CORRECTIVE REPRINT
HOUSE AMENDED
PRIOR PRINTER'S NOS. 1105, 1241, 1302, PRINTER'S NO. 2186
1319, 1553, 2048, 2101, 2182
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
AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES,
OCTOBER 17, 2006
AN ACT
1 Amending Titles 4 (Amusements) and 18 (Crimes and Offenses) of
2 the Pennsylvania Consolidated Statutes, further providing for <--
3 definitions and for the Pennsylvania Gaming Control Board;
4 providing for applicability of other statutes; further
5 providing for powers and duties of board; providing for code
6 of conduct; further providing for temporary regulations, for
7 licensed entity application appeals from board, for license
8 or permit application hearing process, for board minutes and
9 records, for collection of fees and fines, for regulatory
10 authority of board, for slot machine license fee, for number
11 of slot machines, for reports of board, for license or permit
12 prohibition, for Category 2 slot machine licenses, for
13 Category 3 slot machine licenses, for order of initial
14 license issuance, for slot machine license application and
15 for slot machine license application business entity
16 requirements; providing for licensing of principals and for
17 licensing of key employees; further providing for slot
18 machine license application financial fitness requirements
19 and for supplier and manufacturer licenses; providing for
20 manufacturer licenses; further providing for occupation
21 permit application, for central control computer system, for
22 license or permit issuance, for nontransferability of
23 licenses and for gross terminal revenue deductions; providing
24 for itemized budget reporting; further providing for
25 establishment of State Gaming Fund and net slot machine
26 revenue distribution, for distributions from Pennsylvania
27 Race Horse Development Fund, for local land use preemption
1 and for the Compulsive and Problem Gambling Program;
2 providing for land use preemption and conveyances within
3 cities of the first class, for riparian rights and for clean
4 indoor air; providing for public official financial interest,
5 for political influence and for enforcement; providing for
6 procedures and for conduct of public officials and employees;
7 further providing for prohibited acts and penalties;
8 providing for detention and for interception of oral
9 communications; further providing for duty to provide and for
10 submission of fingerprints and photographs; providing for
11 repayments to State Gaming Fund; and further providing for
12 corrupt organizations. FURTHER PROVIDING FOR DEFINITIONS AND <--
13 FOR THE PENNSYLVANIA GAMING CONTROL BOARD; PROVIDING FOR
14 APPLICABILITY OF OTHER STATUTES; FURTHER PROVIDING FOR POWERS
15 AND DUTIES OF BOARD; PROVIDING FOR CODE OF CONDUCT; FURTHER
16 PROVIDING FOR TEMPORARY REGULATIONS, FOR LICENSED ENTITY
17 APPLICATION APPEALS FROM BOARD, FOR LICENSE OR PERMIT
18 APPLICATION HEARING PROCESS, FOR BOARD MINUTES AND RECORDS,
19 FOR COLLECTION OF FEES AND FINES, FOR REPORTS OF BOARD, FOR
20 LICENSE OR PERMIT PROHIBITION, FOR CATEGORY 2 SLOT MACHINE
21 LICENSES, FOR CATEGORY 3 SLOT MACHINE LICENSES, FOR ORDER OF
22 INITIAL LICENSE ISSUANCE, FOR NUMBER OF SLOT MACHINE
23 LICENSES, FOR APPLICATIONS FOR LICENSE OR PERMIT, FOR SLOT
24 MACHINE LICENSE APPLICATION AND FOR SLOT MACHINE LICENSE
25 APPLICATION BUSINESS ENTITY REQUIREMENTS; PROVIDING FOR
26 LICENSING OF PRINCIPALS AND FOR LICENSING OF KEY EMPLOYEES;
27 FURTHER PROVIDING FOR SLOT MACHINE LICENSE APPLICATION
28 FINANCIAL FITNESS REQUIREMENTS AND FOR SUPPLIER AND
29 MANUFACTURER LICENSES; PROVIDING FOR MANUFACTURER LICENSES;
30 FURTHER PROVIDING FOR OCCUPATION PERMIT APPLICATION, FOR
31 CENTRAL CONTROL COMPUTER SYSTEM, FOR LICENSE OR PERMIT
32 ISSUANCE, FOR NONTRANSFERABILITY OF LICENSES, FOR GROSS
33 TERMINAL REVENUE DEDUCTIONS, FOR ESTABLISHMENT OF STATE
34 GAMING FUND AND NET SLOT MACHINE REVENUE DISTRIBUTION, FOR
35 DISTRIBUTIONS FROM PENNSYLVANIA RACE HORSE DEVELOPMENT FUND,
36 FOR LOCAL LAND USE PREEMPTION AND FOR TRANSFERS FROM STATE
37 GAMING FUND; PROVIDING FOR CLEAN INDOOR AIR; FURTHER
38 PROVIDING FOR COMPULSIVE AND PROBLEM GAMBLING PROGRAM, FOR
39 PUBLIC OFFICIAL FINANCIAL INTEREST, FOR POLITICAL INFLUENCE
40 AND FOR ENFORCEMENT; PROVIDING FOR CONDUCT OF PUBLIC
41 OFFICIALS AND EMPLOYEES; FURTHER PROVIDING FOR PROHIBITED
42 ACTS AND PENALTIES; PROVIDING FOR DETENTION AND FOR
43 INTERCEPTION OF ORAL COMMUNICATIONS; FURTHER PROVIDING FOR
44 DUTY TO PROVIDE AND FOR SUBMISSION OF FINGERPRINTS; PROVIDING
45 FOR REPAYMENTS TO STATE GAMING FUND; FURTHER PROVIDING FOR
46 CORRUPT ORGANIZATIONS; AND MAKING RELATED REPEALS.
47 The General Assembly of the Commonwealth of Pennsylvania
48 hereby enacts as follows:
49 Section 1. The definitions of "affiliate" or "affiliated
50 company," "applicant," "controlling interest" and "gross
51 terminal revenue" in section 1103 of Title 4 of the Pennsylvania
52 Consolidated Statutes are amended and the section is amended by
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1 adding definitions to read:
2 § 1103. Definitions.
3 The following words and phrases when used in this part shall
4 have the meanings given to them in this section unless the
5 context clearly indicates otherwise:
6 "Accessory gaming use." A use commonly associated with the
7 operation or management of a licensed facility or with the
8 entertainment or convenience of patrons of a licensed facility
9 WHICH IS CONDUCTED AT THE LICENSED FACILITY, including the <--
10 following:
11 (1) Hotel, hospitality, convention and conference
12 facilities.
13 (2) Residential units, including owner-occupied or
14 rental units.
15 (3) Retail, commercial or office space.
16 (4) Restaurant, performance area, theater or nightclub.
17 (5) Parking areas or marinas.
18 (6) Outdoor advertising.
19 (7) Warehouses.
20 (8) Athletic or sports facilities.
21 "Affiliate[" or "affiliated company]," "affiliate of" or
22 "person affiliated with." A person that directly or indirectly,
23 through one or more intermediaries, controls, is controlled by
24 or is under common control with a specified person.
25 "Applicant." Any person[, officer, director or key
26 employee], who on his own behalf or on behalf of another, is
27 applying for permission to engage in any act or activity which
28 is regulated under the provisions of this part. In cases in
29 which the applicant is a [corporation, foundation, organization,
30 business trust, estate, limited liability company, trust,
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1 partnership, limited partnership, association or any other form
2 of legal business entity,] person other than an individual, the
3 Pennsylvania Gaming Control Board shall determine the associated
4 persons whose qualifications are necessary as a precondition to
5 the licensing of the applicant.
6 * * *
7 "Associated area." All parcels of land and improvements,
8 including a licensed racetrack and backside area, owned by the
9 licensed gaming entity or its affiliate, intermediary,
10 subsidiary or holding company that is contiguous or adjoining, <--
11 including connection WHICH IS CONTIGUOUS OR IS ADJOINED <--
12 DIRECTLY, by a pedestrian walkway, bridge or easement to the
13 land-based location of the licensed facility.
14 * * *
15 "Compensation." Any thing of value, money or a financial
16 benefit conferred on or received by a person in return for
17 services rendered, or to be rendered, whether by that person or
18 another.
19 "Complimentary service." Any lodging, service or item which
20 is provided to an individual at no cost or at a reduced cost
21 which is not generally available to the public under similar
22 circumstances. Group rates, including convention and government
23 rates, shall be deemed to be generally available to the public.
24 "Conduct of gaming." The licensed placement and operation of
25 games of chance under this part and approved by the Pennsylvania <--
26 Gaming Control Board at a licensed facility. GAMING UNDER THIS <--
27 PART.
28 "Controlling interest." [A person shall be deemed to have
29 the ability to control a publicly traded corporation, or to
30 elect one or more of the members of its board of directors, if
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1 such holder owns or beneficially holds 5% or more of the
2 securities of such publicly traded domestic or foreign
3 corporation, partnership, limited liability company or any other
4 form of legal entity, unless such presumption of control or
5 ability to elect is rebutted by clear and convincing evidence. A
6 person who is a holder of securities of a privately held
7 domestic or foreign corporation, partnership, limited liability
8 company or any other form of legal entity shall be deemed to
9 possess a controlling interest unless such presumption of
10 control is rebutted by clear and convincing evidence.] For a
11 publicly traded domestic or foreign corporation, a controlling
12 interest is an interest in a legal entity, applicant or licensee <--
13 if a person's sole voting rights under State law or corporate
14 articles or bylaws entitle the person to vote to elect or <--
15 appoint one or more of the members of the board of directors or
16 other governing board or the ownership or beneficial holding of
17 5% or more of the securities of the publicly traded corporation,
18 partnership, limited liability company or other form of publicly
19 traded legal entity, unless this presumption of control or
20 ability to elect is rebutted by clear and convincing evidence.
21 For a privately held domestic or foreign corporation,
22 partnership, limited liability company or other form of
23 privately held legal entity, a controlling interest is the
24 holding of any securities in the legal entity, unless this
25 presumption of control is rebutted by clear and convincing
26 evidence.
27 * * *
28 "Corporation." Includes a publicly traded corporation.
29 * * *
30 "Gross terminal revenue." The total of cash or cash
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1 equivalent wagers received by a slot machine minus the total of:
2 (1) Cash or cash equivalents paid out to patrons as a
3 result of playing a slot machine which are paid to patrons
4 either manually or paid out by the slot machine.
5 (2) Cash paid to purchase annuities to fund prizes
6 payable to patrons over a period of time as a result of
7 playing a slot machine.
8 (3) Any personal property distributed to a patron as the
9 result of playing a slot machine. This does not include
10 travel expenses, food, refreshments, lodging or services.
11 The term does not include counterfeit money or tokens, coins or
12 currency of other countries which are received in slot machines,
13 except to the extent that they are readily convertible to United
14 States currency, cash taken in fraudulent acts perpetrated
15 against a slot machine licensee for which the licensee is not
16 reimbursed or cash received as entry fees for contests or
17 tournaments in which the patrons compete for prizes.
18 "Holding company." A person, other than an individual,
19 which, directly or indirectly, owns, has the power or right to
20 control or to vote any significant part of the outstanding
21 voting securities of a corporation or other form of business
22 organization. A holding company indirectly has, holds or owns
23 any such power, right or security if it does so through an
24 interest in a subsidiary or successive subsidiaries.
25 * * *
26 "Independent contractor." A person who performs
27 professional, scientific, technical, advisory or consulting
28 services to the Pennsylvania Gaming Control Board for a fee,
29 honorarium or similar compensation pursuant to a contract. THE <--
30 TERM INCLUDES SUBCONTRACTORS.
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1 * * *
2 "Intermediary." A person, other than an individual, which:
3 (1) is a holding company with respect to a corporation
4 or other form of business organization, which holds or
5 applies for a license under this part; and
6 (2) is a subsidiary with respect to any holding company.
7 * * *
8 "Member." An individual appointed to and sworn in as a
9 member of the board in accordance with section 1201(b) (relating
10 to Pennsylvania Gaming Control Board established).
11 * * *
12 "Principal." An officer; director; person who directly holds
13 a CONTROLLING beneficial interest in or ownership of the <--
14 securities of an applicant or licensee; person who has a
15 controlling interest in an applicant or licensee, or has the
16 ability to elect a majority of the board of directors of a <--
17 licensee or to otherwise control a AN APPLICANT OR LICENSEE OR <--
18 TO OTHERWISE CONTROL AN APPLICANT OR licensee; lender or other
19 licensed financial institution of an applicant or licensee,
20 other than a bank or lending institution which makes a loan or
21 holds a mortgage or other lien acquired in the ordinary course
22 of business; underwriter of an applicant or licensee; or other
23 person or employee of an applicant, slot machine licensee,
24 manufacturer licensee or supplier licensee deemed to be a
25 principal by the Pennsylvania Gaming Control Board.
26 * * *
27 "Publicly traded corporation." A person, OTHER THAN AN <--
28 INDIVIDUAL, which:
29 (1) has a class or series of securities registered under
30 the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C.
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1 § 78a et seq.);
2 (2) is a registered management company under the
3 Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §
4 80a-1 et seq.); or
5 (3) is subject to the reporting obligations imposed by
6 section 15(d) of the Securities Exchange Act of 1934 by
7 reason of having filed a registration statement which has
8 become effective under the Securities Act of 1933 (48 Stat.
9 74, 15 U.S.C. § 77a et seq.).
10 * * *
11 "Subsidiary." A person other than an individual. The term <--
12 includes:
13 "SUBSIDIARY." A PERSON, OTHER THAN AN INDIVIDUAL, WHICH IS: <--
14 (1) a corporation, any significant part of whose
15 outstanding equity securities are owned, subject to a power
16 or right of control, or held with power to vote, by a holding
17 company or an intermediary company; or <--
18 (2) a significant interest in a person, other than an
19 individual, which is owned, subject to a power or right of
20 control, or held with power to vote, by a holding company or
21 an intermediary company; OR <--
22 (3) A PERSON DEEMED TO BE A SUBSIDIARY BY THE <--
23 PENNSYLVANIA GAMING CONTROL BOARD.
24 * * *
25 "Underwriter." As defined in the act of December 5, 1972
26 (P.L.1280, No.284), known as the Pennsylvania Securities Act of
27 1972.
28 Section 2. Section 1201 of Title 4 is amended to read:
29 § 1201. Pennsylvania Gaming Control Board established.
30 (a) Board established.--There is established an independent
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1 [administrative] board which shall be a body corporate and
2 politic to be known as the Pennsylvania Gaming Control Board[,
3 which shall be implemented as set forth in this section].
4 (b) Membership.--The board shall consist of the following
5 members[, who shall serve a set term and may not be removed
6 except for good cause]:
7 (1) Three members appointed by the Governor.[, each
8 being referred to as a "gubernatorial appointee."]
9 (2) One member appointed by each of the following
10 [legislative caucus leaders, each being referred to as a
11 "legislative appointee"]:
12 (i) The President pro tempore of the Senate.
13 (ii) The Minority Leader of the Senate.
14 (iii) The Speaker of the House of Representatives.
15 (iv) The Minority Leader of the House of
16 Representatives.
17 (b.1) Removal.--A member of the board shall be removed from
18 office by the appointing authority:
19 (1) for misconduct in office, willful neglect of duty or
20 conduct evidencing unfitness for office or incompetence; or
21 (2) upon conviction of an offense graded as a felony, an
22 infamous crime, an offense under this part or an equivalent
23 offense under Federal law or the law of another jurisdiction.
24 (c) Initial appointments to board.--
25 (1) Gubernatorial [appointee members] appointees
26 initially appointed under subsection (b)(1) shall serve an
27 initial term of one, two and three years respectively as
28 designated by the Governor at the time of appointment and
29 until their successors are appointed and qualified.
30 (2) Legislative [appointee members] appointees initially
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1 appointed under subsection (b)(2) shall serve until the third
2 Tuesday in January 2007 and until their successors are
3 appointed and qualified.
4 (3) [Any] An appointment to fill a vacancy created by a
5 member appointed in accordance with paragraph (1) or (2)
6 shall be for the remainder of the unexpired term. [Members so
7 appointed to fill the unexpired term of an initial appointee
8 shall be subject to the provisions of subsection (d).]
9 (d) [Appointments after expiration of initial term or upon
10 vacancy] Terms of office.--Upon the expiration of a term of a
11 member appointed under [this subsection or upon the existence of
12 a vacancy of a member appointed pursuant to subsection (c) or
13 this] subsection (c), [the appointing authority shall appoint a
14 member subject to the following:
15 (1) For a gubernatorial appointment under subsection
16 (b)(1), the term shall be for three years and until a
17 successor is appointed and qualified.] the following shall
18 apply:
19 (1) The term of office of a gubernatorial appointee
20 shall be three years and until a successor is appointed and
21 qualified.
22 (2) [Terms for legislative appointee members appointed
23 under subsection (b)(2) shall be for a two-year term and
24 shall expire on the third Tuesday of January of such year,
25 but such members shall continue to serve until their
26 successors are appointed and qualified.] The term of office
27 of a legislative appointee shall be two years and until a
28 successor is appointed and qualified.
29 (3) [No] A legislative appointee [member] shall serve no
30 more than three full [successive] consecutive terms.
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1 (4) [No] A gubernatorial appointee [member] shall serve
2 no more than two full [successive] consecutive terms.
3 (5) An appointment to fill a vacancy shall be for the
4 remainder of the unexpired term.
5 (6) A member appointed to fill a vacancy under paragraph
6 (3) may serve three full terms following the expiration of
7 the term related to the vacancy.
8 (7) A member appointed to fill a vacancy under paragraph
9 (4) may serve two full terms following the expiration of the
10 term related to the vacancy.
11 (e) Ex officio members.--The Secretary of Revenue, the
12 Secretary of Agriculture and the State Treasurer, or their
13 designees, shall serve on the board as nonvoting ex officio
14 members of the board. The designee shall be a deputy secretary
15 or an equivalent position within the agency.
16 (f) Qualified majority vote.--
17 (1) Except as permitted in paragraphs (2) and (3), any
18 action, including, but not limited to, the approval,
19 issuance, denial or conditioning of any license by the board
20 under this part or the making of any order or the
21 ratification of any permissible act done or order made by one
22 or more of the members, shall require a qualified majority
23 vote consisting of at least one gubernatorial appointee and
24 the four legislative appointees.
25 (2) Any action to suspend or revoke, not renew, void or
26 require forfeiture of a license or permit issued under this
27 part, to impose any administrative fine or penalty under this
28 part or to issue cease and desist orders or similar
29 enforcement actions shall require a majority vote of all the
30 members appointed to the board.
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1 (3) Notwithstanding any other provision [to the
2 contrary] of this part or 65 Pa.C.S. § 1103(j) (relating to
3 restricted activities), AND IN ACCORDANCE WITH SUBSECTION <--
4 (H)(6), a member shall disclose the nature of his
5 disqualifying interest, disqualify himself and abstain from
6 voting in a proceeding under this part in which his [or her
7 impartiality] objectivity, impartiality, integrity or
8 independence of judgment may be reasonably questioned[, <--
9 [including, but not limited to, instances where he or she <--
10 knows that they possess a substantial financial interest in
11 the subject matter of the proceeding or any other interest
12 that could be substantially affected by the outcome of the
13 proceeding. In such circumstances in which it is] as provided <--
14 in subsection (h)(6). If a legislative appointee [member that
15 has disqualified himself or herself] has disqualified
16 himself, the qualified majority shall consist of all of the <--
17 remaining [three] legislative appointees and at least two
18 gubernatorial appointees. For purposes of this paragraph, the <--
19 term "immediate family" shall mean spouse, parent, brother,
20 sister or child.
21 (4) A member who disqualifies himself from voting on a <--
22 particular license application shall be disqualified from
23 voting on any application for that license in a proceeding.
24 Multiple license applications seeking the same slot machine
25 license shall be considered a single proceeding.
26 (g) Background investigation.--Appointees shall be subject
27 to a background investigation conducted by the Pennsylvania
28 State Police in accordance with this part.
29 (h) Qualifications and restrictions.--
30 (1) Each member at the time of appointment shall be at
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1 least 25 years of age and shall have been a resident of this
2 Commonwealth for a period of at least one year immediately
3 preceding appointment. Each member shall continue to remain a
4 resident of this Commonwealth during the term of membership
5 on the board.
6 (2) Except for ex officio members, no person shall be
7 appointed a member of the board or [hold any place, position
8 or office under the board if that person holds any other
9 elected office or party office] be employed by or be an
10 independent contractor of the board if that person is a
11 public official or party officer as defined in section 1512
12 (relating to [public official financial interest] financial
13 and employment interests) in this Commonwealth or any of its
14 political subdivisions.
15 [(3) No member, appointee, employee or official shall
16 hold any office or employment position, the duties of which
17 are incompatible with the duties of the office.
18 (4) No member, employee, appointee or official engaged
19 in the service of or in any manner connected with the board
20 shall hold any office or position, or be engaged in any
21 employment or vocation, the duties of which are incompatible
22 with employment in the service of or in connection with the
23 work of the board.]
24 (3) Each member, employee and independent contractor of
25 the board shall sign an agreement not to disclose
26 confidential information.
27 (4) No member, employee or independent contractor of the
28 board or other agency having regulatory authority over the
29 board or over forms of gaming regulated by this part shall be
30 employed, hold any office or position or be engaged in any
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1 activity which is incompatible with the position, employment
2 or contract.
3 (5) No member shall be paid or [accept for any service
4 connected with the office any fee other than the salary and
5 expenses provided by law.] receive any fee or other
6 compensation other than salary and expenses provided by law
7 for any activity related to the duties or authority of the
8 board. Nothing in this part shall prohibit a member from
9 engaging in any employment [or vocation] or receiving any
10 compensation for such employment [or vocation] that is not
11 [otherwise] connected to or incompatible with his [or her]
12 service as a member of the board.
13 (6) No member, employee[, appointee or official shall
14 participate in any hearing or proceeding in which that person
15 has any direct or indirect pecuniary interest.] or
16 independent contractor of the board shall participate in a
17 hearing, proceeding or other matter in which the member,
18 employee or independent contractor, or the immediate family
19 thereof, has a financial interest in the subject matter of
20 the hearing or proceeding or other interest that could be
21 substantially affected by the outcome of the hearing or
22 proceeding, without first fully disclosing the nature of the
23 interest to the board and other persons participating in the
24 hearing or proceeding. The board shall determine if the
25 interest is a disqualifying interest that requires the
26 disqualification or nonparticipation of an employee or
27 independent contractor. For purposes of this paragraph, the
28 term "immediate family" shall mean spouse, parent, brother,
29 sister or child.
30 (7) At the time of appointment and annually thereafter,
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1 each member shall disclose the existence of [all ownership
2 interests in licensed facilities and all securities in any
3 licensed entity or applicant, its affiliates or subsidiaries
4 held by the member, the member's spouse and any minor or
5 unemancipated children and must divest such ownership
6 interests in licensed facilities or securities prior to an
7 appointment becoming final. A member may not acquire any
8 security in any licensed entity, its affiliates or
9 subsidiaries during the member's tenure.] any financial
10 interest in any applicant, licensed entity or licensed
11 facility and in an affiliate, intermediary, subsidiary or
12 holding company thereof held by the member or known to be
13 held by the member's immediate family. The disclosure
14 statement shall be filed with the executive director of the
15 board and with the appointing authority for such member and
16 shall be open to inspection by the public at the office of
17 the board during the normal business hours of the board
18 [during the tenure of the member] for the duration of the
19 member's term and for two years after the member leaves
20 office. For purposes of this paragraph, the term "immediate
21 family" shall mean spouse, parent, brother, sister or child.
22 (7.1) Prior to being sworn as a member, an appointee and
23 his immediate family shall divest any financial interest in
24 any applicant, licensed facility or licensed entity and in an
25 affiliate, intermediary, subsidiary or holding company
26 thereof owned or held by the appointee or known to be held by
27 the appointee's immediate family. For the duration of the
28 member's term, and for one year thereafter, the member and
29 the member's immediate family may not acquire a financial
30 interest in any applicant, licensed facility or licensed
20050S0862B2186 - 15 -
1 entity or in an affiliate, intermediary, subsidiary or
2 holding company thereof. For purposes of this paragraph, the
3 term "immediate family" shall mean spouse and any minor or
4 unemancipated child.
5 (7.2) Prior to entering into employment or a contract
6 with the board and annually thereafter, an employee or
7 independent contractor shall disclose the existence of any
8 financial interest in any applicant, licensed facility or
9 licensed entity and in an affiliate, intermediary, subsidiary
10 or holding company thereof owned or held by the employee or
11 independent contractor or known to be held by the immediate
12 family of the employee or independent contractor. The
13 disclosure statement shall be filed with the board and shall
14 be open to inspection by the public at the office of the
15 board during the normal business hours of the board and for
16 two years after termination of employment or a contract with
17 the board. For purposes of this paragraph, the term
18 "immediate family" shall mean spouse, parent, brother, sister
19 or child.
20 (7.3) Prior to entering into employment or contracting
21 with the board, an employee or independent contractor and the
22 employee's or independent contractor's immediate family shall
23 divest any financial interest in any applicant, licensed
24 facility or licensed entity, and in an affiliate,
25 intermediary, subsidiary or holding company thereof, owned or
26 held by the employee or independent contractor or known to be
27 held by the immediate family of the employee or independent
28 contractor. For the duration of the employee's employment
29 with the board or the independent contractor's contract with
30 the board, and for one year thereafter, the employee or
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1 independent contractor and the immediate family thereof shall
2 not acquire, by purchase, gift, exchange or otherwise, any
3 financial interest in any applicant, licensed facility or
4 licensed entity and in any affiliate, intermediary,
5 subsidiary or holding company thereof. For purposes of this
6 paragraph, the term "immediate family" shall mean spouse and
7 any minor or unemancipated child.
8 (8) [Every member, employee, appointee or official of
9 the board, in the service of or in connection with the work
10 of the board, is forbidden, directly or indirectly, to
11 solicit or request from or to suggest or recommend to any
12 applicant, licensed entity, its] No member, employee or
13 independent contractor of the board may directly or
14 indirectly solicit, request, suggest or recommend to any
15 applicant, licensed entity, or an affiliate, intermediary,
16 subsidiary[,] or holding company thereof or to any [officer,
17 attorney, agent or employee] principal, employee, independent
18 contractor or agent thereof, the appointment or employment of
19 any [individual to any office, place or position in or the
20 employment of any individual] person in any capacity by the
21 applicant, licensed entity, [its] or an affiliate,
22 intermediary, subsidiary or holding company thereof for a
23 period of two years from the termination of term of office,
24 employment or contract with the board.
25 [(9) Every member, executive-level employee, appointee
26 or official appointed to office in the service of or in
27 connection with the work of the board is prohibited from
28 accepting employment with any applicant, licensed gaming
29 entity, its affiliate, intermediary, subsidiary or holding
30 company for a period of one year from the termination of
20050S0862B2186 - 17 -
1 employment or service with the board. Every member,
2 executive-level employee, appointee or official appointed to
3 office in the service of or in connection with the work of
4 the board is prohibited from appearing before the board on
5 behalf of any applicant, licensed gaming entity, its
6 affiliate, intermediary, subsidiary or holding company or
7 other licensee or permittee of the board for a period of two
8 years after terminating employment or service with the board.
9 (10) If any person employed or appointed in the service
10 of the board violates any provision of this section, the
11 appointing authority or the board shall forthwith remove the
12 person from the office or employment and the person shall be
13 ineligible for future employment or service with the board
14 and shall be ineligible to be approved for any license or
15 permit under this part for a period of two years thereafter.]
16 (9) No member may accept employment with any applicant,
17 licensed entity, or an affiliate, intermediary, subsidiary or
18 holding company thereof, for a period of two years from the
19 termination of term of office.
20 (10) No member may appear before the board on behalf of
21 any applicant, licensed entity, or an affiliate,
22 intermediary, subsidiary or holding company thereof, or any
23 other licensee or permittee for a period of two years from
24 the termination of term of office.
25 (11) No member [or], employee or independent contractor
26 of the board shall ACCEPT A COMPLIMENTARY SERVICE OR wager or <--
27 be paid any prize from any wager at any licensed facility
28 within this Commonwealth or at any other facility outside
29 this Commonwealth which is owned or operated by a licensed
30 gaming entity or any of its [affiliates or subsidiaries.]
20050S0862B2186 - 18 -
1 affiliates, intermediaries, subsidiaries or holding companies
2 thereof for the duration of their term of office, employment
3 or contract with the board, and for a period of one year from
4 the termination of term of office, employment or contract
5 with the board. The provisions of this paragraph shall also
6 apply to an employee of the executive branch of the
7 Commonwealth, other than the board, whose duties
8 substantially involve the development or adoption of
9 regulations or policy, licensing or enforcement, under this
10 part. The provisions of this paragraph shall not apply to
11 employees who utilize slot machines for testing purposes or
12 to verify the performance of a machine as part of an
13 enforcement investigation.
14 (12) A member [of the board] who has been convicted
15 during his term in any domestic or foreign jurisdiction of a
16 felony, infamous crime [of moral turpitude] or gambling
17 offense shall, upon conviction, be automatically removed from
18 the board and shall be ineligible to become a [board] member
19 in the future. If an ex officio member is convicted during
20 his term in any domestic or foreign jurisdiction of a felony,
21 infamous crime or gambling offense, the ex officio member
22 shall, upon conviction, be automatically removed from the
23 board, and a designee shall be designated pursuant to
24 subsection (e) to serve the remainder of the ex officio
25 member's term.
26 (13) No employee of the board, independent contractor or <--
27 individual employed by an independent contractor of the board
28 (13) NEITHER AN EMPLOYEE OF THE BOARD, NOR AN <--
29 INDEPENDENT CONTRACTOR, NOR AN INDIVIDUAL EMPLOYED BY AN
30 INDEPENDENT CONTRACTOR whose duties substantially involve the
20050S0862B2186 - 19 -
1 development or adoption of regulations or policy, licensing
2 or enforcement, under this part, UNDER THIS PART, NOR ANY <--
3 OTHER EMPLOYEE OF THE EXECUTIVE BRANCH OF THE COMMONWEALTH OR
4 OF A POLITICAL SUBDIVISION WHOSE DUTIES SUBSTANTIALLY INVOLVE
5 THE DEVELOPMENT OR ADOPTION OF REGULATIONS OR POLICY,
6 LICENSING OR ENFORCEMENT UNDER THIS PART, shall:
7 (i) accept employment with an applicant, licensed
8 entity, or an affiliate, intermediary, subsidiary or
9 holding company thereof, for a period of one year after
10 the termination of the employment relating to the conduct <--
11 of gaming or contract with the board; or
12 (ii) appear before the board in any hearing or
13 proceeding or participate in any other activity on behalf
14 of any applicant, licensee, permittee, licensed entity,
15 or an affiliate, intermediary, subsidiary or holding
16 company thereof, for a period of two years after
17 termination of the employment or contract with the board.
18 (iii) Subparagraph (i) shall not prohibit an <--
19 employee, independent contractor or individual employed
20 by an independent contractor from accepting employment or
21 a contract with an accessory gaming use owned or operated
22 by an applicant, licensed entity or an affiliate,
23 intermediary, subsidiary or holding company thereof if
24 the employment or contract is not related to the conduct
25 of gaming.
26 (14) Upon the written request of an employee of the
27 board, the executive branch of the Commonwealth or a
28 political subdivision or of the agency or political
29 subdivision employing an employee, the State Ethics
30 Commission shall determine whether the individual's duties
20050S0862B2186 - 20 -
1 substantially involve the development or adoption of
2 regulations or policy, licensing or enforcement, under this
3 part, and shall provide a written determination to the
4 employee to include any prohibition under this paragraph. An
5 individual who relies in good faith on a determination under
6 this paragraph shall not be subject to any penalty for an
7 action taken, provided that all material facts set forth in
8 the request for a determination are correct.
9 (15) If a member, employee or independent contractor of
10 the board violates any provision of this section, the
11 appointing authority or the board may, upon notice and
12 hearing, remove the person from the board, withdraw the
13 appointment or terminate the employment or contract and the
14 person shall be ineligible for future appointment, employment
15 or contract with the board and for approval of a license or
16 permit under this part for a period of two years thereafter.
17 (h.1) Fiduciary relationship.--A member or employee of the
18 board shall serve as a fiduciary of the Commonwealth.
19 (h.2) Standard of care.--Members shall exercise the standard
20 of care required by 20 Pa.C.S. Ch. 73 (relating to
21 municipalities investments) in the performance of their duties
22 under this part.
23 (h.3) Liability.--Members shall not be personally liable for
24 any of the following:
25 (1) Obligations of the board.
26 (2) Actions which were within the scope of their office
27 and made in good faith.
28 (i) Compensation.--
29 (1) The Executive Board as established in the act of
30 April 9, 1929 (P.L.177, No.175), known as The Administrative
20050S0862B2186 - 21 -
1 Code of 1929, shall establish the compensation of the members
2 [appointed pursuant to this section].
3 (2) Members shall be reimbursed for all necessary and
4 actual expenses.
5 (3) Members shall be eligible for retirement under the
6 State Employees' Retirement Code and shall, if the member
7 elects to participate, be considered a State employee for the
8 purposes of 71 Pa.C.S. Pt. XXV (relating to retirement for
9 State employees and officers).
10 (j) Chairman.--The chairman of the board shall be selected
11 by the Governor.
12 (k) Appointments.--The appointing authorities shall make
13 their initial appointments within 60 days of the effective date
14 of this part. No appointment shall be final until receipt by the
15 appointing authority of the required background investigation of
16 the appointee by the Pennsylvania State Police which shall be
17 completed within 30 days. No person who has been convicted in
18 any domestic or foreign jurisdiction of a felony [or gambling],
19 infamous crime or gaming offense shall be appointed to the
20 board.
21 [(l) Disclosure statements.--Members and employees of the
22 board are subject to the provisions of 65 Pa.C.S. Ch. 11
23 (relating to ethics standards and financial disclosure) and the
24 act of July 19, 1957 (P.L.1017, No.451), known as the State
25 Adverse Interest Act.]
26 (l) Prohibition against nepotism.--No member may solicit,
27 request, suggest or recommend the employment by the board of any
28 individual related within the second degree of consanguinity TO <--
29 THE MEMBER as set forth in 23 Pa.C.S. § 1304(e) (relating to
30 restrictions on issuance of license) or the spouse of the
20050S0862B2186 - 22 -
1 individual.
2 (m) Employment requirements.--THE BOARD SHALL ESTABLISH <--
3 EMPLOYMENT REQUIREMENTS CONSISTENT WITH THE FOLLOWING:
4 (1) Prospective employees shall submit an application
5 and a personal disclosure form to the board which shall
6 include a complete criminal history, including convictions
7 and current charges for all felonies and misdemeanors.
8 (2) Prospective employees shall be required to undergo
9 testing which detects the presence of illegal substances in
10 the body.
11 (3) The board shall obtain fingerprints and photographs
12 for each PROSPECTIVE employee consistent with the standards <--
13 adopted by the Pennsylvania State Police.
14 (4) The board shall verify the identification,
15 employment and education of each PROSPECTIVE employee, <--
16 including:
17 (i) Legal name, including any alias.
18 (ii) All educational institutions attended
19 regardless of graduation status.
20 (iii) Places of residence for the past ten years.
21 (iv) Employment history for the past 15 years.
22 (5) The board shall not approve an applicant if the <--
23 applicant: HIRE A PROSPECTIVE EMPLOYEE IF THE PROSPECTIVE <--
24 EMPLOYEE:
25 (i) has been convicted of a crime that bears a close
26 relationship to the duties and responsibilities of the
27 position for which employment is sought;
28 (ii) has been dismissed from other employment for
29 gross misconduct; or
30 (iii) has intentionally made a false statement
20050S0862B2186 - 23 -
1 concerning a material fact in connection with the
2 application to the board.
3 (6) The board shall not employ a person whose background <--
4 check has not been completed under paragraph (1). This
5 paragraph
6 (IV) HAS NOT BEEN COMPLETELY INVESTIGATED UNDER <--
7 PARAGRAPHS (1), (2), (3) AND (4). THIS SUBPARAGRAPH shall
8 apply only to persons employed after the effective date
9 of this subsection.
10 (7) (6) The board shall: <--
11 (i) Immediately refer any criminal matter involving
12 an employee to law enforcement.
13 (ii) Develop a disciplinary process for an employee
14 charged with a crime or with gross misconduct.
15 (iii) Immediately suspend from employment any
16 employee charged with a felony.
17 (iv) Develop a process to discipline all other
18 instances of misconduct.
19 (8) (7) Disciplinary action shall be instituted promptly <--
20 against an employee who, while on or off duty, engages in
21 serious misconduct which may bring the board into disrepute.
22 (n) Definitions.--As used in this section, the following
23 words and phrases shall have the meanings given to them in this
24 subsection:
25 "Financial interest." An ownership, property, leasehold or
26 other beneficial interest in an entity. The term shall not
27 include an interest which is held or deemed to be held in any of
28 the following:
29 (1) Securities that are held in a pension plan, profit-
30 sharing plan, individual retirement account, tax sheltered
20050S0862B2186 - 24 -
1 annuity, a plan established pursuant to section 457 of the
2 Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
3 1 et seq.), or any successor provision, deferred compensation
4 plan whether qualified or not qualified under the Internal
5 Revenue Code of 1986, or any successor provision, or other
6 retirement plan that:
7 (i) is not self-directed by the individual; and
8 (ii) is advised by an independent investment adviser
9 who has sole authority to make investment decisions with
10 respect to contributions made by the individual to these
11 plans.
12 (2) A tuition account plan organized and operated
13 pursuant to section 529 of the Internal Revenue Code of 1986
14 (Public Law 99-514, 26 U.S.C. § 529) that is not self-
15 directed by the individual.
16 (3) A mutual fund where the interest owned by the mutual
17 fund in a licensed entity does not constitute a controlling
18 interest as defined in this part.
19 "Ownership interest." Owning or holding or being deemed to
20 hold, debt or equity securities or other ownership interest or
21 profit interest.
22 Section 3. Title 4 is amended by adding a section to read:
23 § 1201.1. Applicability of other statutes.
24 (a) General rule.--The following acts shall apply to the
25 board:
26 (1) The act of June 21, 1957 (P.L.390, No.212), referred
27 to as the Right-to-Know Law.
28 (2) The act of July 19, 1957 (P.L.1017, No.451), known
29 as the State Adverse Interest Act.
30 (3) The provisions of 65 Pa.C.S. Chs. 7 (relating to
20050S0862B2186 - 25 -
1 open meetings) and 11 (relating to ethics standards and
2 financial disclosure).
3 (b) Status of board.--
4 (1) The board shall be considered an independent agency
5 for the purposes of the following:
6 (i) 62 Pa.C.S. Pt. I (relating to Commonwealth
7 Procurement Code). The expediting of the payment of
8 revenue to the Commonwealth shall not be grounds for an
9 emergency procurement by the board.
10 (ii) The act of October 15, 1980 (P.L.950, No.164),
11 known as the Commonwealth Attorneys Act. The Attorney <--
12 General shall review permanent regulations promulgated by
13 the board as provided in the act of June 25, 1982
14 (P.L.633, No.181), known as the Regulatory Review Act.
15 (2) The board shall be considered an agency for the
16 purposes of the following:
17 (i) The act of July 31, 1968 (P.L.769, No.240),
18 referred to as the Commonwealth Documents Law.
19 (ii) The ACT OF JUNE 25, 1982 (P.L.633, NO.181), <--
20 KNOWN AS THE Regulatory Review Act.
21 (3) THE BOARD SHALL BE CONSIDERED A COMMONWEALTH PARTY <--
22 FOR THE PURPOSES OF 42 PA.C.S. CH. 85 (RELATING TO MATTERS
23 AFFECTING GOVERNMENT UNITS).
24 Section 4. Section 1202 of Title 4 is amended to read:
25 § 1202. General and specific powers.
26 (a) General powers.--
27 (1) The board shall have general [jurisdiction] and sole
28 regulatory authority over [all gaming activities] the conduct <--
29 of gaming or related activities] THE CONDUCT OF GAMING AND <--
30 REGULATORY AUTHORITY OVER ACCESSORY GAMING USES as described
20050S0862B2186 - 26 -
1 in this part. The board shall [be responsible to] ensure the
2 integrity of the acquisition and operation of slot machines
3 and associated equipment and shall have [jurisdiction] sole
4 regulatory authority over every aspect of the authorization
5 and operation of slot machines.
6 (2) The board shall employ [an executive director, chief
7 counsel, deputies, secretaries, officers, hearing officers
8 and agents as it may deem necessary] individuals as necessary
9 to carry out the powers and duties of the board, who shall
10 serve at the board's pleasure. [The board shall also employ
11 other employees as it deems appropriate whose duties shall be
12 determined by the board. In order to ensure the ability of
13 the board to recruit and retain individuals necessary to
14 execute its responsibilities under this part, the board shall
15 set the] An employee of the board shall be considered a State
16 employee for purposes of 71 Pa.C.S. Pt. XXV (relating to
17 retirement for State employees and officers). For the
18 purposes of this paragraph, the board shall not be considered
19 an executive or independent agency under the act of October
20 15, 1980 (P.L.950, No.164), known as the Commonwealth
21 Attorneys Act.
22 (3) In addition to employees authorized by the board,
23 each member may employ one special assistant whose
24 classification and compensation shall be established by the
25 board. A special assistant shall be a State employee for
26 purposes of 71 Pa.C.S. Pt. XXV, shall serve at the pleasure
27 of the member and may only be removed by the board for cause.
28 (4) The board shall establish a system of classification
29 and compensation of its employees and shall not be subject to
30 the provisions of the act of April 9, 1929 (P.L.177, No.175),
20050S0862B2186 - 27 -
1 known as The Administrative Code of 1929, as to
2 classification and compensation for its employees and conduct
3 its activities consistent with the practices and procedures
4 of Commonwealth agencies. [For the purposes of the act of
5 October 15, 1980 (P.L.950, No.164), known as the Commonwealth
6 Attorneys Act, the board shall not be considered an executive
7 or independent agency. The board shall have such other powers
8 and authority necessary to carry out its duties and the
9 objectives of this part.]
10 (5) Within 90 days of the effective date of this
11 paragraph, the board shall publish in the Pennsylvania
12 Bulletin, and on its Internet website, the classification
13 system for all employees of the board.
14 (6) A request for proposal to conduct investigations of
15 employees and applicants under this part shall include a
16 requirement that an offeror provide the number of employees
17 of the offeror who will be engaged in the conduct of
18 investigations and who are residents of this Commonwealth and
19 annuitants of a Federal, State or local law enforcement
20 agency. Preference shall be given to an offeror with a
21 substantial number of employees who will be engaged in the
22 conduct of investigations and who are residents of this
23 Commonwealth and annuitants of a Federal, State or local law
24 enforcement agency.
25 (b) Specific powers.--The board shall have the specific
26 power and duty:
27 (1) To adopt, use and alter a corporate seal.
28 (2) To pay or satisfy obligations of the board.
29 (3) To sue or be sued, implead and be impleaded, or
30 interplead.
20050S0862B2186 - 28 -
1 (4) To contract and execute instruments as necessary to
2 carry out the powers and duties of the board. Contracts for
3 the purchase of supplies, services and construction shall be
4 for a term not to exceed two years.
5 (5) To sell, transfer, convey and dispose of tangible or
6 intangible property owned by the board.
7 (6) To establish, charge and collect fees and fines as
8 authorized by this part.
9 (7) To administer oaths, examine witnesses and issue
10 subpoenas compelling the attendance of witnesses or the
11 production of documents and records or other evidence. The
12 provisions of this paragraph shall apply to designated <--
13 officers and employees DESIGNATED BY THE BOARD. <--
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 and other experts, to render services as necessary.
18 For the purposes of this paragraph, the board shall be
19 considered an independent agency for purposes of the
20 Commonwealth Attorneys Act.
21 (9) To require background investigations on [prospective
22 or existing] applicants, licensees, principals, key employees
23 or permittees [or persons holding a controlling interest in
24 any prospective or existing licensee or permittee] under the
25 jurisdiction of the board.
26 [(2)] (10) To enter into an agreement with the
27 Pennsylvania State Police for the reimbursement of actual
28 costs as approved by the board to the Pennsylvania State
29 Police for the investigations. Investigations shall include
30 information in the possession of the Attorney General.
20050S0862B2186 - 29 -
1 [(3)] (11) For purposes of licensing and enforcement and
2 for purposes of the background investigation, [the board may]
3 to receive information otherwise protected by 18 Pa.C.S. Ch.
4 91 (relating to criminal history record information).
5 [(4)] (12) At its discretion, to issue, approve, renew,
6 revoke, suspend, condition or deny issuance or renewal of
7 slot machine licenses.
8 [(5)] (13) At its discretion, to issue, approve, renew,
9 revoke, suspend, condition or deny issuance or renewal of
10 supplier and manufacturer licenses.
11 [(6)] (14) At its discretion, to issue, approve, renew,
12 revoke, suspend, condition or deny issuance or renewal of
13 [occupation permits] a license or permit for various classes
14 of employees as required under this part.
15 [(7)] (15) At its discretion, to issue, approve, renew,
16 revoke, suspend, condition or deny issuance or renewal of any
17 additional licenses or permits which may be required by the
18 board under this part. [or by regulation, including, but not
19 limited to, violations of sections 1328 (relating to change
20 in ownership or control of slot machine licensee) and 1330
21 (relating to multiple slot machine license prohibition).]
22 [(8)] (16) At its discretion, to suspend, condition or
23 deny the issuance or renewal of any license or permit or levy
24 fines or other sanctions for any violation of this part.
25 (16.1) To AT ITS DISCRETION, TO suspend or revoke the <--
26 license of a licensed entity if a final, nonappealable order
27 issued by a Federal court finds that the licensed entity is
28 in violation of Federal antitrust or unfair trade practice
29 laws in connection with the provision of goods or services
30 under this part.
20050S0862B2186 - 30 -
1 [(9)] (17) To require prospective and existing
2 employees, independent contractors, applicants [for licenses
3 and permits], licensees and permittees to submit to
4 fingerprinting by the Pennsylvania State Police. The
5 Pennsylvania State Police shall submit the fingerprints to
6 the Federal Bureau of Investigation for purposes of verifying
7 the identity of the [applicants] individual and obtaining
8 records of criminal arrests and convictions.
9 [10] (18) To require prospective and existing employees,
10 INDEPENDENT CONTRACTORS, applicants, licensees and permittees <--
11 to submit photographs consistent with the standards of the
12 Commonwealth Photo Imaging Network.
13 (19) To levy fines or other sanctions against an
14 applicant, licensed entity or other licensee, permittee or
15 employee of the board who possesses, uses, sells or offers
16 for sale any device, equipment or material subject to this
17 part in a manner which constitutes a violation of this part.
18 (20) In addition to the power of the board regarding
19 license and permit applicants, to determine at its discretion
20 the suitability of any person who furnishes or seeks to
21 furnish to a slot machine licensee directly or indirectly any
22 services or property related to slot machines or associated
23 equipment or through any arrangements under which that person
24 receives payment based directly or indirectly on earnings,
25 profits or receipts from the slot machines and associated
26 equipment. The board may require any such person to comply
27 with the requirements of this part and the regulations of the
28 board and may prohibit the person from furnishing the
29 services or property.
30 [(11) As a board and through its designated officers,
20050S0862B2186 - 31 -
1 employees or agents, to administer oaths, examine witnesses
2 and issue subpoenas to compel attendance of witnesses and
3 production of all relevant and material reports, books,
4 papers, documents and other evidence.
5 (12)] (21) Within six months after the effective date of
6 this part, in a manner that does not impede the immediate
7 implementation of the duties and responsibilities of the
8 board under this part during the immediate two years after
9 the effective date of this part, to develop and implement an
10 affirmative action plan to assure that all persons are
11 accorded equality of opportunity in employment and
12 contracting by the board, its contractors, subcontractors,
13 assignees, lessees, agents, vendors and suppliers.
14 [(13)] (22) Except for contracts related to the central
15 control computer [and such other contracts as the board, in
16 consultation with the Secretary of General Services,
17 determines would result in substantial savings to the board
18 if entered into for a longer period than provided in this
19 paragraph], all contracts entered into by the board during
20 the two-year period following the effective date of this part
21 shall not exceed a term of two years.
22 [(14) To promulgate rules and regulations the board
23 deems necessary to carry out the policy and purposes of this
24 part and to enhance the credibility and the integrity of the
25 licensed operation of slot machines and associated equipment
26 in this Commonwealth.
27 (15)] (23) The board shall not issue or renew a license
28 or permit unless it is satisfied that the applicant is a
29 person of good character, honesty and integrity and is a
30 person whose prior activities, criminal record, if any,
20050S0862B2186 - 32 -
1 reputation, habits and associations do not pose a threat to
2 the public interest or the effective regulation and control
3 of slot machine operations or create or enhance the danger of
4 unsuitable, unfair or illegal practices, methods and
5 activities in the conduct of slot machine operations or the
6 carrying on of the business and financial arrangements
7 incidental thereto.
8 [(16)] (24) Notwithstanding any other provision of law,
9 [the board is authorized] to sell, in whole or in part, the
10 Commonwealth's right, title and interest in State gaming
11 receipts to [an] the authority [created by the Commonwealth].
12 The sale shall be subject to the terms and conditions
13 contained in agreements between the board and the authority.
14 Proceeds from the sale of State gaming receipts shall be
15 allocated and used in the manner otherwise provided by this
16 part for the distribution of State gaming receipts. The
17 authority [created by the Commonwealth] is authorized to
18 purchase State gaming receipts upon terms and conditions
19 agreed to by the board and to issue bonds to fund the
20 purchase of State gaming receipts in the manner provided for
21 the issuance of authority indebtedness in the law
22 establishing the authority. The State Treasurer is authorized
23 and directed to enter into any agreements with the board and
24 the authority and establish accounts and funds, that shall
25 not be in the State Treasury, as the authority may direct as
26 being necessary or appropriate to effect the sale of State
27 gaming receipts to the authority and the collection and
28 transfer of the State gaming receipts sold to the authority.
29 State gaming receipts sold to the authority shall be the
30 property of the authority and shall not be the property of
20050S0862B2186 - 33 -
1 the Commonwealth.
2 [(17)] (25) To [create a Bureau of Investigations and
3 Enforcement within the board. The board shall] promulgate
4 regulations pertaining to the operation of the bureau [which
5 shall] to insure separation of functions between the bureau
6 and the board. The board shall provide the employees
7 necessary to the bureau for enforcement of this part.
8 [(18)] (26) To enter into an agreement with the district
9 attorneys of the counties wherein licensed facilities are
10 located and the Office of Attorney General for the
11 reimbursement of actual costs for prosecutions of criminal
12 violations [of this part.] and for investigating a person
13 applying for a determination that an individual has been
14 rehabilitated under this part.
15 (27) To publish each January in the Pennsylvania
16 Bulletin and on the board's Internet website a complete list
17 of all persons or entities who applied for or held a slot
18 machine license, manufacturer license, supplier license or
19 racetrack license at any time during the preceding calendar
20 year and all affiliates, intermediaries, subsidiaries and
21 holding companies thereof and the status of the application
22 or license.
23 (28) To prepare and, through the Governor, submit
24 annually to the General Assembly an itemized budget
25 consistent with Article VI of the act of April 9, 1929
26 (P.L.177, No.175), known as The Administrative Code of 1929,
27 consisting of the amounts necessary to be appropriated by the
28 General Assembly out of the fund ACCOUNTS ESTABLISHED UNDER <--
29 SECTION 1401 (RELATING TO SLOT MACHINE LICENSEE DEPOSITS)
30 required to meet the obligations accruing during the fiscal
20050S0862B2186 - 34 -
1 period beginning July 1 of the following year. The budget
2 shall include itemized recommendations from FOR the Attorney <--
3 General, the department and the Pennsylvania State Police as
4 to the amount needed to meet their obligations under this
5 part.
6 (29) In the event that in any year, appropriations for <--
7 IN THE EVENT THAT IN ANY YEAR, APPROPRIATIONS FOR the <--
8 administration of this part are not enacted by June 30, any
9 funds appropriated for the administration of this part which are
10 unexpended, uncommitted, and unencumbered at the end of a fiscal
11 year shall remain available for expenditure by the board or
12 other agency to which they were appropriated until the enactment
13 of appropriation for the ensuing fiscal year.
14 (30) (29) To promulgate rules and regulations necessary <--
15 for the administration and enforcement of this part. Except <--
16 as provided in section 1203 (relating to temporary
17 regulations), regulations shall be adopted pursuant to the
18 act of July 31, 1968 (P.L.769, No.240), referred to as the
19 Commonwealth Documents Law, and the act of June 25, 1982
20 (P.L.633, No.181), known as the Regulatory Review Act.
21 (30) TO COOPERATE WITH THE LIQUOR CONTROL BOARD IN ITS <--
22 PROMULGATION OF REGULATIONS RELATING TO THE SALE AND SERVICE
23 OF LIQUOR AND MALT AND BREWED BEVERAGES BY LICENSEES.
24 Section 5. Title 4 is amended by adding a section to read:
25 § 1202.1. Code of conduct.
26 (a) Scope.--The board shall adopt a comprehensive code of
27 conduct prior to the consideration of any license, permit or
28 registration application. The code of conduct shall supplement
29 all other requirements under this part and 65 Pa.C.S. Pt. II
30 (relating to accountability) and shall provide guidelines
20050S0862B2186 - 35 -
1 applicable to members, employees, independent contractors of the
2 board, and the immediate families of the members, employees and
3 independent contractors, to enable them to avoid any perceived
4 or actual conflict of interest and to promote public confidence
5 in the integrity and impartiality of the board. At a minimum,
6 the code of conduct adopted under this section shall include
7 registration under subsection (b) and the restrictions in
8 subsection (c).
9 (b) Registration.--
10 (1) A licensed entity representative shall register with
11 the board in a manner prescribed by the board, which shall
12 include the name, employer or firm, address, telephone number
13 and the licensed entity being represented.
14 (2) A licensed entity representative shall have an
15 ongoing duty to update its registration information on an
16 ongoing basis.
17 (3) The registration list shall be available for public
18 inspection at the offices of the board and on the board's
19 Internet website.
20 (c) Restrictions.--A member of the board shall:
21 (1) Not engage in any ex parte communication with any
22 person.
23 (2) Not accept any discount, gift, gratuity,
24 compensation, travel, lodging or other thing of value,
25 directly or indirectly, from any applicant, licensee,
26 permittee, registrant or licensed entity representative
27 thereof.
28 (3) Disclose and disqualify himself from any proceeding
29 in which the member's objectivity, impartiality, integrity or
30 independence of judgment may be reasonably questioned due to
20050S0862B2186 - 36 -
1 the member's relationship or association with a party
2 connected to any proceeding or a person appearing before the
3 board.
4 (4) Refrain from any financial or business dealing which
5 would tend to reflect adversely on the member's objectivity,
6 impartiality or independence of judgment.
7 (5) Not hold or campaign for public office, hold an
8 office in any political party or political committee,
9 contribute to or solicit contributions to a political
10 campaign, party, committee or candidate, publicly endorse a
11 candidate or actively participate in a political campaign.
12 (6) Not solicit funds for any charitable, educational,
13 religious, health, fraternal, civic or other nonprofit entity
14 from an applicant, licensed entity or affiliate, subsidiary,
15 intermediary or holding company of a licensed entity,
16 interested party or licensed entity representative. A board
17 member may serve as an officer, employee or member of the
18 governing body of a nonprofit entity and may attend, make
19 personal contributions to and plan or preside over the
20 entity's fundraising events. A board member may permit his
21 name to appear on the letterhead used for fundraising events
22 if the letterhead contains only the board member's name and
23 position with the nonprofit entity.
24 (7) Not meet or engage in discussions with any
25 applicant, person licensed under this part, or a licensed
26 entity representative unless the meeting or discussion occurs
27 on the business premises of the board and is recorded in a
28 log maintained for this purpose. The log shall be available
29 for public inspection during the regular business hours of
30 the board. The provisions of this paragraph shall not apply
20050S0862B2186 - 37 -
1 to meetings of the board to consider matters requiring the
2 physical inspection of the equipment or premises of an
3 applicant or a licensed entity at their location.
4 (8) Avoid impropriety and the appearance of impropriety
5 at all times and observe standards and conduct that promote
6 public confidence in the oversight of gaming.
7 (9) Comply with any other laws, rules or regulations
8 relating to the conduct of a member.
9 (d) Ex officio members.--The restrictions under subsection
10 (c)(5) shall not apply to ex officio members.
11 (e) Definitions.--As used in this section, the following
12 words and phrases shall have the meanings given to them in this
13 subsection:
14 "Ex parte communication." Any off-the-record communications
15 regarding any A pending matter before the board or which may <--
16 reasonably be expected to come before the board in an on-the-
17 record proceeding to be decided on the record. The term shall <--
18 not include off-the-record communications by any employee AND <--
19 BETWEEN MEMBERS, EMPLOYEES of the board, Department of Revenue,
20 Pennsylvania State Police, Attorney General or other law
21 enforcement official prior to the beginning of the proceeding <--
22 solely for the purpose of seeking clarification or correction to
23 evidentiary materials intended for use in the hearings.
24 NECESSARY FOR THEIR OFFICIAL DUTIES UNDER THIS PART. <--
25 "Licensed entity representative." A person acting on behalf
26 of or representing the interest of any applicant, licensee,
27 permittee or registrant, including an attorney, agent or
28 lobbyist regarding any matter which may reasonably be expected
29 to come before the board.
30 Section 6. Sections 1203, 1204, 1205, 1206(a), (b), (c), (d)
20050S0862B2186 - 38 -
1 and (f), 1207(6), 1208(1), 1209(a), 1210, 1211, 1213, 1304, <--
2 1305, 1306, 1211, 1213, 1304, 1305, 1306, 1307, 1308, 1309(a)(1) <--
3 and 1311 of Title 4 are amended to read:
4 § 1203. Temporary regulations.
5 (a) Promulgation.--[Notwithstanding any other provision of
6 law to the contrary and in] In order to facilitate the prompt
7 implementation of this part, regulations promulgated by the
8 board [during the two years following the effective date of this
9 part] shall be deemed temporary regulations which shall expire
10 no later than three years following the effective date of this
11 part or upon promulgation of regulations as generally provided
12 by law. [The temporary regulations shall not be] The board may
13 promulgate temporary regulations not subject to:
14 (1) Sections 201 [through 205], 202 AND 203 of the act <--
15 of July 31, 1968 (P.L.769, No.240), referred to as the
16 Commonwealth Documents Law.
17 (2) The act of June 25, 1982 (P.L.633, No.181), known as
18 the Regulatory Review Act.
19 (b) Expiration.--The authority provided to the board to
20 adopt temporary regulations in subsection (a) shall expire [two
21 years from the effective date of this section] April 15, 2007.
22 Regulations adopted after [the two-year] this period shall be
23 promulgated as provided by law.
24 § 1204. Licensed gaming entity application appeals from board.
25 The Supreme Court of Pennsylvania shall be vested with
26 exclusive appellate jurisdiction to consider appeals of any
27 final order, determination or decision of the board involving
28 the approval, issuance, denial or conditioning of [all licensed
29 entity applications] a slot machine license. Notwithstanding the
30 provisions of 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial
20050S0862B2186 - 39 -
1 review of Commonwealth agency action) and 42 Pa.C.S. § 763
2 (relating to direct appeals from government agencies), the
3 Supreme Court shall affirm all final orders, determinations or
4 decisions of the board involving the approval, issuance, denial
5 or conditioning of [all licensed entity applications] a slot
6 machine license unless it shall find that the board committed an
7 error of law or that the order, determination or decision of the
8 board was arbitrary and there was a capricious disregard of the
9 evidence.
10 § 1205. License or permit application hearing process[.];
11 public input hearings.
12 (a) General rule.--The board's consideration and resolution
13 of all license or permit applications shall be conducted in
14 accordance with 2 Pa.C.S. (relating to administrative law and
15 procedure) or with procedures adopted by order of the board.
16 Notwithstanding the [mandates] requirements of 2 Pa.C.S. §§ 504
17 (relating to hearing and record) and 505 (relating to evidence
18 and cross-examination)[, said procedures adopted by order of the
19 board shall] as they relate to the conduct of oral hearings, the
20 board may adopt procedures to provide parties before it with a
21 documentary hearing, [but] and the board may[, at its
22 discretion,] resolve disputed material facts without conducting
23 an oral hearing where constitutionally permissible.
24 (b) Public input hearing requirement.--
25 (1) Prior to licensing a facility under this part, the
26 board shall hold at least one public input hearing on the
27 matter.
28 (2) All AT LEAST ONE OF THE public input hearings <--
29 relating to an application for a slot machine license shall
30 be held in the municipality where the facility will be
20050S0862B2186 - 40 -
1 located and shall be organized in cooperation with the
2 municipality.
3 (3) A list of all witnesses scheduled to testify at a
4 public input hearing shall be made public at least seven days
5 prior to the hearing. The list shall be updated at least
6 three days prior to the hearing. Additional witnesses shall
7 be posted on the board's Internet website as they are added
8 to the list.
9 § 1206. Board minutes and records.
10 [(a) Open proceedings and records.--The proceedings of the
11 board shall be conducted in accordance with the provisions of 65
12 Pa.C.S. Ch. 7 (relating to open meetings). The board shall be an
13 agency for purposes of the act of June 21, 1957 (P.L.390,
14 No.212), referred to as the Right-to-Know Law. Notwithstanding
15 any provision of law to the contrary, confidential documents
16 relative to personal background information provided to the
17 board pursuant to this part and any closed deliberations of the
18 board, including disciplinary proceedings, shall be confidential
19 and considered in closed executive session pursuant to
20 subsection (f).]
21 (b) Record of proceedings.--The board shall cause to be made
22 and kept a record of all proceedings held at public meetings of
23 the board. [A] The verbatim transcript of those proceedings
24 shall be the property of the board and shall be prepared by the
25 board upon the request of any board member or upon the request
26 of any other person and the payment by that person of the costs
27 of preparation.
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
20050S0862B2186 - 41 -
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
7 together with] The list shall include a record of all actions
8 taken with respect to [the applicants, which file and record]
9 each applicant. The list shall be open to public inspection
10 during the normal business hours of the board.
11 (2) Information under paragraph (1) regarding any
12 applicant whose license or permit has been denied, revoked or
13 not renewed shall be removed from such list after seven years
14 from the date of the action.
15 * * *
16 (f) Confidentiality of information.--All information
17 [contained in the application process] submitted by an applicant
18 pursuant to section 1310(a) (relating to slot machine license
19 application character requirements) [and the report of an
20 applicant's background investigation furnished to] or obtained
21 by the board or the bureau as part of a background investigation
22 from any source shall be considered confidential [and]. Except
23 as provided in section 1517(f) (relating to investigation and
24 enforcement), the information shall be withheld from public
25 disclosure in whole or in part, except that any information
26 shall be released upon the lawful order of a court of competent
27 jurisdiction or, with the approval of the Attorney General, to a
28 duly authorized law enforcement agency or shall be released to
29 the public, in whole or in part, to the extent that such release
30 is requested by an applicant and does not otherwise contain
20050S0862B2186 - 42 -
1 confidential information about another person. The board may not
2 require any applicant to waive any confidentiality provided for
3 in this subsection as a condition for the approval of a license
4 or any other action of the board. Any person who violates this
5 subsection shall be administratively disciplined by discharge,
6 suspension or other formal disciplinary action as the board
7 deems appropriate.
8 * * *
9 § 1207. Regulatory authority of board. <--
10 The board shall have the power and its duties shall be to:
11 * * *
12 (6) Prescribe criteria and conditions for the operation
13 of slot machine progressive systems. A wide area progressive
14 slot system shall be purchased, leased, operated and
15 administered collectively by participating slot machine
16 licensees in accordance with the terms of a written agreement
17 executed by each participating slot machine licensee and
18 approved by the board. Nothing in this paragraph shall
19 prevent a slot machine licensee participating in an agreement
20 to provide a wide area progressive slot system from
21 delegating, in whole or in part, the operation and
22 administration of the wide area progressive slot system to a
23 person other than a manufacturer or supplier if the
24 delegation is approved by the board.
25 * * *
26 § 1208. Collection of fees and fines.
27 The board has the following powers and duties:
28 (1) To levy and collect fees from the various
29 applicants, licensees and permittees to fund the operations
30 of the board. The fees shall be deposited into the State
20050S0862B2186 - 43 -
1 Gaming Fund as established in section 1403 (relating to
2 establishment of State Gaming Fund and net slot machine
3 revenue distribution) and distributed to the board upon
4 appropriation by the General Assembly. In addition to the
5 fees set forth in sections 1209 (relating to slot machine
6 license fee) and 1305 (relating to Category 3 slot machine
7 license), the board shall assess and collect fees as follows:
8 (i) Supplier licensees shall pay a fee of $25,000
9 upon the issuance of a license and $10,000 for the annual
10 renewal of a supplier license.
11 (ii) Manufacturer licensees shall pay a fee of
12 $50,000 upon the issuance of a license and $25,000 for
13 the annual renewal of a manufacturer license.
14 (iii) Each application for a slot machine license,
15 supplier license or manufacturer license must be
16 accompanied by a nonrefundable fee set by the board for
17 the cost of each individual requiring a background
18 investigation. The reasonable and necessary costs and
19 expenses incurred in any background investigation or
20 other investigation or proceeding concerning any
21 applicant, licensee [or], permittee or registrant shall
22 be reimbursed to the board by those persons.
23 * * *
24 § 1209. Slot machine license fee.
25 (a) Imposition.--Except as provided for a Category 3
26 licensed gaming entity under section 1305 (relating to Category
27 3 slot machine license) and subject to the requirements of this
28 section, at the time of license issuance the board shall impose
29 a one-time slot machine license fee to be paid by each
30 successful applicant for a conditional Category 1, a Category 1
20050S0862B2186 - 44 -
1 or a Category 2 license in the amount of $50,000,000 [for each
2 category of slot machine license.] and deposited in the State <--
3 Gaming Fund. GAMING FUND. NO FEE SHALL BE IMPOSED BY THE BOARD <--
4 FOR A CATEGORY 1 LICENSE IF THE APPLICANT HAS PAID A $50,000,000
5 FEE FOR A CONDITIONAL CATEGORY 1 LICENSE.
6 * * *
7 § 1210. Number of slot machines. <--
8 (a) Initial complement.--Except as provided for Category 3
9 slot machine licensees under section 1305 (relating to Category
10 3 slot machine license), all slot machine licensees shall be
11 permitted to operate up to 3,000 slot machines at any one
12 licensed facility and shall be required to operate and make
13 available to play a minimum of 1,500 machines at any one
14 licensed facility within one year of the issuance by the board
15 of a slot machine license unless otherwise extended by the
16 board, upon application and for good cause shown, for an
17 additional period not to exceed 24 months.
18 (b) Additional slot machines.--Except as provided for
19 Category 3 slot machine licensees under section 1305, six months
20 following the date of commencement of slot machine operations,
21 the board may permit a slot machine licensee to install and
22 operate up to 2,000 additional slot machines at its licensed
23 facility, beyond those machines authorized under subsection (a),
24 upon application by the slot machine licensee. The board, in
25 considering such an application, shall take into account the
26 appropriateness of the physical space where the additional slot
27 machines will be located and the convenience of the public
28 attending the facility. The board may also take into account the
29 potential benefit to economic development, employment and
30 tourism, enhanced revenues to the Commonwealth and other
20050S0862B2186 - 45 -
1 economic indicators it deems applicable in making its decision.
2 (c) Limitation.--For the three years following the beginning
3 of slot machine operations at the licensed facility, no licensed
4 gaming entity may make available for play by its patrons at its
5 licensed facility more than 50% of slot machines from the same
6 manufacturer or its affiliate, intermediary, subsidiary or
7 holding company. The provisions of this subsection shall not
8 apply to machines purchased pursuant to a contract or order
9 executed by a conditional Category 1 or Category 1 slot machine
10 licensee prior to September 1, 2006.
11 § 1211. Reports of board.
12 (a) Report of board.--Eighteen months after the effective
13 date of this part and every year on that date thereafter, the
14 board shall issue a report to the Governor and each member of
15 the General Assembly on the general operation of the board and
16 each slot machine licensee's performance, including, but not
17 limited to, number and win per slot machine at licensed
18 facilities during the previous year, all taxes, fees, fines and
19 other revenues collected and, where appropriate, disbursed, the
20 costs of operation of the board, all hearings conducted and the
21 results of the hearings and other information that the board
22 deems necessary and appropriate.
23 (b) Report of the Legislative Budget and Finance
24 Committee.--No later than March 15 of the year following the
25 effective date of this part and each March 15 thereafter, the
26 Legislative Budget and Finance Committee shall issue a report to
27 the General Assembly analyzing the impact, if any, of this part
28 on the State Lottery.
29 (c) Interception of gaming winnings.--The board shall
30 conduct a study to determine the feasibility of implementing
20050S0862B2186 - 46 -
1 methods for the interception of the gaming winnings of
2 individuals who are delinquent support obligors or tax
3 delinquent. The study shall be completed by December 31, 2006,
4 and shall contain recommendations which the board determines
5 appropriate.
6 (d) Reports to General Assembly.--The board shall conduct an
7 ongoing review of the operation of this part and the impact of
8 gaming in this Commonwealth, including review of other
9 jurisdictions, Federal laws, academic research and public input.
10 The board shall submit an annual report to the General Assembly
11 by December 30. The report shall include recommendations for
12 changes to this part or in the operation or regulation of
13 licensed entities. The report shall be submitted to the Majority
14 and Minority Leader of the Senate and the Majority and Minority
15 Leader of the House of Representatives and the chair and
16 minority chair of the standing committees in the Senate and the
17 chair and minority chair of the standing committees in the House
18 of Representatives with jurisdiction over the board. The report
19 shall be posted by the board on its Internet website.
20 § 1213. License or permit prohibition.
21 [No applicant for a license or permit under this part,
22 including directors, owners and key employees, that has been
23 convicted in any jurisdiction of a felony or gambling offense
24 within the past 15 years shall be issued a license or permit
25 under this part or be found qualified to serve in a position as
26 a director, owner or key employee of or associated with any
27 licensee or permittee.] No applicant for a license or permit
28 under this part, including principals and key employees, who
29 have been convicted of a felony or gambling offense in any
30 jurisdiction shall be issued a license or permit unless 15 years
20050S0862B2186 - 47 -
1 has elapsed from the date of expiration of the sentence for the
2 offense. When determining whether to issue a license or permit
3 to an applicant who has been convicted in any jurisdiction of a
4 felony or gambling offense, the board shall consider the
5 following factors:
6 (1) The nature and duties of the applicant's position <--
7 with the APPLICANT RELATING TO A licensed entity. <--
8 (2) The nature and seriousness of the offense or
9 conduct.
10 (3) The circumstances under which the offense or conduct
11 occurred.
12 (4) The age of the applicant when the offense or conduct
13 was committed.
14 (5) Whether the offense or conduct was an isolated or a
15 repeated incident.
16 (6) Any evidence of rehabilitation, including good
17 conduct in the community, counseling or psychiatric treatment
18 received and the recommendation of persons who have
19 substantial contact with the individual APPLICANT. <--
20 § 1304. Category 2 slot machine license.
21 (a) Eligibility.--
22 (1) A person may be eligible to apply for a Category 2
23 license if the applicant, its affiliate, intermediary,
24 subsidiary or holding company is not otherwise eligible to
25 apply for a Category 1 license and the person is seeking to
26 locate a licensed facility in a city of the first class, a
27 city of the second class or a revenue- or tourism-enhanced
28 location. It shall not be a condition of eligibility to apply
29 for a Category 2 license to obtain a license from either the
30 State Horse Racing Commission or the State Harness Racing
20050S0862B2186 - 48 -
1 Commission to conduct thoroughbred or harness race meetings
2 respectively with pari-mutuel wagering.
3 (2) If the person seeking a slot machine license
4 proposes to place the licensed facility upon land designated
5 a subzone, an expansion subzone or an improvement subzone
6 under the act of October 6, 1998 (P.L.705, No.92), known as
7 the Keystone Opportunity Zone, Keystone Opportunity Expansion
8 Zone and Keystone Opportunity Improvement Zone Act, the
9 person shall, at any time prior to the application being
10 approved, submit a statement waving the exemptions,
11 deductions, abatements or credits granted under the Keystone
12 Opportunity Zone, Keystone Opportunity Expansion Zone and
13 Keystone Opportunity Improvement Zone Act if the board
14 approves the application.
15 (b) Location.--
16 (1) Two Category 2 licensed facilities and no more shall
17 be located by the board within a city of the first class, and
18 one Category 2 licensed facility and no more shall be located
19 by the board within a city of the second class. No Category 2
20 licensed facility located by the board within a city of the
21 first class shall be within ten linear miles of a Category 1
22 licensed facility regardless of the municipality where the
23 Category 1 licensed facility is located. Except for any
24 Category 2 licensed facility located by the board within a
25 city of the first class or a city of the second class, no
26 Category 2 licensed facility shall be located within 30
27 linear miles of any Category 1 licensed facility that has
28 conducted over 200 racing days per year for the two calendar
29 years immediately preceding the effective date of this part
30 and not within 20 linear miles of any other Category 1
20050S0862B2186 - 49 -
1 licensed facility. Except for any Category 2 licensed
2 facility located by the board within a city of the first
3 class, no Category 2 licensed facility shall be located
4 within 20 linear miles of another Category 2 licensed
5 facility.
6 (2) Within five days of approving a license for an
7 applicant with a proposed licensed facility consisting of
8 land designated a subzone, an expansion subzone or an
9 improvement subzone under the Keystone Opportunity Zone,
10 Keystone Opportunity Expansion Zone and Keystone Opportunity
11 Improvement Zone Act for a slot machine license under this
12 section, the board shall notify the Department of Community
13 and Economic Development. The notice shall include a
14 description of the land of the proposed licensed facility
15 which is designated a subzone, an expansion subzone or an
16 improvement subzone. Within five days of receiving the notice
17 required by this paragraph, the Secretary of Community and
18 Economic Development shall decertify the land OF THE PROPOSED <--
19 LICENSED FACILITY as being a subzone, an expansion subzone or
20 an improvement subzone. Upon decertification in accordance
21 with this paragraph and notwithstanding Chapter 3 of the
22 Keystone Opportunity Zone, Keystone Opportunity Expansion
23 Zone and Keystone Opportunity Improvement Zone Act, a
24 political subdivision may amend the ordinance, resolution or
25 other required action which granted the exemptions,
26 deductions, abatements or credits required by the Keystone
27 Opportunity Zone, Keystone Opportunity Expansion Zone and
28 Keystone Opportunity Improvement Zone Act to repeal the
29 exemptions, deductions, abatements or credits for the land
30 decertified.
20050S0862B2186 - 50 -
1 § 1305. Category 3 slot machine license.
2 (a) Eligibility.--
3 (1) A person may be eligible to apply for a Category 3
4 license if the applicant, its affiliate, intermediary,
5 subsidiary or holding company has not applied for or been
6 approved or issued a Category 1 or 2 license and the person
7 is seeking to locate a Category 3 licensed facility in a
8 well-established resort hotel having no fewer than 275 guest
9 rooms under common ownership and having substantial year-
10 round recreational guest amenities. The applicant for a
11 Category 3 license shall be the owner or be a wholly owned
12 subsidiary of the owner of the established resort hotel. A
13 Category 3 license may only be granted upon the express
14 condition that an individual may not enter a gaming area of
15 the licensee if the individual is not a registered overnight
16 guest of the established resort hotel or if the individual is
17 not a patron of one or more of the amenities provided by the
18 established resort hotel.
19 (2) Notwithstanding section 1512(a) and (a.1) (relating
20 to public official financial interest), if at the time of
21 application, an applicant has terminated public office or
22 employment as an executive-level public employee within the
23 last calendar year, the applicant shall be eligible to apply
24 for a slot machine license under this section but may not be
25 issued a license until one year following the date of
26 termination as a public official or executive-level public
27 employee. An application submitted in accordance with this
28 paragraph shall not constitute a violation of section 1512(a)
29 or (a.1).
30 (3) If the person seeking a slot machine license
20050S0862B2186 - 51 -
1 proposes to place the licensed facility upon land designated
2 a subzone, an expansion subzone or an improvement subzone
3 under the act of October 6, 1998 (P.L.705, No.92), known as
4 the Keystone Opportunity Zone, Keystone Opportunity Expansion
5 Zone and Keystone Opportunity Improvement Zone Act, the
6 person shall, at any time prior to the application being
7 approved, submit a statement waiving the exemptions,
8 deductions, abatements or credits granted under the Keystone
9 Opportunity Zone, Keystone Opportunity Expansion Zone and
10 Keystone Opportunity Improvement Zone Act if the board
11 approves the application.
12 (b) Location.--
13 (1) No Category 3 license shall be located by the board
14 within 15 linear miles of another licensed facility.
15 (2) Within five days of approving a license for an
16 applicant with a proposed licensed facility consisting of
17 land designated a subzone, an expansion subzone or an
18 improvement subzone under the Keystone Opportunity Zone,
19 Keystone Opportunity Expansion Zone and Keystone Opportunity
20 Improvement Zone Act for a slot machine license under this
21 section, the board shall notify the Department of Community
22 and Economic Development. The notice shall include a
23 description of the land of the proposed licensed facility
24 which is designated a subzone, an expansion subzone or an
25 improvement subzone. Within five days of receiving the notice
26 required by this paragraph, the Secretary of Community and
27 Economic Development shall decertify the land OF THE PROPOSED <--
28 LICENSED FACILITY as being a subzone, an expansion subzone or
29 an improvement subzone. Upon decertification in accordance
30 with this paragraph and notwithstanding Chapter 3 of the
20050S0862B2186 - 52 -
1 Keystone Opportunity Zone, Keystone Opportunity Expansion
2 Zone and Keystone Opportunity Improvement Zone Act, a
3 political subdivision may amend the ordinance, resolution or
4 other required action which granted the exemptions,
5 deductions, abatements or credits required by the Keystone
6 Opportunity Zone, Keystone Opportunity Expansion Zone and
7 Keystone Opportunity Improvement Zone Act to repeal the
8 exemptions, deductions, abatements or credits for the land
9 decertified.
10 (c) Number of slot machines.--Notwithstanding the number of
11 permissible slot machines as set forth in section 1210 (relating
12 to number of slot machines), a Category 3 license granted under
13 the provisions of this section shall entitle the licensed entity
14 to operate no more than 500 slot machines at the licensed
15 facility.
16 (d) Category 3 license fee.--Notwithstanding the one-time
17 slot machine license fee as set forth in section 1209 (relating
18 to slot machine license fee), the board shall impose a one-time
19 Category 3 license fee to be paid by each successful applicant
20 in [an] the amount of $5,000,000 to be deposited in the State
21 Gaming Fund. The provisions of section 1209 relating to term,
22 credit against tax for slot machine licensees, deposit of
23 license fee and change of ownership or control of a license
24 shall be applicable to a Category 3 license fee.
25 (e) Definitions.--For the purpose of subsection (a), the
26 following words and phrases shall have the meaning given to them
27 in this subsection:
28 ["Amenities." Any ancillary activities, services or
29 facilities in which a registered guest or the transient public,
30 in return for non-de minimis consideration as defined by board
20050S0862B2186 - 53 -
1 regulation, may participate at a resort hotel, including, but
2 not limited to, sports and recreational activities and
3 facilities such as a golf course or golf driving range, tennis
4 courts or swimming pool; health spa; convention, meeting and
5 banquet facilities; entertainment facilities; and restaurant
6 facilities.]
7 "Amenity." An ancillary activity, service or facility in
8 which a registered guest or the transient public, in return for
9 non-de minimis consideration as defined by board regulations,
10 may participate at a resort hotel, including a sports or
11 recreational activity or facility such as a golf course, golf
12 driving range, tennis court, swimming pool or health spa;
13 convention, meeting or banquet facility; entertainment facility
14 or restaurant facility.
15 "Patron of the amenities." Any individual who is a
16 registered attendee of a convention, meeting or banquet event or
17 a participant in a sport or recreational event or any other
18 social, cultural or business event held at a resort hotel or who
19 participates in one or more of the amenities provided to
20 registered guests of the resort hotel.
21 § 1306. Order of initial license issuance.
22 In order to facilitate the timely and orderly deployment of
23 licensed gaming operations in this Commonwealth, the board shall
24 adopt a schedule by which applicants for slot machine,
25 manufacturer and supplier licenses shall be filed, considered
26 and resolved in accordance with the provisions of this part. In
27 so doing, the board shall consider, approve, condition or deny
28 the approval of all filed applications for manufacturer and
29 supplier licenses as soon as administratively possible and at
30 least three months prior to the board's approval, conditioning
20050S0862B2186 - 54 -
1 or denial of the approval of any Category 1 license application
2 pursuant to section 1315 (relating to conditional Category 1
3 licenses) or any other category of slot machine license pursuant
4 to section 1301 (relating to authorized slot machine licenses).
5 The board shall ensure that an adequate number of suppliers have
6 been licensed pursuant to section 1301 to meet market demand.
7 The board shall approve, approve with condition or deny all
8 initial applications for conditional Category 1 licenses under
9 section 1315 (relating to conditional Category 1 licenses) prior
10 to considering applications for Category 1, Category 2 or
11 Category 3 slot machine licenses.
12 § 1307. NUMBER OF SLOT MACHINE LICENSES. <--
13 THE BOARD MAY LICENSE NO MORE THAN SEVEN CATEGORY 1 LICENSED
14 FACILITIES AND NO MORE THAN FIVE CATEGORY 2 LICENSED FACILITIES,
15 AS IT MAY DEEM APPROPRIATE, AS LONG AS TWO, AND NOT MORE,
16 CATEGORY 2 LICENSES ARE LOCATED BY THE BOARD WITHIN THE CITY OF
17 THE FIRST CLASS AND THAT ONE, AND NOT MORE, CATEGORY 2 LICENSED
18 FACILITY IS LOCATED BY THE BOARD WITHIN THE CITY OF THE SECOND
19 CLASS. THE BOARD MAY AT ITS DISCRETION INCREASE THE TOTAL NUMBER
20 OF CATEGORY 2 LICENSED FACILITIES PERMITTED TO BE LICENSED BY
21 THE BOARD BY AN AMOUNT NOT TO EXCEED THE TOTAL NUMBER OF
22 CATEGORY 1 LICENSES NOT APPLIED FOR [WITHIN FIVE YEARS FOLLOWING
23 THE EFFECTIVE DATE OF THIS PART] BY JULY 3, 2008. EXCEPT AS
24 PERMITTED BY SECTION 1328 (RELATING TO CHANGE IN OWNERSHIP OR
25 CONTROL OF SLOT MACHINE LICENSEE), ANY CATEGORY 1 LICENSE MAY BE
26 REISSUED BY THE BOARD AT ITS DISCRETION AS A CATEGORY 2 LICENSE
27 IF AN APPLICATION FOR ISSUANCE OF SUCH LICENSE HAS NOT BEEN MADE
28 TO THE BOARD. THE BOARD MAY LICENSE NO MORE THAN TWO CATEGORY 3
29 LICENSED FACILITIES.
30 § 1308. APPLICATIONS FOR LICENSE OR PERMIT.
20050S0862B2186 - 55 -
1 (A) APPLICATIONS.--AN APPLICATION FOR A LICENSE OR PERMIT TO
2 BE ISSUED BY THE BOARD SHALL BE SUBMITTED ON A FORM AND IN A
3 MANNER AS SHALL BE REQUIRED BY THE BOARD. IN REVIEWING
4 APPLICATIONS, THE BOARD SHALL CONFIRM THAT ALL THE APPLICABLE
5 LICENSE OR PERMIT FEES HAVE BEEN PAID IN ACCORDANCE WITH THIS
6 PART.
7 (B) COMPLETENESS OF APPLICATIONS.--THE BOARD SHALL NOT
8 CONSIDER AN INCOMPLETE APPLICATION AND SHALL NOTIFY THE
9 APPLICANT IN WRITING IF AN APPLICATION IS INCOMPLETE. AN
10 APPLICATION SHALL BE CONSIDERED INCOMPLETE IF IT DOES NOT
11 INCLUDE ALL APPLICABLE FEES AND ALL INFORMATION AND ACCOMPANYING
12 DOCUMENTATION REQUIRED BY THE BOARD, INCLUDING, BUT NOT LIMITED
13 TO, A CURRENT TAX LIEN CERTIFICATE ISSUED BY THE DEPARTMENT AT
14 THE TIME OF FILING THE APPLICATION. ANY UNPAID TAXES IDENTIFIED
15 ON THE TAX LIEN CERTIFICATE SHALL BE PAID BEFORE THE APPLICATION
16 IS CONSIDERED COMPLETE. A NOTIFICATION OF INCOMPLETENESS SHALL
17 STATE THE DEFICIENCIES IN THE APPLICATION THAT MUST BE CORRECTED
18 PRIOR TO CONSIDERATION OF THE MERITS OF THE APPLICATION.
19 (C) ADVERSE LITIGATION.--NOTWITHSTANDING ANY LAW TO THE
20 CONTRARY, THE BOARD AND THE COMMISSIONS SHALL NOT CONSIDER ANY
21 APPLICATION FOR A LICENSE IF THE APPLICANT OR ANY PERSON
22 AFFILIATED WITH OR DIRECTLY RELATED TO THE APPLICANT IS A PARTY
23 IN ANY ONGOING CIVIL PROCEEDING IN WHICH THE PARTY IS SEEKING TO
24 OVERTURN OR OTHERWISE CHALLENGE A DECISION OR ORDER OF THE BOARD
25 [OR COMMISSIONS] PERTAINING TO THE APPROVAL, DENIAL OR
26 CONDITIONING OF A LICENSE [TO CONDUCT THOROUGHBRED OR HARNESS
27 HORSE RACE MEETINGS RESPECTIVELY WITH PARI-MUTUEL WAGERING OR]
28 TO OPERATE SLOT MACHINES. THIS SUBSECTION SHALL NOT BE
29 INTERPRETED TO AFFECT THE RIGHTS OF APPLICANTS TO SEEK JUDICIAL
30 ENFORCEMENT OF MANDATORY OBLIGATIONS OF THE BOARD AS MAY BE
20050S0862B2186 - 56 -
1 REQUIRED BY THIS PART.
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
20050S0862B2186 - 57 -
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
20050S0862B2186 - 58 -
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 OF THE APPLICANT SHALL BE LICENSED and key employees <--
24 of the applicant shall obtain a license BE PERMITTED to meet the <--
25 character requirements of section 1310 (relating to slot machine
26 license application character requirements) or other eligibility
27 requirements 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
20050S0862B2186 - 59 -
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 OR PERMIT by the board under <--
18 this section 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
20050S0862B2186 - 60 -
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 OTHER APPROVAL under this part shall have the <--
13 continuing duty to provide information required by the board or
14 the bureau and 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. Licensing of principals.
20 (a) License required.--All principals shall obtain a
21 principal license from the board.
22 (b) Application.--A principal license application shall be
23 in a form prescribed by the board and shall include the
24 following:
25 (1) Verification of status as a principal from a slot
26 machine licensee, manufacturer licensee or supplier licensee.
27 (2) A description of responsibilities as a principal.
28 (3) All releases necessary to obtain information from
29 governmental agencies, employers and other organizations.
30 (4) Fingerprints, which shall be submitted to the
20050S0862B2186 - 61 -
1 Pennsylvania State Police.
2 (5) A photograph that meets the standards of the
3 Commonwealth Photo Imaging Network.
4 (6) Details relating to a similar license or permit, <--
5 PERMIT OR OTHER AUTHORIZATION obtained in another
6 jurisdiction.
7 (7) Any additional information required by the board.
8 (c) Issuance.--Following review of the application and the
9 background investigation, the board may issue a principal
10 license if the applicant has proven by clear and convincing
11 evidence that the applicant is a person of good character,
12 honesty and integrity and is eligible and suitable to be
13 licensed as a principal.
14 (d) Nontransferability.--A license issued under this section
15 shall be nontransferable.
16 (e) Principals.--An individual who receives a principal
17 permit LICENSE need not obtain a key employee license PERMIT. <--
18 § 1311.2. Licensing PERMITTING of key employees. <--
19 (a) License PERMIT required.--All key employees shall obtain <--
20 a key employee license PERMIT from the board. <--
21 (b) Application.--A key employee license PERMIT application <--
22 shall be in a form prescribed by the board and shall include the
23 following:
24 (1) Verification of status as a key employee from a slot
25 machine licensee, manufacturer licensee or supplier licensee.
26 (2) A description of employment responsibilities.
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.
20050S0862B2186 - 62 -
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 PERMIT OR OTHER AUTHORIZATION obtained in another
5 jurisdiction.
6 (7) Any additional information required by the board.
7 (c) Issuance.--Following review of the application and the
8 background investigation, the board may issue a key employee
9 license PERMIT if the applicant has proven by clear and <--
10 convincing evidence that the applicant is a person of good
11 character, honesty and integrity and is eligible and suitable to
12 be licensed PERMITTED as a key employee. <--
13 (d) Nontransferability.--A license PERMIT issued under this <--
14 section shall be nontransferable.
15 Section 7.1. Sections 1313(e) and 1317 of Title 4 are
16 amended to read:
17 § 1313. Slot machine license application financial fitness
18 requirements.
19 * * *
20 (e) Applicant's operational viability.--In assessing the
21 financial viability of the proposed licensed facility, the board
22 shall make a finding, after review of the application, that the
23 applicant is likely to maintain a financially successful, viable
24 and efficient business operation and will likely be able to
25 maintain A steady level [and] of growth of revenue to the <--
26 Commonwealth pursuant to section 1403 (relating to establishment
27 of State Gaming Fund and net slot machine revenue distribution).
28 Notwithstanding any provision of this part to the contrary, an
29 applicant that includes a commitment or promise to pay a slot
30 machine license fee in excess of the amount provided in section
20050S0862B2186 - 63 -
1 1209 or a distribution of terminal revenue in excess of the
2 amounts provided in sections 1403, 1405 (relating to
3 Pennsylvania Race Horse Development Fund) and 1407 (relating to
4 Pennsylvania Gaming Economic Development and Tourism Fund) shall
5 not be deemed a financially successful, viable or efficient
6 business operation and shall not be approved for a slot machine
7 license.
8 * * *
9 § 1317. Supplier [and manufacturer] licenses [application].
10 (a) Application.--[Any] A manufacturer that elects to <--
11 contract with a supplier under section 1317.1(d.1) (relating to
12 manufacturer licenses) shall ensure that the supplier is
13 licensed under this section. A person seeking to provide slot
14 machines or associated equipment to a slot machine licensee
15 within this Commonwealth [or to manufacture slot machines for
16 use in this Commonwealth] through a contract with a licensed
17 manufacturer shall apply to the board for [either] a supplier
18 [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
20050S0862B2186 - 64 -
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] An 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 and owners of the
10 applicant] principals and key employees of each business; and
11 a list of employees and their positions within [the] each
12 business, as well as any financial information required by
13 the board.
14 (1.1) A statement that the applicant and each affiliate,
15 intermediary, subsidiary or holding company of the applicant
16 are not slot machine licensees.
17 (1.2) Proof that the applicant has or will establish a
18 principal place of business in this Commonwealth WITHIN ONE <--
19 YEAR OF ISSUANCE OF ITS LICENSE. A supplier licensee shall
20 maintain its principal place of business in this Commonwealth
21 to remain eligible for licensure.
22 (2) The consent to a background investigation of the
23 applicant, its [officers, directors, owners,] principals and
24 key employees or other persons required by the board and a
25 release to obtain any and all information necessary for the
26 completion of the background investigation.
27 (3) The details of any equivalent license granted or
28 denied by other jurisdictions where gaming activities as
29 authorized by this part are permitted and consent for the
30 board to acquire copies of applications submitted or licenses
20050S0862B2186 - 65 -
1 issued in connection therewith.
2 (4) The type of goods and services to be supplied [or
3 manufactured] and whether those goods and services will be
4 provided through purchase, lease, contract or otherwise.
5 (5) 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 ISSUE the applicant a supplier <--
10 license consistent with all of the following:
11 (1) The license shall be for a period of one year. Upon
12 expiration, the 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) Two months prior to expiration of a supplier
18 license, the supplier licensee seeking renewal of its license
19 shall submit a renewal application accompanied by the renewal
20 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 supplier 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 supplier license, the supplier license
27 shall continue in effect for an additional six-month period
28 or until acted upon by the board, whichever occurs first.
29 (e) Prohibitions.--No limitation shall be placed on the <--
30 (E) PROHIBITIONS.-- <--
20050S0862B2186 - 66 -
1 (1) NO PERSON MAY PROVIDE SLOT MACHINES OR ASSOCIATED
2 EQUIPMENT TO A SLOT MACHINE LICENSEE WITHIN THIS COMMONWEALTH
3 UNLESS THE PERSON HAS BEEN ISSUED A SUPPLIER OR MANUFACTURER
4 LICENSE UNDER THIS PART.
5 (2) NO LIMITATION SHALL BE PLACED ON THE number of
6 supplier licenses issued or the time period to submit
7 applications for licensure except as required to comply with
8 section 1306 (relating to order of initial license issuance).
9 (f) Reimbursement fund.-- <--
10 (1) Each manufacturer shall pay a fee of $500 for each
11 slot machine manufactured, built, rebuilt, fabricated,
12 assembled, produced, programmed or designed by the
13 manufacturer for use or play in this Commonwealth. The fee
14 shall be collected by the board and transferred to the
15 account established under paragraph (3).
16 (2) The board shall develop and adopt regulations to
17 provide for reimbursement to suppliers who received a license
18 prior to the effective date of this subsection if the
19 supplier's contract with a manufacturer was canceled or the
20 supplier was unable to obtain a contract with a manufacturer
21 due to changes adopted pursuant to subsections (a) and (e)
22 between June 1 and the effective date of this subsection.
23 Reimbursement shall only be for filing fees and the actual
24 cost of creating the license application.
25 (3) There is hereby established in the State Treasury an
26 account for the fees collected under paragraph (1). Funds
27 remaining in the account following completion of all
28 reimbursements under paragraph (2) shall be deposited into
29 the Compulsive and Problem Gambling Treatment Fund
30 established under section 1509 (relating to compulsive and
20050S0862B2186 - 67 -
1 problem gambling program).
2 Section 7.2. Title 4 is amended by adding a section to read:
3 § 1317.1. Manufacturer licenses.
4 (a) Application.--A person seeking to manufacture, REPAIR <--
5 AND SUPPLY slot machines and associated equipment for use in
6 this Commonwealth shall apply to the board for a manufacturer
7 license.
8 (b) Requirements.-- An application for a manufacturer
9 license shall be on the form required by the board, accompanied
10 by the application fee and shall include all of the following:
11 (1) The name and business address of the applicant and
12 the applicant's affiliates, intermediaries, subsidiaries and
13 holding companies; the principals and key employees of each
14 business; and a list of employees and their positions within
15 each business, as well as any financial information required
16 by the board.
17 (2) A statement that the applicant and each affiliate,
18 intermediary, subsidiary or holding company of the applicant
19 are not slot machine licensees.
20 (3) The consent to a background investigation of the
21 applicant, its principals and key employees or other persons
22 required by the board and a release to obtain any and all
23 information necessary for the completion of the background
24 investigation.
25 (4) The details of any equivalent license granted or
26 denied by other jurisdictions where gaming activities as
27 authorized by this part are permitted and consent for the
28 board to acquire copies of applications submitted or licenses
29 issued in connection therewith. A manufacturer may contract <--
30 with a supplier under section 1317 (relating to supplier
20050S0862B2186 - 68 -
1 license) to provide slot machines or associated equipment to
2 a slot machine licensee within this Commonwealth. A
3 manufacturer and a slot machine licensee may agree to allow
4 technicians employed by a slot machine licensee to repair
5 machines.
6 (5) The type of slot machines or associated equipment to
7 be manufactured or repaired.
8 (6) Any other information determined by the board to be
9 appropriate.
10 (c) Review and approval.--Upon being satisfied that the
11 requirements of subsection (b) have been met, the board may
12 approve the application and grant ISSUE the applicant a <--
13 manufacturer license consistent with all of the following:
14 (1) The license shall be for a period of one year. Upon
15 expiration, a license may be renewed in accordance with
16 subsection (d).
17 (2) The license shall be nontransferable.
18 (3) Any other condition established by the board.
19 (d) Renewal.--
20 (1) Six months prior to expiration of a manufacturer
21 license, the manufacturer licensee seeking renewal of its
22 license shall submit a renewal application accompanied by the
23 renewal fee to the board.
24 (2) If the renewal application satisfies the
25 requirements of subsection (b), the board may renew the
26 licensee's manufacturer license.
27 (3) If the board receives a complete renewal application
28 but fails to act upon the renewal application prior to the
29 expiration of the manufacturer license, the manufacturer
30 license shall continue in effect for an additional six-month
20050S0862B2186 - 69 -
1 period or until acted upon by the board, whichever occurs
2 first.
3 (d.1) Scope.--A licensed manufacturer or its designee, as <--
4 licensed by the board, may repair any slot machine or associated
5 equipment manufactured by the licensed manufacturer. A
6 manufacturer may contract with a supplier under section 1317
7 (relating to supplier licenses) to provide slot machines or
8 associated equipment to a slot machine licensee within this
9 Commonwealth.
10 (e) Prohibitions.--
11 (1) No person may manufacture OR REPAIR slot machines or <--
12 associated equipment for use within this Commonwealth by a
13 slot machine licensee unless the person has been issued a
14 manufacturer license under this section OR IS A DESIGNEE OF <--
15 THE MANUFACTURER UNDER SUBSECTION (F).
16 (2) No slot machine licensee may use slot machines or
17 associated equipment unless the slot machines or associated
18 equipment were manufactured OR REPAIRED by a person that has <--
19 been issued a manufacturer license under this section OR IS A <--
20 DESIGNEE OF THE MANUFACTURER UNDER SUBSECTION (F).
21 (3) No person issued a license under this section shall
22 apply for or be issued a license under section 1317 (relating
23 to supplier licenses).
24 (4) No limitation shall be placed on the number of
25 manufacturer licenses issued or the time period to submit
26 applications for licensure, except as required to comply with
27 section 1306 (relating to order of initial license issuance).
28 (F) LIMITATIONS.-- <--
29 (1) A MANUFACTURER LICENSED UNDER THIS SECTION OR ITS
30 DESIGNEE MAY REPAIR SLOT MACHINES OR ASSOCIATED EQUIPMENT
20050S0862B2186 - 70 -
1 MANUFACTURED BY THE MANUFACTURER.
2 (2) A MANUFACTURER AND A SLOT MACHINE LICENSEE MAY AGREE
3 BY CONTRACT TO ALLOW TECHNICIANS EMPLOYED BY THE SLOT MACHINE
4 LICENSEE TO REPAIR SLOT MACHINES WHICH ARE MANUFACTURED BY
5 THE MANUFACTURER AND WHICH ARE LOCATED AT THE SLOT MACHINE
6 LICENSEE'S LICENSED FACILITY.
7 (3) A MANUFACTURER MAY CONTRACT WITH A PERSON LICENSED
8 AS A SUPPLIER UNDER SECTION 1317 (RELATING TO SUPPLIER
9 LICENSEE) TO PROVIDE SLOT MACHINES OR ASSOCIATED EQUIPMENT TO
10 A SLOT MACHINE LICENSEE LOCATED WITHIN THIS COMMONWEALTH.
11 Section 8. Sections 1318(b)(4) and 1323(a) of Title 4 are
12 amended to read:
13 § 1318. Occupation permit application.
14 * * *
15 (b) Requirements.--The application for an occupation permit
16 shall include, at a minimum:
17 * * *
18 (4) A photograph [and handwriting exemplar] of the
19 person.
20 * * *
21 § 1323. Central control computer system.
22 (a) General rule.--To facilitate the auditing and security
23 programs critical to the integrity of slot machine gaming in
24 this Commonwealth, the department shall have overall control of
25 slot machines, and all slot machine terminals shall be linked,
26 at an appropriate time to be determined by the department, to a
27 central control computer under the control of the department and
28 accessible by the board to provide auditing program capacity and
29 individual terminal information as approved by the department
30 and shall include real-time information retrieval and terminal
20050S0862B2186 - 71 -
1 activation and disabling programs. The central control computer
2 selected and employed by the department shall not unduly limit
3 or favor the participation of a vendor or manufacturer of a slot
4 machine as a result of the cost or difficulty of implementing
5 the necessary program modifications to communicate with and link
6 to the central control computer. The central control computer
7 employed by the department shall provide:
8 (1) A fully operational Statewide slot machine control
9 system that has the capability of supporting up to the
10 maximum number of slot machines that could be permitted to be
11 in operation under this part.
12 (2) The employment of a widely accepted gaming industry
13 protocol to facilitate slot machine manufacturers' ability to
14 communicate with the Statewide system.
15 (2.1) The delivery of a system that has the ability to
16 verify software, detect alterations in payout and detect
17 other methods of fraud in all aspects of the operation of
18 slot machines.
19 (3) The delivery of a system that has the capability to
20 support in-house and wide-area progressive slot machines as
21 approved by the board.
22 (4) The delivery of a system that allows the slot
23 machine licensee to install independent player tracking
24 systems and cashless technology as approved by the board.
25 (5) The delivery of a system that does not alter the
26 statistical awards of slot machine games as designed by the
27 slot machine manufacturer and approved by the board.
28 (6) The delivery of a system that provides redundancy so
29 that each component of the network will be capable of
30 operating independently by the department if any component of
20050S0862B2186 - 72 -
1 the network, including the central control computer, fails or
2 cannot be operated for any reason as determined by the
3 department, and to assure that all transactional data is
4 captured and secured. Costs associated with any computer
5 system required by the department to operate at a licensed
6 facility, whether independent or as part of the central
7 control computer, shall be paid by the slot machine licensee.
8 The computer system will be controlled by the department and
9 accessible to the board.
10 (7) The ability to meet all reporting and control
11 requirements as prescribed by the board and department.
12 (8) Any other capabilities as determined by the
13 department in consultation with the board.
14 * * *
15 Section 8.1. Section 1325 of Title 4 is amended by adding a
16 subsection to read:
17 § 1325. License or permit issuance.
18 * * *
19 (d) Trusts and similar business entities.--The board shall
20 determine the eligibility of a trust or similar business entity
21 to be a licensed entity in accordance with the following:
22 (1) No trust or similar business entity shall be
23 eligible to hold any beneficial interest in a licensed entity
24 under this part unless each trustee, grantor and beneficiary
25 of the trust, including a minor child beneficiary, qualifies
26 for and is granted a license as a principal. The board may
27 waive compliance with this paragraph if the trustee is a
28 banking or lending institution and the board is satisfied
29 that the trustee is not significantly involved in the
30 activities of the licensed entity. In addition to other
20050S0862B2186 - 73 -
1 information required by the board, a banking or lending
2 institution acting as a trustee shall produce at the request
3 of the board any documentation or information relating to the
4 trust.
5 (2) No beneficiary of a trust or similar business entity
6 who is a minor child shall control or be significantly
7 involved in the activities of a licensed entity or its
8 holding company or intermediary. No beneficiary of a trust or
9 similar business entity who is a minor child shall be
10 permitted to vote to elect directors of a licensed entity or
11 its holding company or intermediary.
12 (3) No trust or similar business entity may hold any
13 beneficial interest in a licensed entity unless the board
14 determines that the trust or similar business entity is not
15 engaged in any activity or otherwise being used to evade the
16 public protections under this part, including sections 1512
17 (relating to financial and employment interests) and 1513
18 (relating to political influence).
19 Section 8.2. Sections 1327 and 1402 of Title 4 are amended
20 to read:
21 § 1327. Nontransferability of licenses.
22 A license or permit issued by the board is a grant of the
23 privilege to conduct a business in this Commonwealth. Except as
24 permitted by section 1328 (relating to change in ownership or
25 control of slot machine licensee), a license or permit granted
26 or renewed pursuant to this part shall not be sold, transferred
27 or assigned to any other person[,]; nor shall a licensee or
28 permittee pledge or otherwise grant a security interest in or
29 lien on the license or permit. Nothing contained in this part is
30 intended or shall be construed to create in any person an
20050S0862B2186 - 74 -
1 entitlement to a license. The board has the sole discretion to
2 issue, renew, condition or deny the issuance of a slot machine
3 license based upon the purposes and requirements of this part.
4 § 1402. Gross terminal revenue deductions.
5 (a) Deductions.--After determining the appropriate
6 assessments for each slot machine licensee, the department shall
7 [deduct the following] determine costs, expenses or payments
8 from each account established under section 1401 (relating to
9 slot machine licensee deposits). The following costs and
10 expenses shall be transferred to the appropriate agency upon
11 appropriation by the General Assembly:
12 (1) The costs and expenses to be incurred by the
13 department in administering this part at each slot machine
14 licensee's licensed facility based upon a budget submitted by
15 the department to and approved by the board.
16 (2) The other costs and expenses to be incurred by the
17 department in administering this part based upon a budget
18 submitted by the department to and approved by the board.
19 (3) Sums necessary to repay any loans made by the
20 General Fund to the department in connection with carrying
21 out its responsibilities under this part, including the costs
22 of the initial acquisition of the central control computer
23 and any accessories or associated equipment.
24 (4) The costs and expenses to be incurred by the
25 Pennsylvania State Police and the Office of Attorney General
26 and not otherwise reimbursed under this part in carrying out
27 their respective responsibilities under this part based upon
28 a budget submitted by the Pennsylvania State Police and the
29 Attorney General to and approved by the board.
30 (5) Sums necessary to repay any loans made by the
20050S0862B2186 - 75 -
1 General Fund to the Pennsylvania State Police in connection
2 with carrying out its responsibilities under this part.
3 (6) The costs and expenses to be incurred by the board
4 in carrying out its responsibilities under this part based
5 upon a budget approved by the board.
6 (7) Sums necessary to repay any loans made by the
7 General Fund to the board in connection with carrying out its
8 responsibilities under this part.
9 (b) [Deferral of assessment.--Notwithstanding any other
10 provision of law to the contrary, the board may defer assessing
11 slot machine licensees for repayment of loans from the General
12 Fund under this section until all slot machine licenses have
13 been issued and all licensed gaming entities have commenced the
14 operation of slot machines.] (Reserved).
15 Section 8.3. Title 4 is amended by adding a section to read: <--
16 § 1402.1. Itemized budget reporting.
17 The board, department, Pennsylvania State Police and the
18 Attorney General shall prepare and annually submit to the
19 chairman of the Appropriations Committee of the Senate and the
20 chairman of the Appropriations Committee of the House of
21 Representatives an itemized budget consisting of amounts to be
22 appropriated out of the accounts established under section 1401
23 (relating to slot machine licensee deposits) necessary to
24 administer this part.
25 Section 9. Section 1403(b), (c)(2)(i)(D) and (E), (ii)(E), <--
26 (F) AND (G), (iii)(A) and (E), (iv), (VII) and (ix), (3)(i), <--
27 (ii), (iii), (iv), (v), (vi), (vii) and (viii) of Title 4 are
28 amended, subsection (c)(2)(iii) is amended by adding a clause,
29 subsection (c)(3) is amended by adding a subparagraph and the
30 section is amended by adding a subsection to read:
20050S0862B2186 - 76 -
1 § 1403. Establishment of State Gaming Fund and net slot machine
2 revenue distribution.
3 * * *
4 (b) Slot machine tax.--[The department shall determine and
5 each slot machine licensee shall pay a daily tax of 34% and a
6 local share assessment of 4% of its daily gross terminal revenue
7 from the slot machines in operation at its facility into the
8 fund.] The department shall determine and each slot machine
9 licensee shall pay a daily tax of 34% from its daily gross
10 terminal revenue from the slot machines in operation at its
11 facility and a local share assessment as provided in subsection
12 (c) into the fund. All funds owed to the Commonwealth or a
13 municipality under this section shall be held in trust by the
14 licensed gaming entity until the funds are paid or transferred
15 and distributed. Unless otherwise agreed to by the Gaming Board,
16 a licensed gaming entity shall establish a separate bank account
17 to maintain gaming proceeds until such time as they are paid or
18 transferred under this section.
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 (D) (I) A county of the third class: Except as
20050S0862B2186 - 77 -
1 provided in subclause (II), 2% of the gross
2 terminal revenue from each such licensed facility
3 shall be deposited into a restricted account
4 established in the Department of Community and
5 Economic Development to be used exclusively for
6 grants for health, safety and economic
7 development projects to municipalities within the
8 county where the licensed facility is located.
9 Municipalities that are contiguous to the
10 municipality hosting such licensed facility shall
11 be given priority by the Department of Community
12 and Economic Development in the award of such
13 grants.
14 (II) If a licensed facility is located in
15 one of two counties of the third class where a
16 city of the third class is located in both
17 counties of the third class, the county in which
18 the licensed facility is located shall receive
19 1.2% of the gross terminal revenue to be
20 distributed as follows: 20% to the host city,
21 30% to the host county and 50% to the host county
22 for the purpose of making municipal grants within
23 the county, with priority given to municipalities
24 contiguous to the host city. The county of the
25 third class, which includes a city of the third
26 class that is located in two counties of the
27 third class and is not the host county for the
28 licensed facility, shall receive .8% of the gross
29 terminal revenue to be distributed as follows:
30 60% to a nonhost city of the third class located
20050S0862B2186 - 78 -
1 solely in the nonhost county in which the host
2 city of the third class is also located or 60% to
3 the nonhost city of the third class located both
4 in the host and nonhost counties of the third
5 class, 35% to the nonhost county and 5% to the
6 nonhost county for the purpose of making
7 municipal grants within the county.
8 (E) A county of the fourth class: 2% of the
9 gross terminal revenue from each such licensed
10 facility shall be deposited into a restricted account
11 established in the Department of Community and
12 Economic Development to be used exclusively for
13 grants to the county, to economic development
14 authorities [or organizations within the county] or
15 redevelopment authorities within the county for
16 grants for economic development projects, job
17 training, community improvement projects, other
18 projects in the public interest and reasonable
19 administrative costs. Notwithstanding the provisions
20 of the act of February 9, 1999 (P.L.1, No.1), known
21 as the Capital Facilities Debt Enabling Act, grants
22 made under this clause may be utilized as local
23 matching funds for other grants or loans from the
24 Commonwealth.
25 * * *
26 (ii) If the licensed facility is a Category 1
27 licensed facility and is located at a thoroughbred
28 racetrack and the county in which the licensed facility
29 is located is:
30 * * *
20050S0862B2186 - 79 -
1 (E) A county of the fourth class: 2% of the
2 gross terminal revenue from each such licensed
3 facility shall be deposited into a restricted account
4 established in the Department of Community and
5 Economic Development to be used exclusively for
6 grants to the county, to economic development
7 authorities [or organizations within the county] or
8 redevelopment authorities within the county for
9 grants for economic development projects, community
10 improvement projects, job training, other projects in
11 the public interest and reasonable administrative
12 costs. Notwithstanding the Capital Facilities Debt
13 Enabling Act, grants made under this clause may be
14 utilized as local matching funds for other grants or
15 loans from the Commonwealth.
16 [(F) COUNTIES OF THE FIFTH THROUGH EIGHTH <--
17 CLASSES: 2% OF THE GROSS TERMINAL REVENUE FROM EACH
18 SUCH LICENSED FACILITY SHALL BE DEPOSITED INTO A
19 RESTRICTED ACCOUNT ESTABLISHED IN THE DEPARTMENT OF
20 COMMUNITY AND ECONOMIC DEVELOPMENT TO BE USED
21 EXCLUSIVELY FOR GRANTS TO THE COUNTY.]
22 (G) ANY COUNTY NOT SPECIFICALLY ENUMERATED IN
23 CLAUSES (A) THROUGH [(F),] (E), 2% OF THE GROSS
24 TERMINAL REVENUE TO THE COUNTY HOSTING THE LICENSED
25 FACILITY FROM EACH SUCH LICENSED FACILITY.
26 * * *
27 (iii) If the facility is a Category 2 licensed
28 facility and if the county in which the licensed facility
29 is located is:
30 (A) A county of the first class: 4% of the
20050S0862B2186 - 80 -
1 gross terminal revenue to the county hosting the
2 licensed facility from each such licensed facility.
3 Notwithstanding any other provision to the contrary,
4 funds from licensed gaming entities located within a
5 county of the first class shall not be distributed
6 outside of a county of the first class. The first
7 $5,000,000 of the total amount distributed annually
8 to the county of the first class shall be distributed
9 to the Philadelphia School District.
10 * * *
11 (D.1) If a licensed facility is located in one
12 of two counties of the third class where a city of
13 the third class is located in both counties of the
14 third class, the county in which the licensed
15 facility is located shall receive 1.2% of the gross
16 terminal revenue to be distributed as follows: 20%
17 to the host city, 30% to the host county and 50% to
18 the host county for the purpose of making municipal
19 grants within the county, with priority given to
20 municipalities contiguous to the host city. The
21 county of the third class, which includes a city of
22 the third class that is located in two counties of
23 the third class and is not the host county for the
24 licensed facility, shall receive .8% of the gross
25 terminal revenue to be distributed as follows: 60%
26 to a nonhost city of the third class located solely
27 in the nonhost county in which the host city of the
28 third class is also located or 60% to the nonhost
29 city of the third class located both in the host and
30 nonhost counties of the third class, 35% to the
20050S0862B2186 - 81 -
1 nonhost county and 5% to the nonhost county for the
2 purpose of making municipal grants within the county.
3 (E) A county of the fourth class: 2% of the
4 gross terminal revenue from each such licensed
5 facility shall be deposited into a restricted account
6 established in the Department of Community and
7 Economic Development to be used exclusively for
8 grants to the county, to economic development
9 authorities [or organizations within the county] or
10 redevelopment authorities within the county for
11 grants for economic development projects, community
12 improvement projects, job training, other projects in
13 the public interest and reasonable administrative
14 costs. Notwithstanding the Capital Facilities Debt
15 Enabling Act, grants made under this clause may be
16 utilized as local matching funds for other grants or
17 loans from the Commonwealth.
18 * * *
19 (iv) If the facility is a Category 3 licensed
20 facility, [2%] 1% of the gross terminal revenue from each <--
21 such licensed facility shall be deposited into a
22 restricted account established in the Department of
23 Community and Economic Development to be used exclusively
24 for grants to the county, to economic development
25 authorities [or organizations within the county] or
26 redevelopment authorities within the county for grants
27 for economic development projects and community
28 improvement projects[.]; AND 1% SHALL BE USED EXCLUSIVELY <--
29 FOR GRANTS TO ANY COUNTY OF THE SIXTH CLASS WHICH HAS A
30 POPULATION OF LESS THAN 41,000 BASED UPON THE 2000 UNITED
20050S0862B2186 - 82 -
1 STATES DECENNIAL CENSUS AND WHICH SHARES A BOUNDARY AT
2 MORE THAN A SINGLE POINT WITH TWO COUNTIES OF THE FOURTH
3 CLASS EACH OF WHICH HOSTS A LICENSED FACILITY, TO
4 ECONOMIC DEVELOPMENT AUTHORITIES OR ORGANIZATIONS WITHIN
5 ANY SUCH COUNTY OR TO REDEVELOPMENT AUTHORITIES IN ANY
6 SUCH COUNTY FOR ECONOMIC DEVELOPMENT PROJECTS AND
7 COMMUNITY IMPROVEMENT PROJECTS OR FOR MUNICIPAL GRANTS
8 WITHIN SUCH COUNTY. IF NO COUNTY OF THE SIXTH CLASS
9 SHARES A BOUNDARY WITH TWO COUNTIES OF THE FOURTH CLASS
10 EACH OF WHICH HOSTS A LICENSED FACILITY, THE LOCAL SHARE
11 DISTRIBUTION PROVIDED IN THIS SUBPARAGRAPH FOR A SIXTH
12 CLASS COUNTY SHALL BE USED EXCLUSIVELY FOR ADDITIONAL
13 GRANTS TO THE HOST COUNTY, TO ECONOMIC DEVELOPMENT
14 AUTHORITIES OR ORGANIZATIONS WITHIN THE HOST COUNTY OR TO
15 REDEVELOPMENT AUTHORITIES WITHIN THE HOST COUNTY FOR THE
16 PURPOSES ENUMERATED IN THIS SUBPARAGRAPH.
17 * * *
18 [(VII) THE DISTRIBUTIONS PROVIDED IN THIS PARAGRAPH
19 SHALL BE BASED UPON COUNTY CLASSIFICATIONS IN EFFECT ON
20 THE EFFECTIVE DATE OF THIS SECTION. ANY RECLASSIFICATION
21 OF COUNTIES AS A RESULT OF A FEDERAL DECENNIAL CENSUS OR
22 OF A STATE STATUTE SHALL NOT APPLY TO THIS SUBPARAGRAPH.]
23 * * *
24 (ix) Nothing in this paragraph shall prevent any of
25 the above counties which directly receive a distribution
26 under this section from entering into intergovernmental
27 cooperative agreements with other jurisdictions for
28 sharing this money.
29 (3) From the local share assessment established in
30 subsection (b), make quarterly distributions among the
20050S0862B2186 - 83 -
1 municipalities, including home rule municipalities, hosting a
2 licensed facility in accordance with the following schedule:
3 (i) To a city of the second class hosting a licensed
4 facility [or facilities], other than a Category 3
5 licensed facility, 2% of the gross terminal revenue or
6 $10,000,000 annually, whichever is greater, [of all
7 licensed facilities] shall be paid by each licensed
8 GAMING entity operating a facility located in that city. <--
9 In the event that the revenues generated by the 2% do not
10 meet the $10,000,000 minimum specified in this
11 [paragraph, the licensed gaming entity operating the
12 licensed facility or facilities in the city shall remit
13 the difference to the municipality.] subparagraph, the
14 department shall collect the remainder of the minimum
15 amount of $10,000,000 from each licensed GAMING entity <--
16 operating a facility in the city and deposit that amount
17 in the city treasury.
18 (ii) To a city of the second class A hosting a
19 licensed facility [or facilities], other than a Category
20 3 licensed facility, 2% of the gross terminal revenue or
21 $10,000,000 annually, whichever is greater, [of all
22 licensed facilities] shall be paid by each licensed
23 GAMING entity operating a licensed facility located in <--
24 that city subject, however, to the budgetary limitation
25 in this subparagraph. The amount allocated to the
26 designated municipalities shall not exceed 50% of their
27 total budget for fiscal year 2003-2004, adjusted for
28 inflation in subsequent years by an amount not to exceed
29 an annual cost-of-living adjustment calculated by
30 applying the percentage change in the Consumer Price
20050S0862B2186 - 84 -
1 Index [for All Urban Consumers for the Pennsylvania, New
2 Jersey, Delaware and Maryland area, for the most recent
3 12-month period for which figures have been officially
4 reported by the United States Department of Labor, Bureau
5 of Labor Statistics,] immediately prior to the date the
6 adjustment is due to take effect. Any remaining moneys
7 shall be collected by the department from each licensed
8 facility GAMING ENTITY and distributed in accordance with <--
9 paragraph (2) based upon the classification of county
10 where the licensed facility [or facilities] is located.
11 In the event that the revenues generated by the 2% do not
12 meet the $10,000,000 minimum specified in this
13 subparagraph, [the licensed gaming entity operating the
14 licensed facility or facilities in the city shall remit
15 the difference to the municipality.] the department shall
16 collect the remainder of the minimum amount of
17 $10,000,000 from each licensed GAMING entity operating a <--
18 facility in the city, pay any balance due to the city and
19 transfer any remainder in accordance with paragraph (2).
20 (iii) To a city of the third class hosting a
21 licensed facility [or facilities], other than a Category
22 3 licensed facility, 2% of the gross terminal revenue or
23 $10,000,000 annually, whichever is greater, [of all
24 licensed facilities] shall be paid by each licensed
25 GAMING entity operating a licensed facility located in <--
26 that city subject, however, to the budgetary limitation
27 in this subparagraph. [However, the foregoing limitations
28 shall not apply, notwithstanding any provision to the
29 contrary, if the licensed facility or facilities have
30 executed a written agreement with the city prior to the
20050S0862B2186 - 85 -
1 effective date of this part to provide additional
2 compensation to the city in excess of the difference
3 between 2% of the gross terminal revenue and
4 $10,000,000.] In the event that the city has a written
5 agreement with a licensed facility GAMING ENTITY executed <--
6 prior to the effective date of this part, the amount paid
7 under the agreement to the city shall be applied and
8 credited to the difference between 2% of the gross
9 terminal revenue and the $10,000,000 owed under this
10 subparagraph if the 2% of the gross terminal revenue is
11 less than $10,000,000. If 2% of the gross terminal
12 revenue is greater than the $10,000,000 required to be
13 paid under this subparagraph, the credit shall not apply.
14 The amount of gross terminal revenue required to be paid
15 pursuant to the agreement shall be deemed to be gross
16 terminal revenue for purposes of this subparagraph. The
17 amount allocated to the designated municipalities shall
18 not exceed 50% of their total budget for fiscal year
19 2003-2004, adjusted for inflation in subsequent years by
20 an amount not to exceed an annual cost-of-living
21 adjustment calculated by applying the percentage change
22 in the Consumer Price Index [for All Urban Consumers for
23 the Pennsylvania, New Jersey, Delaware and Maryland area,
24 for the most recent 12-month period for which figures
25 have been officially reported by the United States
26 Department of Labor, Bureau of Labor Statistics,]
27 immediately prior to the date the adjustment is due to
28 take effect. Any remaining moneys shall be collected by
29 the department from each licensed facility GAMING ENTITY <--
30 and distributed in accordance with paragraph (2) based
20050S0862B2186 - 86 -
1 upon the classification of county where the licensed
2 facility [or facilities] is located. In the event that
3 the revenues generated by the 2% do not meet the
4 $10,000,000 minimum specified in this subparagraph, [the
5 licensed gaming entity operating the licensed facility or
6 facilities in the city shall remit the difference to the
7 municipality.] the department shall collect the remainder
8 of the minimum amount of $10,000,000 from each licensed
9 GAMING entity operating a facility, pay any balance due <--
10 to the city of the third class and transfer any remainder
11 in accordance with paragraph (2).
12 (iii.1) If a licensed facility is located in a city
13 of the third class and the city is located in more than
14 one county of the third class, 2% of the gross terminal
15 revenue or $10,000,000 annually, whichever is greater,
16 shall be distributed as follows: 80% to the host city and
17 20% to the city of the third class located solely in a
18 nonhost county in which the host city of the third class
19 is also located. If a licensed facility is located in a
20 city of the third class and that city is located solely
21 in a host county of the third class in which a nonhost
22 city of the third class is also located, 2% of gross
23 terminal revenue or $10,000,000 annually, whichever is
24 greater, shall be distributed as follows: 80% to the
25 host city and 20% to a city of the third class located
26 both in a nonhost county of the third class and in a host
27 county of the third class in which the host city of the
28 third class is located.
29 (iv) To a township of the first class hosting a
30 licensed facility [or facilities], other than a Category
20050S0862B2186 - 87 -
1 3 licensed facility, 2% of the gross terminal revenue or
2 $10,000,000 annually, whichever is greater, [of all
3 licensed facilities] shall be paid by each licensed
4 GAMING entity operating a licensed facility located in <--
5 the township subject, however, to the budgetary
6 limitation in this subparagraph. The amount allocated to
7 the designated municipalities shall not exceed 50% of
8 their total budget for fiscal year 2003-2004, adjusted
9 for inflation in subsequent years by an amount not to
10 exceed an annual cost-of-living adjustment calculated by
11 applying the percentage change in the Consumer Price
12 Index [for All Urban Consumers for the Pennsylvania, New
13 Jersey, Delaware and Maryland area, for the most recent
14 12-month period for which figures have been officially
15 reported by the United States Department of Labor, Bureau
16 of Labor Statistics,] immediately prior to the date the
17 adjustment is due to take effect. Any remaining money
18 shall be collected by the department from each licensed
19 facility GAMING ENTITY and distributed in accordance with <--
20 paragraph (2) based upon the classification of county
21 where the licensed facility [or facilities] is located.
22 In the event that the revenues generated by the 2% do not
23 meet the $10,000,000 minimum specified in this
24 subparagraph, [the licensed gaming entity operating the
25 licensed facility or facilities in the township shall
26 remit the difference to the municipality.] the department
27 shall collect the remainder of the minimum amount of
28 $10,000,000 from each licensed GAMING entity operating a <--
29 licensed facility in the township, pay any balance due to
30 the township and transfer any remainder in accordance
20050S0862B2186 - 88 -
1 with paragraph (2).
2 (v) To a township of the second class hosting a
3 licensed facility [or facilities], other than a Category
4 3 licensed facility, 2% of the gross terminal revenue or
5 $10,000,000 annually, whichever is greater, [of all
6 licensed facilities] shall be paid by each licensed
7 entity operating a licensed GAMING facility located in <--
8 the township subject, however, to the budgetary
9 limitation in this subparagraph. The amount allocated to
10 the designated municipalities shall not exceed 50% of
11 their total budget for fiscal year 2003-2004, adjusted
12 for inflation in subsequent years by an amount not to
13 exceed an annual cost-of-living adjustment calculated by
14 applying the percentage change in the Consumer Price
15 Index [for All Urban Consumers for the Pennsylvania, New
16 Jersey, Delaware and Maryland area, for the most recent
17 12-month period for which figures have been officially
18 reported by the United States Department of Labor, Bureau
19 of Labor Statistics,] immediately prior to the date the
20 adjustment is due to take effect. Any remaining money
21 shall be collected by the department from each licensed
22 facility GAMING ENTITY and distributed in accordance with <--
23 paragraph (2) based upon the classification of county
24 where the licensed facility [or facilities] is located.
25 Where the licensed facility is other than a Category 3
26 and is located in more than one second class township the
27 county commissioners of the county of the third class in
28 which the facility is located shall appoint an advisory
29 committee for the purpose of advising the county as to
30 the need for municipal grants for health, safety,
20050S0862B2186 - 89 -
1 transportation and other projects in the public interest
2 to be comprised of two individuals from the host
3 municipality, two from contiguous municipalities within
4 the county of the third class and one from the host
5 county. In the event that the revenues generated by the
6 2% do not meet the $10,000,000 minimum specified in this
7 subparagraph, [the licensed gaming entity operating the
8 licensed facility or facilities in the township shall
9 remit the difference to the municipality.] the department
10 shall collect the remainder of the minimum amount of
11 $10,000,000 from each licensed GAMING entity operating a <--
12 licensed facility in the township, pay any balance due to
13 the township and transfer any remainder in accordance
14 with paragraph (2).
15 (vi) To a borough hosting a licensed facility [or
16 facilities], other than a Category 3 licensed facility,
17 2% of the gross terminal revenue or $10,000,000 annually,
18 whichever is greater, [of all licensed facilities] shall
19 be paid by each licensed GAMING entity operating a <--
20 licensed facility located in that borough subject,
21 however, to the budgetary limitation in this
22 subparagraph. The amount allocated to the designated
23 municipalities shall not exceed 50% of their total budget
24 for fiscal year 2003-2004, adjusted for inflation in
25 subsequent years by an amount not to exceed an annual
26 cost-of-living adjustment calculated by applying the
27 percentage change in the Consumer Price Index [for All
28 Urban Consumers for the Pennsylvania, New Jersey,
29 Delaware and Maryland area, for the most recent 12-month
30 period for which figures have been officially reported by
20050S0862B2186 - 90 -
1 the United States Department of Labor, Bureau of Labor
2 Statistics,] immediately prior to the date the adjustment
3 is due to take effect. Any remaining money shall be
4 collected by the department from each licensed facility <--
5 GAMING ENTITY and distributed in accordance with <--
6 paragraph (2) based upon the classification of county
7 where the licensed facility [or facilities] is located.
8 In the event that the revenues generated by the 2% do not
9 meet the $10,000,000 minimum specified in this
10 subparagraph, [the licensed gaming entity operating the
11 licensed facility or facilities in the borough shall
12 remit the difference to the municipality.] the department
13 shall collect the remainder of the minimum amount of
14 $10,000,000 from each licensed GAMING entity operating a <--
15 licensed facility in the borough, pay any balance due to
16 the borough and transfer any remainder in accordance with
17 paragraph (2).
18 (vii) To an incorporated town hosting a licensed
19 facility [or facilities], other than a Category 3
20 licensed facility, 2% of the gross terminal revenue or
21 $10,000,000 annually, whichever is greater, [of all
22 licensed facilities] shall be paid by each licensed
23 entity operating a licensed facility GAMING ENTITY <--
24 located in the town subject, however, to the budgetary
25 limitation in this subparagraph. The amount allocated to
26 the designated municipalities shall not exceed 50% of
27 their total budget for fiscal year 2003-2004, adjusted
28 for inflation in subsequent years by an amount not to
29 exceed an annual cost-of-living adjustment calculated by
30 applying the percentage change in the Consumer Price
20050S0862B2186 - 91 -
1 Index [for All Urban Consumers for the Pennsylvania, New
2 Jersey, Delaware and Maryland area, for the most recent
3 12-month period for which figures have been officially
4 reported by the United States Department of Labor, Bureau
5 of Labor Statistics,] immediately prior to the date the
6 adjustment is due to take effect. Any remaining money
7 shall be collected by the department from each licensed
8 facility GAMING ENTITY and distributed in accordance with <--
9 paragraph (2) based upon the classification of county
10 where the licensed facility [or facilities] is located.
11 In the event that the revenues generated by the 2% do not
12 meet the $10,000,000 minimum specified in this
13 subparagraph, [the licensed gaming entity operating the
14 licensed facility or facilities in the town shall remit
15 the difference to the municipality.] the department shall
16 collect the remainder of the minimum amount of
17 $10,000,000 from each licensed GAMING entity operating a <--
18 licensed facility in the incorporated town, pay any
19 balance due to the town and transfer any remainder in
20 accordance with paragraph (2).
21 (viii) To a municipality of any class hosting a
22 Category 3 facility, 2% of the gross terminal revenue
23 from the Category 3 licensed facility located in the
24 municipality, subject, however, to the budgetary
25 limitation in this subparagraph. The amount allocated to
26 the designated municipalities shall not exceed 50% of
27 their total budget for fiscal year 2003-2004, adjusted
28 for inflation in subsequent years by an amount not to
29 exceed an annual cost-of-living adjustment calculated by
30 applying the percentage change in the Consumer Price
20050S0862B2186 - 92 -
1 Index [for All Urban Consumers for the Pennsylvania, New
2 Jersey, Delaware and Maryland area, for the most recent
3 12-month period for which figures have been officially
4 reported by the United States Department of Labor, Bureau
5 of Labor Statistics,] immediately prior to the date the
6 adjustment is due to take effect. Any remaining money
7 shall be collected by the department from each licensed
8 facility GAMING ENTITY and distributed in accordance with <--
9 paragraph (2) based upon the classification of county
10 where the licensed facility [or facilities] is located.
11 * * *
12 (d) Consumer Price Index.--For purposes of subsection (c),
13 references to the Consumer Price Index shall mean the Consumer
14 Price Index for All Urban Consumers for the Pennsylvania, New
15 Jersey, Delaware and Maryland area, for the most recent 12-month
16 period for which figures have been officially reported by the
17 United States Department of Labor, Bureau of Labor Statistics.
18 Section 9.1. Sections 1406(a), 1408(A) and 1506 of Title 4 <--
19 are amended to read:
20 § 1406. Distributions from Pennsylvania Race Horse Development
21 Fund.
22 (a) Distributions.--Funds from the Pennsylvania Race Horse
23 Development Fund shall be distributed to each active and
24 operating Category 1 licensee conducting live racing in the
25 following manner:
26 (1) An amount equal to 18% of the daily gross terminal
27 revenue of each Category 1 licensee shall be distributed to
28 each active and operating Category 1 licensee conducting live
29 racing unless the daily assessments are affected by the daily
30 assessment cap provided for in section 1405(c) (relating to
20050S0862B2186 - 93 -
1 Pennsylvania Race Horse Development Fund). In cases in which
2 the daily assessment cap affects daily assessments, the
3 distribution to each active and operating Category 1 licensee
4 conducting live racing for that day shall be a percentage of
5 the total daily assessments paid into the Pennsylvania Race
6 Horse Development Fund for that day equal to the gross
7 terminal revenue of each active and operating Category 1
8 licensee conducting live racing for that day divided by the
9 total gross terminal revenue of all active and operating
10 Category 1 licensees conducting live racing for that day. The
11 distributions to licensed racing entities from the
12 Pennsylvania Race Horse Development Fund shall be allocated
13 as follows:
14 (i) Eighty percent [to] shall be deposited weekly
15 into a separate, interest-bearing purse account to be
16 established by and for the benefit of the horsemen. The
17 earned interest on the account shall be credited to the
18 purse account. Licensees shall combine these funds with
19 revenues from existing purse agreements to fund purses
20 for live races consistent with those agreements with the
21 advice and consent of the horsemen.
22 (ii) [From licensees that operate at] For
23 thoroughbred tracks, 16% [to] shall be deposited on a
24 monthly basis into the Pennsylvania Breeding Fund as
25 defined in section 223 of the Race Horse Industry Reform
26 Act. [From licensees that operate at] For standardbred
27 tracks, 8% [to] shall be deposited on a monthly basis in
28 the Pennsylvania Sire Stakes Fund as defined in section
29 224 of the Race Horse Industry Reform Act and 8% [to]
30 shall be deposited on a monthly basis into a restricted
20050S0862B2186 - 94 -
1 account in the State Racing Fund to be known as the
2 Pennsylvania Standardbred Breeders Development Fund. The
3 State Harness Racing Commission shall, in consultation
4 with the Secretary of Agriculture by rule or by
5 regulation, adopt a standardbred breeders program that
6 will include the administration of Pennsylvania Stallion
7 Award, Pennsylvania Bred Award and a Pennsylvania Sired
8 and Bred Award.
9 (iii) Four percent [to] shall be used to fund health
10 and pension benefits for the members of the horsemen's
11 organizations representing the owners and trainers at the
12 racetrack at which the licensed racing entity operates
13 for the benefit of the organization's members, their
14 families, employees and others in accordance with the
15 rules and eligibility requirements of the organization,
16 as approved by the State Horse Racing Commission or the
17 State Harness Racing Commission. This amount shall be
18 deposited within five business days of the end of each
19 month into a separate account to be established by each
20 respective horsemen's organization at a banking
21 institution of its choice. Of this amount, $250,000 shall
22 be paid annually by the horsemen's organization to the
23 thoroughbred jockeys or standardbred drivers organization
24 at the racetrack at which the licensed racing entity
25 operates for health insurance, life insurance or other
26 benefits to active and disabled thoroughbred jockeys or
27 standardbred drivers in accordance with the rules and
28 eligibility requirements of that organization.
29 (2) (Reserved).
30 * * *
20050S0862B2186 - 95 -
1 § 1408. TRANSFERS FROM STATE GAMING FUND. <--
2 (A) TRANSFER FOR COMPULSIVE PROBLEM GAMBLING TREATMENT.--
3 EACH YEAR, THE SUM OF [$1,500,000] $4,000,000 OR AN AMOUNT EQUAL
4 TO [.001] .003 MULTIPLIED BY THE TOTAL GROSS TERMINAL REVENUE OF
5 ALL ACTIVE AND OPERATING LICENSED GAMING ENTITIES, WHICHEVER IS
6 GREATER, SHALL BE TRANSFERRED INTO THE COMPULSIVE AND PROBLEM
7 GAMBLING TREATMENT FUND ESTABLISHED IN SECTION 1509 (RELATING TO
8 COMPULSIVE AND PROBLEM GAMBLING PROGRAM).
9 * * *
10 [§ 1506. Local land use [preemption]. <--
11 The conduct of gaming IN CITIES OF THE FIRST AND SECOND <--
12 CLASS, as permitted under this part, including the physical
13 location of any licensed facility, shall not be prohibited or
14 otherwise regulated by any ordinance, home rule charter
15 provision, resolution, rule or regulation of any political
16 subdivision or any local or State instrumentality or authority
17 that relates to zoning or land use to the extent that the
18 licensed facility has been approved by the board. The board [may <--
19 in its discretion consider such local zoning ordinances when
20 considering an application for a slot machine license.] SHALL <--
21 DETERMINE ISSUES INVOLVING ZONING IN ACCORDANCE WITH LOCAL
22 ZONING ORDINANCES IN EFFECT ON JULY 5, 2004. The board shall
23 provide [the] ANY AFFECTED political subdivision, within which <--
24 an applicant for a slot machine license has proposed to locate a
25 licensed gaming facility, a 60-day comment period prior to the
26 board's final approval, condition or denial of approval of its
27 application for a slot machine license. The political
28 subdivision may make recommendations to the board for
29 improvements to the applicant's proposed site plans that take
30 into account the impact on the local community, including, but
20050S0862B2186 - 96 -
1 not limited to, land use and transportation impact. [This <--
2 section shall also apply to any proposed racetrack or licensed
3 racetrack.]
4 Section 9.2. Title 4 is amended by adding sections A SECTION <--
5 to read:
6 § 1506.1. Land use preemption within cities of the first class. <--
7 (a) General rule.--Regulation of the zoning, usage, layout,
8 construction and occupancy, including the location, size, bulk
9 and use of buildings of a licensed facility and any accessory
10 gaming uses within a city of the first class is reserved
11 exclusively to the Commonwealth and shall not be prohibited,
12 inspected, licensed or regulated by any ordinance, home rule
13 charter provision, resolution, regulation, enforcement action or
14 other exercise of the police power or other power of a political
15 subdivision or a State or local instrumentality other than the
16 board and the Department of Labor and Industry as set forth
17 herein. The city of the first class shall provide on a
18 nondiscriminatory basis customary municipal services, including
19 police, fire and sanitation, to licensed facilities as are
20 provided to other comparable commercial enterprises.
21 (b) Usage and layout.--The following use and dimensional
22 standards shall apply to the physical siting and layout of
23 licensed facilities:
24 (1) Specific uses permitted at licensed facilities shall
25 be the erection, occupancy, construction, alteration and use
26 of buildings or land for gaming and accessory gaming uses.
27 (2) The following shall apply to area regulations:
28 (i) Structures, excluding parking areas and garages,
29 located at a licensed facility and associated areas,
30 including those which house accessory gaming uses may
20050S0862B2186 - 97 -
1 occupy up to 80% of the total lot area.
2 (ii) Controls shall be established to enhance the
3 utility of public space and adjacent bodies of water as
4 well as the public walkways and rights-of-way for both
5 public and private access to navigable waters. The
6 following access rules shall apply:
7 (A) A public walkway at least 20 feet wide,
8 including public walkways, shall be provided at each
9 licensed facility for use by the general public as
10 well as patrons of the licensed facility for walkway
11 access to and along the bordering body of water.
12 Access shall not require passage through any area
13 restricted to persons under 21 years of age.
14 (B) The upkeep and cost of maintenance of the
15 public walkway shall be borne solely by the licensed
16 facility without charge to the public.
17 (iii) Each licensed facility, excluding parking
18 areas and garages, shall be allowed a total gross floor
19 area up to six times the total area of the licensed
20 facility, measured in square feet. Total area shall
21 include all land and water areas of the licensed facility
22 up to the pierhead line, as well as any railroad right-
23 of-way area within the confines of the licensed facility.
24 Parking and garage areas shall not be subject to any
25 gross floor area limitation.
26 (iv) Landscaped front setbacks shall be required at
27 a minimum width and average of 20 feet.
28 (3) The following shall apply to parking and loading:
29 (i) The number of off-street parking spaces,
30 measuring a minimum of 8.5 feet by 18 feet each, required
20050S0862B2186 - 98 -
1 shall be as follows:
2 (A) One space for every two residential or hotel
3 units.
4 (B) One space for every 1,000 square feet of
5 building or four spaces for every five slot machines,
6 whichever total number of spaces is greater.
7 (ii) The number of off-street loading spaces,
8 measuring a minimum of 11 feet wide by 60 feet long by 14
9 feet clear height, required shall be one space for every
10 200,000 square feet of building or portion thereof.
11 (iii) The number of off-street parking disabled
12 accessible spaces, measuring 12 feet by 20 feet each, for
13 persons with disabilities shall be 2% of the number of
14 the general public, 8.5 feet by 18 feet off-street
15 parking spaces provided.
16 (4) The following shall apply to signage:
17 (i) Each licensed facility shall be permitted a
18 total sign area of five square feet for each lineal foot
19 of street line of the licensed facility, including
20 associated areas, and each lineal foot of waterfront line
21 along a navigable waterway of the licensed facility.
22 (ii) Signs may be revolving, animated or
23 illuminated. Signs containing flashing or intermittent
24 illumination shall not be erected within 150 feet of a
25 residential zoning district under the present local
26 zoning code.
27 (5) Architectural site plans must be submitted to the
28 board for review and approval and determination of compliance
29 with the use, dimensional physical siting and layout
30 standards contained in this subsection. The following shall
20050S0862B2186 - 99 -
1 apply:
2 (i) The board shall appoint hearing officers to
3 review, approve or reject the submitted architectural
4 site plans based on the standards set forth in paragraphs
5 (1), (2), (3) and (4) and comments submitted by a city of
6 the first class under subparagraph (ii).
7 (ii) A city of the first class may submit written
8 comments on an architectural site plan for consideration
9 by the hearing officer and the board within three weeks
10 of the filing of an architectural site plan under this
11 subsection.
12 (iii) Decisions of hearing officers may be appealed
13 to the board within 30 days of date of decision. With
14 respect to any decision made under subparagraph (i), a
15 city of the first class that has submitted written
16 comments may be granted party status in the proceeding.
17 The board may grant a variance in accordance with the
18 standards for granting a variance as provided in
19 subsection (b.1).
20 (b.1) Variances.--The board shall hear requests for
21 variances where it is alleged that the provisions of the zoning
22 standards of this part inflict unnecessary hardship upon the
23 applicant. The board may grant a variance if all of the
24 following findings are made, as relevant in a particular case:
25 (1) That there are unique physical circumstances or
26 conditions, including irregularity, narrowness, or
27 shallowness of lot size or shape, or exceptional
28 topographical or other physical conditions peculiar to the
29 particular property and that the unnecessary hardship is due
30 to such conditions.
20050S0862B2186 - 100 -
1 (2) That because of such physical circumstances or
2 conditions, there is no possibility that the property can be
3 developed in strict conformity with the provisions of the
4 zoning standards of this part and that the authorization of a
5 variance is therefore necessary to enable the reasonable use
6 of the property.
7 (3) That such unnecessary hardship has not been created
8 by the appellant.
9 (4) That the variance, if authorized, will represent the
10 minimum variance that will afford relief and will represent
11 the least modification possible of the regulation in issue.
12 In granting any variance, the board may attach such reasonable
13 conditions and safeguards as it may deem necessary to implement
14 the purposes of this part.
15 (c) Connections to public water, sewer and utilities.-- All
16 occupants at each licensed facility located within a city of the
17 first class shall be allowed to connect to and use utilities
18 with no connection or reservation charge, subject to
19 nondiscriminatory charges for actual costs of extending service
20 to the site and to actual usage charges imposed under
21 nondiscriminatory tariffs.
22 (d) Construction and occupancy standards.--The Department of
23 Labor and Industry shall regulate and enforce the construction
24 and occupancy of licensed facilities within a city of the first
25 class. All licensed facilities shall be subject to the act of
26 November 10, 1999 (P.L.491, No.45), known as the Pennsylvania
27 Construction Code Act. In addition to the powers conveyed to the
28 Department of Labor and Industry under section 2202 of the act
29 of April 9, 1929 (P.L.177, No.175), known as The Administrative
30 Code of 1929, the Department of Labor and Industry shall have
20050S0862B2186 - 101 -
1 all of the following powers and duties:
2 (1) To receive and examine plans for all buildings and
3 places of assembly comprising licensed facilities within a
4 city of the first class and to consider, review and approve
5 the plans consistent with the provisions of the Pennsylvania
6 Construction Code Act.
7 (2) To receive and check plans for elevator
8 installations for all buildings and places of assembly
9 comprising licensed facilities within a city of the first
10 class and to issue permits for the erection and repair of
11 elevator installations consistent with the provisions of the
12 Pennsylvania Construction Code Act.
13 (3) To annually inspect emergency lighting systems,
14 sprinkler systems and fire alarms in all buildings and places
15 of assembly comprising licensed facilities within a city of
16 the first class and to enforce all State laws.
17 (4) To maintain plan and specification review and
18 inspection authority of all buildings and places of assembly
19 comprising licensed facilities within a city of the first
20 class. The Department of Labor and Industry shall notify the
21 appropriate department of the city of the first class of all
22 inspections of the buildings and provide the city with the
23 opportunity to observe the inspection of the licensed
24 facilities.
25 (5) Within 14 days of receipt, to make available to the
26 appropriate department of the city of the first class, upon
27 request, copies of all building plans and plan review
28 documents in the custody of the Department of Labor and
29 Industry. The city of the first class may submit written
30 comments to the department in reference to the building plans
20050S0862B2186 - 102 -
1 and public safety concerns within 30 days of receipt.
2 § 1506.2. Conveyances in cities of the first class.
3 (a) Intention.--In order to maximize the policy mandates of
4 this part and to optimize development opportunities within a
5 city of the first class, it is the intention of the General
6 Assembly to facilitate the timely conveyance of riparian rights
7 that the Commonwealth may own to any person approved for a slot
8 machine license by the board for a facility to be located on
9 land contiguous to navigable waterways.
10 (b) Authorization and direction.--The Department of General
11 Services, with the approval of the Governor, is hereby
12 authorized and directed on behalf of the Commonwealth of
13 Pennsylvania to grant and convey by quitclaim deed for
14 consideration under subsection (e) to each person approved for a
15 slot machine license by the board for a licensed facility that
16 is to be located within a city of the first class and is
17 contiguous to navigable waters, the land further described in
18 subsection (c) and such conveyance shall be deemed as granting
19 the consent of the Commonwealth to the licensee for construction
20 thereon.
21 (c) Description.--The land to be transferred under
22 subsection (a) shall be all of the Commonwealth's lands between
23 the low-water line, or in cities of the first class, the
24 bulkhead line, and the established pierhead line, in a city of
25 the first class, consisting of all the muds and land currently
26 or previously under the navigable waters and lying adjacent to
27 the property owned by a licensee to the west of the bulkhead
28 line, and all riparian rights appertaining thereto.
29 (d) Licensee election of granted area.--Upon approval of a
30 slot machine license to a grantee, the grantee shall deliver to
20050S0862B2186 - 103 -
1 the Department of General Services a copy of the deed or other
2 documentation evidencing its title to the licensed facility and
3 a survey and metes and bounds legal description of the land
4 described under subsection (c) to be included in its licensed
5 facility.
6 (e) Consideration.--The following shall apply:
7 (1) The consideration to be paid to the Commonwealth by
8 the grantee for the granted area shall be determined by the
9 Department of General Services with the approval of the
10 Governor based on an appraisal of fair market value obtained
11 from an independent appraiser who is experienced in
12 appraising riparian interests and commercial real estate in
13 cities of the first class and who is a member of the
14 Appraisal Institute or similar professional organization. The
15 land described in subsection (c) shall be appraised on an
16 "as-is" basis, taking into account in the appraisal all of
17 the following:
18 (i) The absence of the value of the land described
19 in subsection (c) to persons other than the adjacent
20 upland owner.
21 (ii) A credit to be taken against value because of
22 the licensed gaming entity providing for public access to
23 the water as mandated by this chapter.
24 (iii) The limited utility of the land described
25 under subsection (c) which is, in fact, not buildable
26 land due to its being underwater.
27 (iv) The limitation on value imposed by the need and
28 uncertainty in obtaining governmental approvals and
29 permits to construct any improvements on the land
30 described under subsection (c).
20050S0862B2186 - 104 -
1 (v) A credit to be taken against value for the cost
2 of demolition and removal of extant riparian structures
3 such as piers, platforms and pilings and any related
4 environmental or other remediation.
5 (vi) A credit to be taken against value for the cost
6 of infilling and other structural support for
7 improvements to the land described in subsection (c),
8 including the extension of utilities.
9 (vii) Sales prices of fast land behind the bulkhead
10 line may not be used as comparables.
11 (viii) No increase in the value of the land
12 described in subsection (c) shall be made because of the
13 approval of the license.
14 (2) The consideration established under paragraph (1)
15 shall be paid by the grantee, delivering to the Commonwealth
16 a note bearing interest of 6% per annum at the time of
17 transfer to it by the Commonwealth of the land described in
18 subsection (c). The note shall be payable in equal annual
19 installments of principal plus accrued interest on the first
20 through fifth annual anniversaries of the conveyance of the
21 land described under subsection (c).
22 (f) Deed.--The deeds of conveyance shall be by quitclaim
23 deed and shall be executed by the Secretary of General Services
24 in the name of the Commonwealth.
25 (g) Costs and fees.--Costs and fees incidental to each
26 conveyance shall be borne by the grantee.
27 Section 1506.3. Riparian rights.
28 Upon the issuance of a slot machine license under this part
29 for a licensed facility that is to be located within a city of
30 the first class contiguous to navigable waters of the Delaware
20050S0862B2186 - 105 -
1 River, it shall be deemed that the slot machine licensee has
2 completely satisfied all State requirements set forth in the act
3 of November 26, 1978 (P.L.1375, No.325), known as the Dam Safety
4 and Encroachments Act, and all regulations applicable to
5 encroachment of the navigable waters by any means in and along
6 submerged lands of the Commonwealth that have been granted for
7 purposes of construction, demolition and erection of structures
8 and foundations associated with a licensed facility. The slot
9 machine licensee shall not be obligated to obtain or maintain a
10 water obstruction and encroachment permit required by State law.
11 The licensed facility, use of the licensed facility and any land
12 and fill on which any portion of the licensed facility is
13 situated and operated shall be deemed:
14 (1) not to be derogatory, inimical or injurious to the
15 public interests in the land and waters;
16 (2) not to adversely affect navigation; and
17 (3) not to significantly impair the public right in
18 lands held in trust by the Commonwealth.
19 § 1506.4 1506.1. Clean indoor air. <--
20 Licensed facilities shall only be subject to public smoking
21 rules or regulations as may be imposed by the Commonwealth and
22 applied in a comprehensive Statewide manner.
23 Section 10. Sections 1509(a), (b) and (d) and 1512 of Title
24 4 are amended to read:
25 § 1509. Compulsive and problem gambling program.
26 (a) Establishment of program.--The Department of Health, in
27 consultation with organizations similar to the Mid-Atlantic
28 Addiction Training Institute, shall develop program guidelines
29 for public education, awareness and training regarding
30 compulsive and problem gambling and the treatment and prevention
20050S0862B2186 - 106 -
1 of compulsive and problem gambling. The guidelines shall include
2 strategies for the prevention of compulsive and problem
3 gambling. The Department of Health may consult with the board
4 and licensed gaming entities to develop such strategies. The
5 program shall include:
6 (1) Maintenance of a compulsive gamblers assistance
7 organization's toll-free problem gambling telephone number to
8 provide crisis counseling and referral services to families
9 experiencing difficulty as a result of problem or compulsive
10 gambling.
11 (2) The promotion of public awareness regarding the
12 recognition and prevention of problem or compulsive gambling.
13 (3) Facilitation, through in-service training and other
14 means, of the availability of effective assistance programs
15 for problem and compulsive gamblers and family members
16 affected by problem and compulsive gambling.
17 (4) Conducting studies to identify adults and juveniles
18 in this Commonwealth who are or are at risk of becoming
19 problem or compulsive gamblers.
20 (5) Providing grants to and contracting with
21 organizations which provide services as set forth in this
22 section.
23 (6) Providing reimbursement for organizations for
24 reasonable expenses in assisting the Department of Health in
25 carrying out the purposes of this section.
26 (b) Compulsive and Problem Gambling Treatment Fund.--There
27 is hereby established in the State Treasury a special fund to be
28 known as the Compulsive and Problem Gambling Treatment Fund. All
29 moneys in the fund shall be expended for programs for the
30 prevention and treatment of gambling addiction and other
20050S0862B2186 - 107 -
1 emotional and behavioral problems associated with or related to
2 gambling addiction and for the administration of the compulsive
3 and problem gambling program. The fund shall consist of money
4 annually allocated to it from the annual payment established
5 under section 1408 (relating to transfers from State Gaming
6 Fund), money which may be allocated by the board, interest
7 earnings on moneys in the fund and any other contributions,
8 payments or deposits which may be made to the fund.
9 * * *
10 (d) Single county authorities.--The Department of Health may
11 make grants from the fund established under subsection (b) to a
12 single county authority created pursuant to the act of April 14,
13 1972 (P.L.221, No.63), known as the Pennsylvania Drug and
14 Alcohol Abuse Control Act, for the purpose of providing
15 compulsive gambling and gambling [addition] addiction
16 prevention, treatment and education programs. It is the
17 intention of the General Assembly that any grants that the
18 Department of Health may make to any single county authority in
19 accordance with the provisions of this subsection be used
20 exclusively for the development and implementation of compulsive
21 and problem gambling programs authorized under subsection (a).
22 * * *
23 § 1512. [Public official financial interest.] Financial and
24 employment interests.
25 [(a) General rule.--Except as may be provided by rule or
26 order of the Pennsylvania Supreme Court, no executive-level
27 State employee, public official, party officer or immediate
28 family member thereof shall have, at or following the effective
29 date of this part, a financial interest in or be employed,
30 directly or indirectly, by any licensed racing entity or
20050S0862B2186 - 108 -
1 licensed gaming entity, or any holding, affiliate, intermediary
2 or subsidiary company, thereof, or any such applicant, nor
3 solicit or accept, directly or indirectly, any complimentary
4 service or discount from any licensed racing entity or licensed
5 gaming entity which he or she knows or has reason to know is
6 other than a service or discount that is offered to members of
7 the general public in like circumstances during his or her
8 status as an executive-level State employee, public official or
9 party officer and for one year following termination of the
10 person's status as an executive-level State employee, public
11 official or party officer.]
12 (a) Financial interests.--Except as may be provided by rule
13 or order of the Pennsylvania Supreme Court, an executive-level
14 public employee, public official or party officer, or an
15 immediate family member thereof, shall not intentionally or
16 knowingly hold a financial interest in an applicant or a slot
17 machine licensee, manufacturer licensee, supplier licensee or
18 licensed racing entity, or in a holding company, affiliate,
19 intermediary or subsidiary thereof, while the individual is an
20 executive-level public employee, public official or party
21 officer and for one year following termination of the
22 individual's status as an executive-level public employee,
23 public official or party officer.
24 (a.1) Employment.--Except as may be provided by rule or
25 order of the Pennsylvania Supreme Court, no executive-level
26 public employee, public official or party officer, or an
27 immediate family member thereof, shall be employed by an
28 applicant or a slot machine licensee, manufacturer licensee,
29 supplier licensee or licensed racing entity, or by any holding
30 company, affiliate, intermediary or subsidiary thereof, while
20050S0862B2186 - 109 -
1 the individual is an executive-level public employee, public
2 official or party officer and for one year following termination
3 of the individual's status as an executive-level public
4 employee, public official or party officer.
5 (a.2) Complimentary services.--
6 (1) No executive-level public employee, public official
7 or party officer, or an immediate family member thereof,
8 shall solicit or accept, any complimentary service from an
9 applicant or a slot machine licensee, manufacturer licensee,
10 supplier licensee or licensed racing entity, or from any
11 affiliate, intermediary, subsidiary or holding company
12 thereof, which the executive-level public employee, public
13 official or party officer, or an immediate family member
14 thereof, knows or has reason to know is other than a service
15 or discount which is offered to members of the general public
16 in like circumstances.
17 (2) No applicant, slot machine licensee, manufacturer
18 licensee, supplier licensee or licensed racing entity, or any
19 affiliate, intermediary, subsidiary or holding company
20 thereof, shall offer or deliver to an executive-level public
21 employee, public official or party officer, or an immediate
22 family member thereof, any complimentary service from the
23 applicant or slot machine licensee, manufacturer licensee,
24 supplier licensee or licensed racing entity, or an affiliate,
25 intermediary, subsidiary or holding company thereof, that the
26 applicant or slot machine licensee, manufacturer licensee,
27 supplier licensee or licensed racing entity, or any
28 affiliate, intermediary, subsidiary or holding company
29 thereof, knows or has reason to know is other than a service
30 or discount that is offered to members of the general public
20050S0862B2186 - 110 -
1 in like circumstances.
2 (a.3) Grading.--An individual who violates this section
3 commits a misdemeanor and shall, upon conviction, be sentenced
4 to pay a fine of not more than $1,000 or to imprisonment for not
5 more than one year, or both.
6 (a.4) Divestiture.--An executive-level public employee,
7 public official or party officer, or an immediate family member
8 thereof, who holds a financial interest prohibited by this
9 section shall divest the financial interest within three months
10 of the effective date of the restrictions set forth in
11 subsection (a), as applicable. Thereafter, any executive-level
12 public employee, public official, party officer or immediate
13 family member shall have 30 days from the date the individual <--
14 knew or had reason to know of the violation or 30 days from the
15 FAMILY MEMBER SHALL BE DIVESTED OF THE FINANCIAL INTEREST WITHIN <--
16 30 DAYS OF THE EARLIER OF:
17 (1) THE DATE THE INDIVIDUAL KNEW OR HAD REASON TO KNOW
18 OF THE VIOLATION; OR
19 (2) THE DATE OF annual publication in the Pennsylvania
20 Bulletin under § 1202(b)(27) (relating to General and
21 specific powers ), whichever occurs earlier. <--
22 (a.5) Ethics Commission.--The Ethics Commission shall
23 publish a list of all State, county, municipal and other
24 government positions that meet the definitions of "public
25 official" or "executive-level public employee" under subsection
26 (b). The Office of Administration shall assist the Ethics
27 Commission in the development of the list, which shall be
28 published in the Pennsylvania Bulletin biennially and on the
29 board's website. Upon request, each public official shall have a
30 duty to provide the Ethics Commission with adequate information
20050S0862B2186 - 111 -
1 to accurately develop and maintain the list. The Ethics
2 Commission may impose a civil penalty under 65 Pa.C.S. § 1109(f)
3 (relating to penalties) upon any public official or executive-
4 level public employee who fails to cooperate with the Ethics
5 Commission under this subsection.
6 (b) Definitions.--As used in this section, the following
7 words and phrases shall have the meanings given to them in this
8 subsection:
9 "Executive-level [State] public employee." [The Governor,
10 Lieutenant Governor, cabinet members, deputy secretaries, the
11 Governor's office executive staff, any State employee with
12 discretionary powers which may affect the outcome of a State
13 agency's decision in relation to a private corporation or
14 business, with respect to any matter covered by this part or any
15 executive employee who by virtue of his job function could
16 influence the outcome of such a decision.] The term shall
17 include the following:
18 (1) Deputy Secretaries of the Commonwealth and the
19 Governor's office executive staff.
20 (2) Employees of the Executive Branch with discretionary
21 powers which may affect or influence the outcome of a State
22 agency's action or decision relating to a matter under this
23 part. or who has regulatory or law enforcement authority over <--
24 a licensed entity.
25 (3) An EXECUTIVE-LEVEL employee of a county which <--
26 received a distribution of money or revenue under this part. <--
27 SECTION 1403(C)(2) (RELATING TO ESTABLISHMENT OF STATE GAMING <--
28 FUND AND NET SLOT MACHINE REVENUE DISTRIBUTION).
29 (4) An EXECUTIVE-LEVEL employee of a municipality which <--
30 received a distribution of money or revenue under this part <--
20050S0862B2186 - 112 -
1 SECTION 1403(C)(2). <--
2 (5) An employee of a department, agency, board,
3 commission, authority or other governmental body not included <--
4 in paragraphs (1), (2), (3) and (4) which directly receives a
5 distribution of money or revenue under this part.
6 (6) An employee of a department, agency, board,
7 commission, authority, county, municipality or other <--
8 governmental body with discretionary power which may affect <--
9 or influence the outcome of an action or decision relating to
10 a matter under this part or who WHICH possesses regulatory or <--
11 law enforcement authority over a licensed entity.
12 (7) ANY OTHER EMPLOYEE OF A COUNTY, MUNICIPALITY, <--
13 AUTHORITY, COMMISSION OR OTHER LOCAL GOVERNMENTAL ENTITY WITH
14 DISCRETIONARY POWERS WHICH MAY AFFECT OR INFLUENCE THE
15 OUTCOME OF AN ACTION OR DECISION RELATING TO A MATTER UNDER
16 THIS PART.
17 "Financial interest." Owning or holding, or being deemed to
18 hold, debt or equity securities [exceeding 1% of the equity or
19 fair market value of the licensed racing entity or licensed
20 gaming entity, its holding company, affiliate, intermediary or
21 subsidiary business.] or other ownership interest or profits
22 interest. A financial interest shall not include any [such stock
23 that is held in a blind trust over which the executive-level
24 State employee, public official, party officer or immediate
25 family member thereof may not exercise any managerial control or
26 receive income during the tenure of office and the period under
27 subsection (a).] debt or equity security, or other ownership
28 interest or profits interest, which is held or deemed to be held
29 in any of the following:
30 (1) A blind trust over which the executive-level PUBLIC <--
20050S0862B2186 - 113 -
1 employee, public official, party officer or immediate family
2 member thereof may not exercise any managerial control or
3 receive income during the tenure of office and the period
4 under subsection (a). The provisions of this paragraph shall
5 apply only to blind trusts established prior to the effective
6 date of this paragraph.
7 (2) Securities that are held in a pension plan, profit-
8 sharing plan, individual retirement account, tax sheltered
9 annuity, a plan established pursuant to section 457 of the
10 Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
11 1 et seq.), or any successor provision, deferred compensation
12 plan whether qualified or not qualified under the Internal
13 Revenue Code of 1986, or any successor provision, or other
14 retirement plan that:
15 (i) is not self-directed by the individual; and
16 (ii) is advised by an independent investment adviser
17 who has sole authority to make investment decisions with
18 respect to contributions made by the individual to these
19 plans.
20 (3) A tuition account plan organized and operated
21 pursuant to section 529 of the Internal Revenue Code of 1986
22 (Public Law 99-514, 26 U.S.C. § 529) that is not self-
23 directed by the individual.
24 (4) A mutual fund where the interest owned by the mutual
25 fund in a licensed entity does not constitute a controlling
26 interest as defined in this part.
27 "Immediate family." A [parent,] spouse, minor child or
28 unemancipated child[, brother or sister].
29 "Law enforcement authority." The term shall include the
30 authority of a State or local police force, the Attorney General
20050S0862B2186 - 114 -
1 or a district attorney.
2 "Party officer." A member of a national committee; a
3 chairman, vice chairman, secretary, treasurer or counsel of a
4 State committee or member of the executive committee of a State
5 committee; a county chairman, vice chairman, counsel, secretary
6 or treasurer of a county committee in which a licensed facility
7 is located; or a city chairman, vice chairman, counsel,
8 secretary or treasurer of a city committee of a city in which a
9 licensed facility is located.
10 ["Public official." Any person elected by the public or
11 elected or appointed by a governmental body or an appointed
12 official in the executive, legislative or judicial branch of
13 this Commonwealth or any political subdivision thereof, provided
14 that it shall not include members of advisory boards that have
15 no authority to expend public funds other than reimbursement for
16 personal expense or to otherwise exercise the power of the
17 Commonwealth or any political subdivision or commissioner of any
18 authority or joint-state commission.]
19 "Public official." The term shall include the following:
20 (1) The Governor, Lieutenant Governor, a member of the
21 Governor's cabinet, Treasurer, Auditor General and Attorney
22 General of the Commonwealth.
23 (2) A member of the Senate or House of Representatives
24 of the Commonwealth.
25 (3) An individual elected or appointed to any office of <--
26 a county that receives a distribution of money or revenue
27 under this part.
28 (4) An individual elected or appointed to any office of <--
29 a municipality A GOVERNMENTAL BODY that receives a <--
30 distribution of money or revenue under this part.
20050S0862B2186 - 115 -
1 (5) An individual elected or appointed to a department,
2 agency, board, commission, authority or other governmental
3 body not included in paragraphs (1), (2), (3) and (4) that <--
4 BODY THAT directly receives a distribution of money or <--
5 revenue under this part.
6 (6) An individual elected or appointed to a department, <--
7 agency, board, commission, authority, county, municipality or
8 other governmental body with discretionary power which may
9 affect or influence the outcome of an action or decision
10 relating to a matter under this part or who possesses
11 regulatory or law enforcement authority over a licensed
12 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
20050S0862B2186 - 116 -
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 FOR A SLOT MACHINE LICENSE, <--
18 MANUFACTURER LICENSE, SUPPLIER LICENSE, RACING LICENSE,
19 PRINCIPAL LICENSE OR KEY EMPLOYEE PERMIT.
20 (2) A slot machine licensee, licensed manufacturer,
21 licensed supplier or licensed racing entity.
22 (3) A principal or LICENSED PRINCIPAL OR PERMITTED key <--
23 employee of a slot machine licensee, licensed manufacturer,
24 licensed supplier or licensed racing entity.
25 (4) An affiliate, intermediary, subsidiary or holding
26 company of a slot machine licensee, licensed manufacturer,
27 licensed supplier or licensed racing entity.
28 (5) A principal or LICENSED PRINCIPAL OR PERMITTED key <--
29 employee of an affiliate, intermediary, subsidiary or holding
30 company of a slot machine licensee, licensed manufacturer,
20050S0862B2186 - 117 -
1 licensed supplier or licensed racing entity.
2 (6) A person who holds a similar gaming license in
3 another jurisdiction and the affiliates, intermediaries,
4 subsidiaries, holding companies, principals 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, principals and key employees
22 thereof, all persons and officers, directors or persons with <--
23 a controlling interest holding a similar gaming license in
24 another jurisdiction and the affiliates, intermediaries,
25 subsidiaries, holding companies, principals and key employees
26 thereof, and any other entity in which the applicant or
27 licensee has any debt or equity security or other ownership
28 or profits interest. An applicant or licensee shall notify
29 the board within seven days of the discovery of any change in
30 or addition to the information. The list shall be published
20050S0862B2186 - 118 -
1 semiannually in the Pennsylvania Bulletin.
2 (2) An individual who acts in good faith and in reliance
3 on the information on the Internet website shall not be
4 subject to any penalties or liability imposed for a violation
5 of this section.
6 (3) The board shall request the information required
7 under paragraph (1) from persons licensed in another
8 jurisdiction who do not hold a license in this Commonwealth
9 and from regulatory agencies in the other jurisdiction. If a
10 licensee in another jurisdiction refuses to provide the
11 information required under paragraph (1), the person and its
12 officers, directors or persons with a controlling interest
13 shall be ineligible to receive any license under this part.
14 * * *
15 (d) Definitions.--As used in this section, the following
16 words and phrases shall have the meanings given to them in this
17 subsection:
18 "Contribution." Any payment, gift, subscription, assessment,
19 contract, payment for services, dues, loan, forbearance, advance
20 or deposit of money or any valuable thing, made to a candidate
21 or political committee for the purpose of influencing any
22 election TO A PUBLIC OFFICE in this Commonwealth or for paying <--
23 debts incurred by or for a candidate or committee before or
24 after any election. The term shall include the purchase of
25 tickets for events including dinners, luncheons, rallies and
26 other fund-raising events; the granting of discounts or rebates
27 not available to the general public; or the granting of
28 discounts or rebates by television and radio stations and
29 newspapers not extended on an equal basis to all candidates for
30 the same office; and any payments provided for the benefit of
20050S0862B2186 - 119 -
1 any candidate, including payments for the services of a person
2 serving as an agent of a candidate or committee by a person
3 other than the candidate or committee or person whose
4 expenditures the candidate or committee must report. The term
5 also includes any receipt or use of anything of value received
6 by a political committee from another political committee and
7 also includes any return on investments by a political
8 committee.
9 "Political committee." Any committee, club, association or
10 other group of persons which receives contributions or makes
11 expenditures.
12 Section 12. Section 1517(a), (B), (c) and (d) of Title 4 are <--
13 amended and the section is amended by adding subsections to
14 read:
15 § 1517. [Enforcement.] Investigations and enforcement.
16 [(a) Powers and duties.--The Bureau of Investigations and
17 Enforcement shall have the following powers and duties:
18 (1) Promptly investigate all licensees, permittees and
19 applicants as directed by the board in accordance with the
20 provisions of section 1202 (relating to general and specific
21 powers).
22 (2) Enforce the rules and regulations promulgated under
23 this part.
24 (3) Initiate proceedings for administrative violations
25 of this part or regulations promulgated under this part.
26 (4) Provide the board with all information necessary for
27 all action under this part and for all proceedings involving
28 enforcement of this part or regulations promulgated under
29 this part.
30 (5) Investigate the circumstances surrounding any act or
20050S0862B2186 - 120 -
1 transaction for which board approval is required.
2 (6) Conduct administrative inspections on the premises
3 of a licensed racetrack or nonprimary location or licensed
4 facility to ensure compliance with this part and the
5 regulations of the board and, in the course of inspections,
6 review and make copies of all documents and records that may
7 be required through onsite observation and other reasonable
8 means to assure compliance with this part and regulations
9 promulgated under this part.
10 (7) Receive and take appropriate action on any referral
11 from the board relating to any evidence of a violation.
12 (8) Conduct audits of slot machine operations at such
13 times, under such circumstances and to such extent as the
14 bureau determines. This paragraph includes reviews of
15 accounting, administrative and financial records and
16 management control systems, procedures and records utilized
17 by a slot machine licensee.
18 (9) Request and receive information, materials and other
19 data from any licensee, permittee or applicant.
20 (10) Refer for investigation all possible criminal
21 violations to the Pennsylvania State Police and cooperate
22 fully in the investigation and prosecution of a criminal
23 violation arising under this part.]
24 (a) Establishment.--There is hereby established within the
25 board a Bureau of Investigations and Enforcement which shall be
26 independent of the board in matters relating to the enforcement
27 of this part. The bureau shall have the powers and duties set
28 forth in subsection (a.1).
29 (a.1) Powers and duties of bureau.--The Bureau of
30 Investigations and Enforcement shall have the following powers
20050S0862B2186 - 121 -
1 and duties:
2 (1) Enforce the provisions of this part.
3 (2) Investigate and review all applicants and
4 applications for a license, permit or registration.
5 (3) Investigate licensees, permittees, registrants and
6 other persons regulated by the board for noncriminal
7 violations of this part, including potential violations
8 referred to the bureau by the board or other person.
9 (4) Monitor gaming operations to ensure all of the
10 following:
11 (i) Compliance with this part, the act of April 12,
12 1951 (P.L.90, No.21), known as the Liquor Code, and the
13 other laws of this Commonwealth.
14 (ii) The implementation of adequate security
15 measures by a licensed entity.
16 (5) Inspect and examine licensed entities as provided in
17 subsection (e). Inspections may include the review and
18 reproduction of any document or record.
19 (6) Conduct audits of a licensed entity as necessary to
20 ensure compliance with this part. An audit may include the
21 review of accounting, administrative and financial records,
22 management control systems, procedures and other records
23 utilized by a licensed entity.
24 (7) Refer possible criminal violations to the
25 Pennsylvania State Police. The bureau shall not have the
26 power of arrest.
27 (8) Cooperate in the investigation and prosecution of
28 criminal violations related to this part.
29 (9) Be a criminal justice agency under 18 Pa.C.S. Ch. 91
30 (relating to criminal history record information).
20050S0862B2186 - 122 -
1 (a.2) Office of Enforcement Counsel.--
2 (1) There is established within the bureau an Office of
3 Enforcement Counsel which shall act as the prosecutor in all
4 noncriminal enforcement actions initiated by the bureau under
5 this part and shall have the following powers and duties:
6 (i) Advise the bureau on all matters, including the
7 granting of licenses, permits or registrations, the
8 conduct of background investigations, audits and
9 inspections and the investigation of potential violations
10 of this part.
11 (ii) File recommendations and objections relating to
12 the issuance of licenses, permits and registrations on
13 behalf of the bureau.
14 (iii) Initiate, in its sole discretion, proceedings
15 for noncriminal violations of this part by filing a
16 complaint or other pleading with the board.
17 (2) The director of the Office of Enforcement Counsel
18 shall report to the executive director of the board on
19 administrative matters. The director shall be selected by the
20 board and shall be an attorney admitted to practice before
21 the Pennsylvania Supreme Court.
22 * * * <--
23 (B) POWERS AND DUTIES OF DEPARTMENT.-- <--
24 (1) THE DEPARTMENT SHALL AT ALL TIMES HAVE THE POWER OF
25 ACCESS TO EXAMINATION AND AUDIT OF ANY EQUIPMENT AND RECORDS
26 RELATING TO ALL ASPECTS OF THE OPERATION OF SLOT MACHINES
27 UNDER THIS PART.
28 (2) NOTWITHSTANDING THE PROVISIONS OF SECTION 353(F) OF
29 THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX
30 REFORM CODE OF 1971, THE DEPARTMENT SHALL SUPPLY THE BOARD,
20050S0862B2186 - 123 -
1 THE BUREAU, THE PENNSYLVANIA STATE POLICE AND THE OFFICE OF
2 ATTORNEY GENERAL WITH INFORMATION CONCERNING THE STATUS OF
3 DELINQUENT TAXES OWNED BY THE APPLICANT, LICENSEE OR
4 PERMITTEE.
5 (3) PREPARE AND SUBMIT ANNUALLY TO THE APPROPRIATIONS
6 COMMITTEE OF THE SENATE AND THE APPROPRIATIONS COMMITTEE OF
7 THE HOUSE OF REPRESENTATIVES AN ITEMIZED BUDGET REQUEST
8 CONSISTING OF THE AMOUNTS NECESSARY TO FUND THE DUTIES OF THE
9 DEPARTMENT UNDER THIS PART WHICH SHALL BE APPROPRIATED BY THE
10 GENERAL ASSEMBLY OUT OF THE ACCOUNTS ESTABLISHED UNDER
11 SECTION 1401 (RELATING TO SLOT MACHINE LICENSEE DEPOSITS).
12 (c) Powers and duties of the Pennsylvania State Police.--The
13 Pennsylvania State Police shall have the following powers and
14 duties:
15 (1) Promptly [investigate all licensees, permittees and
16 applicants] conduct background investigations on persons as
17 directed by the board in accordance with the provisions of
18 section 1202 (relating to general and specific powers). The
19 Pennsylvania State Police may contract with other law
20 enforcement annuitants to assist in the conduct of
21 investigations under this paragraph.
22 [(2) Enforce the rules and regulations promulgated under
23 this part.]
24 (3) Initiate proceedings for [any] criminal violations
25 of this part [or regulations promulgated under this part].
26 (4) Provide the board with all information necessary for
27 all actions under this part for all proceedings involving
28 criminal enforcement of this part [or regulations promulgated
29 under this part].
30 (5) Inspect, when appropriate, a licensee's or
20050S0862B2186 - 124 -
1 permittee's person and personal effects present in a licensed
2 facility under this part while that licensee or permittee is
3 present at a licensed facility.
4 (6) Enforce the criminal provisions of this part and all
5 other criminal laws of the Commonwealth.
6 (7) Fingerprint applicants for licenses and permits.
7 (8) Exchange fingerprint data with and receive national
8 criminal history record information from the FBI for use in
9 investigating applications for any license or permit under
10 this part.
11 (9) Receive and take appropriate action on any referral
12 from the board relating to criminal conduct.
13 (10) Require the production of any information, material
14 and other data from any licensee, permittee, registrant or
15 applicant.
16 (11) Conduct administrative inspections on the premises
17 of licensed racetrack or nonprimary location or licensed
18 facility at such times, under such circumstances and to such
19 extent as the bureau determines to ensure compliance with
20 this part and the regulations of the board and, in the course
21 of inspections, review and make copies of all documents and
22 records required by the inspection through onsite observation
23 and other reasonable means to assure compliance with this
24 part and regulations promulgated under this part.
25 (12) Conduct audits or verification of information of
26 slot machine operations at such times, under such
27 circumstances and to such extent as the bureau determines.
28 This paragraph includes reviews of accounting, administrative
29 and financial records and management control systems,
30 procedures and records utilized by a slot machine licensee.
20050S0862B2186 - 125 -
1 (13) A member of the Pennsylvania State Police assigned
2 to duties of enforcement under this part shall not be counted
3 toward the complement as defined in the act of December 13,
4 2001 (P.L.903, No.100), entitled "An act repealing in part a
5 limitation on the complement of the Pennsylvania State
6 Police."
7 (c.1) Powers and duties of Attorney General.--Within the <--
8 Office of Attorney General, the Attorney General shall establish
9 a gaming unit. The unit shall investigate and institute criminal
10 proceedings as authorized by subsection (d).
11 (14) PREPARE AND SUBMIT ANNUALLY TO THE APPROPRIATIONS <--
12 COMMITTEE OF THE SENATE AND THE APPROPRIATIONS COMMITTEE OF
13 THE HOUSE OF REPRESENTATIVES AN ITEMIZED BUDGET REQUEST
14 CONSISTING OF THE AMOUNTS NECESSARY TO FUND THE DUTIES OF THE
15 PENNSYLVANIA STATE POLICE UNDER THIS PART, WHICH SHALL BE
16 APPROPRIATED BY THE GENERAL ASSEMBLY OUT OF THE ACCOUNTS
17 ESTABLISHED IN SECTION 1401.
18 (C.1) POWERS AND DUTIES OF THE ATTORNEY GENERAL.--
19 (1) WITHIN THE OFFICE OF ATTORNEY GENERAL, THE ATTORNEY
20 GENERAL SHALL ESTABLISH A GAMING UNIT.
21 (2) THE ATTORNEY GENERAL SHALL INVESTIGATE AND INSTITUTE
22 CRIMINAL PROCEEDINGS AS AUTHORIZED BY SUBSECTION (D).
23 (3) THE ATTORNEY GENERAL SHALL PREPARE AND SUBMIT
24 ANNUALLY TO THE APPROPRIATIONS COMMITTEE OF THE SENATE AND
25 THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES
26 AN ITEMIZED BUDGET REQUEST CONSISTING OF THE AMOUNTS
27 NECESSARY TO FUND THE DUTIES OF THE ATTORNEY GENERAL UNDER
28 THIS PART, WHICH SHALL BE APPROPRIATED BY THE GENERAL
29 ASSEMBLY OUT OF THE ACCOUNTS ESTABLISHED IN SECTION 1401.
30 (C.2) POWERS AND DUTIES OF PENNSYLVANIA LIQUOR CONTROL
20050S0862B2186 - 126 -
1 BOARD.--THE PENNSYLVANIA LIQUOR CONTROL BOARD SHALL PROMULGATE
2 EMERGENCY REGULATIONS RELATING TO THE SALE AND SERVICE OF LIQUOR
3 AND MALT AND BREWED BEVERAGES BY SLOT MACHINE LICENSEES UNDER
4 THIS PART. THE BOARD SHALL PROVIDE COMMENTS TO THE PENNSYLVANIA
5 LIQUOR CONTROL BOARD REGARDING THE REGULATIONS WITHIN 30 DAYS OF
6 THE EFFECTIVE DATE OF THIS SECTION. REGULATIONS PROMULGATED
7 UNDER THIS SECTION SHALL EXPIRE DECEMBER 31, 2007.
8 (d) Criminal action.--
9 (1) The district attorneys of the several counties shall
10 have authority to investigate and to institute criminal
11 proceedings for [any] a violation of this part.
12 (2) In addition to the authority conferred upon the
13 Attorney General [by] under the act of October 15, 1980
14 (P.L.950, No.164), known as the Commonwealth Attorneys Act,
15 the Attorney General shall have the authority to investigate
16 and, following consultation with the appropriate district
17 attorney, to institute criminal proceedings for [any] a
18 violation of this part. [or any series of such violations
19 involving any county of this Commonwealth and another state.
20 No] A person charged with a violation of this part by the
21 Attorney General shall not have standing to challenge the
22 authority of the Attorney General to investigate or prosecute
23 the case, and, if any such challenge is made, the challenge
24 shall be dismissed and no relief shall be available in the
25 courts of this Commonwealth to the person making the
26 challenge.
27 (d.1) Regulatory action.--Nothing contained in subsection
28 (d) shall be construed to limit the existing regulatory or
29 investigative authority of an agency or the Commonwealth whose
30 functions relate to persons or matters within the scope of this
20050S0862B2186 - 127 -
1 part.
2 * * *
3 Section 13. Title 4 is amended by adding sections to read:
4 § 1517.1. (Reserved).
5 § 1517.2. 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 of Title 4 is amended to read:
22 § 1518. Prohibited acts; penalties.
23 (a) Criminal offenses.--
24 (1) The provisions of 18 Pa.C.S. § 4902 (relating to
25 perjury), 4903 (relating to false swearing) or 4904 (relating
26 to unsworn falsification to authorities) shall apply to any
27 person providing information or making any statement, whether
28 written or oral, to the board, the bureau, the department,
29 the Pennsylvania State Police or the Office of Attorney
30 General, as required by this part.
20050S0862B2186 - 128 -
1 (2) It [is] shall be unlawful for a person to willfully:
2 (i) fail to report, pay or truthfully account for
3 and pay over any license fee, tax or assessment imposed
4 under this part; or
5 (ii) attempt in any manner to evade or defeat any
6 license fee, tax or assessment imposed under this [party]
7 part.
8 (3) It [is] shall be unlawful for any licensed entity,
9 gaming employee, key employee or any other person to permit a
10 slot machine to be operated, transported, repaired or opened
11 on the premises of a licensed facility by a person other than
12 a person licensed or permitted by the board pursuant to this
13 part.
14 (4) It [is] shall be unlawful for any licensed entity or
15 other person to manufacture, supply or place slot machines
16 into play or display slot machines on the premise of a
17 licensed facility without the authority of the board.
18 (5) Except as provided for in section 1326 (relating to
19 license renewals), it [is] shall be unlawful for a licensed
20 entity or other person to manufacture, supply, operate, carry
21 on or expose for play any slot machine after the person's
22 license has expired and prior to the actual renewal of the
23 license.
24 (6) (i) Except as set forth in subparagraph (ii), it
25 [is] shall be unlawful for an individual while on the
26 premises of a licensed facility to knowingly use currency
27 other than lawful coin or legal tender of the United
28 States or a coin not of the same denomination as the coin
29 intended to be used in the slot machine[.] with the
30 intent to cheat or defraud a licensed gaming entity or
20050S0862B2186 - 129 -
1 the Commonwealth or damage the slot machine.
2 (ii) In the playing of a slot machine, it [is] shall
3 be lawful for an individual to use gaming billets, tokens
4 or similar objects issued by the licensed gaming entity
5 which are approved by the board.
6 (7) (i) Except as set forth in subparagraph (ii), it
7 [is] shall be unlawful for an individual [on the premises
8 of a licensed facility] to use or possess a cheating or
9 thieving device, counterfeit or altered billet, ticket,
10 token or similar objects accepted by a slot machine or
11 counterfeit or altered slot machine-issued tickets or
12 vouchers at a licensed facility.
13 (ii) An authorized employee of a licensee or an
14 employee of the board may possess and use a cheating or
15 thieving device, counterfeit or altered billet, ticket,
16 token or similar objects accepted by a slot machine or
17 counterfeit or altered slot machine-issued tickets or
18 vouchers [only] in performance of the duties of
19 employment.
20 (iii) As used in this paragraph, the term "cheating
21 or thieving device" includes, but is not limited to, a
22 device to facilitate the alignment of any winning
23 combination or to remove from any slot machine money or
24 other contents. The term includes, but is not limited to,
25 a tool, drill, wire, coin or token attached to a string
26 or wire and any electronic or magnetic device.
27 (8) (i) Except as set forth in subparagraph (ii), it
28 [is] shall be unlawful for an individual to knowingly
29 possess or use while on the premises of a licensed
30 facility a key or device designed for the purpose of and
20050S0862B2186 - 130 -
1 suitable for opening or entering any slot machine or coin
2 box which is located on the premises of the licensed
3 facility.
4 (ii) An authorized employee of a licensee or a
5 member of the board may possess and use a device referred
6 to in subparagraph (i) [only] in the performance of the
7 duties of employment.
8 (9) It [is] shall be unlawful for a person or licensed
9 entity to possess any device, equipment or material which the
10 person or licensed entity knows has been manufactured,
11 distributed, sold, tampered with or serviced in violation of
12 the provisions of this part[.] with the intent to use the
13 device, equipment or material as though it had been
14 manufactured, distributed, sold, tampered with or serviced
15 pursuant to this part.
16 (9.1) It shall be unlawful for a person to sell, offer
17 for sale, represent or pass off as lawful any device,
18 equipment or material which the person or licensed entity
19 knows has been manufactured, distributed, sold, tampered with
20 or serviced in violation of this part.
21 (10) It [is] shall be unlawful for an individual to work
22 or be employed in a position the duties of which would
23 require licensing or permitting under the provisions of this
24 part without first obtaining the requisite license or permit
25 [as provided for in] issued under the provisions of this
26 part.
27 (11) It [is] shall be unlawful for a licensed gaming
28 entity that is a licensed racing entity and that has lost the
29 license issued to it by either the State Horse Racing
30 Commission or the State Harness Racing Commission under the
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1 Race Horse Industry Reform Act or that has had that license
2 suspended to operate slot machines at the racetrack for which
3 its slot machine license was issued unless the license issued
4 to it by either the State Horse Racing Commission or the
5 State Harness Racing Commission will be subsequently reissued
6 or reinstated within 30 days after the loss or suspension.
7 (12) It [is] shall be unlawful for a licensed entity to
8 employ or continue to employ an individual in a position the
9 duties of which require a license or permit under the
10 provisions of this part if the individual:
11 (i) [An individual] Is not licensed or permitted
12 under the provisions of this part.
13 (ii) [An individual who is] Is prohibited from
14 accepting employment from a licensee.
15 (13) It [is] shall be unlawful for any person under 18
16 years of age to be permitted in the area of a licensed
17 facility where slot machines are operated.
18 (b) Criminal penalties and fines.--
19 (1) (i) A person [that violates subsection (a)(1)
20 commits an offense to be graded in accordance with 18
21 Pa.C.S. § 4902, 4903 or 4904, as applicable, for a first
22 conviction.] who commits a first offense in violation of
23 18 Pa.C.S § 4902, 4903 or 4904 in connection with
24 providing information or making any statement, whether
25 written or oral, to the board, the bureau, the
26 department, the Pennsylvania State Police or, the Office <--
27 of Attorney General OR A DISTRICT ATTORNEY as required by <--
28 this part commits an offense to be graded in accordance
29 with the applicable section violated. A person that is
30 convicted of a second or subsequent violation of
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1 [subsection (a)(1)] 18 Pa.C.S. § 4902, 4903 or 4904 in
2 connection with providing information or making any
3 statement, whether written or oral, to the board, the
4 bureau, the department, the Pennsylvania State Police or, <--
5 the Office of Attorney General OR A DISTRICT ATTORNEY as <--
6 required by this part commits a felony of the second
7 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;
20050S0862B2186 - 133 -
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 (c) Board-imposed administrative sanctions.--
6 (1) In addition to any other penalty authorized by law,
7 the board may impose without limitation the following
8 sanctions upon any licensee or permittee:
9 (i) Revoke the license or permit of any person
10 convicted of a criminal offense under this part or
11 regulations promulgated under this part or committing any
12 other offense or violation of this part or applicable law
13 which would otherwise disqualify such person from holding
14 the license or permit.
15 (ii) Revoke the license or permit of any person
16 determined to have violated a provision of this part or
17 regulations promulgated under this part which would
18 otherwise disqualify such person from holding the license
19 or permit.
20 (iii) Revoke the license or permit of any person for
21 willfully and knowingly violating or attempting to
22 violate an order of the board directed to such person.
23 (iv) Suspend the license or permit of any person
24 pending the outcome of a hearing in any case in which
25 license or permit revocation could result.
26 (v) Suspend the license of any licensed gaming
27 entity for violation of or attempting to violate any
28 provisions of this part or regulations promulgated under
29 this part relating to its slot machine operations.
30 (vi) Assess administrative penalties as necessary to
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1 punish misconduct and to deter future violations.
2 (vii) Order restitution of any moneys or property
3 unlawfully obtained or retained by a licensee or
4 permittee.
5 (viii) Enter cease and desist orders which specify
6 the conduct which is to be discontinued, altered or
7 implemented by the licensee or permittee.
8 (ix) Issue letters of reprimand or censure, which
9 letters shall be made a permanent part of the file of
10 each licensee or permittee so sanctioned.
11 (2) If the board refuses to issue or renew a license or
12 permit, suspends or revokes a license or permit, assesses
13 civil penalties, orders restitution, enters a cease and
14 desist order or issues a letter of reprimand or censure, it
15 shall provide the applicant or licensee or permittee with
16 written notification of its decision, including a statement
17 of the reasons for its decision by certified mail within five
18 business days of the decision[. Any applicant or licensee or
19 permittee who has received notice of a refusal, suspension or
20 revocation of a license or permit, the assessment of civil
21 penalties, an order of restitution, the entrance of a cease
22 and desist order or the issuance of a letter of reprimand or
23 censure from] of the board. The applicant, licensee or
24 permittee shall have the right to [an administrative hearing
25 before the board] appeal the decision in accordance with 2
26 Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure
27 of Commonwealth agencies) and 7 Subch. A (relating to
28 judicial review of Commonwealth agency action).
29 (3) In addition to any other fines or penalties that the
30 board may impose under this part or regulation, if a person
20050S0862B2186 - 135 -
1 violates subsection (a)(2), the board shall impose an
2 administrative penalty of three times the amount of the
3 license fee, tax or other assessment evaded and not paid,
4 collected or paid over. This subsection is subject to 2
5 Pa.C.S. Chs. 5 Subch. A and 7 Subch. A.
6 Section 15. Title 4 is amended by adding sections to read:
7 § 1519. [(Reserved).] 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
20050S0862B2186 - 137 -
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 § 1901.1. Repayments to the State Gaming Fund.
22 The board shall defer assessing slot machine licensees for
23 payments to the State Gaming Fund for any loans made to the
24 State Gaming Fund until such time as all slot machine licenses
25 have been issued and all licensed gaming entities have commenced
26 the operation of slot machines. The board shall adopt a
27 repayment schedule that assesses to each slot machine licensee
28 costs for the repayment of any such loans in an amount that is
29 proportional to each slot machine licensee's gross terminal
30 revenue.
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1 Section 18. Section 911(h)(1) of Title 18 is amended to
2 read:
3 § 911. Corrupt organizations.
4 * * *
5 (h) Definitions.--As used in this section:
6 (1) "Racketeering activity" means all of the following:
7 (i) [any] An act which is indictable under any of
8 the following provisions of this title:
9 Chapter 25 (relating to criminal homicide)
10 Section 2706 (relating to terroristic threats)
11 Chapter 29 (relating to kidnapping)
12 Chapter 33 (relating to arson, etc.)
13 Chapter 37 (relating to robbery)
14 Chapter 39 (relating to theft and related
15 offenses)
16 Section 4108 (relating to commercial bribery and
17 breach of duty to act disinterestedly)
18 Section 4109 (relating to rigging publicly
19 exhibited contest)
20 Section 4117 (relating to insurance fraud)
21 Chapter 47 (relating to bribery and corrupt
22 influence)
23 Chapter 49 (relating to falsification and
24 intimidation)
25 Section 5111 (relating to dealing in proceeds of
26 unlawful activities)
27 Section 5512 through 5514 (relating to gambling)
28 Chapter 59 (relating to public indecency).
29 (ii) [any] An offense indictable under section 13 of
30 the act of April 14, 1972 (P.L.233, No.64), known as The
20050S0862B2186 - 139 -
1 Controlled Substance, Drug, Device and Cosmetic Act
2 (relating to the sale and dispensing of narcotic
3 drugs)[;].
4 (iii) [any] A conspiracy to commit any of the
5 offenses set forth in subparagraphs (i) [and (ii) of this
6 paragraph; or], (ii) or (v).
7 (iv) [the] The collection of any money or other
8 property in full or partial satisfaction of a debt which
9 arose as the result of the lending of money or other
10 property at a rate of interest exceeding 25% per annum or
11 the equivalent rate for a longer or shorter period, where
12 not otherwise authorized by law.
13 (v) An offense indictable under 4 Pa.C.S. Pt. II
14 (relating to gaming).
15 [Any] An act which otherwise would be considered racketeering
16 activity by reason of the application of this paragraph,
17 shall not be excluded from its application solely because the
18 operative acts took place outside the jurisdiction of this
19 Commonwealth, if such acts would have been in violation of
20 the law of the jurisdiction in which they occurred.
21 * * *
22 Section 19. The amendment of 4 Pa.C.S. § 1205(b) shall apply <--
23 to any slot machine license application filed on or after the
24 effective date of this section.
25 SECTION 19. REPEALS ARE AS FOLLOWS: <--
26 (1) THE GENERAL ASSEMBLY DECLARES THAT THE REPEAL UNDER
27 PARAGRAPH (2) IS NECESSARY TO EFFECTUATE THE ADDITION OF 4
28 PA.C.S. §§ 1202(B)(30) AND 1517(C.2).
29 (2) SECTION 493(29) OF THE ACT OF APRIL 12, 1951
30 (P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, IS REPEALED.
20050S0862B2186 - 140 -
1 SECTION 20. THIS ACT SHALL APPLY AS FOLLOWS:
2 (1) THE AMENDMENT OF 4 PA.C.S. § 1205(B) SHALL APPLY TO
3 ANY SLOT MACHINE LICENSE APPLICATION FILED ON OR AFTER THE
4 EFFECTIVE DATE OF THIS SECTION.
5 (2) THE FOLLOWING PROVISIONS SHALL NOT APPLY TO A
6 LICENSE ISSUED OR RENEWED BEFORE THE EFFECTIVE DATE OF THIS
7 SECTION:
8 (I) THE AMENDMENT OF 4 PA.C.S. § 1317.
9 (II) THE ADDITION OF 4 PA.C.S. § 1317.1.
10 Section 20 21. This act shall take effect immediately. <--
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