HELD BY THE MEMBER OR KNOWN TO BE HELD BY
17 THE MEMBER'S IMMEDIATE FAMILY. FOR THE DURATION OF THE
18 MEMBER'S TERM, AND FOR ONE YEAR THEREAFTER, THE MEMBER AND
19 HIS IMMEDIATE FAMILY MAY NOT ACQUIRE A FINANCIAL INTEREST IN
20 ANY APPLICANT, LICENSED FACILITY OR LICENSED ENTITY OR IN AN
21 AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY
22 THEREOF. FOR PURPOSES OF THIS PARAGRAPH, THE TERM "IMMEDIATE
23 FAMILY" SHALL MEAN SPOUSE AND ANY MINOR OR UNEMANCIPATED
24 CHILD.
25 (7.2) PRIOR TO ENTERING INTO EMPLOYMENT OR A CONTRACT
26 WITH THE BOARD AND ANNUALLY THEREAFTER, AN EMPLOYEE OR
27 INDEPENDENT CONTRACTOR SHALL DISCLOSE THE EXISTENCE OF ANY
28 FINANCIAL INTEREST IN ANY APPLICANT, LICENSED FACILITY OR
29 LICENSED ENTITY AND IN AN AFFILIATE, INTERMEDIARY, SUBSIDIARY
30 OR HOLDING COMPANY THEREOF OWNED OR HELD BY THE EMPLOYEE OR
20050S0862B1553 - 69 -
1 INDEPENDENT CONTRACTOR OR KNOWN TO BE HELD BY THE IMMEDIATE
2 FAMILY OF THE EMPLOYEE OR INDEPENDENT CONTRACTOR. THE
3 DISCLOSURE STATEMENT SHALL BE FILED WITH THE BOARD AND SHALL
4 BE OPEN TO INSPECTION BY THE PUBLIC AT THE OFFICE OF THE
5 BOARD DURING THE NORMAL BUSINESS HOURS OF THE BOARD AND FOR
6 TWO YEARS AFTER TERMINATION OF EMPLOYMENT OR A CONTRACT WITH
7 THE BOARD. FOR PURPOSES OF THIS PARAGRAPH, THE TERM
8 "IMMEDIATE FAMILY" SHALL MEAN SPOUSE, PARENT, BROTHER, SISTER
9 OR CHILD.
10 (7.3) PRIOR TO ENTERING INTO EMPLOYMENT OR CONTRACTING
11 WITH THE BOARD, AN EMPLOYEE OR INDEPENDENT CONTRACTOR AND HIS
12 IMMEDIATE FAMILY SHALL DIVEST ANY FINANCIAL INTEREST IN ANY
13 APPLICANT, LICENSED FACILITY OR LICENSED ENTITY AND IN AN
14 AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY
15 THEREOF OWNED OR HELD BY THE EMPLOYEE OR INDEPENDENT
16 CONTRACTOR OR KNOWN TO BE HELD BY THE IMMEDIATE FAMILY OF THE
17 EMPLOYEE OR INDEPENDENT CONTRACTOR. FOR THE DURATION OF THE
18 EMPLOYEE'S EMPLOYMENT WITH THE BOARD OR THE INDEPENDENT
19 CONTRACTOR'S CONTRACT WITH THE BOARD, AND FOR ONE YEAR
20 THEREAFTER, THE EMPLOYEE OR INDEPENDENT CONTRACTOR AND THE
21 IMMEDIATE FAMILY THEREOF SHALL NOT ACQUIRE, BY PURCHASE,
22 GIFT, EXCHANGE OR OTHERWISE, ANY FINANCIAL INTEREST IN ANY
23 APPLICANT, LICENSED FACILITY OR LICENSED ENTITY AND IN ANY
24 AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY
25 THEREOF. FOR PURPOSES OF THIS PARAGRAPH, THE TERM "IMMEDIATE
26 FAMILY" SHALL MEAN SPOUSE AND ANY MINOR OR UNEMANCIPATED
27 CHILD.
28 (8) [EVERY MEMBER, EMPLOYEE, APPOINTEE OR OFFICIAL OF
29 THE BOARD, IN THE SERVICE OF OR IN CONNECTION WITH THE WORK
30 OF THE BOARD, IS FORBIDDEN, DIRECTLY OR INDIRECTLY, TO
20050S0862B1553 - 70 -
1 SOLICIT OR REQUEST FROM OR TO SUGGEST OR RECOMMEND TO ANY
2 APPLICANT, LICENSED ENTITY, ITS] NO MEMBER, EMPLOYEE OR
3 INDEPENDENT CONTRACTOR OF THE BOARD MAY DIRECTLY OR
4 INDIRECTLY SOLICIT, REQUEST, SUGGEST OR RECOMMEND TO ANY
5 APPLICANT, LICENSED ENTITY, LICENSED FACILITY, OR AN
6 AFFILIATE, INTERMEDIARY, SUBSIDIARY[,] OR HOLDING COMPANY
7 THEREOF OR TO ANY [OFFICER, ATTORNEY, AGENT OR EMPLOYEE]
8 PRINCIPAL, EMPLOYEE, INDEPENDENT CONTRACTOR OR AGENT THEREOF,
9 THE APPOINTMENT OR EMPLOYMENT OF ANY [INDIVIDUAL TO ANY
10 OFFICE, PLACE OR POSITION IN OR THE EMPLOYMENT OF ANY
11 INDIVIDUAL] PERSON IN ANY CAPACITY BY THE APPLICANT, LICENSED
12 ENTITY, [ITS] LICENSED FACILITY, OR AFFILIATE, INTERMEDIARY,
13 SUBSIDIARY OR HOLDING COMPANY THEREOF FOR A PERIOD OF ONE
14 YEAR FROM THE TERMINATION OF TERM OF OFFICE, EMPLOYMENT OR
15 CONTRACT WITH THE BOARD.
16 [(9) EVERY MEMBER, EXECUTIVE-LEVEL EMPLOYEE, APPOINTEE
17 OR OFFICIAL APPOINTED TO OFFICE IN THE SERVICE OF OR IN
18 CONNECTION WITH THE WORK OF THE BOARD IS PROHIBITED FROM
19 ACCEPTING EMPLOYMENT WITH ANY APPLICANT, LICENSED GAMING
20 ENTITY, ITS AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING
21 COMPANY FOR A PERIOD OF ONE YEAR FROM THE TERMINATION OF
22 EMPLOYMENT OR SERVICE WITH THE BOARD. EVERY MEMBER,
23 EXECUTIVE-LEVEL EMPLOYEE, APPOINTEE OR OFFICIAL APPOINTED TO
24 OFFICE IN THE SERVICE OF OR IN CONNECTION WITH THE WORK OF
25 THE BOARD IS PROHIBITED FROM APPEARING BEFORE THE BOARD ON
26 BEHALF OF ANY APPLICANT, LICENSED GAMING ENTITY, ITS
27 AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY OR
28 OTHER LICENSEE OR PERMITTEE OF THE BOARD FOR A PERIOD OF TWO
29 YEARS AFTER TERMINATING EMPLOYMENT OR SERVICE WITH THE BOARD.
30 (10) IF ANY PERSON EMPLOYED OR APPOINTED IN THE SERVICE
20050S0862B1553 - 71 -
1 OF THE BOARD VIOLATES ANY PROVISION OF THIS SECTION, THE
2 APPOINTING AUTHORITY OR THE BOARD SHALL FORTHWITH REMOVE THE
3 PERSON FROM THE OFFICE OR EMPLOYMENT AND THE PERSON SHALL BE
4 INELIGIBLE FOR FUTURE EMPLOYMENT OR SERVICE WITH THE BOARD
5 AND SHALL BE INELIGIBLE TO BE APPROVED FOR ANY LICENSE OR
6 PERMIT UNDER THIS PART FOR A PERIOD OF TWO YEARS THEREAFTER.]
7 (9) NO MEMBER MAY ACCEPT EMPLOYMENT WITH ANY APPLICANT,
8 LICENSED ENTITY, LICENSED FACILITY OR AN AFFILIATE,
9 INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY THEREOF FOR A
10 PERIOD OF ONE YEAR FROM THE TERMINATION OF TERM OF OFFICE.
11 (10) NO MEMBER MAY APPEAR BEFORE THE BOARD ON BEHALF OF
12 ANY APPLICANT, LICENSED ENTITY, LICENSED FACILITY OR AN
13 AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY
14 THEREOF OR ANY OTHER LICENSEE OR PERMITTEE FOR A PERIOD OF
15 TWO YEARS FROM THE TERMINATION OF TERM OF OFFICE.
16 (11) NO MEMBER [OR], EMPLOYEE OR INDEPENDENT CONTRACTOR
17 OF THE BOARD SHALL WAGER OR BE PAID ANY PRIZE FROM ANY WAGER
18 AT ANY LICENSED FACILITY WITHIN THIS COMMONWEALTH OR AT ANY
19 OTHER FACILITY OUTSIDE THIS COMMONWEALTH WHICH IS OWNED OR
20 OPERATED BY A LICENSED GAMING ENTITY OR ANY OF ITS
21 [AFFILIATES OR SUBSIDIARIES.] AFFILIATES, INTERMEDIARIES,
22 SUBSIDIARIES OR HOLDING COMPANIES THEREOF FOR THE DURATION OF
23 THEIR TERM OF OFFICE, EMPLOYMENT OR CONTRACT WITH THE BOARD,
24 AND FOR A PERIOD OF ONE YEAR FROM THE TERMINATION OF TERM OF
25 OFFICE, EMPLOYMENT OR CONTRACT WITH THE BOARD. THE PROVISIONS
26 OF THIS PARAGRAPH SHALL APPLY TO AN EMPLOYEE OF THE EXECUTIVE
27 BRANCH OF THE COMMONWEALTH WHOSE DUTIES SUBSTANTIALLY INVOLVE
28 THE DEVELOPMENT OR ADOPTION OF REGULATIONS OR POLICY,
29 LICENSING OR ENFORCEMENT, UNDER THIS PART. THE PROVISIONS OF
30 THIS PARAGRAPH SHALL NOT APPLY TO EMPLOYEES WHO UTILIZE SLOT
20050S0862B1553 - 72 -
1 MACHINES FOR TESTING PURPOSES OR TO VERIFY THE PERFORMANCE OF
2 A MACHINE AS PART OF AN ENFORCEMENT INVESTIGATION.
3 (12) A MEMBER [OF THE BOARD] WHO HAS BEEN CONVICTED
4 DURING HIS TERM IN ANY DOMESTIC OR FOREIGN JURISDICTION OF A
5 FELONY, INFAMOUS CRIME [OF MORAL TURPITUDE] OR GAMBLING
6 OFFENSE SHALL, UPON CONVICTION, BE AUTOMATICALLY REMOVED FROM
7 THE BOARD AND SHALL BE INELIGIBLE TO BECOME A [BOARD] MEMBER
8 IN THE FUTURE. IF AN EX OFFICIO MEMBER IS CONVICTED DURING
9 HIS TERM IN ANY DOMESTIC OR FOREIGN JURISDICTION OF A FELONY,
10 INFAMOUS CRIME OR GAMBLING OFFENSE, THE EX OFFICIO MEMBER
11 SHALL, UPON CONVICTION, BE AUTOMATICALLY REMOVED FROM THE
12 BOARD, AND A DESIGNEE SHALL BE DESIGNATED PURSUANT TO
13 SUBSECTION (E) TO SERVE THE REMAINDER OF THE EX OFFICIO
14 MEMBER'S TERM.
15 (13) NO EMPLOYEE OR INDIVIDUAL EMPLOYED BY AN
16 INDEPENDENT CONTRACTOR OF THE BOARD OR OTHER EMPLOYEE OF THE
17 EXECUTIVE BRANCH OF THE COMMONWEALTH OR OF A POLITICAL
18 SUBDIVISION WHOSE DUTIES SUBSTANTIALLY INVOLVE THE
19 DEVELOPMENT OR ADOPTION OF REGULATIONS OR POLICY, LICENSING
20 OR ENFORCEMENT, UNDER THIS PART, SHALL:
21 (I) ACCEPT EMPLOYMENT WITH AN APPLICANT, LICENSED
22 ENTITY, LICENSED FACILITY OR AN AFFILIATE, INTERMEDIARY,
23 SUBSIDIARY OR HOLDING COMPANY THEREOF FOR A PERIOD OF ONE
24 YEAR AFTER THE TERMINATION OF THE EMPLOYMENT OR CONTRACT
25 WITH THE BOARD; OR
26 (II) APPEAR BEFORE THE BOARD IN ANY HEARING OR
27 PROCEEDING OR PARTICIPATE IN ANY OTHER ACTIVITY ON BEHALF
28 OF ANY APPLICANT, LICENSEE, PERMITTEE, LICENSED ENTITY,
29 LICENSED FACILITY OR AN AFFILIATE, INTERMEDIARY,
30 SUBSIDIARY OR HOLDING COMPANY THEREOF FOR A PERIOD OF TWO
20050S0862B1553 - 73 -
1 YEARS AFTER TERMINATION OF THE EMPLOYMENT OR CONTRACT
2 WITH THE BOARD.
3 (14) UPON THE WRITTEN REQUEST OF AN EMPLOYEE OF THE
4 EXECUTIVE BRANCH OF THE COMMONWEALTH OR A POLITICAL
5 SUBDIVISION OR OF THE AGENCY OR POLITICAL SUBDIVISION
6 EMPLOYING AN EMPLOYEE, THE STATE ETHICS COMMISSION SHALL
7 DETERMINE WHETHER THE INDIVIDUAL'S DUTIES SUBSTANTIALLY
8 INVOLVE THE DEVELOPMENT OR ADOPTION OF REGULATIONS OR POLICY,
9 LICENSING OR ENFORCEMENT, UNDER THIS PART, AND SHALL PROVIDE
10 A WRITTEN DETERMINATION TO THE EMPLOYEE TO INCLUDE ANY
11 PROHIBITION UNDER THIS PARAGRAPH. AN INDIVIDUAL WHO RELIES IN
12 GOOD FAITH ON A DETERMINATION UNDER THIS PARAGRAPH SHALL NOT
13 BE SUBJECT TO ANY PENALTY FOR AN ACTION TAKEN, PROVIDED THAT
14 ALL MATERIAL FACTS SET FORTH IN THE REQUEST FOR A
15 DETERMINATION ARE CORRECT.
16 (15) IF A MEMBER, EMPLOYEE OR INDEPENDENT CONTRACTOR OF
17 THE BOARD VIOLATES ANY PROVISION OF THIS SECTION, THE
18 APPOINTING AUTHORITY OR THE BOARD MAY, UPON NOTICE AND
19 HEARING, REMOVE THE PERSON FROM THE BOARD, WITHDRAW THE
20 APPOINTMENT OR TERMINATE THE EMPLOYMENT OR CONTRACT AND THE
21 PERSON SHALL BE INELIGIBLE FOR FUTURE APPOINTMENT, EMPLOYMENT
22 OR CONTRACT WITH THE BOARD AND FOR APPROVAL OF A LICENSE OR
23 PERMIT UNDER THIS PART FOR A PERIOD OF TWO YEARS THEREAFTER.
24 (H.1) FIDUCIARY RELATIONSHIP.--A MEMBER OR EMPLOYEE OF THE
25 BOARD SHALL SERVE AS A FIDUCIARY OF THE COMMONWEALTH.
26 (H.2) STANDARD OF CARE.--MEMBERS SHALL EXERCISE THE STANDARD
27 OF CARE REQUIRED BY 20 PA.C.S. CH. 73 (RELATING TO
28 MUNICIPALITIES INVESTMENTS) IN THE PERFORMANCE OF THEIR DUTIES
29 UNDER THIS PART.
30 (H.3) LIABILITY.--MEMBERS SHALL NOT BE PERSONALLY LIABLE FOR
20050S0862B1553 - 74 -
1 ANY OF THE FOLLOWING:
2 (1) OBLIGATIONS OF THE BOARD.
3 (2) ACTIONS WHICH WERE WITHIN THE SCOPE OF THEIR OFFICE
4 AND MADE IN GOOD FAITH.
5 (I) COMPENSATION.--
6 (1) THE EXECUTIVE BOARD AS ESTABLISHED IN THE ACT OF
7 APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE
8 CODE OF 1929, SHALL ESTABLISH THE COMPENSATION OF THE MEMBERS
9 [APPOINTED PURSUANT TO THIS SECTION].
10 (2) MEMBERS SHALL BE REIMBURSED FOR ALL NECESSARY AND
11 ACTUAL EXPENSES.
12 (3) MEMBERS SHALL BE ELIGIBLE FOR RETIREMENT UNDER THE
13 STATE EMPLOYEES' RETIREMENT CODE AND SHALL, IF THE MEMBER
14 ELECTS TO PARTICIPATE, BE CONSIDERED A STATE EMPLOYEE FOR THE
15 PURPOSES OF 71 PA.C.S. PT. XXV (RELATING TO RETIREMENT FOR
16 STATE EMPLOYEES AND OFFICERS).
17 (J) CHAIRMAN.--THE CHAIRMAN OF THE BOARD SHALL BE SELECTED
18 BY THE GOVERNOR.
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 [(L) DISCLOSURE STATEMENTS.--MEMBERS AND EMPLOYEES OF THE
29 BOARD ARE SUBJECT TO THE PROVISIONS OF 65 PA.C.S. CH. 11
30 (RELATING TO ETHICS STANDARDS AND FINANCIAL DISCLOSURE) AND THE
20050S0862B1553 - 75 -
1 ACT OF JULY 19, 1957 (P.L.1017, NO.451), KNOWN AS THE STATE
2 ADVERSE INTEREST ACT.]
3 (L) PROHIBITION AGAINST NEPOTISM.--NO MEMBER MAY DIRECTLY OR
4 INDIRECTLY SOLICIT, REQUEST, SUGGEST OR RECOMMEND THE EMPLOYMENT
5 BY THE BOARD OF ANY INDIVIDUAL RELATED WITHIN THE THIRD DEGREE
6 OF CONSANGUINITY, AFFINITY OR ADOPTION TO THE MEMBER.
7 (M) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
8 WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
9 SUBSECTION:
10 "FINANCIAL INTEREST." AN OWNERSHIP, PROPERTY, LEASEHOLD OR
11 OTHER BENEFICIAL INTEREST IN AN ENTITY. THE TERM SHALL NOT
12 INCLUDE AN INTEREST WHICH IS HELD OR DEEMED TO BE HELD IN ANY OF
13 THE FOLLOWING:
14 (1) A BLIND TRUST OVER WHICH THE INDIVIDUAL OR AN
15 IMMEDIATE FAMILY MEMBER DOES NOT EXERCISE MANAGERIAL OR
16 INVESTMENT CONTROL OR RECEIVE INCOME THEREFROM.
17 (2) SECURITIES THAT ARE HELD IN A PENSION PLAN, PROFIT-
18 SHARING PLAN, INDIVIDUAL RETIREMENT ACCOUNT, TAX SHELTERED
19 ANNUITY, A PLAN ESTABLISHED PURSUANT TO SECTION 457 OF THE
20 INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. §
21 1 ET SEQ.), OR ANY SUCCESSOR PROVISION, DEFERRED COMPENSATION
22 PLAN WHETHER QUALIFIED OR NOT QUALIFIED UNDER THE INTERNAL
23 REVENUE CODE OF 1986, OR ANY SUCCESSOR PROVISION, OR OTHER
24 RETIREMENT PLAN THAT:
25 (I) IS NOT SELF-DIRECTED BY THE INDIVIDUAL; AND
26 (II) IS ADVISED BY AN INDEPENDENT INVESTMENT ADVISER
27 WHO HAS SOLE AUTHORITY TO MAKE INVESTMENT DECISIONS WITH
28 RESPECT TO CONTRIBUTIONS MADE BY THE INDIVIDUAL TO THESE
29 PLANS.
30 (3) A TUITION ACCOUNT PLAN ORGANIZED AND OPERATED
20050S0862B1553 - 76 -
1 PURSUANT TO SECTION 529 OF THE INTERNAL REVENUE CODE OF 1986
2 (PUBLIC LAW 99-514, 26 U.S.C. § 529) THAT IS NOT SELF-
3 DIRECTED BY THE INDIVIDUAL.
4 (4) A MUTUAL FUND WHERE THE INTEREST OWNED BY THE MUTUAL
5 FUND IN A LICENSED ENTITY DOES NOT CONSTITUTE A CONTROLLING
6 INTEREST AS DEFINED IN THIS PART.
7 (5) ANY OTHER INVESTMENT OVER WHICH THE INDIVIDUAL DOES
8 NOT EXERCISE MANAGERIAL OR INVESTMENT CONTROL.
9 "OWNERSHIP INTEREST." OWNING OR HOLDING OR BEING DEEMED TO
10 HOLD, DEBT OR EQUITY SECURITIES OR OTHER OWNERSHIP INTEREST OR
11 PROFIT INTEREST.
12 SECTION 3. TITLE 4 IS AMENDED BY ADDING A SECTION TO READ:
13 § 1201.1. APPLICABILITY OF OTHER STATUTES.
14 (A) GENERAL RULE.--THE FOLLOWING ACTS SHALL APPLY TO THE
15 BOARD:
16 (1) THE ACT OF JUNE 21, 1957 (P.L.390, NO.212), REFERRED
17 TO AS THE RIGHT-TO-KNOW LAW.
18 (2) THE ACT OF JULY 19, 1957 (P.L.1017, NO.451), KNOWN
19 AS THE STATE ADVERSE INTEREST ACT.
20 (3) THE PROVISIONS OF 65 PA.C.S. CHS. 7 (RELATING TO
21 OPEN MEETINGS) AND 11 (RELATING TO ETHICS STANDARDS AND
22 FINANCIAL DISCLOSURE).
23 (B) STATUS OF BOARD.--
24 (1) THE BOARD SHALL BE CONSIDERED AN INDEPENDENT AGENCY
25 FOR THE PURPOSES OF THE FOLLOWING:
26 (I) 62 PA.C.S. PT. I (RELATING TO COMMONWEALTH
27 PROCUREMENT CODE). THE EXPEDITING OF THE REMITTANCE OF
28 REVENUE FROM LICENSED FACILITIES TO THE COMMONWEALTH
29 SHALL NOT BE GROUNDS FOR AN EMERGENCY PROCUREMENT BY THE
30 BOARD.
20050S0862B1553 - 77 -
1 (II) THE ACT OF OCTOBER 15, 1980 (P.L.950, NO.164),
2 KNOWN AS THE COMMONWEALTH ATTORNEYS ACT.
3 (2) THE BOARD SHALL BE CONSIDERED AN AGENCY FOR THE
4 PURPOSES OF THE FOLLOWING:
5 (I) THE ACT OF JULY 31, 1968 (P.L.769, NO.240),
6 REFERRED TO AS THE COMMONWEALTH DOCUMENTS LAW.
7 (II) THE ACT OF JUNE 25, 1982 (P.L.633, NO.181),
8 KNOWN AS THE REGULATORY REVIEW ACT.
9 SECTION 4. SECTION 1202 OF TITLE 4 IS AMENDED TO READ:
10 § 1202. GENERAL AND SPECIFIC POWERS.
11 (A) GENERAL POWERS.--
12 (1) THE BOARD SHALL HAVE GENERAL [JURISDICTION]
13 REGULATORY AUTHORITY OVER ALL GAMING ACTIVITIES OR RELATED
14 ACTIVITIES AS DESCRIBED IN THIS PART. THE BOARD SHALL [BE
15 RESPONSIBLE TO] ENSURE THE INTEGRITY OF THE ACQUISITION AND
16 OPERATION OF SLOT MACHINES AND ASSOCIATED EQUIPMENT AND SHALL
17 HAVE [JURISDICTION] REGULATORY AUTHORITY OVER EVERY ASPECT OF
18 THE AUTHORIZATION AND OPERATION OF SLOT MACHINES.
19 (2) THE BOARD SHALL EMPLOY [AN EXECUTIVE DIRECTOR, CHIEF
20 COUNSEL, DEPUTIES, SECRETARIES, OFFICERS, HEARING OFFICERS
21 AND AGENTS AS IT MAY DEEM NECESSARY] INDIVIDUALS AS NECESSARY
22 TO CARRY OUT THE POWERS AND DUTIES OF THE BOARD, WHO SHALL
23 SERVE AT THE BOARD'S PLEASURE. [THE BOARD SHALL ALSO EMPLOY
24 OTHER EMPLOYEES AS IT DEEMS APPROPRIATE WHOSE DUTIES SHALL BE
25 DETERMINED BY THE BOARD. IN ORDER TO ENSURE THE ABILITY OF
26 THE BOARD TO RECRUIT AND RETAIN INDIVIDUALS NECESSARY TO
27 EXECUTE ITS RESPONSIBILITIES UNDER THIS PART, THE BOARD SHALL
28 SET THE] AN EMPLOYEE OF THE BOARD SHALL BE CONSIDERED A STATE
29 EMPLOYEE FOR PURPOSES OF 71 PA.C.S. PT. XXV (RELATING TO
30 RETIREMENT FOR STATE EMPLOYEES AND OFFICERS). FOR THE
20050S0862B1553 - 78 -
1 PURPOSES OF THIS PARAGRAPH, THE BOARD SHALL NOT BE CONSIDERED
2 AN EXECUTIVE OR INDEPENDENT AGENCY UNDER THE ACT OF OCTOBER
3 15, 1980 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH
4 ATTORNEYS ACT.
5 (3) IN ADDITION TO EMPLOYEES AUTHORIZED BY THE BOARD,
6 EACH MEMBER MAY EMPLOY TWO SPECIAL ASSISTANTS WHOSE
7 CLASSIFICATION AND COMPENSATION SHALL BE ESTABLISHED BY THE
8 BOARD. A SPECIAL ASSISTANT SHALL BE A STATE EMPLOYEE FOR
9 PURPOSES OF 71 PA.C.S. PT. XXV, SHALL SERVE AT THE PLEASURE
10 OF THE MEMBER AND MAY ONLY BE REMOVED BY THE BOARD FOR CAUSE.
11 (4) THE BOARD SHALL ESTABLISH A SYSTEM OF CLASSIFICATION
12 AND COMPENSATION OF ITS EMPLOYEES AND SHALL NOT BE SUBJECT TO
13 THE PROVISIONS OF THE ACT OF APRIL 9, 1929 (P.L.177, NO.175),
14 KNOWN AS THE ADMINISTRATIVE CODE OF 1929, AS TO
15 CLASSIFICATION AND COMPENSATION FOR ITS EMPLOYEES AND CONDUCT
16 ITS ACTIVITIES CONSISTENT WITH THE PRACTICES AND PROCEDURES
17 OF COMMONWEALTH AGENCIES. [FOR THE PURPOSES OF THE ACT OF
18 OCTOBER 15, 1980 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH
19 ATTORNEYS ACT, THE BOARD SHALL NOT BE CONSIDERED AN EXECUTIVE
20 OR INDEPENDENT AGENCY. THE BOARD SHALL HAVE SUCH OTHER POWERS
21 AND AUTHORITY NECESSARY TO CARRY OUT ITS DUTIES AND THE
22 OBJECTIVES OF THIS PART.]
23 (5) WITHIN 90 DAYS OF THE EFFECTIVE DATE OF THIS
24 PARAGRAPH, THE BOARD SHALL PUBLISH IN THE PENNSYLVANIA
25 BULLETIN, AND ON ITS INTERNET WEBSITE, THE CLASSIFICATION
26 SYSTEM FOR ALL EMPLOYEES OF THE BOARD.
27 (B) SPECIFIC POWERS.--THE BOARD SHALL HAVE THE SPECIFIC
28 POWER AND DUTY:
29 (1) TO ADOPT, USE AND ALTER A CORPORATE SEAL.
30 (2) TO PAY OR SATISFY OBLIGATIONS OF THE BOARD.
20050S0862B1553 - 79 -
1 (3) TO SUE OR BE SUED, IMPLEAD AND BE IMPLEADED, OR
2 INTERPLEAD.
3 (4) TO CONTRACT AND EXECUTE INSTRUMENTS AS NECESSARY TO
4 CARRY OUT THE POWERS AND DUTIES OF THE BOARD. CONTRACTS FOR
5 THE PURCHASE OF SUPPLIES, SERVICES AND CONSTRUCTION SHALL BE
6 FOR A TERM NOT TO EXCEED TWO YEARS.
7 (5) TO SELL, TRANSFER, CONVEY AND DISPOSE OF TANGIBLE OR
8 INTANGIBLE PROPERTY OWNED BY THE BOARD.
9 (6) TO ESTABLISH, CHARGE AND COLLECT FEES AND FINES AS
10 AUTHORIZED BY THIS PART.
11 (7) TO ADMINISTER OATHS, EXAMINE WITNESSES AND ISSUE
12 SUBPOENAS COMPELLING THE ATTENDANCE OF WITNESSES OR THE
13 PRODUCTION OF DOCUMENTS AND RECORDS OR OTHER EVIDENCE.
14 (8) TO PURCHASE INSURANCE AGAINST A LOSS RELATED TO THE
15 BOARD'S PROPERTY OR ASSETS.
16 (8.1) RETAIN ATTORNEYS, ACCOUNTANTS, AUDITORS AND
17 FINANCIAL EXPERTS, TO RENDER SERVICES AND ENGAGE THE SERVICES
18 OF OTHER ADVISORS, CONSULTANTS AND AGENTS AS NECESSARY. FOR
19 THE PURPOSES OF THIS PARAGRAPH, THE BOARD SHALL BE CONSIDERED
20 AN INDEPENDENT AGENCY FOR PURPOSES OF THE COMMONWEALTH
21 ATTORNEYS ACT.
22 (9) TO REQUIRE BACKGROUND INVESTIGATIONS ON [PROSPECTIVE
23 OR EXISTING] APPLICANTS, LICENSEES, PRINCIPALS, KEY
24 EMPLOYEES, PERMITTEES [OR PERSONS HOLDING A CONTROLLING
25 INTEREST IN ANY PROSPECTIVE OR EXISTING LICENSEE OR
26 PERMITTEE] OR REGISTRANTS UNDER THE JURISDICTION OF THE
27 BOARD.
28 [(2)] (10) TO ENTER INTO AN AGREEMENT WITH THE
29 PENNSYLVANIA STATE POLICE FOR THE REIMBURSEMENT OF ACTUAL
30 COSTS AS APPROVED BY THE BOARD TO THE PENNSYLVANIA STATE
20050S0862B1553 - 80 -
1 POLICE FOR THE INVESTIGATIONS. INVESTIGATIONS SHALL INCLUDE
2 INFORMATION IN THE POSSESSION OF THE ATTORNEY GENERAL.
3 [3] (11) FOR PURPOSES OF ENFORCEMENT AND FOR PURPOSES OF
4 THE BACKGROUND INVESTIGATION, [THE BOARD MAY] TO RECEIVE
5 INFORMATION OTHERWISE PROTECTED BY 18 PA.C.S. CH. 91
6 (RELATING TO CRIMINAL HISTORY RECORD INFORMATION).
7 [(4)] (12) AT ITS DISCRETION, TO ISSUE, APPROVE, RENEW,
8 REVOKE, SUSPEND, CONDITION OR DENY ISSUANCE OR RENEWAL OF
9 SLOT MACHINE LICENSES.
10 [(5)] (13) AT ITS DISCRETION, TO ISSUE, APPROVE, RENEW,
11 REVOKE, SUSPEND, CONDITION OR DENY ISSUANCE OR RENEWAL OF
12 SUPPLIER AND MANUFACTURER LICENSES.
13 [(6)] (14) AT ITS DISCRETION, TO ISSUE, APPROVE, RENEW,
14 REVOKE, SUSPEND, CONDITION OR DENY ISSUANCE OR RENEWAL OF
15 [OCCUPATION PERMITS] A LICENSE, PERMIT OR REGISTRATION FOR
16 VARIOUS CLASSES OF EMPLOYEES AS REQUIRED UNDER THIS PART.
17 [(7)] (15) AT ITS DISCRETION, TO ISSUE, APPROVE, RENEW,
18 REVOKE, SUSPEND, CONDITION OR DENY ISSUANCE OR RENEWAL OF ANY
19 ADDITIONAL LICENSES [OR PERMITS], PERMITS OR REGISTRATIONS
20 WHICH MAY BE REQUIRED BY THE BOARD UNDER THIS PART. [OR BY
21 REGULATION, INCLUDING, BUT NOT LIMITED TO, VIOLATIONS OF
22 SECTIONS 1328 (RELATING TO CHANGE IN OWNERSHIP OR CONTROL OF
23 SLOT MACHINE LICENSEE) AND 1330 (RELATING TO MULTIPLE SLOT
24 MACHINE LICENSE PROHIBITION).]
25 [(8)] (16) AT ITS DISCRETION, TO SUSPEND, CONDITION OR
26 DENY THE ISSUANCE OR RENEWAL OF ANY LICENSE OR PERMIT OR LEVY
27 FINES OR OTHER SANCTIONS FOR ANY VIOLATION OF THIS PART.
28 [(9)] (17) TO REQUIRE PROSPECTIVE AND EXISTING
29 EMPLOYEES, INDEPENDENT CONTRACTORS, APPLICANTS [FOR LICENSES
30 AND PERMITS], LICENSEES, PERMITTEES AND REGISTRANTS TO SUBMIT
20050S0862B1553 - 81 -
1 TO FINGERPRINTING BY THE PENNSYLVANIA STATE POLICE. THE
2 PENNSYLVANIA STATE POLICE SHALL SUBMIT THE FINGERPRINTS TO
3 THE FEDERAL BUREAU OF INVESTIGATION FOR PURPOSES OF VERIFYING
4 THE IDENTITY OF THE [APPLICANTS] INDIVIDUAL AND OBTAINING
5 RECORDS OF CRIMINAL ARRESTS AND CONVICTIONS.
6 [10] (18) TO REQUIRE PROSPECTIVE AND EXISTING EMPLOYEES,
7 APPLICANTS, LICENSEES, PERMITTEES AND REGISTRANTS TO SUBMIT
8 PHOTOGRAPHS CONSISTENT WITH THE STANDARDS OF THE COMMONWEALTH
9 PHOTO IMAGING NETWORK.
10 (19) TO LEVY FINES OR OTHER SANCTIONS AGAINST AN
11 APPLICANT, LICENSED ENTITY OR OTHER LICENSEE, PERMITTEE,
12 REGISTRANT OR EMPLOYEE OF THE BOARD WHO POSSESSES, USES,
13 SELLS OR OFFERS FOR SALE ANY DEVICE, EQUIPMENT OR MATERIAL
14 SUBJECT TO THIS PART IN A MANNER WHICH CONSTITUTES A
15 VIOLATION OF THIS PART.
16 (20) IN ADDITION TO THE POWER OF THE BOARD REGARDING
17 LICENSE [AND], PERMIT AND REGISTRATION APPLICANTS, TO
18 DETERMINE AT ITS DISCRETION THE SUITABILITY OF ANY PERSON WHO
19 FURNISHES OR SEEKS TO FURNISH TO A SLOT MACHINE LICENSEE
20 DIRECTLY OR INDIRECTLY ANY SERVICES OR PROPERTY RELATED TO
21 SLOT MACHINES OR ASSOCIATED EQUIPMENT OR THROUGH ANY
22 ARRANGEMENTS UNDER WHICH THAT PERSON RECEIVES PAYMENT BASED
23 DIRECTLY OR INDIRECTLY ON EARNINGS, PROFITS OR RECEIPTS FROM
24 THE SLOT MACHINES AND ASSOCIATED EQUIPMENT. THE BOARD MAY
25 REQUIRE ANY SUCH PERSON TO COMPLY WITH THE REQUIREMENTS OF
26 THIS PART AND THE REGULATIONS OF THE BOARD AND MAY PROHIBIT
27 THE PERSON FROM FURNISHING THE SERVICES OR PROPERTY.
28 [(11) AS A BOARD AND THROUGH ITS DESIGNATED OFFICERS,
29 EMPLOYEES OR AGENTS, TO ADMINISTER OATHS, EXAMINE WITNESSES
30 AND ISSUE SUBPOENAS TO COMPEL ATTENDANCE OF WITNESSES AND
20050S0862B1553 - 82 -
1 PRODUCTION OF ALL RELEVANT AND MATERIAL REPORTS, BOOKS,
2 PAPERS, DOCUMENTS AND OTHER EVIDENCE.
3 (12)] (21) WITHIN SIX MONTHS AFTER THE EFFECTIVE DATE OF
4 THIS PART, IN A MANNER THAT DOES NOT IMPEDE THE IMMEDIATE
5 IMPLEMENTATION OF THE DUTIES AND RESPONSIBILITIES OF THE
6 BOARD UNDER THIS PART DURING THE IMMEDIATE TWO YEARS AFTER
7 THE EFFECTIVE DATE OF THIS PART, TO DEVELOP AND IMPLEMENT AN
8 AFFIRMATIVE ACTION PLAN TO ASSURE THAT ALL PERSONS ARE
9 ACCORDED EQUALITY OF OPPORTUNITY IN EMPLOYMENT AND
10 CONTRACTING BY THE BOARD, ITS CONTRACTORS, SUBCONTRACTORS,
11 ASSIGNEES, LESSEES, AGENTS, VENDORS AND SUPPLIERS.
12 [(13)] (22) EXCEPT FOR CONTRACTS RELATED TO THE CENTRAL
13 CONTROL COMPUTER [AND SUCH OTHER CONTRACTS AS THE BOARD, IN
14 CONSULTATION WITH THE SECRETARY OF GENERAL SERVICES,
15 DETERMINES WOULD RESULT IN SUBSTANTIAL SAVINGS TO THE BOARD
16 IF ENTERED INTO FOR A LONGER PERIOD THAN PROVIDED IN THIS
17 PARAGRAPH], ALL CONTRACTS ENTERED INTO BY THE BOARD DURING
18 THE TWO-YEAR PERIOD FOLLOWING THE EFFECTIVE DATE OF THIS PART
19 SHALL NOT EXCEED A TERM OF TWO YEARS.
20 [(14) TO PROMULGATE RULES AND REGULATIONS THE BOARD
21 DEEMS NECESSARY TO CARRY OUT THE POLICY AND PURPOSES OF THIS
22 PART AND TO ENHANCE THE CREDIBILITY AND THE INTEGRITY OF THE
23 LICENSED OPERATION OF SLOT MACHINES AND ASSOCIATED EQUIPMENT
24 IN THIS COMMONWEALTH.
25 (15)] (23) THE BOARD SHALL NOT ISSUE OR RENEW A LICENSE
26 [OR PERMIT], PERMIT, REGISTRATION OR OTHER AUTHORIZATION
27 UNLESS IT IS SATISFIED THAT THE APPLICANT IS A PERSON OF GOOD
28 CHARACTER, HONESTY AND INTEGRITY AND IS A PERSON WHOSE PRIOR
29 ACTIVITIES, CRIMINAL RECORD, IF ANY, REPUTATION, HABITS AND
30 ASSOCIATIONS DO NOT POSE A THREAT TO THE PUBLIC INTEREST OR
20050S0862B1553 - 83 -
1 THE EFFECTIVE REGULATION AND CONTROL OF SLOT MACHINE
2 OPERATIONS OR CREATE OR ENHANCE THE DANGER OF UNSUITABLE,
3 UNFAIR OR ILLEGAL PRACTICES, METHODS AND ACTIVITIES IN THE
4 CONDUCT OF SLOT MACHINE OPERATIONS OR THE CARRYING ON OF THE
5 BUSINESS AND FINANCIAL ARRANGEMENTS INCIDENTAL THERETO.
6 [(16)] (24) NOTWITHSTANDING ANY OTHER PROVISION OF LAW,
7 [THE BOARD IS AUTHORIZED] TO SELL, IN WHOLE OR IN PART, THE
8 COMMONWEALTH'S RIGHT, TITLE AND INTEREST IN STATE GAMING
9 RECEIPTS TO [AN] THE AUTHORITY [CREATED BY THE COMMONWEALTH].
10 THE SALE SHALL BE SUBJECT TO THE TERMS AND CONDITIONS
11 CONTAINED IN AGREEMENTS BETWEEN THE BOARD AND THE AUTHORITY.
12 PROCEEDS FROM THE SALE OF STATE GAMING RECEIPTS SHALL BE
13 ALLOCATED AND USED IN THE MANNER OTHERWISE PROVIDED BY THIS
14 PART FOR THE DISTRIBUTION OF STATE GAMING RECEIPTS. THE
15 AUTHORITY [CREATED BY THE COMMONWEALTH] IS AUTHORIZED TO
16 PURCHASE STATE GAMING RECEIPTS UPON TERMS AND CONDITIONS
17 AGREED TO BY THE BOARD AND TO ISSUE BONDS TO FUND THE
18 PURCHASE OF STATE GAMING RECEIPTS IN THE MANNER PROVIDED FOR
19 THE ISSUANCE OF AUTHORITY INDEBTEDNESS IN THE LAW
20 ESTABLISHING THE AUTHORITY. THE STATE TREASURER IS AUTHORIZED
21 AND DIRECTED TO ENTER INTO ANY AGREEMENTS WITH THE BOARD AND
22 THE AUTHORITY AND ESTABLISH ACCOUNTS AND FUNDS, THAT SHALL
23 NOT BE IN THE STATE TREASURY, AS THE AUTHORITY MAY DIRECT AS
24 BEING NECESSARY OR APPROPRIATE TO EFFECT THE SALE OF STATE
25 GAMING RECEIPTS TO THE AUTHORITY AND THE COLLECTION AND
26 TRANSFER OF THE STATE GAMING RECEIPTS SOLD TO THE AUTHORITY.
27 STATE GAMING RECEIPTS SOLD TO THE AUTHORITY SHALL BE THE
28 PROPERTY OF THE AUTHORITY AND SHALL NOT BE THE PROPERTY OF
29 THE COMMONWEALTH.
30 [(17)] (25) TO [CREATE A BUREAU OF INVESTIGATIONS AND
20050S0862B1553 - 84 -
1 ENFORCEMENT WITHIN THE BOARD. THE BOARD SHALL] PROMULGATE
2 REGULATIONS PERTAINING TO THE OPERATION OF THE BUREAU [WHICH
3 SHALL] TO INSURE SEPARATION OF FUNCTIONS BETWEEN THE BUREAU
4 AND THE BOARD. THE BOARD SHALL PROVIDE THE EMPLOYEES
5 NECESSARY TO THE BUREAU FOR ENFORCEMENT OF THIS PART.
6 [(18)] (26) TO ENTER INTO AN AGREEMENT WITH THE DISTRICT
7 ATTORNEYS OF THE COUNTIES WHEREIN LICENSED FACILITIES ARE
8 LOCATED AND THE OFFICE OF ATTORNEY GENERAL FOR THE
9 REIMBURSEMENT OF ACTUAL COSTS FOR PROSECUTIONS OF CRIMINAL
10 VIOLATIONS [OF THIS PART.] AND FOR INVESTIGATING A PERSON
11 APPLYING FOR A DETERMINATION THAT AN INDIVIDUAL HAS BEEN
12 REHABILITATED UNDER THIS PART.
13 (27) TO PUBLISH EACH JANUARY IN THE PENNSYLVANIA
14 BULLETIN AND ON THE BOARD'S INTERNET WEBSITE A COMPLETE LIST
15 OF ALL PERSONS OR ENTITIES WHO APPLIED FOR OR HELD A SLOT
16 MACHINE LICENSE, MANUFACTURER LICENSE, SUPPLIER LICENSE OR
17 RACETRACK LICENSE AT ANY TIME DURING THE PRECEDING CALENDAR
18 YEAR AND ALL AFFILIATES, INTERMEDIARIES, SUBSIDIARIES AND
19 HOLDING COMPANIES THEREOF AND THE STATUS OF THE APPLICATION
20 OR LICENSE.
21 (28) TO PREPARE AND, THROUGH THE GOVERNOR, SUBMIT
22 ANNUALLY TO THE GENERAL ASSEMBLY AN ITEMIZED BUDGET
23 CONSISTING OF THE AMOUNTS NECESSARY TO BE APPROPRIATED BY THE
24 COMMONWEALTH OUT OF THE FUND REQUIRED TO MEET THE OBLIGATIONS
25 ACCRUING DURING THE FISCAL PERIOD BEGINNING JULY 1 OF THE
26 FOLLOWING YEAR.
27 (29) TO PROMULGATE RULES AND REGULATIONS NECESSARY FOR
28 THE ADMINISTRATION AND ENFORCEMENT OF THIS PART, INCLUDING
29 REGULATIONS RELATING TO THE NUMBER OF SLOT MACHINES A SINGLE
30 MANUFACTURER MAY SUPPLY TO A LICENSED FACILITY AND INCLUDING,
20050S0862B1553 - 85 -
1 IN COOPERATION WITH THE LIQUOR CONTROL BOARD, REGULATIONS
2 RELATING TO THE SALE AND SERVICE OF LIQUOR AND MALT AND
3 BREWED BEVERAGES BY LICENSEES. EXCEPT AS PROVIDED IN SECTION
4 1203 (RELATING TO TEMPORARY REGULATIONS), REGULATIONS SHALL
5 BE ADOPTED PURSUANT TO THE ACT OF JULY 31, 1968 (P.L.769,
6 NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS LAW, AND
7 THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE
8 REGULATORY REVIEW ACT.
9 SECTION 5. TITLE 4 IS AMENDED BY ADDING A SECTION TO READ:
10 § 1202.1. CODE OF CONDUCT.
11 (A) SCOPE.--THE BOARD SHALL ADOPT A COMPREHENSIVE CODE OF
12 CONDUCT PRIOR TO THE CONSIDERATION OF ANY LICENSE, PERMIT OR
13 REGISTRATION APPLICATION. THE CODE OF CONDUCT SHALL SUPPLEMENT
14 ALL OTHER REQUIREMENTS UNDER THIS PART AND 65 PA.C.S. PT. II
15 (RELATING TO ACCOUNTABILITY) AND SHALL PROVIDE GUIDELINES
16 APPLICABLE TO MEMBERS, EMPLOYEES, INDEPENDENT CONTRACTORS OF THE
17 BOARD, AND THE IMMEDIATE FAMILIES OF THE MEMBERS, EMPLOYEES AND
18 INDEPENDENT CONTRACTORS, TO ENABLE THEM TO AVOID ANY PERCEIVED
19 OR ACTUAL CONFLICT OF INTEREST AND TO PROMOTE PUBLIC CONFIDENCE
20 IN THE INTEGRITY AND IMPARTIALITY OF THE BOARD. AT A MINIMUM,
21 THE CODE OF CONDUCT ADOPTED UNDER THIS SECTION SHALL INCLUDE
22 REGISTRATION UNDER SUBSECTION (B) AND THE RESTRICTIONS IN
23 SUBSECTION (C).
24 (B) REGISTRATION.--
25 (1) A LICENSED ENTITY REPRESENTATIVE SHALL REGISTER WITH
26 THE BOARD IN A MANNER PRESCRIBED BY THE BOARD, WHICH SHALL
27 INCLUDE THE NAME, EMPLOYER OR FIRM, ADDRESS, TELEPHONE NUMBER
28 AND THE LICENSED ENTITY BEING REPRESENTED.
29 (2) A LICENSED ENTITY REPRESENTATIVE SHALL HAVE AN
30 ONGOING DUTY TO UPDATE ITS REGISTRATION INFORMATION ON AN
20050S0862B1553 - 86 -
1 ONGOING BASIS.
2 (3) THE REGISTRATION LIST SHALL BE AVAILABLE FOR PUBLIC
3 INSPECTION AT THE OFFICES OF THE BOARD AND ON THE BOARD'S
4 INTERNET WEBSITE.
5 (C) RESTRICTIONS.--A MEMBER OF THE BOARD SHALL:
6 (1) EXCEPT AS SET FORTH IN PARAGRAPH (6), NOT ENGAGE IN
7 ANY EX PARTE COMMUNICATION WITH AN INTERESTED PARTY.
8 (2) NOT ACCEPT ANY DISCOUNT, GIFT, GRATUITY,
9 COMPENSATION, TRAVEL, LODGING OR OTHER THING OF VALUE,
10 DIRECTLY OR INDIRECTLY, FROM ANY APPLICANT, LICENSEE,
11 PERMITTEE, REGISTRANT OR LICENSED ENTITY REPRESENTATIVE
12 THEREOF.
13 (3) DISQUALIFY HIMSELF FROM ANY PROCEEDING IN WHICH THE
14 MEMBER'S OBJECTIVITY, IMPARTIALITY OR INDEPENDENCE OF
15 JUDGMENT MAY BE REASONABLY QUESTIONED DUE TO THE MEMBER'S
16 RELATIONSHIP OR ASSOCIATION WITH A PARTY CONNECTED TO ANY
17 PROCEEDING OR A PERSON APPEARING BEFORE THE BOARD.
18 (4) REFRAIN FROM ANY FINANCIAL OR BUSINESS DEALING WHICH
19 WOULD TEND TO REFLECT ADVERSELY ON THE MEMBER'S OBJECTIVITY,
20 IMPARTIALITY OR INDEPENDENCE OF JUDGMENT.
21 (5) NOT HOLD OR CAMPAIGN FOR PUBLIC OFFICE, HOLD AN
22 OFFICE IN ANY POLITICAL PARTY OR POLITICAL COMMITTEE,
23 CONTRIBUTE TO OR SOLICIT CONTRIBUTIONS TO A POLITICAL
24 CAMPAIGN, PARTY, COMMITTEE OR CANDIDATE, PUBLICLY ENDORSE A
25 CANDIDATE OR ACTIVELY PARTICIPATE IN A POLITICAL CAMPAIGN.
26 (6) NOT MEET OR ENGAGE IN DISCUSSIONS WITH ANY
27 APPLICANT, PERSON LICENSED UNDER THIS PART, OR A LICENSED
28 ENTITY REPRESENTATIVE UNLESS THE MEETING OR DISCUSSION OCCURS
29 ON THE BUSINESS PREMISES OF THE BOARD AND IS RECORDED IN A
30 LOG MAINTAINED FOR THIS PURPOSE. THE LOG SHALL BE AVAILABLE
20050S0862B1553 - 87 -
1 FOR PUBLIC INSPECTION DURING THE REGULAR BUSINESS HOURS OF
2 THE BOARD. THE PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY
3 TO MEETINGS OF THE BOARD TO CONSIDER MATTERS REQUIRING THE
4 PHYSICAL INSPECTION OF THE EQUIPMENT OR PREMISES OF AN
5 APPLICANT OR A LICENSED ENTITY AT THEIR LOCATION.
6 (7) COMPLY WITH ANY OTHER LAWS, RULES OR REGULATIONS
7 RELATING TO THE CONDUCT OF A MEMBER.
8 (D) EX OFFICIO MEMBERS.--THE RESTRICTIONS UNDER SUBSECTION
9 (C)(5) SHALL NOT APPLY TO EX OFFICIO MEMBERS.
10 (E) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
11 WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
12 SUBSECTION:
13 "COMPENSATION." ANY THING OF VALUE, MONEY OR A FINANCIAL
14 BENEFIT CONFERRED ON OR RECEIVED BY A PERSON IN RETURN FOR
15 SERVICES RENDERED, OR TO BE RENDERED, WHETHER BY THAT PERSON OR
16 ANOTHER.
17 "LICENSED ENTITY REPRESENTATIVE." A PERSON ACTING ON BEHALF
18 OF OR REPRESENTING THE INTEREST OF ANY APPLICANT, LICENSEE,
19 PERMITTEE OR REGISTRANT, INCLUDING AN ATTORNEY, AGENT OR
20 LOBBYIST REGARDING ANY MATTER WHICH MAY REASONABLY BE EXPECTED
21 TO COME BEFORE THE BOARD.
22 SECTION 6. SECTIONS 1203, 1204, 1205, 1206(A), (C), (D) AND
23 (F), 1208(1), 1304(B), 1305(A) AND (B), 1306, 1309(A)(1) AND
24 1311 OF TITLE 4 ARE AMENDED TO READ:
25 § 1203. TEMPORARY REGULATIONS.
26 (A) PROMULGATION.--[NOTWITHSTANDING ANY OTHER PROVISION OF
27 LAW TO THE CONTRARY AND IN] IN ORDER TO FACILITATE THE PROMPT
28 IMPLEMENTATION OF THIS PART, [REGULATIONS PROMULGATED BY THE
29 BOARD DURING THE TWO YEARS FOLLOWING THE EFFECTIVE DATE OF THIS
30 PART SHALL BE DEEMED TEMPORARY REGULATIONS WHICH SHALL EXPIRE NO
20050S0862B1553 - 88 -
1 LATER THAN THREE YEARS FOLLOWING THE EFFECTIVE DATE OF THIS PART
2 OR UPON PROMULGATION OF REGULATIONS AS GENERALLY PROVIDED BY
3 LAW. THE TEMPORARY REGULATIONS SHALL NOT BE] THE BOARD MAY
4 PROMULGATE REGULATIONS NOT SUBJECT TO:
5 (1) SECTIONS 201 [THROUGH 205], 202 AND 203 OF THE ACT
6 OF JULY 31, 1968 (P.L.769, NO.240), REFERRED TO AS THE
7 COMMONWEALTH DOCUMENTS LAW.
8 (2) THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS
9 THE REGULATORY REVIEW ACT.
10 (B) EXPIRATION.--[THE AUTHORITY PROVIDED TO THE BOARD TO
11 ADOPT TEMPORARY REGULATIONS IN] REGULATIONS PROMULGATED IN
12 ACCORDANCE WITH SUBSECTION (A) SHALL EXPIRE [TWO] THREE YEARS
13 FROM THE EFFECTIVE DATE OF THIS SECTION. [REGULATIONS ADOPTED
14 AFTER THE TWO-YEAR PERIOD SHALL BE PROMULGATED AS PROVIDED BY
15 LAW.]
16 § 1204. LICENSED GAMING ENTITY APPLICATION APPEALS FROM BOARD.
17 THE SUPREME COURT OF PENNSYLVANIA SHALL BE VESTED WITH
18 EXCLUSIVE APPELLATE JURISDICTION TO CONSIDER APPEALS OF ANY
19 FINAL ORDER, DETERMINATION OR DECISION OF THE BOARD INVOLVING
20 THE APPROVAL, ISSUANCE, DENIAL OR CONDITIONING OF [ALL LICENSED
21 ENTITY APPLICATIONS] A SLOT MACHINE LICENSE. NOTWITHSTANDING THE
22 PROVISIONS OF 2 PA.C.S. CH. 7 SUBCH. A (RELATING TO JUDICIAL
23 REVIEW OF COMMONWEALTH AGENCY ACTION) AND 42 PA.C.S. § 763
24 (RELATING TO DIRECT APPEALS FROM GOVERNMENT AGENCIES), THE
25 SUPREME COURT SHALL AFFIRM ALL FINAL ORDERS, DETERMINATIONS OR
26 DECISIONS OF THE BOARD INVOLVING THE APPROVAL, ISSUANCE, DENIAL
27 OR CONDITIONING OF [ALL LICENSED ENTITY APPLICATIONS] A SLOT
28 MACHINE LICENSE UNLESS IT SHALL FIND THAT THE BOARD COMMITTED AN
29 ERROR OF LAW OR THAT THE ORDER, DETERMINATION OR DECISION OF THE
30 BOARD WAS ARBITRARY AND THERE WAS A CAPRICIOUS DISREGARD OF THE
20050S0862B1553 - 89 -
1 EVIDENCE.
2 § 1205. LICENSE [OR], PERMIT OR REGISTRATION APPLICATION
3 HEARING PROCESS.
4 THE BOARD'S CONSIDERATION AND RESOLUTION OF ALL LICENSE [OR],
5 PERMIT OR REGISTRATION APPLICATIONS SHALL BE CONDUCTED IN
6 ACCORDANCE WITH 2 PA.C.S. (RELATING TO ADMINISTRATIVE LAW AND
7 PROCEDURE) AND WITH PROCEDURES ADOPTED BY ORDER OF THE BOARD.
8 [NOTWITHSTANDING THE MANDATES OF 2 PA.C.S. §§ 504 (RELATING TO
9 HEARING AND RECORD) AND 505 (RELATING TO EVIDENCE AND CROSS-
10 EXAMINATION), SAID PROCEDURES ADOPTED BY ORDER OF THE BOARD
11 SHALL PROVIDE PARTIES BEFORE IT WITH A DOCUMENTARY HEARING, BUT
12 THE BOARD MAY, AT ITS DISCRETION, RESOLVE DISPUTED MATERIAL
13 FACTS WITHOUT CONDUCTING AN ORAL HEARING WHERE CONSTITUTIONALLY
14 PERMISSIBLE.]
15 § 1206. BOARD MINUTES AND RECORDS.
16 [(A) OPEN PROCEEDINGS AND RECORDS.--THE PROCEEDINGS OF THE
17 BOARD SHALL BE CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF 65
18 PA.C.S. CH. 7 (RELATING TO OPEN MEETINGS). THE BOARD SHALL BE AN
19 AGENCY FOR PURPOSES OF THE ACT OF JUNE 21, 1957 (P.L.390,
20 NO.212), REFERRED TO AS THE RIGHT-TO-KNOW LAW. NOTWITHSTANDING
21 ANY PROVISION OF LAW TO THE CONTRARY, CONFIDENTIAL DOCUMENTS
22 RELATIVE TO PERSONAL BACKGROUND INFORMATION PROVIDED TO THE
23 BOARD PURSUANT TO THIS PART AND ANY CLOSED DELIBERATIONS OF THE
24 BOARD, INCLUDING DISCIPLINARY PROCEEDINGS, SHALL BE CONFIDENTIAL
25 AND CONSIDERED IN CLOSED EXECUTIVE SESSION PURSUANT TO
26 SUBSECTION (F).]
27 * * *
28 [(C) INFORMATION DELIVERED TO GOVERNOR AND GENERAL
29 ASSEMBLY.--A TRUE COPY OF THE MINUTES OF EVERY MEETING OF THE
30 BOARD AND OF ANY REGULATIONS FINALLY ADOPTED BY THE BOARD MAY BE
20050S0862B1553 - 90 -
1 FORTHWITH DELIVERED, BY AND UNDER THE CERTIFICATION OF THE
2 EXECUTIVE DIRECTOR, TO THE GOVERNOR, THE SECRETARY OF THE SENATE
3 AND THE CHIEF CLERK OF THE HOUSE OF REPRESENTATIVES.]
4 (D) APPLICANT INFORMATION.--
5 (1) THE BOARD SHALL [KEEP AND] MAINTAIN A LIST OF ALL
6 APPLICANTS FOR LICENSES [AND PERMITS UNDER THIS PART TOGETHER
7 WITH], PERMITS AND REGISTRATIONS. THE LIST SHALL INCLUDE A
8 RECORD OF ALL ACTIONS TAKEN WITH RESPECT TO [THE APPLICANTS,
9 WHICH FILE AND RECORD] EACH APPLICANT. THE LIST SHALL BE OPEN
10 TO PUBLIC INSPECTION DURING THE NORMAL BUSINESS HOURS OF THE
11 BOARD.
12 (2) INFORMATION UNDER PARAGRAPH (1) REGARDING ANY
13 APPLICANT WHOSE LICENSE [OR], PERMIT OR REGISTRATION HAS BEEN
14 DENIED, REVOKED OR NOT RENEWED SHALL BE REMOVED FROM SUCH
15 LIST AFTER SEVEN YEARS FROM THE DATE OF THE ACTION.
16 * * *
17 (F) CONFIDENTIALITY OF INFORMATION.--ALL INFORMATION
18 [CONTAINED IN THE APPLICATION PROCESS] SUBMITTED BY AN APPLICANT
19 PURSUANT TO SECTION 1310(A) (RELATING TO SLOT MACHINE LICENSE
20 APPLICATION CHARACTER REQUIREMENTS) [AND THE REPORT OF AN
21 APPLICANT'S BACKGROUND INVESTIGATION FURNISHED TO] OR OBTAINED
22 BY THE BOARD OR THE BUREAU AS PART OF A BACKGROUND INVESTIGATION
23 FROM ANY SOURCE SHALL BE CONSIDERED CONFIDENTIAL [AND]. EXCEPT
24 AS PROVIDED IN SECTION 1517(F) (RELATING TO ENFORCEMENT), THE
25 INFORMATION SHALL BE WITHHELD FROM PUBLIC DISCLOSURE IN WHOLE OR
26 IN PART, EXCEPT THAT ANY INFORMATION SHALL BE RELEASED UPON THE
27 LAWFUL ORDER OF A COURT OF COMPETENT JURISDICTION OR, WITH THE
28 APPROVAL OF THE ATTORNEY GENERAL, TO A DULY AUTHORIZED LAW
29 ENFORCEMENT AGENCY OR SHALL BE RELEASED TO THE PUBLIC, IN WHOLE
30 OR IN PART, TO THE EXTENT THAT SUCH RELEASE IS REQUESTED BY AN
20050S0862B1553 - 91 -
1 APPLICANT AND DOES NOT OTHERWISE CONTAIN CONFIDENTIAL
2 INFORMATION ABOUT ANOTHER PERSON. THE BOARD MAY NOT REQUIRE ANY
3 APPLICANT TO WAIVE ANY CONFIDENTIALITY PROVIDED FOR IN THIS
4 SUBSECTION AS A CONDITION FOR THE APPROVAL OF A LICENSE OR ANY
5 OTHER ACTION OF THE BOARD. ANY PERSON WHO VIOLATES THIS
6 SUBSECTION SHALL BE ADMINISTRATIVELY DISCIPLINED BY DISCHARGE,
7 SUSPENSION OR OTHER FORMAL DISCIPLINARY ACTION AS THE BOARD
8 DEEMS APPROPRIATE.
9 * * *
10 § 1208. COLLECTION OF FEES AND FINES.
11 THE BOARD HAS THE FOLLOWING POWERS AND DUTIES:
12 (1) TO LEVY AND COLLECT FEES FROM THE VARIOUS
13 APPLICANTS, LICENSEES [AND], PERMITTEES AND REGISTRANTS TO
14 FUND THE OPERATIONS OF THE BOARD. THE FEES SHALL BE DEPOSITED
15 INTO THE STATE GAMING FUND AS ESTABLISHED IN SECTION 1403
16 (RELATING TO ESTABLISHMENT OF STATE GAMING FUND AND NET SLOT
17 MACHINE REVENUE DISTRIBUTION) AND DISTRIBUTED TO THE BOARD
18 UPON APPROPRIATION BY THE GENERAL ASSEMBLY. IN ADDITION TO
19 THE FEES SET FORTH IN SECTIONS 1209 (RELATING TO SLOT MACHINE
20 LICENSE FEE) AND 1305 (RELATING TO CATEGORY 3 SLOT MACHINE
21 LICENSE), THE BOARD SHALL ASSESS AND COLLECT FEES AS FOLLOWS:
22 (I) SUPPLIER LICENSEES SHALL PAY A FEE OF $25,000
23 UPON THE ISSUANCE OF A LICENSE AND $10,000 FOR THE ANNUAL
24 RENEWAL OF A SUPPLIER LICENSE.
25 (II) MANUFACTURER LICENSEES SHALL PAY A FEE OF
26 $50,000 UPON THE ISSUANCE OF A LICENSE AND $25,000 FOR
27 THE ANNUAL RENEWAL OF A MANUFACTURER LICENSE.
28 (III) EACH APPLICATION FOR A SLOT MACHINE LICENSE,
29 SUPPLIER LICENSE OR MANUFACTURER LICENSE MUST BE
30 ACCOMPANIED BY A NONREFUNDABLE FEE SET BY THE BOARD FOR
20050S0862B1553 - 92 -
1 THE COST OF EACH INDIVIDUAL REQUIRING A BACKGROUND
2 INVESTIGATION. THE REASONABLE AND NECESSARY COSTS AND
3 EXPENSES INCURRED IN ANY BACKGROUND INVESTIGATION OR
4 OTHER INVESTIGATION OR PROCEEDING CONCERNING ANY
5 APPLICANT, LICENSEE [OR], PERMITTEE OR REGISTRANT SHALL
6 BE REIMBURSED TO THE BOARD BY THOSE PERSONS.
7 * * *
8 § 1304. CATEGORY 2 SLOT MACHINE LICENSE.
9 * * *
10 (B) LOCATION.--
11 (1) TWO CATEGORY 2 LICENSED FACILITIES AND NO MORE SHALL
12 BE LOCATED BY THE BOARD WITHIN A CITY OF THE FIRST CLASS, AND
13 ONE CATEGORY 2 LICENSED FACILITY AND NO MORE SHALL BE LOCATED
14 BY THE BOARD WITHIN A CITY OF THE SECOND CLASS. NO CATEGORY 2
15 LICENSED FACILITY LOCATED BY THE BOARD WITHIN A CITY OF THE
16 FIRST CLASS SHALL BE WITHIN TEN LINEAR MILES OF A CATEGORY 1
17 LICENSED FACILITY REGARDLESS OF THE MUNICIPALITY WHERE THE
18 CATEGORY 1 LICENSED FACILITY IS LOCATED. EXCEPT FOR ANY
19 CATEGORY 2 LICENSED FACILITY LOCATED BY THE BOARD WITHIN A
20 CITY OF THE FIRST CLASS OR A CITY OF THE SECOND CLASS, NO
21 CATEGORY 2 LICENSED FACILITY SHALL BE LOCATED WITHIN 30
22 LINEAR MILES OF ANY CATEGORY 1 LICENSED FACILITY THAT HAS
23 CONDUCTED OVER 200 RACING DAYS PER YEAR FOR THE TWO CALENDAR
24 YEARS IMMEDIATELY PRECEDING THE EFFECTIVE DATE OF THIS PART
25 AND NOT WITHIN 20 LINEAR MILES OF ANY OTHER CATEGORY 1
26 LICENSED FACILITY. EXCEPT FOR ANY CATEGORY 2 LICENSED
27 FACILITY LOCATED BY THE BOARD WITHIN A CITY OF THE FIRST
28 CLASS, NO CATEGORY 2 LICENSED FACILITY SHALL BE LOCATED
29 WITHIN 20 LINEAR MILES OF ANOTHER CATEGORY 2 LICENSED
30 FACILITY.
20050S0862B1553 - 93 -
1 (2) AN APPLICANT WITH A PROPOSED LICENSED FACILITY
2 CONSISTING OF LAND DESIGNATED A SUBZONE, AN EXPANSION SUBZONE
3 OR AN IMPROVEMENT SUBZONE UNDER THE ACT OF OCTOBER 6, 1998
4 (P.L.705, NO.92), KNOWN AS THE KEYSTONE OPPORTUNITY ZONE,
5 KEYSTONE OPPORTUNITY EXPANSION ZONE AND KEYSTONE OPPORTUNITY
6 IMPROVEMENT ZONE ACT, MAY APPLY AND MAY BE APPROVED FOR A
7 LICENSE UNDER THIS SECTION. THE BOARD SHALL NOT ISSUE THE
8 LICENSE TO THE APPLICANT WHILE THE PROPOSED LICENSED FACILITY
9 CONSISTS OF LAND DESIGNATED A SUBZONE, AN EXPANSION SUBZONE
10 OR AN IMPROVEMENT SUBZONE. IF THE DEPARTMENT OF COMMUNITY AND
11 ECONOMIC DEVELOPMENT DECERTIFIES THE LAND AS A SUBZONE, AN
12 EXPANSION SUBZONE OR AN IMPROVEMENT SUBZONE, THE BOARD SHALL
13 ISSUE THE APPLICANT THE LICENSE.
14 (3) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (1), NO
15 CATEGORY 2 LICENSED FACILITY SHALL BE LOCATED BY THE BOARD
16 WITHIN A COUNTY OF THE SIXTH CLASS HAVING A POPULATION UNDER
17 THE 2000 CENSUS IN EXCESS OF 91,000 RESIDENTS BUT FEWER THAN
18 92,000 RESIDENTS.
19 (4) AN APPLICANT FOR A CATEGORY 2 LICENSED FACILITY
20 SUBJECT TO THE PROVISIONS OF PARAGRAPH (3) WITH AN
21 APPLICATION RECEIVED BY THE BOARD BEFORE JANUARY 1, 2006,
22 SHALL, UPON WRITTEN APPLICATION TO THE BOARD, BE REIMBURSED
23 BY THE BOARD FROM AVAILABLE FUNDS FOR ANY FEES PAID AND 90%
24 OF ACTUAL COSTS OF CREATING THE APPLICATION.
25 § 1305. CATEGORY 3 SLOT MACHINE LICENSE.
26 (A) ELIGIBILITY.--
27 (1) A PERSON MAY BE ELIGIBLE TO APPLY FOR A CATEGORY 3
28 LICENSE IF THE APPLICANT, ITS AFFILIATE, INTERMEDIARY,
29 SUBSIDIARY OR HOLDING COMPANY HAS NOT APPLIED FOR OR BEEN
30 APPROVED OR ISSUED A CATEGORY 1 OR 2 LICENSE AND THE PERSON
20050S0862B1553 - 94 -
1 IS SEEKING TO LOCATE A CATEGORY 3 LICENSED FACILITY IN A
2 WELL-ESTABLISHED RESORT HOTEL HAVING NO FEWER THAN 275 GUEST
3 ROOMS UNDER COMMON OWNERSHIP AND HAVING SUBSTANTIAL YEAR-
4 ROUND RECREATIONAL GUEST AMENITIES. THE APPLICANT FOR A
5 CATEGORY 3 LICENSE SHALL BE THE OWNER OR BE A WHOLLY OWNED
6 SUBSIDIARY OF THE OWNER OF THE ESTABLISHED RESORT HOTEL. A
7 CATEGORY 3 LICENSE MAY ONLY BE GRANTED UPON THE EXPRESS
8 CONDITION THAT AN INDIVIDUAL MAY NOT ENTER A GAMING AREA OF
9 THE LICENSEE IF THE INDIVIDUAL IS NOT A REGISTERED OVERNIGHT
10 GUEST OF THE ESTABLISHED RESORT HOTEL OR IF THE INDIVIDUAL IS
11 NOT A PATRON OF ONE OR MORE OF THE AMENITIES PROVIDED BY THE
12 ESTABLISHED RESORT HOTEL.
13 (2) NOTWITHSTANDING SECTION 1512(A) AND (A.1) (RELATING
14 TO PUBLIC OFFICIAL FINANCIAL INTEREST), IF AT THE TIME OF
15 APPLICATION, AN APPLICANT HAS TERMINATED PUBLIC OFFICE OR
16 EMPLOYMENT AS AN EXECUTIVE-LEVEL PUBLIC EMPLOYEE WITHIN THE
17 LAST CALENDAR YEAR, THE APPLICANT SHALL BE ELIGIBLE TO APPLY
18 FOR A SLOT MACHINE LICENSE UNDER THIS SECTION BUT MAY NOT BE
19 ISSUED A LICENSE UNTIL ONE YEAR FOLLOWING THE DATE OF
20 TERMINATION AS A PUBLIC OFFICIAL OR EXECUTIVE-LEVEL PUBLIC
21 EMPLOYEE. AN APPLICATION SUBMITTED IN ACCORDANCE WITH THIS
22 PARAGRAPH SHALL NOT CONSTITUTE A VIOLATION OF SECTION 1512(A)
23 OR (A.1).
24 (B) LOCATION.--
25 (1) NO CATEGORY 3 LICENSE SHALL BE LOCATED BY THE BOARD
26 WITHIN 15 LINEAR MILES OF ANOTHER LICENSED FACILITY.
27 (2) AN APPLICANT WITH A PROPOSED LICENSED FACILITY
28 CONSISTING OF LAND DESIGNATED A SUBZONE, AN EXPANSION SUBZONE
29 OR AN IMPROVEMENT SUBZONE UNDER THE ACT OF OCTOBER 6, 1998
30 (P.L.705, NO.92), KNOWN AS THE KEYSTONE OPPORTUNITY ZONE,
20050S0862B1553 - 95 -
1 KEYSTONE OPPORTUNITY EXPANSION ZONE AND KEYSTONE OPPORTUNITY
2 IMPROVEMENT ZONE ACT, MAY APPLY AND MAY BE APPROVED FOR A
3 LICENSE UNDER THIS SECTION. THE BOARD SHALL NOT ISSUE THE
4 LICENSE TO THE APPLICANT WHILE THE PROPOSED LICENSED FACILITY
5 CONSISTS OF LAND DESIGNATED A SUBZONE, AN EXPANSION SUBZONE
6 OR AN IMPROVEMENT SUBZONE. IF THE DEPARTMENT OF COMMUNITY AND
7 ECONOMIC DEVELOPMENT DECERTIFIES THE LAND AS A SUBZONE, AN
8 EXPANSION SUBZONE OR AN IMPROVEMENT SUBZONE, THE BOARD SHALL
9 ISSUE THE APPLICANT THE LICENSE.
10 * * *
11 § 1306. ORDER OF INITIAL LICENSE ISSUANCE.
12 IN ORDER TO FACILITATE THE TIMELY AND ORDERLY DEPLOYMENT OF
13 LICENSED GAMING OPERATIONS IN THIS COMMONWEALTH, THE BOARD SHALL
14 ADOPT A SCHEDULE BY WHICH APPLICANTS FOR SLOT MACHINE,
15 MANUFACTURER AND SUPPLIER LICENSES SHALL BE FILED, CONSIDERED
16 AND RESOLVED IN ACCORDANCE WITH THE PROVISIONS OF THIS PART. IN
17 SO DOING, THE BOARD SHALL CONSIDER, APPROVE, CONDITION OR DENY
18 THE APPROVAL OF ALL FILED APPLICATIONS FOR MANUFACTURER AND
19 SUPPLIER LICENSES AS SOON AS ADMINISTRATIVELY POSSIBLE AND AT
20 LEAST THREE MONTHS PRIOR TO THE BOARD'S APPROVAL, CONDITIONING
21 OR DENIAL OF THE APPROVAL OF ANY CATEGORY 1 LICENSE APPLICATION
22 PURSUANT TO SECTION 1315 (RELATING TO CONDITIONAL CATEGORY 1
23 LICENSES) OR ANY OTHER CATEGORY OF SLOT MACHINE LICENSE PURSUANT
24 TO SECTION 1301 (RELATING TO AUTHORIZED SLOT MACHINE LICENSES).
25 THE BOARD SHALL ENSURE THAT AN ADEQUATE NUMBER OF SUPPLIERS HAVE
26 BEEN LICENSED PURSUANT TO SECTION 1301 TO MEET MARKET DEMAND.
27 THE BOARD SHALL APPROVE, APPROVE WITH CONDITION OR DENY ALL
28 INITIAL APPLICATIONS FOR CONDITIONAL CATEGORY 1 LICENSES UNDER
29 SECTION 1315 (RELATING TO CONDITIONAL CATEGORY 1 LICENSES) PRIOR
30 TO CONSIDERING ANY APPLICATIONS FOR CATEGORY 1, CATEGORY 2 OR
20050S0862B1553 - 96 -
1 CATEGORY 3 SLOT MACHINE LICENSES.
2 § 1309. SLOT MACHINE LICENSE APPLICATION.
3 (A) GENERAL REQUIREMENTS.--IN ADDITION TO ANY OTHER
4 INFORMATION REQUIRED UNDER THIS PART OR AS MAY BE REQUIRED BY
5 THE BOARD, THE APPLICATION FOR ANY CATEGORY OF SLOT MACHINE
6 LICENSE SHALL INCLUDE AT A MINIMUM:
7 (1) THE NAME, ADDRESS[,] AND PHOTOGRAPH [AND HANDWRITING
8 EXEMPLAR] OF THE APPLICANT AND OF ALL DIRECTORS AND OWNERS
9 AND KEY EMPLOYEES AND THEIR POSITIONS WITHIN THE CORPORATION
10 OR ORGANIZATION, AS WELL AS ANY ADDITIONAL FINANCIAL
11 INFORMATION REQUIRED BY THE BOARD.
12 * * *
13 § 1311. [SLOT MACHINE LICENSE APPLICATION BUSINESS ENTITY
14 REQUIREMENTS.
15 (A) KEY EMPLOYEE REQUIREMENT QUALIFICATION.--NO CORPORATION
16 OR ANY OTHER LEGAL BUSINESS ENTITY SHALL BE ELIGIBLE TO HOLD A
17 SLOT MACHINE LICENSE UNLESS THE FOLLOWING WOULD INDIVIDUALLY BE
18 QUALIFIED FOR LICENSURE AS A KEY EMPLOYEE: EACH OFFICER; EACH
19 DIRECTOR; EACH PERSON WHO DIRECTLY OR INDIRECTLY HOLDS ANY
20 BENEFICIAL INTEREST OR OWNERSHIP OF THE SECURITIES IN THE
21 ENTITY; EACH PERSON WHO IN THE OPINION OF THE BOARD HAS THE
22 ABILITY TO CONTROL THE ENTITY, HAS A CONTROLLING INTEREST OR
23 ELECTS A MAJORITY OF THE BOARD OF DIRECTORS OF THAT CORPORATION
24 OR BUSINESS ENTITY, OTHER THAN A BANKING OR OTHER LICENSED
25 LENDING INSTITUTION WHICH MAKES A LOAN OR HOLDS A MORTGAGE OR
26 OTHER LIEN ACQUIRED IN THE ORDINARY COURSE OF BUSINESS; EACH KEY
27 EMPLOYEE; EACH LENDER, OTHER THAN A BANKING OR OTHER LICENSED
28 LENDING INSTITUTION WHICH MAKES A LOAN OR HOLDS A MORTGAGE OR
29 OTHER LIEN ACQUIRED IN THE ORDINARY COURSE OF BUSINESS; EACH
30 UNDERWRITER; EACH AGENT; EACH EMPLOYEE OF THE CORPORATION OR
20050S0862B1553 - 97 -
1 ENTITY AND EACH OTHER PERSON WHOM THE BOARD MAY CONSIDER
2 APPROPRIATE FOR APPROVAL OR QUALIFICATION. THE BOARD MAY WAIVE
3 COMPLIANCE WITH THE PROVISIONS OF THIS SUBSECTION ON THE PART OF
4 A PUBLICLY TRADED CORPORATION AS TO A PERSON DIRECTLY OR
5 INDIRECTLY HOLDING OWNERSHIP OF SECURITIES OF SUCH CORPORATION
6 WHERE THE BOARD IS SATISFIED THAT THE SECURITY HOLDER IS NOT
7 SIGNIFICANTLY INVOLVED IN THE ACTIVITIES OF THE CORPORATION AND
8 DOES NOT HAVE THE ABILITY TO CONTROL THE CORPORATION OR ELECT
9 ONE OR MORE DIRECTORS THEREOF.
10 (B) SLOT MACHINE LICENSE QUALIFICATION REQUIREMENT.--NO
11 CORPORATION OR ANY OTHER LEGAL BUSINESS ENTITY OR OTHER FORM OF
12 BUSINESS ORGANIZATION WHICH IS A SUBSIDIARY SHALL BE ELIGIBLE TO
13 RECEIVE OR HOLD A SLOT MACHINE LICENSE UNLESS EACH HOLDING AND
14 INTERMEDIARY COMPANY WITH RESPECT THERETO:
15 (1) IF IT IS A CORPORATION OR OTHER LEGAL BUSINESS
16 ENTITY, SHALL COMPLY WITH THE PROVISIONS OF SUBSECTION (A) AS
17 IF SAID HOLDING OR INTERMEDIARY COMPANY WERE ITSELF APPLYING
18 FOR A SLOT MACHINE LICENSE. THE BOARD MAY WAIVE COMPLIANCE
19 WITH THE PROVISIONS OF SUBSECTION (A) ON THE PART OF A
20 PUBLICLY TRADED CORPORATION WHICH IS A HOLDING COMPANY AS TO
21 ANY OFFICER, DIRECTOR, LENDER, UNDERWRITER, AGENT OR EMPLOYEE
22 THEREOF, OR PERSON DIRECTLY OR INDIRECTLY HOLDING A
23 BENEFICIAL INTEREST OR OWNERSHIP OF THE SECURITIES OF SUCH
24 CORPORATION, WHERE THE BOARD IS SATISFIED THAT SUCH OFFICER,
25 DIRECTOR, LENDER, UNDERWRITER, AGENT OR EMPLOYEE IS NOT
26 SIGNIFICANTLY INVOLVED IN THE ACTIVITIES OF THE CORPORATE
27 LICENSEE AND IN THE CASE OF THE SECURITY HOLDER DOES NOT HAVE
28 THE ABILITY TO CONTROL OR POSSESS A CONTROLLING INTEREST IN
29 THE HOLDING COMPANY OR ELECT ONE OR MORE DIRECTORS THEREOF;
30 OR
20050S0862B1553 - 98 -
1 (2) IF IT IS NOT A CORPORATION, SHALL COMPLY WITH THE
2 PROVISIONS OF SUBSECTION (C) AS IF SAID COMPANY WERE ITSELF
3 APPLYING FOR A SLOT MACHINE LICENSE. THE BOARD MAY WAIVE
4 COMPLIANCE WITH THE PROVISIONS OF SUBSECTION (C) ON THE PART
5 OF A NONCORPORATE BUSINESS ORGANIZATION WHICH IS A HOLDING
6 COMPANY AS TO ANY PERSON WHO DIRECTLY OR INDIRECTLY HOLDS ANY
7 BENEFICIAL INTEREST OR OWNERSHIP IN SUCH COMPANY WHEN THE
8 BOARD IS SATISFIED THAT SUCH PERSON DOES NOT HAVE THE ABILITY
9 TO CONTROL THE COMPANY.
10 (C) NONCORPORATE APPLICANT REQUIREMENT.--ANY NONCORPORATE
11 APPLICANT FOR A SLOT MACHINE LICENSE SHALL PROVIDE THE
12 INFORMATION REQUIRED IN THIS SECTION IN SUCH FORM AS MAY BE
13 REQUIRED BY THE BOARD. NO SUCH APPLICANT SHALL BE ELIGIBLE TO
14 HOLD A SLOT MACHINE LICENSE UNLESS EACH PERSON WHO DIRECTLY OR
15 INDIRECTLY HOLDS ANY BENEFICIAL INTEREST OR OWNERSHIP IN THE
16 APPLICANT, OR HAS THE ABILITY TO CONTROL THE APPLICANT OR WHOM
17 THE BOARD MAY CONSIDER APPROPRIATE FOR APPROVAL OR
18 QUALIFICATION, WOULD INDIVIDUALLY BE QUALIFIED FOR APPROVAL AS A
19 KEY EMPLOYEE PURSUANT TO THE PROVISIONS OF THIS PART.]
20 ADDITIONAL SLOT MACHINE LICENSE REQUIREMENTS.
21 (A) ADDITIONAL ELIGIBILITY REQUIREMENTS.--IN ORDER TO BE
22 ELIGIBLE FOR A SLOT MACHINE LICENSE UNDER THIS PART, THE
23 PRINCIPALS AND KEY EMPLOYEES OF THE APPLICANT SHALL BE REQUIRED
24 TO BE PERMITTED AND TO MEET THE CHARACTER REQUIREMENTS OF
25 SECTION 1310 (RELATING TO SLOT MACHINE LICENSE APPLICATION
26 CHARACTER REQUIREMENTS) OR OTHER ELIGIBILITY REQUIREMENTS
27 ESTABLISHED BY THE BOARD.
28 (B) CLASSIFICATION SYSTEM.--THE BOARD SHALL DEVELOP A
29 CLASSIFICATION SYSTEM FOR OTHER AGENTS, EMPLOYEES OR PERSONS WHO
30 DIRECTLY OR INDIRECTLY HOLD OR ARE DEEMED TO BE HOLDING DEBT OR
20050S0862B1553 - 99 -
1 EQUITY SECURITIES OR OTHER FINANCIAL INTEREST IN THE APPLICANT,
2 AND OTHER PERSONS WHICH THE BOARD CONSIDERS APPROPRIATE FOR
3 REVIEW UNDER SECTION 1310.
4 (C) RELATED ENTITIES.--
5 (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), NO PERSON SHALL
6 BE ELIGIBLE TO RECEIVE A SLOT MACHINE LICENSE UNLESS THE
7 PRINCIPALS AND KEY EMPLOYEES OF EACH INTERMEDIARY, SUBSIDIARY
8 OR HOLDING COMPANY OF THE PERSON MEET THE REQUIREMENTS OF
9 SUBSECTION (A).
10 (2) THE BOARD MAY REQUIRE THAT LENDERS AND UNDERWRITERS
11 OF INTERMEDIARIES, SUBSIDIARIES OR HOLDING COMPANIES OF A
12 SLOT MACHINE LICENSE APPLICANT MEET THE REQUIREMENTS OF
13 SUBSECTION (A) IF THE BOARD DETERMINES THAT THE SUITABILITY
14 OF A LENDER OR UNDERWRITER IS AT ISSUE AND IS NECESSARY TO
15 CONSIDER A PENDING APPLICATION FOR A SLOT MACHINE LICENSE.
16 (D) REVOCABLE PRIVILEGE.--THE ISSUANCE OR RENEWAL OF A
17 LICENSE, PERMIT OR REGISTRATION BY THE BOARD UNDER THIS SECTION
18 SHALL BE A REVOCABLE PRIVILEGE.
19 (E) WAIVER FOR PUBLICLY TRADED CORPORATIONS.--THE BOARD MAY
20 WAIVE THE REQUIREMENTS OF SUBSECTION (A) FOR A PERSON DIRECTLY
21 OR INDIRECTLY HOLDING OWNERSHIP OF SECURITIES IN A PUBLICLY
22 TRADED CORPORATION IF THE BOARD DETERMINES THAT THE HOLDER OF
23 THE SECURITIES IS NOT SIGNIFICANTLY INVOLVED IN THE ACTIVITIES
24 OF THE CORPORATION AND DOES NOT HAVE THE ABILITY TO CONTROL THE
25 CORPORATION OR ELECT ONE OR MORE DIRECTORS THEREOF.
26 (F) WAIVER FOR SUBSIDIARIES.--IF THE APPLICANT IS A
27 SUBSIDIARY, THE BOARD MAY WAIVE THE REQUIREMENTS OF SUBSECTION
28 (A) FOR A HOLDING COMPANY OR INTERMEDIARY AS FOLLOWS:
29 (1) IF THE APPLICANT IS A PUBLICLY TRADED CORPORATION,
30 THE BOARD MAY ISSUE A WAIVER UNDER THIS SUBSECTION IF IT
20050S0862B1553 - 100 -
1 DETERMINES THAT THE PRINCIPAL OR KEY EMPLOYEE DOES NOT HAVE
2 THE ABILITY TO CONTROL, HAVE A CONTROLLING INTEREST IN OR
3 ELECT ONE OR MORE DIRECTORS OF THE HOLDING COMPANY OR
4 INTERMEDIARY AND IS NOT ACTIVELY INVOLVED IN THE ACTIVITIES
5 OF THE APPLICANT.
6 (2) IF THE APPLICANT IS A NONCORPORATE ORGANIZATION, THE
7 BOARD MAY ISSUE A WAIVER UNDER THIS SUBSECTION FOR A PERSON
8 WHO DIRECTLY OR INDIRECTLY HOLDS A BENEFICIAL OR OWNERSHIP
9 INTEREST IN THE APPLICANT IF IT DETERMINES THAT THE PERSON
10 DOES NOT HAVE THE ABILITY TO CONTROL THE APPLICANT.
11 (G) ONGOING DUTY.--A PERSON APPLYING FOR A LICENSE, PERMIT
12 OR REGISTRATION UNDER THIS PART SHALL HAVE THE CONTINUING DUTY
13 TO PROVIDE INFORMATION REQUIRED BY THE BOARD OR THE BUREAU AND
14 TO COOPERATE IN ANY INQUIRY OR INVESTIGATION.
15 (H) CRIMINAL HISTORY RECORD CHECK.--THE BOARD SHALL CONDUCT
16 A CRIMINAL HISTORY RECORD CHECK ON ANY PERSON FOR WHOM A WAIVER
17 IS GRANTED UNDER THIS SECTION.
18 SECTION 7. TITLE 4 IS AMENDED BY ADDING SECTIONS TO READ:
19 § 1311.1. PERMITTING OF PRINCIPALS.
20 (A) PERMIT REQUIRED.--ALL PRINCIPALS SHALL OBTAIN A
21 PRINCIPAL PERMIT FROM THE BOARD.
22 (B) APPLICATION.--A PRINCIPAL PERMIT APPLICATION SHALL BE IN
23 A FORM PRESCRIBED BY THE BOARD AND SHALL INCLUDE THE FOLLOWING:
24 (1) VERIFICATION OF STATUS AS A PRINCIPAL FROM A SLOT
25 MACHINE LICENSEE, MANUFACTURER LICENSEE OR SUPPLIER LICENSEE.
26 (2) A DESCRIPTION OF RESPONSIBILITIES AS A PRINCIPAL.
27 (3) ALL RELEASES NECESSARY TO OBTAIN INFORMATION FROM
28 GOVERNMENTAL AGENCIES, EMPLOYERS AND OTHER ORGANIZATIONS.
29 (4) FINGERPRINTS, WHICH SHALL BE SUBMITTED TO THE
30 PENNSYLVANIA STATE POLICE.
20050S0862B1553 - 101 -
1 (5) A PHOTOGRAPH THAT MEETS THE STANDARDS OF THE
2 COMMONWEALTH PHOTO IMAGING NETWORK.
3 (6) DETAILS RELATING TO A SIMILAR LICENSE OR PERMIT
4 OBTAINED IN ANOTHER JURISDICTION.
5 (7) ANY ADDITIONAL INFORMATION REQUIRED BY THE BOARD.
6 (C) ISSUANCE.--FOLLOWING REVIEW OF THE APPLICATION AND THE
7 BACKGROUND INVESTIGATION, THE BOARD MAY ISSUE A PRINCIPAL PERMIT
8 IF THE APPLICANT HAS PROVEN BY CLEAR AND CONVINCING EVIDENCE
9 THAT THE APPLICANT IS A PERSON OF GOOD CHARACTER, HONESTY AND
10 INTEGRITY AND IS ELIGIBLE AND SUITABLE TO BE PERMITTED AS A
11 PRINCIPAL.
12 (D) NONTRANSFERABILITY.--A PERMIT ISSUED UNDER THIS SECTION
13 SHALL BE NONTRANSFERABLE.
14 (E) PRINCIPALS.--AN INDIVIDUAL WHO RECEIVES A PRINCIPAL
15 PERMIT NEED NOT OBTAIN A KEY EMPLOYEE PERMIT.
16 § 1311.2. PERMITTING OF KEY EMPLOYEES.
17 (A) PERMIT REQUIRED.--ALL KEY EMPLOYEES SHALL OBTAIN A KEY
18 EMPLOYEE PERMIT FROM THE BOARD.
19 (B) APPLICATION.--A KEY EMPLOYEE PERMIT APPLICATION SHALL BE
20 IN A FORM PRESCRIBED BY THE BOARD AND SHALL INCLUDE THE
21 FOLLOWING:
22 (1) VERIFICATION OF STATUS AS A KEY EMPLOYEE FROM A SLOT
23 MACHINE LICENSEE, MANUFACTURER LICENSEE OR SUPPLIER LICENSEE.
24 (2) A DESCRIPTION OF EMPLOYMENT RESPONSIBILITIES.
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.
20050S0862B1553 - 102 -
1 (6) DETAILS RELATING TO A SIMILAR LICENSE OR PERMIT
2 OBTAINED IN 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 KEY EMPLOYEE
6 PERMIT 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 PERMITTED AS A KEY EMPLOYEE.
10 (D) NONTRANSFERABILITY.--A PERMIT ISSUED UNDER THIS SECTION
11 SHALL BE NONTRANSFERABLE.
12 SECTION 7.1. SECTION 1317 OF TITLE 4 IS AMENDED TO READ:
13 § 1317. SUPPLIER [AND MANUFACTURER] LICENSES [APPLICATION].
14 (A) APPLICATION.--[ANY] A PERSON SEEKING TO PROVIDE SLOT
15 MACHINES OR ASSOCIATED EQUIPMENT TO A SLOT MACHINE LICENSEE
16 WITHIN THIS COMMONWEALTH [OR TO MANUFACTURE SLOT MACHINES FOR
17 USE IN THIS COMMONWEALTH] SHALL APPLY TO THE BOARD FOR [EITHER]
18 A SUPPLIER [OR MANUFACTURER] LICENSE. [NO PERSON, ITS AFFILIATE,
19 INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY WHO HAS APPLIED FOR
20 OR IS A HOLDER OF A MANUFACTURER OR SLOT MACHINE LICENSE SHALL
21 BE ELIGIBLE TO APPLY FOR OR HOLD A SUPPLIER LICENSE. A SUPPLIER
22 LICENSEE SHALL ESTABLISH A PRINCIPLE PLACE OF BUSINESS IN THIS
23 COMMONWEALTH WITHIN ONE YEAR OF ISSUANCE OF ITS SUPPLIER LICENSE
24 AND MAINTAIN SUCH DURING THE PERIOD IN WHICH THE LICENSE IS
25 HELD. NO SLOT MACHINE LICENSEE SHALL ENTER INTO ANY SALE, LEASE,
26 CONTRACT OR ANY OTHER TYPE OF AGREEMENT PROVIDING SLOT MACHINES,
27 PROGRESSIVE SLOT MACHINES, PARTS OR ASSOCIATED EQUIPMENT FOR USE
28 OR PLAY WITH ANY PERSON OTHER THAN A SUPPLIER LICENSED PURSUANT
29 TO THIS SECTION. SLOT MONITORING SYSTEMS, CASINO MANAGEMENT
30 SYSTEMS, PLAYER TRACKING SYSTEMS AND WIDE-AREA PROGRESSIVE
20050S0862B1553 - 103 -
1 SYSTEMS ARE EXCLUDED FROM ANY REQUIREMENTS THAT THEY BE PROVIDED
2 THROUGH A LICENSED SUPPLIER AS SET FORTH IN THIS PART.]
3 (B) REQUIREMENTS.--THE APPLICATION FOR A SUPPLIER [OR
4 MANUFACTURER LICENSE SHALL INCLUDE, AT A MINIMUM:] LICENSE SHALL
5 BE ON THE FORM REQUIRED BY THE BOARD, ACCOMPANIED BY THE
6 APPLICATION FEE AND SHALL INCLUDE ALL OF THE FOLLOWING:
7 (1) THE NAME AND BUSINESS ADDRESS OF THE APPLICANT[,]
8 AND THE APPLICANT'S AFFILIATES, INTERMEDIARIES, SUBSIDIARIES
9 AND HOLDING COMPANIES; THE DIRECTORS, KEY EMPLOYEES AND
10 OWNERS OF [THE APPLICANT] EACH BUSINESS; AND A LIST OF
11 EMPLOYEES AND THEIR POSITIONS WITHIN [THE] EACH BUSINESS, AS
12 WELL AS ANY FINANCIAL INFORMATION REQUIRED BY THE BOARD.
13 (1.1) A STATEMENT THAT THE APPLICANT AND EACH AFFILIATE,
14 INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY OF THE APPLICANT
15 ARE NOT SLOT MACHINE LICENSEES.
16 (2) THE CONSENT TO A BACKGROUND INVESTIGATION OF THE
17 APPLICANT, ITS OFFICERS, DIRECTORS, OWNERS, KEY EMPLOYEES OR
18 OTHER PERSONS REQUIRED BY THE BOARD AND A RELEASE TO OBTAIN
19 ANY AND ALL INFORMATION NECESSARY FOR THE COMPLETION OF THE
20 BACKGROUND INVESTIGATION.
21 (3) THE DETAILS OF ANY EQUIVALENT LICENSE GRANTED OR
22 DENIED BY OTHER JURISDICTIONS WHERE GAMING ACTIVITIES AS
23 AUTHORIZED BY THIS PART ARE PERMITTED AND CONSENT FOR THE
24 BOARD TO ACQUIRE COPIES OF APPLICATIONS SUBMITTED OR LICENSES
25 ISSUED IN CONNECTION THEREWITH.
26 (4) THE TYPE OF GOODS AND SERVICES TO BE SUPPLIED [OR
27 MANUFACTURED] AND WHETHER THOSE GOODS AND SERVICES WILL BE
28 PROVIDED THROUGH PURCHASE, LEASE, CONTRACT OR OTHERWISE.
29 (5) ANY OTHER INFORMATION DETERMINED BY THE BOARD TO BE
30 APPROPRIATE.
20050S0862B1553 - 104 -
1 (C) REVIEW AND APPROVAL.--UPON BEING SATISFIED THAT THE
2 REQUIREMENTS OF SUBSECTION (B) HAVE BEEN MET, THE BOARD MAY
3 APPROVE THE APPLICATION AND GRANT THE APPLICANT A SUPPLIER
4 LICENSE CONSISTENT WITH ALL OF THE FOLLOWING:
5 (1) THE LICENSE SHALL BE FOR A PERIOD OF ONE YEAR. UPON
6 EXPIRATION, THE LICENSE MAY BE RENEWED IN ACCORDANCE WITH
7 SUBSECTION (D).
8 (2) THE LICENSE SHALL BE NONTRANSFERABLE.
9 (3) ANY OTHER CONDITION ESTABLISHED BY THE BOARD.
10 (D) RENEWAL.--
11 (1) SIX MONTHS PRIOR TO EXPIRATION OF A SUPPLIER
12 LICENSE, THE SUPPLIER LICENSEE SEEKING RENEWAL OF ITS LICENSE
13 SHALL SUBMIT A RENEWAL APPLICATION ACCOMPANIED BY THE RENEWAL
14 FEE TO THE BOARD.
15 (2) IF THE RENEWAL APPLICATION SATISFIES THE
16 REQUIREMENTS OF SUBSECTION (B), THE BOARD MAY RENEW THE
17 LICENSEE'S SUPPLIER LICENSE.
18 (3) IF THE BOARD RECEIVES A COMPLETE RENEWAL APPLICATION
19 BUT FAILS TO ACT UPON THE RENEWAL APPLICATION PRIOR TO THE
20 EXPIRATION OF THE SUPPLIER LICENSE, THE SUPPLIER LICENSE
21 SHALL CONTINUE IN EFFECT FOR AN ADDITIONAL SIX-MONTH PERIOD
22 OR UNTIL ACTED UPON BY THE BOARD, WHICHEVER OCCURS FIRST.
23 (E) PROHIBITIONS.--
24 (1) NO PERSON MAY PROVIDE SLOT MACHINES OR ASSOCIATED
25 EQUIPMENT TO A SLOT MACHINE LICENSEE WITHIN THIS COMMONWEALTH
26 UNLESS THE PERSON HAS BEEN ISSUED A SUPPLIER LICENSE UNDER
27 THIS SECTION.
28 (2) NO SLOT MACHINE LICENSEE MAY ACQUIRE, PURCHASE OR
29 LEASE SLOT MACHINES OR ASSOCIATED EQUIPMENT FROM A PERSON
30 UNLESS THE PERSON HAS BEEN ISSUED A SUPPLIER LICENSE UNDER
20050S0862B1553 - 105 -
1 THIS SECTION.
2 SECTION 7.2. TITLE 4 IS AMENDED BY ADDING A SECTION TO READ:
3 § 1317.1. MANUFACTURER LICENSES.
4 (A) APPLICATION.--
5 (1) A PERSON SEEKING TO MANUFACTURE SLOT MACHINES AND
6 ASSOCIATED EQUIPMENT FOR USE IN THIS COMMONWEALTH SHALL APPLY
7 TO THE BOARD FOR A MANUFACTURER LICENSE.
8 (2) A PERSON SEEKING TO REPAIR SLOT MACHINES OR
9 ASSOCIATED EQUIPMENT WHICH THE PERSON MANUFACTURED SHALL
10 APPLY TO THE BOARD FOR A MANUFACTURER LICENSE.
11 (B) REQUIREMENTS.--THE APPLICATION FOR A MANUFACTURER
12 LICENSE SHALL BE ON THE FORM REQUIRED BY THE BOARD, ACCOMPANIED
13 BY THE APPLICATION FEE AND SHALL INCLUDE ALL OF THE FOLLOWING:
14 (1) THE NAME AND BUSINESS ADDRESS OF THE APPLICANT AND
15 THE APPLICANT'S AFFILIATES, INTERMEDIARIES, SUBSIDIARIES AND
16 HOLDING COMPANIES; THE DIRECTORS, KEY EMPLOYEES AND OWNERS OF
17 EACH BUSINESS; AND A LIST OF EMPLOYEES AND THEIR POSITIONS
18 WITHIN EACH BUSINESS, AS WELL AS ANY FINANCIAL INFORMATION
19 REQUIRED BY THE BOARD.
20 (2) A STATEMENT THAT THE APPLICANT AND EACH AFFILIATE,
21 INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY OF THE APPLICANT
22 ARE NOT SLOT MACHINE LICENSEES.
23 (3) THE CONSENT TO A BACKGROUND INVESTIGATION OF THE
24 APPLICANT, ITS OFFICERS, DIRECTORS, OWNERS, KEY EMPLOYEES OR
25 OTHER PERSONS REQUIRED BY THE BOARD AND A RELEASE TO OBTAIN
26 ANY AND ALL INFORMATION NECESSARY FOR THE COMPLETION OF THE
27 BACKGROUND INVESTIGATION.
28 (4) THE DETAILS OF ANY EQUIVALENT LICENSE GRANTED OR
29 DENIED BY OTHER JURISDICTIONS WHERE GAMING ACTIVITIES AS
30 AUTHORIZED BY THIS PART ARE PERMITTED AND CONSENT FOR THE
20050S0862B1553 - 106 -
1 BOARD TO ACQUIRE COPIES OF APPLICATIONS SUBMITTED OR LICENSES
2 ISSUED IN CONNECTION THEREWITH.
3 (5) THE TYPE OF SLOT MACHINES OR ASSOCIATED EQUIPMENT TO
4 BE MANUFACTURED OR REPAIRED.
5 (6) ANY OTHER INFORMATION DETERMINED BY THE BOARD TO BE
6 APPROPRIATE.
7 (C) REVIEW AND APPROVAL.--UPON BEING SATISFIED THAT THE
8 REQUIREMENTS OF SUBSECTION (B) HAVE BEEN MET, THE BOARD MAY
9 APPROVE THE APPLICATION AND GRANT THE APPLICANT A MANUFACTURER
10 LICENSE CONSISTENT WITH ALL OF THE FOLLOWING:
11 (1) THE LICENSE SHALL BE FOR A PERIOD OF ONE YEAR. UPON
12 EXPIRATION, A LICENSE MAY BE RENEWED IN ACCORDANCE WITH
13 SUBSECTION (D).
14 (2) THE LICENSE SHALL BE NONTRANSFERABLE.
15 (3) ANY OTHER CONDITION ESTABLISHED BY THE BOARD.
16 (D) RENEWAL.--
17 (1) SIX MONTHS PRIOR TO EXPIRATION OF A MANUFACTURER
18 LICENSE, THE MANUFACTURER LICENSEE SEEKING RENEWAL OF ITS
19 LICENSE SHALL SUBMIT A RENEWAL APPLICATION ACCOMPANIED BY THE
20 RENEWAL FEE TO THE BOARD.
21 (2) IF THE RENEWAL APPLICATION SATISFIES THE
22 REQUIREMENTS OF SUBSECTION (B), THE BOARD MAY RENEW THE
23 LICENSEE'S MANUFACTURER LICENSE.
24 (3) IF THE BOARD RECEIVES A COMPLETE RENEWAL APPLICATION
25 BUT FAILS TO ACT UPON THE RENEWAL APPLICATION PRIOR TO THE
26 EXPIRATION OF THE MANUFACTURER LICENSE, THE MANUFACTURER
27 LICENSE SHALL CONTINUE IN EFFECT FOR AN ADDITIONAL SIX-MONTH
28 PERIOD OR UNTIL ACTED UPON BY THE BOARD, WHICHEVER OCCURS
29 FIRST.
30 (E) PROHIBITIONS.--
20050S0862B1553 - 107 -
1 (1) NO PERSON MAY MANUFACTURE OR REPAIR SLOT MACHINES OR
2 ASSOCIATED EQUIPMENT FOR USE WITHIN THIS COMMONWEALTH BY A
3 SLOT MACHINE LICENSEE UNLESS THE PERSON HAS BEEN ISSUED A
4 MANUFACTURER LICENSE UNDER THIS SECTION.
5 (2) NO SLOT MACHINE LICENSEE MAY USE SLOT MACHINES OR
6 ASSOCIATED EQUIPMENT UNLESS THE SLOT MACHINES OR ASSOCIATED
7 EQUIPMENT WERE MANUFACTURED OR REPAIRED BY A PERSON THAT HAS
8 BEEN ISSUED A MANUFACTURER LICENSE UNDER THIS SECTION.
9 (3) NO PERSON ISSUED A LICENSE UNDER THIS SECTION SHALL
10 APPLY FOR OR BE ISSUED A LICENSE UNDER SECTION 1317 (RELATING
11 TO SUPPLIER LICENSES).
12 SECTION 8. SECTIONS 1318(B)(4), 1327 AND 1402(A) OF TITLE 4
13 ARE AMENDED TO READ:
14 § 1318. OCCUPATION PERMIT APPLICATION.
15 * * *
16 (B) REQUIREMENTS.--THE APPLICATION FOR AN OCCUPATION PERMIT
17 SHALL INCLUDE, AT A MINIMUM:
18 * * *
19 (4) A PHOTOGRAPH [AND HANDWRITING EXEMPLAR] OF THE
20 PERSON.
21 * * *
22 § 1327. NONTRANSFERABILITY OF LICENSES.
23 A LICENSE [OR], PERMIT OR REGISTRATION ISSUED BY THE BOARD IS
24 A GRANT OF THE PRIVILEGE TO CONDUCT A BUSINESS IN THIS
25 COMMONWEALTH. EXCEPT AS PERMITTED BY SECTION 1328 (RELATING TO
26 CHANGE IN OWNERSHIP OR CONTROL OF SLOT MACHINE LICENSEE), A
27 LICENSE [OR], PERMIT OR REGISTRATION GRANTED OR RENEWED PURSUANT
28 TO THIS PART SHALL NOT BE SOLD, TRANSFERRED OR ASSIGNED TO ANY
29 OTHER PERSON[,]; NOR SHALL A LICENSEE [OR], PERMITTEE OR
30 REGISTRANT PLEDGE OR OTHERWISE GRANT A SECURITY INTEREST IN OR
20050S0862B1553 - 108 -
1 LIEN ON THE LICENSE [OR], PERMIT OR REGISTRATION. NOTHING
2 CONTAINED IN THIS PART IS INTENDED OR SHALL BE CONSTRUED TO
3 CREATE IN ANY PERSON AN ENTITLEMENT TO A LICENSE, PERMIT OR
4 REGISTRATION. THE BOARD HAS THE SOLE DISCRETION TO ISSUE, RENEW,
5 CONDITION OR DENY THE ISSUANCE OF A SLOT MACHINE LICENSE BASED
6 UPON THE PURPOSES AND REQUIREMENTS OF THIS PART.
7 § 1402. GROSS TERMINAL REVENUE DEDUCTIONS.
8 (A) DEDUCTIONS.--AFTER DETERMINING THE APPROPRIATE
9 ASSESSMENTS FOR EACH SLOT MACHINE LICENSEE, THE DEPARTMENT SHALL
10 [DEDUCT THE FOLLOWING] DETERMINE COSTS, EXPENSES OR PAYMENTS
11 FROM EACH ACCOUNT ESTABLISHED UNDER SECTION 1401 (RELATING TO
12 SLOT MACHINE LICENSEE DEPOSITS). THE FOLLOWING COSTS AND
13 EXPENSES SHALL BE TRANSFERRED TO THE APPROPRIATE AGENCY UPON
14 APPROPRIATION BY THE GENERAL ASSEMBLY:
15 (1) THE COSTS AND EXPENSES TO BE INCURRED BY THE
16 DEPARTMENT IN ADMINISTERING THIS PART AT EACH SLOT MACHINE
17 LICENSEE'S LICENSED FACILITY BASED UPON A BUDGET SUBMITTED BY
18 THE DEPARTMENT TO AND APPROVED BY THE BOARD.
19 (2) THE OTHER COSTS AND EXPENSES TO BE INCURRED BY THE
20 DEPARTMENT IN ADMINISTERING THIS PART BASED UPON A BUDGET
21 SUBMITTED BY THE DEPARTMENT TO AND APPROVED BY THE BOARD.
22 (3) SUMS NECESSARY TO REPAY ANY LOANS MADE BY THE
23 GENERAL FUND TO THE DEPARTMENT IN CONNECTION WITH CARRYING
24 OUT ITS RESPONSIBILITIES UNDER THIS PART, INCLUDING THE COSTS
25 OF THE INITIAL ACQUISITION OF THE CENTRAL CONTROL COMPUTER
26 AND ANY ACCESSORIES OR ASSOCIATED EQUIPMENT.
27 (4) THE COSTS AND EXPENSES TO BE INCURRED BY THE
28 PENNSYLVANIA STATE POLICE AND THE OFFICE OF ATTORNEY GENERAL
29 AND NOT OTHERWISE REIMBURSED UNDER THIS PART IN CARRYING OUT
30 THEIR RESPECTIVE RESPONSIBILITIES UNDER THIS PART BASED UPON
20050S0862B1553 - 109 -
1 A BUDGET SUBMITTED BY THE PENNSYLVANIA STATE POLICE AND THE
2 ATTORNEY GENERAL TO AND APPROVED BY THE BOARD.
3 (5) SUMS NECESSARY TO REPAY ANY LOANS MADE BY THE
4 GENERAL FUND TO THE PENNSYLVANIA STATE POLICE IN CONNECTION
5 WITH CARRYING OUT ITS RESPONSIBILITIES UNDER THIS PART.
6 (6) THE COSTS AND EXPENSES TO BE INCURRED BY THE BOARD
7 IN CARRYING OUT ITS RESPONSIBILITIES UNDER THIS PART BASED
8 UPON A BUDGET APPROVED BY THE BOARD.
9 (7) SUMS NECESSARY TO REPAY ANY LOANS MADE BY THE
10 GENERAL FUND TO THE BOARD IN CONNECTION WITH CARRYING OUT ITS
11 RESPONSIBILITIES UNDER THIS PART.
12 * * *
13 SECTION 8.1. SECTION 1403(C)(2)(I)(E), (II)(E), (F) AND (G),
14 (III)(E) AND (F) AND (IV) AND (3)(V) OF TITLE 4 ARE AMENDED AND
15 PARAGRAPH (3) IS AMENDED BY ADDING SUBPARAGRAPHS TO READ:
16 § 1403. ESTABLISHMENT OF STATE GAMING FUND AND NET SLOT MACHINE
17 REVENUE DISTRIBUTION.
18 * * *
19 (C) TRANSFERS AND DISTRIBUTIONS.--THE DEPARTMENT SHALL:
20 * * *
21 (2) FROM THE LOCAL SHARE ASSESSMENT ESTABLISHED IN
22 SUBSECTION (B), MAKE QUARTERLY DISTRIBUTIONS AMONG THE
23 COUNTIES HOSTING A LICENSED FACILITY IN ACCORDANCE WITH THE
24 FOLLOWING SCHEDULE:
25 (I) IF THE LICENSED FACILITY IS A CATEGORY 1
26 LICENSED FACILITY THAT IS LOCATED AT A HARNESS RACETRACK
27 AND THE COUNTY, INCLUDING A HOME RULE COUNTY, IN WHICH
28 THE LICENSED FACILITY IS LOCATED IS:
29 * * *
30 (E) A COUNTY OF THE FOURTH CLASS: 2% OF THE
20050S0862B1553 - 110 -
1 GROSS TERMINAL REVENUE FROM EACH SUCH LICENSED
2 FACILITY SHALL BE DEPOSITED INTO A RESTRICTED ACCOUNT
3 ESTABLISHED IN THE DEPARTMENT OF COMMUNITY AND
4 ECONOMIC DEVELOPMENT TO BE USED EXCLUSIVELY FOR
5 GRANTS TO THE COUNTY, TO ECONOMIC DEVELOPMENT
6 AUTHORITIES [OR ORGANIZATIONS WITHIN THE COUNTY] OR
7 REDEVELOPMENT AUTHORITIES WITHIN THE COUNTY FOR
8 GRANTS FOR ECONOMIC DEVELOPMENT PROJECTS, JOB
9 TRAINING, COMMUNITY IMPROVEMENT PROJECTS, OTHER
10 PROJECTS IN THE PUBLIC INTEREST AND REASONABLE
11 ADMINISTRATIVE COSTS. NOTWITHSTANDING THE PROVISIONS
12 OF THE ACT OF FEBRUARY 9, 1999 (P.L.1, NO.1), KNOWN
13 AS THE CAPITAL FACILITIES DEBT ENABLING ACT, GRANTS
14 MADE UNDER THIS CLAUSE MAY BE UTILIZED AS LOCAL
15 MATCHING FUNDS FOR OTHER GRANTS OR LOANS FROM THE
16 COMMONWEALTH.
17 * * *
18 (II) IF THE LICENSED FACILITY IS A CATEGORY 1
19 LICENSED FACILITY AND IS LOCATED AT A THOROUGHBRED
20 RACETRACK AND THE COUNTY IN WHICH THE LICENSED FACILITY
21 IS LOCATED IS:
22 * * *
23 (E) A COUNTY OF THE FOURTH CLASS: 2% OF THE
24 GROSS TERMINAL REVENUE FROM EACH SUCH LICENSED
25 FACILITY SHALL BE DEPOSITED INTO A RESTRICTED ACCOUNT
26 ESTABLISHED IN THE DEPARTMENT OF COMMUNITY AND
27 ECONOMIC DEVELOPMENT TO BE USED EXCLUSIVELY FOR
28 GRANTS TO THE COUNTY, TO ECONOMIC DEVELOPMENT
29 AUTHORITIES [OR ORGANIZATIONS WITHIN THE COUNTY] OR
30 REDEVELOPMENT AUTHORITIES WITHIN THE COUNTY FOR
20050S0862B1553 - 111 -
1 GRANTS FOR ECONOMIC DEVELOPMENT PROJECTS, COMMUNITY
2 IMPROVEMENT PROJECTS, JOB TRAINING, OTHER PROJECTS IN
3 THE PUBLIC INTEREST AND REASONABLE ADMINISTRATIVE
4 COSTS. NOTWITHSTANDING THE CAPITAL FACILITIES DEBT
5 ENABLING ACT, GRANTS MADE UNDER THIS CLAUSE MAY BE
6 UTILIZED AS LOCAL MATCHING FUNDS FOR OTHER GRANTS OR
7 LOANS FROM THE COMMONWEALTH.
8 [(F) COUNTIES OF THE FIFTH THROUGH EIGHTH
9 CLASSES: 2% OF THE GROSS TERMINAL REVENUE FROM EACH
10 SUCH LICENSED FACILITY SHALL BE DEPOSITED INTO A
11 RESTRICTED ACCOUNT ESTABLISHED IN THE DEPARTMENT OF
12 COMMUNITY AND ECONOMIC DEVELOPMENT TO BE USED
13 EXCLUSIVELY FOR GRANTS TO THE COUNTY.]
14 (G) ANY COUNTY NOT SPECIFICALLY ENUMERATED IN
15 CLAUSES (A) THROUGH [(F),] (E), 2% OF THE GROSS
16 TERMINAL REVENUE OR $10,000,000, WHICHEVER IS
17 GREATER, TO THE COUNTY HOSTING THE LICENSED FACILITY
18 FROM EACH SUCH LICENSED FACILITY.
19 (III) IF THE FACILITY IS A CATEGORY 2 LICENSED
20 FACILITY AND IF THE COUNTY IN WHICH THE LICENSED FACILITY
21 IS LOCATED IS:
22 * * *
23 (E) A COUNTY OF THE FOURTH CLASS: 2% OF THE
24 GROSS TERMINAL REVENUE FROM EACH SUCH LICENSED
25 FACILITY SHALL BE DEPOSITED INTO A RESTRICTED ACCOUNT
26 ESTABLISHED IN THE DEPARTMENT OF COMMUNITY AND
27 ECONOMIC DEVELOPMENT TO BE USED EXCLUSIVELY FOR
28 GRANTS TO THE COUNTY, TO ECONOMIC DEVELOPMENT
29 AUTHORITIES [OR ORGANIZATIONS WITHIN THE COUNTY] OR
30 REDEVELOPMENT AUTHORITIES WITHIN THE COUNTY FOR
20050S0862B1553 - 112 -
1 GRANTS FOR ECONOMIC DEVELOPMENT PROJECTS, COMMUNITY
2 IMPROVEMENT PROJECTS, JOB TRAINING, OTHER PROJECTS IN
3 THE PUBLIC INTEREST AND REASONABLE ADMINISTRATIVE
4 COSTS. NOTWITHSTANDING THE CAPITAL FACILITIES DEBT
5 ENABLING ACT, GRANTS MADE UNDER THIS CLAUSE MAY BE
6 UTILIZED AS LOCAL MATCHING FUNDS FOR OTHER GRANTS OR
7 LOANS FROM THE COMMONWEALTH.
8 (F) COUNTIES OF THE FIFTH THROUGH EIGHTH
9 CLASSES: 2% OF THE GROSS TERMINAL REVENUE FROM EACH
10 SUCH LICENSED FACILITY SHALL BE DEPOSITED INTO A
11 RESTRICTED ACCOUNT ESTABLISHED IN THE DEPARTMENT OF
12 COMMUNITY AND ECONOMIC DEVELOPMENT TO BE USED
13 EXCLUSIVELY FOR GRANTS TO THE COUNTY, [TO CONTIGUOUS
14 COUNTIES,] TO ECONOMIC DEVELOPMENT AUTHORITIES [OR
15 ORGANIZATIONS WITHIN THE COUNTY OR CONTIGUOUS
16 COUNTIES] OR REDEVELOPMENT AUTHORITIES WITHIN THE
17 COUNTY [OR CONTIGUOUS COUNTIES] FOR GRANTS FOR
18 ECONOMIC DEVELOPMENT PROJECTS, COMMUNITY IMPROVEMENT
19 PROJECTS, OTHER PROJECTS IN THE PUBLIC INTEREST AND
20 REASONABLE ADMINISTRATIVE COSTS. NOTWITHSTANDING THE
21 CAPITAL FACILITIES DEBT ENABLING ACT, GRANTS MADE
22 UNDER THIS CLAUSE MAY BE UTILIZED AS LOCAL MATCHING
23 FUNDS FOR OTHER GRANTS OR LOANS FROM THE
24 COMMONWEALTH.
25 * * *
26 (IV) IF THE FACILITY IS A CATEGORY 3 LICENSED
27 FACILITY, 2% OF THE GROSS TERMINAL REVENUE FROM EACH SUCH
28 LICENSED FACILITY SHALL BE DEPOSITED INTO A RESTRICTED
29 ACCOUNT ESTABLISHED IN THE DEPARTMENT OF COMMUNITY AND
30 ECONOMIC DEVELOPMENT TO BE USED EXCLUSIVELY FOR GRANTS TO
20050S0862B1553 - 113 -
1 THE COUNTY, TO ECONOMIC DEVELOPMENT AUTHORITIES [OR
2 ORGANIZATIONS WITHIN THE COUNTY] OR REDEVELOPMENT
3 AUTHORITIES WITHIN THE COUNTY FOR GRANTS FOR ECONOMIC
4 DEVELOPMENT PROJECTS AND COMMUNITY IMPROVEMENT PROJECTS.
5 * * *
6 (3) FROM THE LOCAL SHARE ASSESSMENT ESTABLISHED IN
7 SUBSECTION (B), MAKE QUARTERLY DISTRIBUTIONS AMONG THE
8 MUNICIPALITIES, INCLUDING HOME RULE MUNICIPALITIES, HOSTING A
9 LICENSED FACILITY IN ACCORDANCE WITH THE FOLLOWING SCHEDULE:
10 * * *
11 [(V) TO A TOWNSHIP OF THE SECOND CLASS HOSTING A
12 LICENSED FACILITY OR FACILITIES, OTHER THAN A CATEGORY 3
13 LICENSED FACILITY, 2% OF THE GROSS TERMINAL REVENUE OR
14 $10,000,000 ANNUALLY, WHICHEVER IS GREATER, OF ALL
15 LICENSED FACILITIES LOCATED IN THE TOWNSHIP SUBJECT,
16 HOWEVER, TO THE BUDGETARY LIMITATION IN THIS
17 SUBPARAGRAPH. THE AMOUNT ALLOCATED TO THE DESIGNATED
18 MUNICIPALITIES SHALL NOT EXCEED 50% OF THEIR TOTAL BUDGET
19 FOR FISCAL YEAR 2003-2004, ADJUSTED FOR INFLATION IN
20 SUBSEQUENT YEARS BY AN AMOUNT NOT TO EXCEED AN ANNUAL
21 COST-OF-LIVING ADJUSTMENT CALCULATED BY APPLYING THE
22 PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX FOR ALL
23 URBAN CONSUMERS FOR THE PENNSYLVANIA, NEW JERSEY,
24 DELAWARE AND MARYLAND AREA, FOR THE MOST RECENT 12-MONTH
25 PERIOD FOR WHICH FIGURES HAVE BEEN OFFICIALLY REPORTED BY
26 THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR
27 STATISTICS, IMMEDIATELY PRIOR TO THE DATE THE ADJUSTMENT
28 IS DUE TO TAKE EFFECT. ANY REMAINING MONEY SHALL BE
29 DISTRIBUTED IN ACCORDANCE WITH PARAGRAPH (2) BASED UPON
30 THE COUNTY WHERE THE LICENSED FACILITY OR FACILITIES IS
20050S0862B1553 - 114 -
1 LOCATED. IN THE EVENT THAT THE REVENUES GENERATED BY THE
2 2% DO NOT MEET THE $10,000,000 MINIMUM SPECIFIED IN THIS
3 SUBPARAGRAPH, THE LICENSED GAMING ENTITY OPERATING THE
4 LICENSED FACILITY OR FACILITIES IN THE TOWNSHIP SHALL
5 REMIT THE DIFFERENCE TO THE MUNICIPALITY.]
6 (V.1) TO A TOWNSHIP OF THE SECOND CLASS HOSTING A
7 LICENSED FACILITY OR FACILITIES, OTHER THAN A CATEGORY 3
8 LICENSED FACILITY, 2% OF THE GROSS TERMINAL REVENUE OR
9 $10,000,000 ANNUALLY, WHICHEVER IS GREATER, OF ALL
10 LICENSED FACILITIES LOCATED IN THE TOWNSHIP. IN THE EVENT
11 THAT THE REVENUES GENERATED BY THE 2% DO NOT MEET THE
12 $10,000,000 MINIMUM SPECIFIED IN THIS SUBPARAGRAPH, THE
13 LICENSED GAMING ENTITY OPERATING THE LICENSED FACILITY OR
14 FACILITIES IN THE TOWNSHIP SHALL REMIT THE DIFFERENCE TO
15 THE MUNICIPALITY.
16 * * *
17 (XVI) NOTWITHSTANDING SUBPARAGRAPHS (V.1) AND (X),
18 IF A LICENSED FACILITY OR FACILITIES, OTHER THAN A
19 CATEGORY 3 LICENSED FACILITY, IS LOCATED IN THE MORE THAN
20 ONE SECOND CLASS TOWNSHIP, 2% OF GROSS TERMINAL REVENUE
21 OF THE LICENSED FACILITIES OR $10,000,000, WHICHEVER IS
22 GREATER, SHALL BE DISTRIBUTED TO THE SECOND CLASS
23 TOWNSHIPS. THE AMOUNT AVAILABLE SHALL BE DISTRIBUTED ON A
24 PRO RATA BASIS DETERMINED BY THE PERCENTAGE OF ACREAGE
25 LOCATED IN EACH TOWNSHIP TO THE TOTAL ACREAGE OCCUPIED BY
26 THE LICENSED FACILITIES. IN THE EVENT THAT THE REVENUES
27 GENERATED BY THE 2% DO NOT MEET THE $10,000,000 MINIMUM
28 SPECIFIED IN THIS SUBPARAGRAPH, THE LICENSED GAMING
29 ENTITY OPERATING THE LICENSED FACILITY OR FACILITIES IN
30 THE TOWNSHIPS SHALL REMIT THE DIFFERENCE TO THE
20050S0862B1553 - 115 -
1 TOWNSHIPS.
2 SECTION 8.2. SECTION 1407 OF TITLE 4 IS AMENDED BY ADDING A
3 SUBSECTION TO READ:
4 § 1407. PENNSYLVANIA GAMING ECONOMIC DEVELOPMENT AND TOURISM
5 FUND.
6 * * *
7 (C.1) COUNTY FAIRS.--
8 (1) WITHIN THE PENNSYLVANIA GAMING AND ECONOMIC
9 DEVELOPMENT AND TOURISM FUND THERE IS ESTABLISHED A
10 RESTRICTED REVENUE ACCOUNT TO BE KNOWN AS THE COUNTY FAIR
11 CAPITAL IMPROVEMENT AND HARNESS RACING ACCOUNT. MONEY
12 DEPOSITED INTO THE ACCOUNT SHALL BE NONLAPSING AND ARE
13 APPROPRIATED ON A CONTINUING BASIS, WITH THE APPROVAL OF THE
14 GOVERNOR, TO THE DEPARTMENT OF AGRICULTURE. ANY INCOME
15 DERIVED FROM INVESTMENT OF MONEY IN THE ACCOUNT SHALL BE
16 CREDITED TO THE ACCOUNT.
17 (2) THE SUM OF $1,500,000 SHALL BE ANNUALLY TRANSFERRED
18 FROM THE PENNSYLVANIA GAMING AND ECONOMIC DEVELOPMENT AND
19 TOURISM FUND INTO THE COUNTY FAIR CAPITAL IMPROVEMENT AND
20 HARNESS RACING ACCOUNT.
21 (3) MONEY IN THE COUNTY FAIR CAPITAL IMPROVEMENT AND
22 HARNESS RACING ACCOUNT SHALL BE USED BY THE DEPARTMENT OF
23 AGRICULTURE TO MAKE MATCHING GRANTS FOR CAPITAL IMPROVEMENTS
24 TO FACILITIES AT COUNTY FAIRGROUNDS, INCLUDING HARNESS RACING
25 TRACKS LOCATED AT COUNTY FAIRGROUNDS. GRANTS FOR CAPITAL
26 IMPROVEMENTS SHALL NOT EXCEED 50% OF THE COSTS OF THE PROJECT
27 AND SHALL BE MADE BY THE SECRETARY OF AGRICULTURE, IN
28 CONSULTATION WITH THE STATE ASSOCIATION OF COUNTY FAIRS.
29 * * *
30 SECTION 9. SECTION 1408(A) AND (E) OF TITLE 4 ARE AMENDED
20050S0862B1553 - 116 -
1 AND THE SECTION IS AMENDED BY ADDING SUBSECTIONS TO READ:
2 § 1408. TRANSFERS FROM STATE GAMING FUND.
3 (A) TRANSFER FOR COMPULSIVE PROBLEM GAMBLING TREATMENT.--
4 EACH YEAR, THE SUM OF [$1,500,000] $4,000,000 OR AN AMOUNT EQUAL
5 TO [.001] .003 MULTIPLIED BY THE TOTAL GROSS TERMINAL REVENUE OF
6 ALL ACTIVE AND OPERATING LICENSED GAMING ENTITIES, WHICHEVER IS
7 GREATER, SHALL BE TRANSFERRED INTO THE COMPULSIVE AND PROBLEM
8 GAMBLING TREATMENT FUND ESTABLISHED IN SECTION 1509 (RELATING TO
9 COMPULSIVE AND PROBLEM GAMBLING PROGRAM).
10 * * *
11 (C.1) TRANSFER FOR VICTIMS OF DOMESTIC VIOLENCE.--EACH YEAR
12 THE SUM OF $3,500,000 SHALL BE TRANSFERRED FROM THE FUND TO THE
13 DEPARTMENT OF PUBLIC WELFARE TO BE USED FOR DOMESTIC VIOLENCE
14 PROGRAMS.
15 (C.2) TRANSFER FOR AUTISM RESEARCH AND OUTREACH.--THE SUM OF
16 $3,500,000 SHALL BE TRANSFERRED FROM THE FUND TO THE DEPARTMENT
17 OF PUBLIC WELFARE FOR SERVICES AND PROGRAMS REGARDING AUTISM AND
18 OTHER PERVASIVE DEVELOPMENTAL DISORDERS.
19 (C.3) TRANSFER FOR SPECIAL EDUCATION SERVICES.--EACH YEAR AN
20 AMOUNT EQUAL TO THE UNREIMBURSED EXPENSES FOR SPECIAL EDUCATION
21 SERVICES PROVIDED BY A SCHOOL DISTRICT SHALL BE TRANSFERRED FROM
22 THE FUND TO THE DEPARTMENT OF EDUCATION FOR REIMBURSEMENT TO THE
23 SCHOOL DISTRICT. THE TOTAL TRANSFER UNDER THIS SUBSECTION IN ANY
24 FISCAL YEAR SHALL NOT EXCEED THE AMOUNT RECEIVED BY PENNSYLVANIA
25 SCHOOL DISTRICTS FROM THE SCHOOL BASED ACCESS PROGRAM FOR THE
26 2003-2004 FISCAL YEAR.
27 * * *
28 (E) TRANSFER TO PROPERTY TAX RELIEF FUND.--MONTHLY, THE
29 STATE TREASURER SHALL TRANSFER THE REMAINING BALANCE IN THE
30 STATE GAMING FUND WHICH IS NOT ALLOCATED IN SUBSECTIONS (A),
20050S0862B1553 - 117 -
1 (B), (C), (C.1), (C.2), (C.3) AND (D) TO THE PROPERTY TAX RELIEF
2 FUND ESTABLISHED IN SECTION 1409 (RELATING TO PROPERTY TAX
3 RELIEF FUND).
4 SECTION 10. SECTIONS 1509(A), (B) AND (D) AND 1512 OF TITLE
5 4 ARE AMENDED TO READ:
6 § 1509. COMPULSIVE AND PROBLEM GAMBLING PROGRAM.
7 (A) ESTABLISHMENT OF PROGRAM.--THE DEPARTMENT OF HEALTH, IN
8 CONSULTATION WITH ORGANIZATIONS SIMILAR TO THE MID-ATLANTIC
9 ADDICTION TRAINING INSTITUTE, SHALL DEVELOP PROGRAM GUIDELINES
10 FOR PUBLIC EDUCATION, AWARENESS AND TRAINING REGARDING
11 COMPULSIVE AND PROBLEM GAMBLING AND THE TREATMENT AND PREVENTION
12 OF COMPULSIVE AND PROBLEM GAMBLING. THE GUIDELINES SHALL INCLUDE
13 STRATEGIES FOR THE PREVENTION OF COMPULSIVE AND PROBLEM
14 GAMBLING. THE DEPARTMENT OF HEALTH MAY COLLABORATE WITH THE
15 BOARD AND LICENSED GAMING ENTITIES TO DEVELOP SUCH STRATEGIES.
16 THE PROGRAM SHALL INCLUDE:
17 (1) MAINTENANCE OF A COMPULSIVE GAMBLERS ASSISTANCE
18 ORGANIZATION'S TOLL-FREE PROBLEM GAMBLING TELEPHONE NUMBER TO
19 PROVIDE CRISIS COUNSELING AND REFERRAL SERVICES TO FAMILIES
20 EXPERIENCING DIFFICULTY AS A RESULT OF PROBLEM OR COMPULSIVE
21 GAMBLING.
22 (2) THE PROMOTION OF PUBLIC AWARENESS REGARDING THE
23 RECOGNITION AND PREVENTION OF PROBLEM OR COMPULSIVE GAMBLING.
24 (3) FACILITATION, THROUGH IN-SERVICE TRAINING AND OTHER
25 MEANS, OF THE AVAILABILITY OF EFFECTIVE ASSISTANCE PROGRAMS
26 FOR PROBLEM AND COMPULSIVE GAMBLERS AND FAMILY MEMBERS
27 AFFECTED BY PROBLEM AND COMPULSIVE GAMBLING.
28 (4) CONDUCTING STUDIES TO IDENTIFY ADULTS AND JUVENILES
29 IN THIS COMMONWEALTH WHO ARE OR ARE AT RISK OF BECOMING
30 PROBLEM OR COMPULSIVE GAMBLERS.
20050S0862B1553 - 118 -
1 (5) PROVIDING GRANTS TO AND CONTRACTING WITH
2 ORGANIZATIONS WHICH PROVIDE SERVICES AS SET FORTH IN THIS
3 SECTION.
4 (6) PROVIDING REIMBURSEMENT FOR ORGANIZATIONS FOR
5 REASONABLE EXPENSES IN ASSISTING THE DEPARTMENT OF HEALTH IN
6 CARRYING OUT THE PURPOSES OF THIS SECTION.
7 (B) COMPULSIVE AND PROBLEM GAMBLING TREATMENT FUND.--THERE
8 IS HEREBY ESTABLISHED IN THE STATE TREASURY A SPECIAL FUND TO BE
9 KNOWN AS THE COMPULSIVE AND PROBLEM GAMBLING TREATMENT FUND. ALL
10 MONEYS IN THE FUND SHALL BE EXPENDED FOR PROGRAMS FOR THE
11 PREVENTION AND TREATMENT OF GAMBLING ADDICTION AND OTHER
12 EMOTIONAL AND BEHAVIORAL PROBLEMS ASSOCIATED WITH OR RELATED TO
13 GAMBLING ADDICTION AND FOR THE ADMINISTRATION OF THE COMPULSIVE
14 AND PROBLEM GAMBLING PROGRAM. THE FUND SHALL CONSIST OF MONEY
15 ANNUALLY ALLOCATED TO IT FROM THE ANNUAL PAYMENT ESTABLISHED
16 UNDER SECTION 1408 (RELATING TO TRANSFERS FROM STATE GAMING
17 FUND), MONEY WHICH MAY BE ALLOCATED BY THE BOARD, INTEREST
18 EARNINGS ON MONEYS IN THE FUND AND ANY OTHER CONTRIBUTIONS,
19 PAYMENTS OR DEPOSITS WHICH MAY BE MADE TO THE FUND.
20 * * *
21 (D) SINGLE COUNTY AUTHORITIES.--THE DEPARTMENT OF HEALTH MAY
22 MAKE GRANTS FROM THE FUND ESTABLISHED UNDER SUBSECTION (B) TO A
23 SINGLE COUNTY AUTHORITY CREATED PURSUANT TO THE ACT OF APRIL 14,
24 1972 (P.L.221, NO.63), KNOWN AS THE PENNSYLVANIA DRUG AND
25 ALCOHOL ABUSE CONTROL ACT, FOR THE PURPOSE OF PROVIDING
26 COMPULSIVE GAMBLING AND GAMBLING [ADDITION] ADDICTION
27 PREVENTION, TREATMENT AND EDUCATION PROGRAMS. IT IS THE
28 INTENTION OF THE GENERAL ASSEMBLY THAT ANY GRANTS THAT THE
29 DEPARTMENT OF HEALTH MAY MAKE TO ANY SINGLE COUNTY AUTHORITY IN
30 ACCORDANCE WITH THE PROVISIONS OF THIS SUBSECTION BE USED
20050S0862B1553 - 119 -
1 EXCLUSIVELY FOR THE DEVELOPMENT AND IMPLEMENTATION OF COMPULSIVE
2 AND PROBLEM GAMBLING PROGRAMS AUTHORIZED UNDER SUBSECTION (A).
3 * * *
4 § 1512. [PUBLIC OFFICIAL FINANCIAL INTEREST.] FINANCIAL
5 INTERESTS, EMPLOYMENT AND COMPLIMENTARY SERVICES AND
6 DISCOUNTS.
7 [(A) GENERAL RULE.--EXCEPT AS MAY BE PROVIDED BY RULE OR
8 ORDER OF THE PENNSYLVANIA SUPREME COURT, NO EXECUTIVE-LEVEL
9 STATE EMPLOYEE, PUBLIC OFFICIAL, PARTY OFFICER OR IMMEDIATE
10 FAMILY MEMBER THEREOF SHALL HAVE, AT OR FOLLOWING THE EFFECTIVE
11 DATE OF THIS PART, A FINANCIAL INTEREST IN OR BE EMPLOYED,
12 DIRECTLY OR INDIRECTLY, BY ANY LICENSED RACING ENTITY OR
13 LICENSED GAMING ENTITY, OR ANY HOLDING, AFFILIATE, INTERMEDIARY
14 OR SUBSIDIARY COMPANY, THEREOF, OR ANY SUCH APPLICANT, NOR
15 SOLICIT OR ACCEPT, DIRECTLY OR INDIRECTLY, ANY COMPLIMENTARY
16 SERVICE OR DISCOUNT FROM ANY LICENSED RACING ENTITY OR LICENSED
17 GAMING ENTITY WHICH HE OR SHE KNOWS OR HAS REASON TO KNOW IS
18 OTHER THAN A SERVICE OR DISCOUNT THAT IS OFFERED TO MEMBERS OF
19 THE GENERAL PUBLIC IN LIKE CIRCUMSTANCES DURING HIS OR HER
20 STATUS AS AN EXECUTIVE-LEVEL STATE EMPLOYEE, PUBLIC OFFICIAL OR
21 PARTY OFFICER AND FOR ONE YEAR FOLLOWING TERMINATION OF THE
22 PERSON'S STATUS AS AN EXECUTIVE-LEVEL STATE EMPLOYEE, PUBLIC
23 OFFICIAL OR PARTY OFFICER.]
24 (A) FINANCIAL INTERESTS.--EXCEPT AS MAY BE PROVIDED BY RULE
25 OR ORDER OF THE PENNSYLVANIA SUPREME COURT, AN EXECUTIVE-LEVEL
26 PUBLIC EMPLOYEE, PUBLIC OFFICIAL OR PARTY OFFICER, OR AN
27 IMMEDIATE FAMILY MEMBER THEREOF, SHALL NOT INTENTIONALLY OR
28 KNOWINGLY HOLD A FINANCIAL INTEREST IN AN APPLICANT OR A SLOT
29 MACHINE LICENSEE, MANUFACTURER LICENSEE, SUPPLIER LICENSEE OR
30 LICENSED RACING ENTITY, OR IN A HOLDING COMPANY, AFFILIATE,
20050S0862B1553 - 120 -
1 INTERMEDIARY OR SUBSIDIARY THEREOF, WHILE THE INDIVIDUAL IS AN
2 EXECUTIVE-LEVEL PUBLIC EMPLOYEE, PUBLIC OFFICIAL OR PARTY
3 OFFICER AND FOR ONE YEAR FOLLOWING TERMINATION OF THE
4 INDIVIDUAL'S STATUS AS AN EXECUTIVE-LEVEL PUBLIC EMPLOYEE,
5 PUBLIC OFFICIAL OR PARTY OFFICER.
6 (A.1) EMPLOYMENT.--EXCEPT AS MAY BE PROVIDED BY RULE OR
7 ORDER OF THE PENNSYLVANIA SUPREME COURT, NO EXECUTIVE-LEVEL
8 PUBLIC EMPLOYEE, PUBLIC OFFICIAL OR PARTY OFFICER, OR AN
9 IMMEDIATE FAMILY MEMBER THEREOF, SHALL BE EMPLOYED BY AN
10 APPLICANT OR A SLOT MACHINE LICENSEE, MANUFACTURER LICENSEE,
11 SUPPLIER LICENSEE OR LICENSED RACING ENTITY, OR BY ANY HOLDING
12 COMPANY, AFFILIATE, INTERMEDIARY OR SUBSIDIARY THEREOF, WHILE
13 THE INDIVIDUAL IS AN EXECUTIVE-LEVEL PUBLIC EMPLOYEE, PUBLIC
14 OFFICIAL OR PARTY OFFICER AND FOR ONE YEAR FOLLOWING TERMINATION
15 OF THE INDIVIDUAL'S STATUS AS AN EXECUTIVE-LEVEL PUBLIC
16 EMPLOYEE, PUBLIC OFFICIAL OR PARTY OFFICER.
17 (A.2) COMPLIMENTARY SERVICES AND DISCOUNTS.--
18 (1) NO EXECUTIVE-LEVEL PUBLIC EMPLOYEE, PUBLIC OFFICIAL
19 OR PARTY OFFICER, OR AN IMMEDIATE FAMILY MEMBER THEREOF,
20 SHALL SOLICIT OR ACCEPT, ANY COMPLIMENTARY SERVICE OR
21 DISCOUNT FROM AN APPLICANT OR A SLOT MACHINE LICENSEE,
22 MANUFACTURER LICENSEE, SUPPLIER LICENSEE OR LICENSED RACING
23 ENTITY, OR FROM ANY AFFILIATE, INTERMEDIARY, SUBSIDIARY OR
24 HOLDING COMPANY THEREOF, WHICH THE EXECUTIVE-LEVEL PUBLIC
25 EMPLOYEE, PUBLIC OFFICIAL OR PARTY OFFICER, OR AN IMMEDIATE
26 FAMILY MEMBER THEREOF, KNOWS OR HAS REASON TO KNOW IS OTHER
27 THAN A SERVICE OR DISCOUNT WHICH IS OFFERED TO MEMBERS OF THE
28 GENERAL PUBLIC IN LIKE CIRCUMSTANCES.
29 (2) NO APPLICANT, SLOT MACHINE LICENSEE, MANUFACTURER
30 LICENSEE, SUPPLIER LICENSEE OR LICENSED RACING ENTITY, OR ANY
20050S0862B1553 - 121 -
1 AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY
2 THEREOF, SHALL OFFER OR DELIVER TO AN EXECUTIVE-LEVEL PUBLIC
3 EMPLOYEE, PUBLIC OFFICIAL OR PARTY OFFICER, OR AN IMMEDIATE
4 FAMILY MEMBER THEREOF, ANY COMPLIMENTARY SERVICE OR DISCOUNT
5 FROM THE APPLICANT OR SLOT MACHINE LICENSEE, MANUFACTURER
6 LICENSEE, SUPPLIER LICENSEE OR LICENSED RACING ENTITY, OR AN
7 AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY
8 THEREOF, THAT THE APPLICANT OR SLOT MACHINE LICENSEE,
9 MANUFACTURER LICENSEE, SUPPLIER LICENSEE OR LICENSED RACING
10 ENTITY, OR ANY AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING
11 COMPANY THEREOF, KNOWS OR HAS REASON TO KNOW IS OTHER THAN A
12 SERVICE OR DISCOUNT THAT IS OFFERED TO MEMBERS OF THE GENERAL
13 PUBLIC IN LIKE CIRCUMSTANCES.
14 (A.3) GRADING.--AN INDIVIDUAL WHO VIOLATES THIS SECTION
15 COMMITS A MISDEMEANOR AND SHALL, UPON CONVICTION, BE SENTENCED
16 TO PAY A FINE OF NOT MORE THAN $1,000 OR TO IMPRISONMENT FOR NOT
17 MORE THAN ONE YEAR, OR BOTH.
18 (A.4) DIVESTITURE.--AN EXECUTIVE-LEVEL PUBLIC EMPLOYEE,
19 PUBLIC OFFICIAL OR PARTY OFFICER, OR AN IMMEDIATE FAMILY MEMBER
20 THEREOF, WHO HOLDS A FINANCIAL INTEREST PROHIBITED BY THIS
21 SECTION SHALL DIVEST THE FINANCIAL INTEREST WITHIN THREE MONTHS
22 OF THE EFFECTIVE DATE OF THE RESTRICTIONS SET FORTH IN
23 SUBSECTION (A), AS APPLICABLE. THEREAFTER, ANY EXECUTIVE-LEVEL
24 PUBLIC EMPLOYEE, PUBLIC OFFICIAL, PARTY OFFICER OR IMMEDIATE
25 FAMILY MEMBER SHALL HAVE 30 DAYS FROM THE DATE THE INDIVIDUAL
26 KNEW OR HAD REASON TO KNOW OF THE VIOLATION OR 30 DAYS FROM THE
27 ANNUAL PUBLICATION IN THE PENNSYLVANIA BULLETIN UNDER §
28 1202(B)(19) (RELATING TO POWERS AND DUTIES), WHICHEVER OCCURS
29 EARLIER.
30 (A.5) ETHICS COMMISSION.--THE ETHICS COMMISSION SHALL
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1 PUBLISH A LIST OF ALL STATE, COUNTY, MUNICIPAL AND OTHER
2 GOVERNMENT POSITIONS THAT MEET THE DEFINITIONS OF "PUBLIC
3 OFFICIAL" OR "EXECUTIVE-LEVEL PUBLIC EMPLOYEE" UNDER SUBSECTION
4 (B). THE OFFICE OF ADMINISTRATION SHALL ASSIST THE ETHICS
5 COMMISSION IN THE DEVELOPMENT OF THE LIST, WHICH SHALL BE
6 PUBLISHED IN THE PENNSYLVANIA BULLETIN BIENNIALLY AND ON THE
7 BOARD'S WEBSITE. EACH PUBLIC OFFICIAL SHALL HAVE A DUTY TO
8 PROVIDE THE ETHICS COMMISSION WITH ADEQUATE INFORMATION TO
9 ACCURATELY DEVELOP AND MAINTAIN THE LIST. THE ETHICS COMMISSION
10 MAY IMPOSE A CIVIL PENALTY UNDER 65 PA.C.S. § 1109(F) (RELATING
11 TO PENALTIES) UPON ANY PUBLIC OFFICIAL OR EXECUTIVE-LEVEL PUBLIC
12 EMPLOYEE WHO FAILS TO COOPERATE WITH THE ETHICS COMMISSION UNDER
13 THIS SUBSECTION.
14 (B) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
15 WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
16 SUBSECTION:
17 "EXECUTIVE-LEVEL [STATE] PUBLIC EMPLOYEE." [THE GOVERNOR,
18 LIEUTENANT GOVERNOR, CABINET MEMBERS, DEPUTY SECRETARIES, THE
19 GOVERNOR'S OFFICE EXECUTIVE STAFF, ANY STATE EMPLOYEE WITH
20 DISCRETIONARY POWERS WHICH MAY AFFECT THE OUTCOME OF A STATE
21 AGENCY'S DECISION IN RELATION TO A PRIVATE CORPORATION OR
22 BUSINESS, WITH RESPECT TO ANY MATTER COVERED BY THIS PART OR ANY
23 EXECUTIVE EMPLOYEE WHO BY VIRTUE OF HIS JOB FUNCTION COULD
24 INFLUENCE THE OUTCOME OF SUCH A DECISION.] THE TERM SHALL
25 INCLUDE THE FOLLOWING:
26 (1) DEPUTY SECRETARIES OF THE COMMONWEALTH AND THE
27 GOVERNOR'S OFFICE EXECUTIVE STAFF.
28 (2) EMPLOYEES OF THE EXECUTIVE BRANCH WITH DISCRETIONARY
29 POWERS WHICH MAY AFFECT OR INFLUENCE THE OUTCOME OF A STATE
30 AGENCY'S ACTION OR DECISION RELATING TO A MATTER UNDER THIS
20050S0862B1553 - 123 -
1 PART.
2 (3) AN EXECUTIVE-LEVEL EMPLOYEE OF A COUNTY WHICH
3 RECEIVED A DISTRIBUTION OF MONEY OR REVENUE UNDER SECTION
4 1403(C)(2) (RELATING TO ESTABLISHMENT OF STATE GAMING FUND
5 AND NET SLOT MACHINE REVENUE DISTRIBUTION).
6 (4) AN EXECUTIVE-LEVEL EMPLOYEE OF A MUNICIPALITY WHICH
7 RECEIVED A DISTRIBUTION OF MONEY OR REVENUE UNDER SECTION
8 1403(C)(3).
9 (5) AN EMPLOYEE OF A DEPARTMENT, AGENCY, BOARD,
10 COMMISSION, AUTHORITY OR OTHER GOVERNMENTAL BODY WHICH
11 DIRECTLY RECEIVES A DISTRIBUTION OF MONEY OR REVENUE UNDER
12 THIS PART.
13 (6) AN EMPLOYEE OF A DEPARTMENT, AGENCY, BOARD,
14 COMMISSION, AUTHORITY OR OTHER GOVERNMENTAL BODY WHICH
15 POSSESSES REGULATORY OR LAW ENFORCEMENT AUTHORITY OVER A
16 LICENSED ENTITY.
17 (7) ANY OTHER EMPLOYEE OF A COUNTY, MUNICIPALITY,
18 AUTHORITY, COMMISSION OR OTHER LOCAL GOVERNMENTAL ENTITY WITH
19 DISCRETIONARY POWERS WHICH MAY AFFECT OR INFLUENCE THE
20 OUTCOME OF AN ACTION OR DECISION RELATING TO A MATTER UNDER
21 THIS PART.
22 "FINANCIAL INTEREST." OWNING OR HOLDING, OR BEING DEEMED TO
23 HOLD, DEBT OR EQUITY SECURITIES [EXCEEDING 1% OF THE EQUITY OR
24 FAIR MARKET VALUE OF THE LICENSED RACING ENTITY OR LICENSED
25 GAMING ENTITY, ITS HOLDING COMPANY, AFFILIATE, INTERMEDIARY OR
26 SUBSIDIARY BUSINESS.] OR OTHER OWNERSHIP INTEREST OR PROFITS
27 INTEREST. A FINANCIAL INTEREST SHALL NOT INCLUDE ANY [SUCH STOCK
28 THAT IS HELD IN A BLIND TRUST OVER WHICH THE EXECUTIVE-LEVEL
29 STATE EMPLOYEE, PUBLIC OFFICIAL, PARTY OFFICER OR IMMEDIATE
30 FAMILY MEMBER THEREOF MAY NOT EXERCISE ANY MANAGERIAL CONTROL OR
20050S0862B1553 - 124 -
1 RECEIVE INCOME DURING THE TENURE OF OFFICE AND THE PERIOD UNDER
2 SUBSECTION (A).] DEBT OR EQUITY SECURITY, OR OTHER OWNERSHIP
3 INTEREST OR PROFITS INTEREST, WHICH IS HELD OR DEEMED TO BE HELD
4 IN ANY OF THE FOLLOWING:
5 (1) A BLIND TRUST OVER WHICH THE EXECUTIVE-LEVEL PUBLIC
6 EMPLOYEE, PUBLIC OFFICIAL OR PARTY OFFICER, OR AN IMMEDIATE
7 FAMILY MEMBER THEREOF, DOES NOT EXERCISE MANAGERIAL OR
8 INVESTMENT CONTROL OR RECEIVE INCOME THEREFROM DURING THE
9 TENURE OF OFFICE AND THE PERIOD UNDER SUBSECTION (A).
10 (2) SECURITIES THAT ARE HELD IN A PENSION PLAN, PROFIT-
11 SHARING PLAN, INDIVIDUAL RETIREMENT ACCOUNT, TAX SHELTERED
12 ANNUITY, A PLAN ESTABLISHED PURSUANT TO SECTION 457 OF THE
13 INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. §
14 1 ET SEQ.), OR ANY SUCCESSOR PROVISION, DEFERRED COMPENSATION
15 PLAN WHETHER QUALIFIED OR NOT QUALIFIED UNDER THE INTERNAL
16 REVENUE CODE OF 1986, OR ANY SUCCESSOR PROVISION, OR OTHER
17 RETIREMENT PLAN THAT:
18 (I) IS NOT SELF-DIRECTED BY THE INDIVIDUAL; AND
19 (II) IS ADVISED BY AN INDEPENDENT INVESTMENT ADVISER
20 WHO HAS SOLE AUTHORITY TO MAKE INVESTMENT DECISIONS WITH
21 RESPECT TO CONTRIBUTIONS MADE BY THE INDIVIDUAL TO THESE
22 PLANS.
23 (3) A TUITION ACCOUNT PLAN ORGANIZED AND OPERATED
24 PURSUANT TO SECTION 529 OF THE INTERNAL REVENUE CODE OF 1986
25 (PUBLIC LAW 99-514, 26 U.S.C. § 529) THAT IS NOT SELF-
26 DIRECTED BY THE INDIVIDUAL.
27 (4) A MUTUAL FUND WHERE THE INTEREST OWNED BY THE MUTUAL
28 FUND IN A LICENSED ENTITY DOES NOT CONSTITUTE A CONTROLLING
29 INTEREST AS DEFINED IN THIS PART.
30 (5) ANY OTHER INVESTMENT OVER WHICH THE EXECUTIVE-LEVEL
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1 PUBLIC EMPLOYEE, PUBLIC OFFICIAL OR PARTY OFFICER, OR AN
2 IMMEDIATE FAMILY MEMBER THEREOF, DOES NOT EXERCISE MANAGERIAL
3 OR INVESTMENT CONTROL DURING THE TENURE OF OFFICE AND THE
4 PERIOD UNDER SUBSECTION (A).
5 "IMMEDIATE FAMILY." A [PARENT,] SPOUSE, MINOR CHILD OR
6 UNEMANCIPATED CHILD[, BROTHER OR SISTER].
7 "LAW ENFORCEMENT AUTHORITY." THE TERM SHALL INCLUDE THE
8 AUTHORITY OF A STATE OR LOCAL POLICE FORCE, THE ATTORNEY GENERAL
9 OR A DISTRICT ATTORNEY.
10 "PARTY OFFICER." A MEMBER OF A NATIONAL COMMITTEE; A
11 CHAIRMAN, VICE CHAIRMAN, SECRETARY, TREASURER OR COUNSEL OF A
12 STATE COMMITTEE OR MEMBER OF THE EXECUTIVE COMMITTEE OF A STATE
13 COMMITTEE; A COUNTY CHAIRMAN, VICE CHAIRMAN, COUNSEL, SECRETARY
14 OR TREASURER OF A COUNTY COMMITTEE IN WHICH A LICENSED FACILITY
15 IS LOCATED; OR A CITY CHAIRMAN, VICE CHAIRMAN, COUNSEL,
16 SECRETARY OR TREASURER OF A CITY COMMITTEE OF A CITY IN WHICH A
17 LICENSED FACILITY IS LOCATED.
18 ["PUBLIC OFFICIAL." ANY PERSON ELECTED BY THE PUBLIC OR
19 ELECTED OR APPOINTED BY A GOVERNMENTAL BODY OR AN APPOINTED
20 OFFICIAL IN THE EXECUTIVE, LEGISLATIVE OR JUDICIAL BRANCH OF
21 THIS COMMONWEALTH OR ANY POLITICAL SUBDIVISION THEREOF, PROVIDED
22 THAT IT SHALL NOT INCLUDE MEMBERS OF ADVISORY BOARDS THAT HAVE
23 NO AUTHORITY TO EXPEND PUBLIC FUNDS OTHER THAN REIMBURSEMENT FOR
24 PERSONAL EXPENSE OR TO OTHERWISE EXERCISE THE POWER OF THE
25 COMMONWEALTH OR ANY POLITICAL SUBDIVISION OR COMMISSIONER OF ANY
26 AUTHORITY OR JOINT-STATE COMMISSION.]
27 "PUBLIC OFFICIAL." THE TERM SHALL INCLUDE THE FOLLOWING:
28 (1) THE GOVERNOR, LIEUTENANT GOVERNOR, A MEMBER OF THE
29 GOVERNOR'S CABINET, TREASURER, AUDITOR GENERAL AND ATTORNEY
30 GENERAL OF THE COMMONWEALTH.
20050S0862B1553 - 126 -
1 (2) A MEMBER OF THE SENATE OR HOUSE OF REPRESENTATIVES
2 OF THE COMMONWEALTH.
3 (3) AN INDIVIDUAL ELECTED TO ANY OFFICE OF A COUNTY OR
4 MUNICIPALITY THAT RECEIVES A DISTRIBUTION OF MONEY OR REVENUE
5 UNDER THIS PART.
6 (4) AN INDIVIDUAL ELECTED OR APPOINTED TO A GOVERNMENTAL
7 BODY THAT RECEIVES A DISTRIBUTION OF MONEY OR REVENUE UNDER
8 THIS PART.
9 (5) AN INDIVIDUAL ELECTED OR APPOINTED TO A DEPARTMENT,
10 AGENCY, BOARD, COMMISSION, AUTHORITY OR OTHER GOVERNMENTAL
11 BODY THAT POSSESSES REGULATORY OR LAW ENFORCEMENT AUTHORITY
12 OVER A LICENSED ENTITY.
13 THE TERM DOES NOT INCLUDE A MEMBER OF A SCHOOL BOARD OR AN
14 INDIVIDUAL WHO HELD AN UNCOMPENSATED OFFICE WITH A GOVERNMENTAL
15 BODY PRIOR TO JANUARY 1, 2006, AND WHO NO LONGER HOLDS THE
16 OFFICE AS OF JANUARY 1, 2006. THE TERM INCLUDES A MEMBER OF AN
17 ADVISORY BOARD OR COMMISSION WHICH MAKES RECOMMENDATIONS
18 RELATING TO A LICENSED FACILITY.
19 SECTION 11. SECTION 1513(A) OF TITLE 4 IS AMENDED AND THE
20 SECTION IS AMENDED BY ADDING SUBSECTIONS TO READ:
21 § 1513. POLITICAL INFLUENCE.
22 [(A) CONTRIBUTION RESTRICTION.--AN APPLICANT FOR A SLOT
23 MACHINE LICENSE, MANUFACTURER LICENSE OR SUPPLIER LICENSE,
24 LICENSED RACING ENTITY LICENSEE, LICENSED MANUFACTURER, LICENSED
25 SUPPLIER OR LICENSED GAMING ENTITY, OR A PERSON THAT HOLDS A
26 SIMILAR GAMING LICENSE OR PERMIT OR A CONTROLLING INTEREST IN A
27 GAMING LICENSE OR PERMIT IN ANOTHER JURISDICTION, OR ANY
28 HOLDING, AFFILIATE, INTERMEDIARY OR SUBSIDIARY COMPANY THEREOF,
29 OR ANY OFFICER, DIRECTOR OR KEY EMPLOYEE OF SUCH APPLICANT
30 LICENSED MANUFACTURER OR LICENSED SUPPLIER, LICENSED RACING
20050S0862B1553 - 127 -
1 ENTITY OR LICENSED GAMING ENTITY OR ANY HOLDING, AFFILIATE,
2 INTERMEDIARY OR SUBSIDIARY COMPANY THEREOF, SHALL BE PROHIBITED
3 FROM CONTRIBUTING ANY MONEY OR IN-KIND CONTRIBUTION TO A
4 CANDIDATE FOR NOMINATION OR ELECTION TO ANY PUBLIC OFFICE IN
5 THIS COMMONWEALTH, OR TO ANY POLITICAL COMMITTEE OR STATE PARTY
6 IN THIS COMMONWEALTH OR TO ANY GROUP, COMMITTEE OR ASSOCIATION
7 ORGANIZED IN SUPPORT OF ANY SUCH CANDIDATE, POLITICAL COMMITTEE
8 OR STATE PARTY.]
9 (A) CONTRIBUTION RESTRICTION.--THE FOLLOWING PERSONS SHALL
10 BE PROHIBITED FROM CONTRIBUTING ANY MONEY OR IN-KIND
11 CONTRIBUTION TO A CANDIDATE FOR NOMINATION OR ELECTION TO ANY
12 PUBLIC OFFICE IN THIS COMMONWEALTH, OR TO ANY POLITICAL PARTY
13 COMMITTEE OR OTHER POLITICAL COMMITTEE IN THIS COMMONWEALTH OR
14 TO ANY GROUP, COMMITTEE OR ASSOCIATION ORGANIZED IN SUPPORT OF A
15 CANDIDATE, POLITICAL PARTY COMMITTEE OR OTHER POLITICAL
16 COMMITTEE IN THIS COMMONWEALTH:
17 (1) AN APPLICANT.
18 (2) A SLOT MACHINE LICENSEE, LICENSED MANUFACTURER,
19 LICENSED SUPPLIER OR LICENSED RACING ENTITY.
20 (3) A PRINCIPAL OR KEY EMPLOYEE OF A SLOT MACHINE
21 LICENSEE, LICENSED MANUFACTURER, LICENSED SUPPLIER OR
22 LICENSED RACING ENTITY.
23 (4) AN AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING
24 COMPANY OF A SLOT MACHINE LICENSEE, LICENSED MANUFACTURER,
25 LICENSED SUPPLIER OR LICENSED RACING ENTITY.
26 (5) AN OFFICER, DIRECTOR OR PERSON WITH A CONTROLLING
27 INTEREST IN OR KEY EMPLOYEE OF AN AFFILIATE, INTERMEDIARY,
28 SUBSIDIARY OR HOLDING COMPANY OF A SLOT MACHINE LICENSEE,
29 LICENSED MANUFACTURER, LICENSED SUPPLIER OR LICENSED RACING
30 ENTITY.
20050S0862B1553 - 128 -
1 (6) A PERSON WHO HOLDS A SIMILAR GAMING LICENSE IN
2 ANOTHER JURISDICTION AND THE AFFILIATES, INTERMEDIARIES,
3 SUBSIDIARIES, HOLDING COMPANIES, OFFICERS, DIRECTORS OR
4 PERSONS WITH A CONTROLLING INTEREST THEREIN OR KEY EMPLOYEES
5 THEREOF.
6 (A.1) CONTRIBUTIONS TO CERTAIN ASSOCIATIONS AND
7 ORGANIZATIONS BARRED.--THE INDIVIDUALS PROHIBITED FROM MAKING
8 POLITICAL CONTRIBUTIONS UNDER SUBSECTION (A) SHALL NOT MAKE A
9 POLITICAL CONTRIBUTION OF MONEY OR AN IN-KIND CONTRIBUTION TO
10 ANY ASSOCIATION OR ORGANIZATION, INCLUDING A NONPROFIT
11 ORGANIZATION, THAT HAS BEEN SOLICITED BY, OR KNOWING THAT THE
12 CONTRIBUTION OR A PORTION THEREOF WILL BE CONTRIBUTED TO THE
13 ELECTED OFFICIAL, EXECUTIVE-LEVEL PUBLIC EMPLOYEE OR CANDIDATE
14 FOR NOMINATION OR ELECTION TO A PUBLIC OFFICE IN THIS
15 COMMONWEALTH.
16 (A.2) INTERNET WEBSITE.--
17 (1) THE BOARD SHALL ESTABLISH AN INTERNET WEBSITE THAT
18 INCLUDES A LIST OF ALL APPLICANTS FOR AND HOLDERS OF A SLOT
19 MACHINE LICENSE, MANUFACTURER LICENSE, SUPPLIER LICENSE OR
20 RACING ENTITY LICENSE, AND THE AFFILIATES, INTERMEDIARIES,
21 SUBSIDIARIES, HOLDING COMPANIES, OFFICERS, DIRECTORS OR
22 PERSONS WITH A CONTROLLING INTEREST THEREIN AND KEY EMPLOYEES
23 THEREOF, ALL PERSONS AND OFFICERS, DIRECTORS OR PERSONS WITH
24 A CONTROLLING INTEREST HOLDING A SIMILAR GAMING LICENSE IN
25 ANOTHER JURISDICTION AND THE AFFILIATES, INTERMEDIARIES,
26 SUBSIDIARIES, HOLDING COMPANIES, OFFICERS, DIRECTORS OR
27 PERSONS WITH A CONTROLLING INTEREST THEREIN AND KEY EMPLOYEES
28 THEREOF, AND ANY OTHER ENTITY IN WHICH THE APPLICANT OR
29 LICENSEE HAS ANY DEBT OR EQUITY SECURITY OR OTHER OWNERSHIP
30 OR PROFITS INTEREST. AN APPLICANT OR LICENSEE SHALL NOTIFY
20050S0862B1553 - 129 -
1 THE BOARD WITHIN SEVEN DAYS OF THE DISCOVERY OF ANY CHANGE IN
2 OR ADDITION TO THE INFORMATION. THE LIST SHALL BE PUBLISHED
3 SEMIANNUALLY IN THE PENNSYLVANIA BULLETIN.
4 (2) AN INDIVIDUAL WHO ACTS IN GOOD FAITH AND IN RELIANCE
5 ON THE INFORMATION ON THE INTERNET WEBSITE SHALL NOT BE
6 SUBJECT TO ANY PENALTIES OR LIABILITY IMPOSED FOR A VIOLATION
7 OF THIS SECTION.
8 (3) THE BOARD SHALL REQUEST THE INFORMATION REQUIRED
9 UNDER PARAGRAPH (1) FROM PERSONS LICENSED IN ANOTHER
10 JURISDICTION WHO DO NOT HOLD A LICENSE IN THIS COMMONWEALTH
11 AND FROM REGULATORY AGENCIES IN THE OTHER JURISDICTION. IF A
12 LICENSEE IN ANOTHER JURISDICTION REFUSES TO PROVIDE THE
13 INFORMATION REQUIRED UNDER PARAGRAPH (1), THE PERSON AND ITS
14 OFFICERS, DIRECTORS OR PERSONS WITH A CONTROLLING INTEREST
15 SHALL BE INELIGIBLE TO RECEIVE ANY LICENSE UNDER THIS PART.
16 * * *
17 SECTION 12. SECTION 1517(A), (C) AND (D) OF TITLE 4 ARE
18 AMENDED AND THE SECTION IS AMENDED BY ADDING SUBSECTIONS TO
19 READ:
20 § 1517. [ENFORCEMENT.] INVESTIGATIONS AND ENFORCEMENT.
21 [(A) POWERS AND DUTIES.--THE BUREAU OF INVESTIGATIONS AND
22 ENFORCEMENT SHALL HAVE THE FOLLOWING POWERS AND DUTIES:
23 (1) PROMPTLY INVESTIGATE ALL LICENSEES, PERMITTEES AND
24 APPLICANTS AS DIRECTED BY THE BOARD IN ACCORDANCE WITH THE
25 PROVISIONS OF SECTION 1202 (RELATING TO GENERAL AND SPECIFIC
26 POWERS).
27 (2) ENFORCE THE RULES AND REGULATIONS PROMULGATED UNDER
28 THIS PART.
29 (3) INITIATE PROCEEDINGS FOR ADMINISTRATIVE VIOLATIONS
30 OF THIS PART OR REGULATIONS PROMULGATED UNDER THIS PART.
20050S0862B1553 - 130 -
1 (4) PROVIDE THE BOARD WITH ALL INFORMATION NECESSARY FOR
2 ALL ACTION UNDER THIS PART AND FOR ALL PROCEEDINGS INVOLVING
3 ENFORCEMENT OF THIS PART OR REGULATIONS PROMULGATED UNDER
4 THIS PART.
5 (5) INVESTIGATE THE CIRCUMSTANCES SURROUNDING ANY ACT OR
6 TRANSACTION FOR WHICH BOARD APPROVAL IS REQUIRED.
7 (6) CONDUCT ADMINISTRATIVE INSPECTIONS ON THE PREMISES
8 OF A LICENSED RACETRACK OR NONPRIMARY LOCATION OR LICENSED
9 FACILITY TO ENSURE COMPLIANCE WITH THIS PART AND THE
10 REGULATIONS OF THE BOARD AND, IN THE COURSE OF INSPECTIONS,
11 REVIEW AND MAKE COPIES OF ALL DOCUMENTS AND RECORDS THAT MAY
12 BE REQUIRED THROUGH ONSITE OBSERVATION AND OTHER REASONABLE
13 MEANS TO ASSURE COMPLIANCE WITH THIS PART AND REGULATIONS
14 PROMULGATED UNDER THIS PART.
15 (7) RECEIVE AND TAKE APPROPRIATE ACTION ON ANY REFERRAL
16 FROM THE BOARD RELATING TO ANY EVIDENCE OF A VIOLATION.
17 (8) CONDUCT AUDITS OF SLOT MACHINE OPERATIONS AT SUCH
18 TIMES, UNDER SUCH CIRCUMSTANCES AND TO SUCH EXTENT AS THE
19 BUREAU DETERMINES. THIS PARAGRAPH INCLUDES REVIEWS OF
20 ACCOUNTING, ADMINISTRATIVE AND FINANCIAL RECORDS AND
21 MANAGEMENT CONTROL SYSTEMS, PROCEDURES AND RECORDS UTILIZED
22 BY A SLOT MACHINE LICENSEE.
23 (9) REQUEST AND RECEIVE INFORMATION, MATERIALS AND OTHER
24 DATA FROM ANY LICENSEE, PERMITTEE OR APPLICANT.
25 (10) REFER FOR INVESTIGATION ALL POSSIBLE CRIMINAL
26 VIOLATIONS TO THE PENNSYLVANIA STATE POLICE AND COOPERATE
27 FULLY IN THE INVESTIGATION AND PROSECUTION OF A CRIMINAL
28 VIOLATION ARISING UNDER THIS PART.]
29 (A) ESTABLISHMENT.--THERE IS HEREBY ESTABLISHED WITHIN THE
30 BOARD A BUREAU OF INVESTIGATIONS AND ENFORCEMENT WHICH SHALL BE
20050S0862B1553 - 131 -
1 INDEPENDENT OF THE BOARD IN MATTERS RELATING TO THE ENFORCEMENT
2 OF THIS PART. THE BUREAU SHALL HAVE THE POWERS AND DUTIES SET
3 FORTH IN SUBSECTION (A.1).
4 (A.1) POWERS AND DUTIES OF BUREAU.--THE BUREAU OF
5 INVESTIGATIONS AND ENFORCEMENT SHALL HAVE THE FOLLOWING POWERS
6 AND DUTIES:
7 (1) ENFORCE THE PROVISIONS OF THIS PART.
8 (2) INVESTIGATE AND REVIEW ALL APPLICANTS AND
9 APPLICATIONS FOR A LICENSE, PERMIT OR REGISTRATION.
10 (3) INVESTIGATE LICENSEES, PERMITTEES, REGISTRANTS AND
11 OTHER PERSONS REGULATED BY THE BOARD FOR NONCRIMINAL
12 VIOLATIONS OF THIS PART, INCLUDING POTENTIAL VIOLATIONS
13 REFERRED TO THE BUREAU BY THE BOARD OR OTHER PERSON.
14 (4) MONITOR GAMING OPERATIONS TO ENSURE ALL OF THE
15 FOLLOWING:
16 (I) COMPLIANCE WITH THIS PART, THE ACT OF APRIL 12,
17 1951 (P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, AND THE
18 OTHER LAWS OF THIS COMMONWEALTH.
19 (II) THE IMPLEMENTATION OF ADEQUATE SECURITY
20 MEASURES BY A LICENSED ENTITY.
21 (5) INSPECT AND EXAMINE LICENSED ENTITIES AS PROVIDED IN
22 SUBSECTION (E). INSPECTIONS MAY INCLUDE THE REVIEW AND
23 REPRODUCTION OF ANY DOCUMENT OR RECORD.
24 (6) CONDUCT AUDITS OF A LICENSED ENTITY AS NECESSARY TO
25 ENSURE COMPLIANCE WITH THIS PART. AN AUDIT MAY INCLUDE THE
26 REVIEW OF ACCOUNTING, ADMINISTRATIVE AND FINANCIAL RECORDS,
27 MANAGEMENT CONTROL SYSTEMS, PROCEDURES AND OTHER RECORDS
28 UTILIZED BY A LICENSED ENTITY.
29 (7) REFER POSSIBLE CRIMINAL VIOLATIONS TO THE
30 PENNSYLVANIA STATE POLICE. THE BUREAU SHALL NOT HAVE THE
20050S0862B1553 - 132 -
1 POWER OF ARREST.
2 (8) COOPERATE IN THE INVESTIGATION AND PROSECUTION OF
3 CRIMINAL VIOLATIONS RELATED TO THIS PART.
4 (9) BE A CRIMINAL JUSTICE AGENCY UNDER 18 PA.C.S. CH. 91
5 (RELATING TO CRIMINAL HISTORY RECORD INFORMATION).
6 (A.2) OFFICE OF ENFORCEMENT COUNSEL.--
7 (1) THERE IS ESTABLISHED WITHIN THE BUREAU AN OFFICE OF
8 ENFORCEMENT COUNSEL WHICH SHALL ACT AS THE PROSECUTOR IN ALL
9 NONCRIMINAL ENFORCEMENT ACTIONS INITIATED BY THE BUREAU UNDER
10 THIS PART AND SHALL HAVE THE FOLLOWING POWERS AND DUTIES:
11 (I) ADVISE THE BUREAU ON ALL MATTERS, INCLUDING THE
12 GRANTING OF LICENSES, PERMITS OR REGISTRATIONS, THE
13 CONDUCT OF BACKGROUND INVESTIGATIONS, AUDITS AND
14 INSPECTIONS AND THE INVESTIGATION OF POTENTIAL VIOLATIONS
15 OF THIS PART.
16 (II) FILE RECOMMENDATIONS AND OBJECTIONS RELATING TO
17 THE ISSUANCE OF LICENSES, PERMITS AND REGISTRATIONS ON
18 BEHALF OF THE BUREAU.
19 (III) INITIATE, IN ITS SOLE DISCRETION, PROCEEDINGS
20 FOR NONCRIMINAL VIOLATIONS OF THIS PART BY FILING A
21 COMPLAINT OR OTHER PLEADING WITH THE BOARD.
22 (2) THE DIRECTOR OF THE OFFICE OF ENFORCEMENT COUNSEL
23 SHALL REPORT TO THE EXECUTIVE DIRECTOR OF THE BOARD ON
24 ADMINISTRATIVE MATTERS. THE DIRECTOR SHALL BE SELECTED BY THE
25 BOARD AND SHALL BE AN ATTORNEY ADMITTED TO PRACTICE BEFORE
26 THE PENNSYLVANIA SUPREME COURT.
27 * * *
28 (C) POWERS AND DUTIES OF THE PENNSYLVANIA STATE POLICE.--THE
29 PENNSYLVANIA STATE POLICE SHALL HAVE THE FOLLOWING POWERS AND
30 DUTIES:
20050S0862B1553 - 133 -
1 (1) PROMPTLY [INVESTIGATE ALL LICENSEES, PERMITTEES AND
2 APPLICANTS] CONDUCT BACKGROUND INVESTIGATIONS ON PERSONS AS
3 DIRECTED BY THE BOARD IN ACCORDANCE WITH THE PROVISIONS OF
4 SECTION 1202.
5 [(2) ENFORCE THE RULES AND REGULATIONS PROMULGATED UNDER
6 THIS PART.]
7 (3) INITIATE PROCEEDINGS FOR [ANY] CRIMINAL VIOLATIONS
8 OF THIS PART [OR REGULATIONS PROMULGATED UNDER THIS PART].
9 (4) PROVIDE THE BOARD WITH ALL INFORMATION NECESSARY FOR
10 ALL ACTIONS UNDER THIS PART FOR ALL PROCEEDINGS INVOLVING
11 CRIMINAL ENFORCEMENT OF THIS PART [OR REGULATIONS PROMULGATED
12 UNDER THIS PART].
13 (5) INSPECT, WHEN APPROPRIATE, A LICENSEE'S OR
14 PERMITTEE'S PERSON AND PERSONAL EFFECTS PRESENT IN A LICENSED
15 FACILITY UNDER THIS PART WHILE THAT LICENSEE [OR], PERMITTEE
16 OR REGISTRANT IS PRESENT AT A LICENSED FACILITY.
17 (6) ENFORCE THE CRIMINAL PROVISIONS OF THIS PART AND ALL
18 OTHER CRIMINAL LAWS OF THE COMMONWEALTH.
19 (7) FINGERPRINT APPLICANTS FOR LICENSES [AND], PERMITS
20 AND REGISTRATIONS.
21 (8) EXCHANGE FINGERPRINT DATA WITH AND RECEIVE NATIONAL
22 CRIMINAL HISTORY RECORD INFORMATION FROM THE FBI FOR USE IN
23 INVESTIGATING APPLICATIONS FOR ANY LICENSE [OR], PERMIT OR
24 REGISTRATION UNDER THIS PART.
25 (9) RECEIVE AND TAKE APPROPRIATE ACTION ON ANY REFERRAL
26 FROM THE BOARD RELATING TO CRIMINAL CONDUCT.
27 (10) REQUIRE THE PRODUCTION OF ANY INFORMATION, MATERIAL
28 AND OTHER DATA FROM ANY LICENSEE, PERMITTEE, REGISTRANT OR
29 APPLICANT.
30 (11) CONDUCT ADMINISTRATIVE INSPECTIONS ON THE PREMISES
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1 OF LICENSED RACETRACK OR NONPRIMARY LOCATION OR LICENSED
2 FACILITY AT SUCH TIMES, UNDER SUCH CIRCUMSTANCES AND TO SUCH
3 EXTENT AS THE BUREAU DETERMINES TO ENSURE COMPLIANCE WITH
4 THIS PART AND THE REGULATIONS OF THE BOARD AND, IN THE COURSE
5 OF INSPECTIONS, REVIEW AND MAKE COPIES OF ALL DOCUMENTS AND
6 RECORDS REQUIRED BY THE INSPECTION THROUGH ONSITE OBSERVATION
7 AND OTHER REASONABLE MEANS TO ASSURE COMPLIANCE WITH THIS
8 PART AND REGULATIONS PROMULGATED UNDER THIS PART.
9 (12) CONDUCT AUDITS OR VERIFICATION OF INFORMATION OF
10 SLOT MACHINE OPERATIONS AT SUCH TIMES, UNDER SUCH
11 CIRCUMSTANCES AND TO SUCH EXTENT AS THE BUREAU DETERMINES.
12 THIS PARAGRAPH INCLUDES REVIEWS OF ACCOUNTING, ADMINISTRATIVE
13 AND FINANCIAL RECORDS AND MANAGEMENT CONTROL SYSTEMS,
14 PROCEDURES AND RECORDS UTILIZED BY A SLOT MACHINE LICENSEE.
15 (13) A MEMBER OF THE PENNSYLVANIA STATE POLICE ASSIGNED
16 TO DUTIES OF ENFORCEMENT UNDER THIS PART SHALL NOT BE COUNTED
17 TOWARD THE COMPLEMENT AS DEFINED IN THE ACT OF DECEMBER 13,
18 2001 (P.L.903, NO.100), ENTITLED "AN ACT REPEALING IN PART A
19 LIMITATION ON THE COMPLEMENT OF THE PENNSYLVANIA STATE
20 POLICE."
21 (C.1) POWERS AND DUTIES OF ATTORNEY GENERAL.--WITHIN THE
22 OFFICE OF ATTORNEY GENERAL, THE ATTORNEY GENERAL SHALL ESTABLISH
23 A GAMING UNIT. THE UNIT SHALL INVESTIGATE AND INSTITUTE CRIMINAL
24 PROCEEDINGS AS AUTHORIZED BY SUBSECTION (D).
25 (D) CRIMINAL ACTION.--
26 (1) THE DISTRICT ATTORNEYS OF THE SEVERAL COUNTIES SHALL
27 HAVE AUTHORITY TO INVESTIGATE AND TO INSTITUTE CRIMINAL
28 PROCEEDINGS FOR [ANY] A VIOLATION OF THIS PART.
29 (2) IN ADDITION TO THE AUTHORITY CONFERRED UPON THE
30 ATTORNEY GENERAL [BY] UNDER THE ACT OF OCTOBER 15, 1980
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1 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT,
2 THE ATTORNEY GENERAL SHALL HAVE THE AUTHORITY TO INVESTIGATE
3 AND, FOLLOWING CONSULTATION WITH THE APPROPRIATE DISTRICT
4 ATTORNEY, TO INSTITUTE CRIMINAL PROCEEDINGS FOR [ANY] A
5 VIOLATION OF THIS PART. [OR ANY SERIES OF SUCH VIOLATIONS
6 INVOLVING ANY COUNTY OF THIS COMMONWEALTH AND ANOTHER STATE.
7 NO] A PERSON CHARGED WITH A VIOLATION OF THIS PART BY THE
8 ATTORNEY GENERAL SHALL NOT HAVE STANDING TO CHALLENGE THE
9 AUTHORITY OF THE ATTORNEY GENERAL TO INVESTIGATE OR PROSECUTE
10 THE CASE, AND, IF ANY SUCH CHALLENGE IS MADE, THE CHALLENGE
11 SHALL BE DISMISSED AND NO RELIEF SHALL BE AVAILABLE IN THE
12 COURTS OF THIS COMMONWEALTH TO THE PERSON MAKING THE
13 CHALLENGE.
14 (D.1) REGULATORY ACTION.--NOTHING CONTAINED IN SUBSECTION
15 (D) SHALL BE CONSTRUED TO LIMIT THE EXISTING REGULATORY OR
16 INVESTIGATIVE AUTHORITY OF AN AGENCY OR THE COMMONWEALTH WHOSE
17 FUNCTIONS RELATE TO PERSONS OR MATTERS WITHIN THE SCOPE OF THIS
18 PART.
19 * * *
20 SECTION 13. TITLE 4 IS AMENDED BY ADDING SECTIONS TO READ:
21 § 1517.1. PROCEDURES.
22 (A) EVIDENTIARY RECORD.--IF THE BUREAU OR THE LICENSING
23 BUREAU FILES AN OBJECTION TO ANY LICENSE, PERMIT OR
24 REGISTRATION, AN EVIDENTIARY RECORD SHALL BE ESTABLISHED IN
25 ORDER TO ALLOW THE BOARD TO REACH A DECISION IN ACCORDANCE WITH
26 THIS PART.
27 (B) PARTICIPANTS.--AN INTERESTED PARTY MAY FILE A PETITION
28 REQUESTING TO PARTICIPATE IN A LICENSING, PERMITTING OR
29 REGISTRATION PROCEEDING IF THE PARTY HAS AN ENFORCEABLE INTEREST
30 IN THE PROCEEDING WHICH IS SUBSTANTIAL, DIRECT AND IMMEDIATE AND
20050S0862B1553 - 136 -
1 IF THE PARTY'S INTEREST IS NOT ADEQUATELY REPRESENTED BY THE
2 BUREAU. EXCEPT AS NECESSARY TO DEVELOP A COMPREHENSIVE
3 EVIDENTIARY RECORD, AN INTERESTED PARTY OTHER THAN THE APPLICANT
4 OR THE BUREAU MAY PRESENT EVIDENCE THROUGH THE SUBMISSION OF
5 WRITTEN COMMENTS ATTESTED TO UNDER OATH. THE COMMENTS SHALL BE
6 PART OF THE EVIDENTIARY RECORD.
7 (C) APPOINTMENT OF HEARING OFFICER.--THE BOARD MAY APPOINT A
8 HEARING OFFICER TO CONDUCT A HEARING TO RESOLVE OR MAKE A
9 RECOMMENDATION REGARDING DISPUTED OR COMPLEX FACTUAL ISSUES.
10 (D) JUDICIAL NOTICE.--THE BOARD OR A PRESIDING OFFICER MAY
11 TAKE JUDICIAL NOTICE OF FACTS INTRODUCED INTO THE RECORD OF
12 ANOTHER JURISDICTION, TAKEN OR ATTESTED TO UNDER OATH, OR
13 FACTUAL FINDINGS AND LEGAL CONCLUSIONS OF ANOTHER JURISDICTION.
14 (E) DUTY OF CHIEF COUNSEL.--THE BOARD'S CHIEF COUNSEL SHALL
15 ADVISE THE BOARD IN ITS ADJUDICATORY CAPACITY.
16 § 1517.2. HEARING OFFICERS.
17 (A) GENERAL RULE.--THE BOARD SHALL EMPLOY AND DEVELOP A CODE
18 OF ETHICS FOR HEARING OFFICERS.
19 (B) AUTHORITY.--A HEARING OFFICER SHALL HAVE THE AUTHORITY
20 TO DO THE FOLLOWING:
21 (1) SCHEDULE AND CONDUCT A HEARING AS REQUIRED TO
22 RESOLVE A MATTER OR TO MAKE A RECOMMENDATION TO THE BOARD.
23 (2) PROVIDE PARTIES WITH PROPER NOTICE OF A HEARING.
24 (3) RULE ON MOTIONS, OBJECTIONS OR OTHER MATTERS ARISING
25 DURING THE HEARING.
26 (4) ENSURE THAT ALL PARTIES HAVE A FULL AND FAIR
27 OPPORTUNITY TO BE HEARD.
28 (5) ENSURE THAT A RECORD OF THE PROCEEDINGS IS AVAILABLE
29 FOR REVIEW BY THE BOARD.
30 (6) ADVISE WITNESSES OR RESPONDENTS, WHEN NOT
20050S0862B1553 - 137 -
1 REPRESENTED BY COUNSEL, OF THEIR RIGHTS AS WITNESSES.
2 (7) ISSUE SUBPOENAS UPON WRITTEN REQUEST FOR THE
3 PRODUCTION OF DOCUMENTS, RECORDS AND PERSONS NEEDED FOR THE
4 PROCEEDING.
5 § 1517.3. CONDUCT OF PUBLIC OFFICIALS AND EMPLOYEES.
6 (A) EX PARTE DISCUSSION PROHIBITED.--AN ATTORNEY
7 REPRESENTING THE BUREAU OR THE OFFICE OF ENFORCEMENT COUNSEL, OR
8 AN EMPLOYEE OF THE BUREAU OR OFFICE INVOLVED IN THE HEARING
9 PROCESS, SHALL NOT DISCUSS THE CASE EX PARTE WITH A HEARING
10 OFFICER, CHIEF COUNSEL OR MEMBER.
11 (B) OTHER PROHIBITIONS.--A HEARING OFFICER, THE CHIEF
12 COUNSEL OR A MEMBER SHALL NOT DISCUSS OR EXERCISE ANY
13 SUPERVISORY RESPONSIBILITY OVER ANY EMPLOYEE WITH RESPECT TO AN
14 ENFORCEMENT HEARING WITH WHICH THE EMPLOYEE IS INVOLVED.
15 (C) DISQUALIFICATION.--IF IT BECOMES NECESSARY FOR THE CHIEF
16 COUNSEL OR MEMBER TO BECOME INVOLVED ON BEHALF OF THE BOARD IN
17 ANY ENFORCEMENT PROCEEDING, THE CHIEF COUNSEL OR MEMBER SHALL BE
18 PROHIBITED FROM PARTICIPATING IN THE ADJUDICATION OF THAT MATTER
19 AND SHALL DESIGNATE APPROPRIATE INDIVIDUALS TO EXERCISE
20 ADJUDICATORY FUNCTIONS.
21 SECTION 14. SECTION 1518(A) AND (B) OF TITLE 4 ARE AMENDED
22 TO READ:
23 § 1518. PROHIBITED ACTS; PENALTIES.
24 (A) CRIMINAL OFFENSES.--
25 (1) THE PROVISIONS OF 18 PA.C.S. § 4902 (RELATING TO
26 PERJURY), 4903 (RELATING TO FALSE SWEARING) OR 4904 (RELATING
27 TO UNSWORN FALSIFICATION TO AUTHORITIES) SHALL APPLY TO ANY
28 PERSON PROVIDING INFORMATION OR MAKING ANY STATEMENT, WHETHER
29 WRITTEN OR ORAL, TO THE BOARD, THE BUREAU, THE DEPARTMENT,
30 THE PENNSYLVANIA STATE POLICE OR THE OFFICE OF ATTORNEY
20050S0862B1553 - 138 -
1 GENERAL, AS REQUIRED BY THIS PART.
2 (2) IT [IS] SHALL BE UNLAWFUL FOR A PERSON TO WILLFULLY:
3 (I) FAIL TO REPORT, PAY OR TRUTHFULLY ACCOUNT FOR
4 AND PAY OVER ANY LICENSE FEE, TAX OR ASSESSMENT IMPOSED
5 UNDER THIS PART; OR
6 (II) ATTEMPT IN ANY MANNER TO EVADE OR DEFEAT ANY
7 LICENSE FEE, TAX OR ASSESSMENT IMPOSED UNDER THIS [PARTY]
8 PART.
9 (3) IT [IS] SHALL BE UNLAWFUL FOR ANY LICENSED ENTITY,
10 GAMING EMPLOYEE, KEY EMPLOYEE OR ANY OTHER PERSON TO PERMIT A
11 SLOT MACHINE TO BE OPERATED, TRANSPORTED, REPAIRED OR OPENED
12 ON THE PREMISES OF A LICENSED FACILITY BY A PERSON OTHER THAN
13 A PERSON LICENSED OR PERMITTED BY THE BOARD PURSUANT TO THIS
14 PART.
15 (4) IT [IS] SHALL BE UNLAWFUL FOR ANY LICENSED ENTITY OR
16 OTHER PERSON TO MANUFACTURE, SUPPLY OR PLACE SLOT MACHINES
17 INTO PLAY OR DISPLAY SLOT MACHINES ON THE PREMISE OF A
18 LICENSED FACILITY WITHOUT THE AUTHORITY OF THE BOARD.
19 (5) EXCEPT AS PROVIDED FOR IN SECTION 1326 (RELATING TO
20 LICENSE RENEWALS), IT [IS] SHALL BE UNLAWFUL FOR A LICENSED
21 ENTITY OR OTHER PERSON TO MANUFACTURE, SUPPLY, OPERATE, CARRY
22 ON OR EXPOSE FOR PLAY ANY SLOT MACHINE AFTER THE PERSON'S
23 LICENSE HAS EXPIRED AND PRIOR TO THE ACTUAL RENEWAL OF THE
24 LICENSE.
25 (6) (I) EXCEPT AS SET FORTH IN SUBPARAGRAPH (II), IT
26 [IS] SHALL BE UNLAWFUL FOR AN INDIVIDUAL WHILE ON THE
27 PREMISES OF A LICENSED FACILITY TO KNOWINGLY USE CURRENCY
28 OTHER THAN LAWFUL COIN OR LEGAL TENDER OF THE UNITED
29 STATES OR A COIN NOT OF THE SAME DENOMINATION AS THE COIN
30 INTENDED TO BE USED IN THE SLOT MACHINE[.] WITH THE
20050S0862B1553 - 139 -
1 INTENT TO CHEAT OR DEFRAUD A LICENSED GAMING ENTITY OR
2 THE COMMONWEALTH OR DAMAGE THE SLOT MACHINE.
3 (II) IN THE PLAYING OF A SLOT MACHINE, IT [IS] SHALL
4 BE LAWFUL FOR AN INDIVIDUAL TO USE GAMING BILLETS, TOKENS
5 OR SIMILAR OBJECTS ISSUED BY THE LICENSED GAMING ENTITY
6 WHICH ARE APPROVED BY THE BOARD.
7 (7) (I) EXCEPT AS SET FORTH IN SUBPARAGRAPH (II), IT
8 [IS] SHALL BE UNLAWFUL FOR AN INDIVIDUAL [ON THE PREMISES
9 OF A LICENSED FACILITY] TO USE OR POSSESS A CHEATING OR
10 THIEVING DEVICE, COUNTERFEIT OR ALTERED BILLET, TICKET,
11 TOKEN OR SIMILAR OBJECTS ACCEPTED BY A SLOT MACHINE OR
12 COUNTERFEIT OR ALTERED SLOT MACHINE-ISSUED TICKETS OR
13 VOUCHERS AT A LICENSED FACILITY.
14 (II) AN AUTHORIZED EMPLOYEE OF A LICENSEE OR AN
15 EMPLOYEE OF THE BOARD MAY POSSESS AND USE A CHEATING OR
16 THIEVING DEVICE, COUNTERFEIT OR ALTERED BILLET, TICKET,
17 TOKEN OR SIMILAR OBJECTS ACCEPTED BY A SLOT MACHINE OR
18 COUNTERFEIT OR ALTERED SLOT MACHINE-ISSUED TICKETS OR
19 VOUCHERS [ONLY] IN PERFORMANCE OF THE DUTIES OF
20 EMPLOYMENT.
21 (III) AS USED IN THIS PARAGRAPH, THE TERM "CHEATING
22 OR THIEVING DEVICE" INCLUDES, BUT IS NOT LIMITED TO, A
23 DEVICE TO FACILITATE THE ALIGNMENT OF ANY WINNING
24 COMBINATION OR TO REMOVE FROM ANY SLOT MACHINE MONEY OR
25 OTHER CONTENTS. THE TERM INCLUDES, BUT IS NOT LIMITED TO,
26 A TOOL, DRILL, WIRE, COIN OR TOKEN ATTACHED TO A STRING
27 OR WIRE AND ANY ELECTRONIC OR MAGNETIC DEVICE.
28 (8) (I) EXCEPT AS SET FORTH IN SUBPARAGRAPH (II), IT
29 [IS] SHALL BE UNLAWFUL FOR AN INDIVIDUAL TO KNOWINGLY
30 POSSESS OR USE WHILE ON THE PREMISES OF A LICENSED
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1 FACILITY A KEY OR DEVICE DESIGNED FOR THE PURPOSE OF AND
2 SUITABLE FOR OPENING OR ENTERING ANY SLOT MACHINE OR COIN
3 BOX WHICH IS LOCATED ON THE PREMISES OF THE LICENSED
4 FACILITY.
5 (II) AN AUTHORIZED EMPLOYEE OF A LICENSEE OR A
6 MEMBER OF THE BOARD MAY POSSESS AND USE A DEVICE REFERRED
7 TO IN SUBPARAGRAPH (I) [ONLY] IN THE PERFORMANCE OF THE
8 DUTIES OF EMPLOYMENT.
9 (9) IT [IS] SHALL BE UNLAWFUL FOR A PERSON OR LICENSED
10 ENTITY TO POSSESS ANY DEVICE, EQUIPMENT OR MATERIAL WHICH THE
11 PERSON OR LICENSED ENTITY KNOWS HAS BEEN MANUFACTURED,
12 DISTRIBUTED, SOLD, TAMPERED WITH OR SERVICED IN VIOLATION OF
13 THE PROVISIONS OF THIS PART[.] WITH THE INTENT TO USE THE
14 DEVICE, EQUIPMENT OR MATERIAL AS THOUGH IT HAD BEEN
15 MANUFACTURED, DISTRIBUTED, SOLD, TAMPERED WITH OR SERVICED
16 PURSUANT TO THIS PART.
17 (9.1) IT SHALL BE UNLAWFUL FOR A PERSON TO SELL, OFFER
18 FOR SALE, REPRESENT OR PASS OFF AS LAWFUL ANY DEVICE,
19 EQUIPMENT OR MATERIAL WHICH THE PERSON OR LICENSED ENTITY
20 KNOWS HAS BEEN MANUFACTURED, DISTRIBUTED, SOLD, TAMPERED WITH
21 OR SERVICED IN VIOLATION OF THIS PART.
22 (10) IT [IS] SHALL BE UNLAWFUL FOR AN INDIVIDUAL TO WORK
23 OR BE EMPLOYED IN A POSITION THE DUTIES OF WHICH WOULD
24 REQUIRE LICENSING OR PERMITTING UNDER THE PROVISIONS OF THIS
25 PART WITHOUT FIRST OBTAINING THE REQUISITE LICENSE OR PERMIT
26 [AS PROVIDED FOR IN] ISSUED UNDER THE PROVISIONS OF THIS
27 PART.
28 (11) IT [IS] SHALL BE UNLAWFUL FOR A LICENSED GAMING
29 ENTITY THAT IS A LICENSED RACING ENTITY AND THAT HAS LOST THE
30 LICENSE ISSUED TO IT BY EITHER THE STATE HORSE RACING
20050S0862B1553 - 141 -
1 COMMISSION OR THE STATE HARNESS RACING COMMISSION UNDER THE
2 RACE HORSE INDUSTRY REFORM ACT OR THAT HAS HAD THAT LICENSE
3 SUSPENDED TO OPERATE SLOT MACHINES AT THE RACETRACK FOR WHICH
4 ITS SLOT MACHINE LICENSE WAS ISSUED UNLESS THE LICENSE ISSUED
5 TO IT BY EITHER THE STATE HORSE RACING COMMISSION OR THE
6 STATE HARNESS RACING COMMISSION WILL BE SUBSEQUENTLY REISSUED
7 OR REINSTATED WITHIN 30 DAYS AFTER THE LOSS OR SUSPENSION.
8 (12) IT [IS] SHALL BE UNLAWFUL FOR A LICENSED ENTITY TO
9 EMPLOY OR CONTINUE TO EMPLOY AN INDIVIDUAL IN A POSITION THE
10 DUTIES OF WHICH REQUIRE A LICENSE OR PERMIT UNDER THE
11 PROVISIONS OF THIS PART IF THE INDIVIDUAL:
12 (I) [AN INDIVIDUAL] IS NOT LICENSED OR PERMITTED
13 UNDER THE PROVISIONS OF THIS PART.
14 (II) [AN INDIVIDUAL WHO IS] IS PROHIBITED FROM
15 ACCEPTING EMPLOYMENT FROM A LICENSEE.
16 (13) IT [IS] SHALL BE UNLAWFUL FOR ANY PERSON UNDER 18
17 YEARS OF AGE TO BE PERMITTED IN THE AREA OF A LICENSED
18 FACILITY WHERE SLOT MACHINES ARE OPERATED.
19 (B) CRIMINAL PENALTIES AND FINES.--
20 (1) (I) A PERSON [THAT VIOLATES SUBSECTION (A)(1)
21 COMMITS AN OFFENSE TO BE GRADED IN ACCORDANCE WITH 18
22 PA.C.S. § 4902, 4903 OR 4904, AS APPLICABLE, FOR A FIRST
23 CONVICTION.] WHO COMMITS A FIRST OFFENSE IN VIOLATION OF
24 18 PA.C.S § 4902, 4903 OR 4904 IN CONNECTION WITH
25 PROVIDING INFORMATION OR MAKING ANY STATEMENT, WHETHER
26 WRITTEN OR ORAL, TO THE BOARD, THE BUREAU, THE
27 DEPARTMENT, THE PENNSYLVANIA STATE POLICE OR THE OFFICE
28 OF ATTORNEY GENERAL AS REQUIRED BY THIS PART COMMITS AN
29 OFFENSE TO BE GRADED IN ACCORDANCE WITH THE APPLICABLE
30 SECTION VIOLATED. A PERSON THAT IS CONVICTED OF A SECOND
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1 OR SUBSEQUENT VIOLATION OF [SUBSECTION (A)(1)] 18 PA.C.S.
2 § 4902, 4903 OR 4904 IN CONNECTION WITH PROVIDING
3 INFORMATION OR MAKING ANY STATEMENT, WHETHER WRITTEN OR
4 ORAL, TO THE BOARD, THE BUREAU, THE DEPARTMENT, THE
5 PENNSYLVANIA STATE POLICE OR THE OFFICE OF ATTORNEY
6 GENERAL AS REQUIRED BY THIS PART COMMITS A FELONY OF THE
7 SECOND DEGREE.
8 (II) A PERSON THAT VIOLATES SUBSECTION (A)(2)
9 THROUGH (12) COMMITS A MISDEMEANOR OF THE FIRST DEGREE. A
10 PERSON THAT IS CONVICTED OF A SECOND OR SUBSEQUENT
11 VIOLATION OF SUBSECTION (A)(2) THROUGH (12) COMMITS A
12 FELONY OF THE SECOND DEGREE.
13 (2) (I) FOR A FIRST VIOLATION OF SUBSECTION (A)(1)
14 THROUGH (12), A PERSON SHALL BE SENTENCED TO PAY A FINE
15 OF:
16 (A) NOT LESS THAN $75,000 NOR MORE THAN $150,000
17 IF THE PERSON IS AN INDIVIDUAL;
18 (B) NOT LESS THAN $300,000 NOR MORE THAN
19 $600,000 IF THE PERSON IS A LICENSED GAMING ENTITY;
20 OR
21 (C) NOT LESS THAN $150,000 NOR MORE THAN
22 $300,000 IF THE PERSON IS A LICENSED MANUFACTURER OR
23 SUPPLIER.
24 (II) FOR A SECOND OR SUBSEQUENT VIOLATION OF
25 SUBSECTION (A)(1) THROUGH (12), A PERSON SHALL BE
26 SENTENCED TO PAY A FINE OF:
27 (A) NOT LESS THAN $150,000 NOR MORE THAN
28 $300,000 IF THE PERSON IS AN INDIVIDUAL;
29 (B) NOT LESS THAN $600,000 NOR MORE THAN
30 $1,200,000 IF THE PERSON IS A LICENSED GAMING ENTITY;
20050S0862B1553 - 143 -
1 OR
2 (C) NOT LESS THAN $300,000 NOR MORE THAN
3 $600,000 IF THE PERSON IS A LICENSED MANUFACTURER OR
4 SUPPLIER.
5 * * *
6 SECTION 15. TITLE 4 IS AMENDED BY ADDING SECTIONS TO READ:
7 § 1519. DETENTION.
8 A PEACE OFFICER, LICENSEE OR LICENSEE'S SECURITY EMPLOYEE OR
9 AN AGENT UNDER CONTRACT WITH THE LICENSEE WHO HAS PROBABLE CAUSE
10 TO BELIEVE THAT CRIMINAL VIOLATION OF THIS PART HAS OCCURRED OR
11 IS OCCURRING ON OR ABOUT A LICENSED FACILITY AND WHO HAS
12 PROBABLE CAUSE TO BELIEVE THAT A SPECIFIC INDIVIDUAL HAS
13 COMMITTED OR IS COMMITTING THE CRIMINAL VIOLATION MAY DETAIN THE
14 SUSPECT IN A REASONABLE MANNER FOR A REASONABLE TIME ON THE
15 PREMISES OF THE LICENSED FACILITY FOR ALL OR ANY OF THE
16 FOLLOWING PURPOSES: TO REQUIRE THE SUSPECT TO IDENTIFY HIMSELF;
17 TO VERIFY SUCH IDENTIFICATION; OR TO INFORM A PEACE OFFICER.
18 SUCH DETENTION SHALL NOT IMPOSE CIVIL OR CRIMINAL LIABILITY UPON
19 THE PEACE OFFICER, LICENSEE, LICENSEE'S EMPLOYEE OR AGENT SO
20 DETAINING.
21 § 1522. INTERCEPTION OF ORAL COMMUNICATIONS.
22 THE INTERCEPTION AND RECORDING OF ORAL COMMUNICATIONS MADE IN
23 A COUNTING ROOM OF A LICENSED FACILITY BY A LICENSEE SHALL NOT
24 BE SUBJECT TO THE PROVISIONS OF 18 PA.C.S. CH. 57 (RELATING TO
25 WIRETAPPING AND ELECTRONIC SURVEILLANCE). NOTICE THAT ORAL
26 COMMUNICATIONS ARE BEING INTERCEPTED AND RECORDED SHALL BE
27 POSTED CONSPICUOUSLY IN THE COUNTING ROOM.
28 SECTION 16. SECTIONS 1801 AND 1802 OF TITLE 4 ARE AMENDED TO
29 READ:
30 § 1801. DUTY TO PROVIDE.
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1 NOTWITHSTANDING THE PROVISIONS OF THE RACE HORSE INDUSTRY
2 REFORM ACT OR THIS PART, THE PENNSYLVANIA STATE POLICE SHALL, AT
3 THE REQUEST OF THE COMMISSIONS OR THE BOARD, PROVIDE CRIMINAL
4 HISTORY BACKGROUND INVESTIGATIONS, WHICH SHALL INCLUDE RECORDS
5 OF CRIMINAL ARRESTS [OR] AND CONVICTIONS, NO MATTER WHERE
6 OCCURRING, INCLUDING FEDERAL CRIMINAL HISTORY RECORD
7 INFORMATION, ON APPLICANTS FOR LICENSURE AND PERMIT APPLICANTS
8 BY THE RESPECTIVE AGENCIES PURSUANT TO THE RACE HORSE INDUSTRY
9 REFORM ACT OR THIS PART. REQUESTS FOR CRIMINAL HISTORY
10 BACKGROUND INVESTIGATIONS MAY, AT THE DIRECTION OF THE
11 COMMISSIONS OR THE BOARD, INCLUDE, BUT NOT BE LIMITED TO,
12 OFFICERS, DIRECTORS AND STOCKHOLDERS OF LICENSED CORPORATIONS,
13 KEY EMPLOYEES, FINANCIAL BACKERS, PRINCIPALS, GAMING EMPLOYEES,
14 HORSE OWNERS, TRAINERS, JOCKEYS, DRIVERS AND OTHER PERSONS
15 PARTICIPATING IN THOROUGHBRED OR HARNESS HORSE MEETINGS AND
16 OTHER PERSONS AND VENDORS WHO EXERCISE THEIR OCCUPATION OR
17 EMPLOYMENT AT SUCH MEETINGS, LICENSED FACILITIES OR LICENSED
18 [RACETRACK] RACETRACKS. FOR THE PURPOSES OF THIS [CHAPTER] PART,
19 THE BOARD AND COMMISSIONS MAY RECEIVE AND RETAIN INFORMATION
20 OTHERWISE PROTECTED BY 18 PA.C.S. CH. 91 (RELATING TO CRIMINAL
21 HISTORY RECORD INFORMATION).
22 § 1802. SUBMISSION OF FINGERPRINTS AND PHOTOGRAPHS.
23 [APPLICANTS] APPOINTEES, EMPLOYEES AND PROSPECTIVE EMPLOYEES
24 ENGAGED IN THE SERVICE OF THE COMMISSIONS OR THE BOARD, AND
25 APPLICANTS UNDER THIS PART SHALL SUBMIT TO FINGERPRINTING AND
26 PHOTOGRAPHING BY THE PENNSYLVANIA STATE POLICE[.] OR BY A LOCAL
27 LAW ENFORCEMENT AGENCY CAPABLE OF SUBMITTING FINGERPRINTS AND
28 PHOTOGRAPHS ELECTRONICALLY TO THE PENNSYLVANIA STATE POLICE
29 UTILIZING THE INTEGRATED AUTOMATED FINGERPRINT IDENTIFICATION
30 SYSTEM AND THE COMMONWEALTH PHOTO IMAGING NETWORK OR IN A MANNER
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1 AND IN SUCH FORM AS MAY BE PROVIDED BY THE PENNSYLVANIA STATE
2 POLICE. FINGERPRINTING PURSUANT TO THIS PART SHALL REQUIRE, AT A
3 MINIMUM, THE SUBMISSION OF A FULL SET OF FINGERPRINTS.
4 PHOTOGRAPHING PURSUANT TO THIS PART SHALL REQUIRE SUBMISSION TO
5 PHOTOGRAPHS OF THE FACE AND ANY SCARS, MARKS OR TATTOOS FOR
6 PURPOSES OF COMPARISON UTILIZING AN AUTOMATED BIOMETRIC IMAGING
7 SYSTEM. THE PENNSYLVANIA STATE POLICE SHALL SUBMIT [THE]
8 FINGERPRINTS [IF NECESSARY] WHEN REQUESTED BY THE COMMISSIONS OR
9 THE BOARD TO THE FEDERAL BUREAU OF INVESTIGATION FOR PURPOSES OF
10 VERIFYING THE IDENTITY OF THE APPLICANTS AND OBTAINING RECORDS
11 OF CRIMINAL ARRESTS AND CONVICTIONS IN ORDER TO PREPARE CRIMINAL
12 HISTORY BACKGROUND INVESTIGATIONS UNDER SECTION 1801 (RELATING
13 TO DUTY TO PROVIDE). [THE] FINGERPRINTS AND PHOTOGRAPHS OBTAINED
14 PURSUANT TO THIS PART MAY BE MAINTAINED BY THE COMMISSIONS, THE
15 BOARD AND THE PENNSYLVANIA STATE POLICE FOR USE PURSUANT TO THIS
16 PART AND FOR GENERAL LAW ENFORCEMENT PURPOSES. IN ADDITION TO
17 ANY OTHER FEE OR COST ASSESSED BY THE COMMISSIONS OR THE BOARD,
18 AN APPLICANT SHALL PAY FOR THE COST OF FINGERPRINTING AND
19 PHOTOGRAPHING.
20 SECTION 17. TITLE 4 IS AMENDED BY ADDING A SECTION TO READ:
21 § 1905. PREEMPTION IN CITIES OF THE FIRST CLASS.
22 THE CONDUCT OF GAMING IN CITIES OF THE FIRST CLASS AS
23 PERMITTED UNDER THIS PART, INCLUDING THE PHYSICAL LOCATION OF
24 ANY LICENSED FACILITY, SHALL NOT BE PROHIBITED OR OTHERWISE
25 REGULATED BY ANY ORDINANCE, HOME RULE CHARTER PROVISION,
26 RESOLUTION, RULE OR REGULATION OF A CITY OF THE FIRST CLASS.
27 SECTION 18. SECTION 911(H)(1) OF TITLE 18 IS AMENDED TO
28 READ:
29 § 911. CORRUPT ORGANIZATIONS.
30 * * *
20050S0862B1553 - 146 -
1 (H) DEFINITIONS.--AS USED IN THIS SECTION:
2 (1) "RACKETEERING ACTIVITY" MEANS ALL OF THE FOLLOWING:
3 (I) [ANY] AN ACT WHICH IS INDICTABLE UNDER ANY OF
4 THE FOLLOWING PROVISIONS OF THIS TITLE:
5 CHAPTER 25 (RELATING TO CRIMINAL HOMICIDE)
6 SECTION 2706 (RELATING TO TERRORISTIC THREATS)
7 CHAPTER 29 (RELATING TO KIDNAPPING)
8 CHAPTER 33 (RELATING TO ARSON, ETC.)
9 CHAPTER 37 (RELATING TO ROBBERY)
10 CHAPTER 39 (RELATING TO THEFT AND RELATED
11 OFFENSES)
12 SECTION 4108 (RELATING TO COMMERCIAL BRIBERY AND
13 BREACH OF DUTY TO ACT DISINTERESTEDLY)
14 SECTION 4109 (RELATING TO RIGGING PUBLICLY
15 EXHIBITED CONTEST)
16 SECTION 4117 (RELATING TO INSURANCE FRAUD)
17 CHAPTER 47 (RELATING TO BRIBERY AND CORRUPT
18 INFLUENCE)
19 CHAPTER 49 (RELATING TO FALSIFICATION AND
20 INTIMIDATION)
21 SECTION 5111 (RELATING TO DEALING IN PROCEEDS OF
22 UNLAWFUL ACTIVITIES)
23 SECTION 5512 THROUGH 5514 (RELATING TO GAMBLING)
24 CHAPTER 59 (RELATING TO PUBLIC INDECENCY).
25 (II) [ANY] AN OFFENSE INDICTABLE UNDER SECTION 13 OF
26 THE ACT OF APRIL 14, 1972 (P.L.233, NO.64), KNOWN AS THE
27 CONTROLLED SUBSTANCE, DRUG, DEVICE AND COSMETIC ACT
28 (RELATING TO THE SALE AND DISPENSING OF NARCOTIC
29 DRUGS)[;].
30 (III) [ANY] A CONSPIRACY TO COMMIT ANY OF THE
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1 OFFENSES SET FORTH IN SUBPARAGRAPHS (I) [AND (II) OF THIS
2 PARAGRAPH; OR], (II) OR (V).
3 (IV) [THE] THE COLLECTION OF ANY MONEY OR OTHER
4 PROPERTY IN FULL OR PARTIAL SATISFACTION OF A DEBT WHICH
5 AROSE AS THE RESULT OF THE LENDING OF MONEY OR OTHER
6 PROPERTY AT A RATE OF INTEREST EXCEEDING 25% PER ANNUM OR
7 THE EQUIVALENT RATE FOR A LONGER OR SHORTER PERIOD, WHERE
8 NOT OTHERWISE AUTHORIZED BY LAW.
9 (V) AN OFFENSE INDICTABLE UNDER 4 PA.C.S. PT. II
10 (RELATING TO GAMING).
11 [ANY] AN ACT WHICH OTHERWISE WOULD BE CONSIDERED RACKETEERING
12 ACTIVITY BY REASON OF THE APPLICATION OF THIS PARAGRAPH,
13 SHALL NOT BE EXCLUDED FROM ITS APPLICATION SOLELY BECAUSE THE
14 OPERATIVE ACTS TOOK PLACE OUTSIDE THE JURISDICTION OF THIS
15 COMMONWEALTH, IF SUCH ACTS WOULD HAVE BEEN IN VIOLATION OF
16 THE LAW OF THE JURISDICTION IN WHICH THEY OCCURRED.
17 * * *
18 SECTION 19. EXCEPT FOR THE AMENDMENT OF 4 PA.C.S. § 1518,
19 THE ADDITIONS AND AMENDMENTS TO 4 PA.C.S. CONTAINED IN THIS ACT
20 SHALL BE RETROACTIVE TO JULY 1, 2005.
21 SECTION 20. REPEALS ARE AS FOLLOWS:
22 (1) THE GENERAL ASSEMBLY DECLARES THAT THE REPEAL UNDER
23 PARAGRAPH (2) IS NECESSARY TO EFFECTUATE THE ADDITION OF 4
24 PA.C.S. § 1202(B)(29).
25 (2) SECTION 493(29) OF THE ACT OF APRIL 12, 1951
26 (P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, IS REPEALED.
27 SECTION 21. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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