PRIOR PRINTER'S NOS. 1105, 1241, 1302, PRINTER'S NO. 2218 1319, 1553, 2048, 2101, 2182, 2186, 2208
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 24, 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 the Compulsive and Problem 28 Gambling Program; providing for land use preemption and <-- 29 conveyances within cities of the first class, and for clean
1 indoor air; providing for public official financial interest, 2 for political influence and for enforcement; providing for 3 procedures and for conduct of public officials and employees; 4 further providing for prohibited acts and penalties; 5 providing for detention and for interception of oral 6 communications; further providing for duty to provide and for 7 submission of fingerprints and photographs; providing for 8 repayments to State Gaming Fund; and further providing for 9 corrupt organizations. 10 The General Assembly of the Commonwealth of Pennsylvania 11 hereby enacts as follows: 12 Section 1. The definitions of "affiliate" or "affiliated 13 company," "applicant," "controlling interest" and INTEREST," <-- 14 "gross terminal revenue" AND "LICENSED FACILITY" in section 1103 <-- 15 of Title 4 of the Pennsylvania Consolidated Statutes are amended 16 and the section is amended by adding definitions to read: 17 § 1103. Definitions. 18 The following words and phrases when used in this part shall 19 have the meanings given to them in this section unless the 20 context clearly indicates otherwise: 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, 31 partnership, limited partnership, association or any other form 32 of legal business entity,] person other than an individual, the 33 Pennsylvania Gaming Control Board shall determine the associated 34 persons whose qualifications are necessary as a precondition to 20050S0862B2218 - 2 -
1 the licensing of the applicant. 2 * * * 3 "Associated area." All parcels of land and improvements, <-- 4 including a licensed racetrack and backside area, owned by the 5 licensed gaming entity or its affiliate, intermediary, 6 subsidiary or holding company which is contiguous with or 7 adjoined directly by a pedestrian walkway, bridge or easement, 8 to the land-based location of the licensed facility. 9 * * * 10 "Compensation." Any thing of value, money or a financial 11 benefit conferred on or received by a person in return for 12 services rendered, or to be rendered, whether by that person or 13 another. 14 "Complimentary service." Any lodging, service or item which 15 is provided to an individual at no cost or at a reduced cost 16 which is not generally available to the public under similar 17 circumstances. Group rates, including convention and government 18 rates, shall be deemed to be generally available to the public. 19 "Conduct of gaming." The licensed placement and operation of 20 games of chance under this part and approved by the Pennsylvania 21 Gaming Control Board at a licensed facility. 22 "Controlling interest." [A person shall be deemed to have 23 the ability to control a publicly traded corporation, or to 24 elect one or more of the members of its board of directors, if 25 such holder owns or beneficially holds 5% or more of the 26 securities of such publicly traded domestic or foreign 27 corporation, partnership, limited liability company or any other 28 form of legal entity, unless such presumption of control or 29 ability to elect is rebutted by clear and convincing evidence. A 30 person who is a holder of securities of a privately held 20050S0862B2218 - 3 -
1 domestic or foreign corporation, partnership, limited liability 2 company or any other form of legal entity shall be deemed to 3 possess a controlling interest unless such presumption of 4 control is rebutted by clear and convincing evidence.] For a 5 publicly traded domestic or foreign corporation, a controlling 6 interest is an interest in a legal entity, applicant or licensee 7 if a person's sole voting rights under State law or corporate 8 articles or bylaws entitle the person to elect or appoint one or 9 more of the members of the board of directors or other governing 10 board or the ownership or beneficial holding of 5% or more of 11 the securities of the publicly traded corporation, partnership, 12 limited liability company or other form of publicly traded legal 13 entity, unless this presumption of control or ability to elect 14 is rebutted by clear and convincing evidence. For a privately 15 held domestic or foreign corporation, partnership, limited 16 liability company or other form of privately held legal entity, 17 a controlling interest is the holding of any securities in the 18 legal entity, unless this presumption of control is rebutted by 19 clear and convincing evidence. 20 * * * 21 "Corporation." Includes a publicly traded corporation. 22 * * * 23 "Gross terminal revenue." The total of cash or cash 24 equivalent wagers received by a slot machine minus the total of: 25 (1) Cash or cash equivalents paid out to patrons as a 26 result of playing a slot machine which are paid to patrons 27 either manually or paid out by the slot machine. 28 (2) Cash paid to purchase annuities to fund prizes 29 payable to patrons over a period of time as a result of 30 playing a slot machine. 20050S0862B2218 - 4 -
1 (3) Any personal property distributed to a patron as the 2 result of playing a slot machine. This does not include 3 travel expenses, food, refreshments, lodging or services. 4 The term does not include counterfeit money or tokens, coins or 5 currency of other countries which are received in slot machines, 6 except to the extent that they are readily convertible to United 7 States currency, cash taken in fraudulent acts perpetrated 8 against a slot machine licensee for which the licensee is not 9 reimbursed or cash received as entry fees for contests or 10 tournaments in which the patrons compete for prizes. 11 "Holding company." A person, other than an individual, 12 which, directly or indirectly, owns, has the power or right to 13 control or to vote any significant part of the outstanding 14 voting securities of a corporation or other form of business 15 organization. A holding company indirectly has, holds or owns 16 any such power, right or security if it does so through an 17 interest in a subsidiary or successive subsidiaries. 18 * * * 19 "Independent contractor." A person who performs 20 professional, scientific, technical, advisory or consulting 21 services to the Pennsylvania Gaming Control Board for a fee, 22 honorarium or similar compensation pursuant to a contract. 23 * * * 24 "Intermediary." A person, other than an individual, which: 25 (1) is a holding company with respect to a corporation 26 or other form of business organization, which holds or 27 applies for a license under this part; and 28 (2) is a subsidiary with respect to any holding company. 29 * * * 30 "LICENSED FACILITY." THE PHYSICAL LAND-BASED LOCATION [AND <-- 20050S0862B2218 - 5 -
1 ASSOCIATED AREAS] AT WHICH A LICENSED GAMING ENTITY IS 2 AUTHORIZED TO PLACE AND OPERATE SLOT MACHINES. 3 * * * 4 "Member." An individual appointed to and sworn in as a 5 member of the board in accordance with section 1201(b) (relating 6 to Pennsylvania Gaming Control Board established). 7 * * * 8 "Principal." An officer; director; person who directly holds 9 a beneficial interest in or ownership of the securities of an 10 applicant or licensee; person who has a controlling interest in 11 an applicant or licensee, or has the ability to elect a majority 12 of the board of directors of a licensee or to otherwise control 13 a licensee; lender or other licensed financial institution of an 14 applicant or licensee, other than a bank or lending institution 15 which makes a loan or holds a mortgage or other lien acquired in 16 the ordinary course of business; underwriter of an applicant or 17 licensee; or other person or employee of an applicant, slot 18 machine licensee, manufacturer licensee or supplier licensee 19 deemed to be a principal by the Pennsylvania Gaming Control 20 Board. 21 * * * 22 "Publicly traded corporation." A person other than an 23 individual which: 24 (1) has a class or series of securities registered under 25 the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. 26 § 78a et seq.); 27 (2) is a registered management company under the 28 Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. § 29 80a-1 et seq.); or 30 (3) is subject to the reporting obligations imposed by 20050S0862B2218 - 6 -
1 section 15(d) of the Securities Exchange Act of 1934 by 2 reason of having filed a registration statement which has 3 become effective under the Securities Act of 1933 (48 Stat. 4 74, 15 U.S.C. § 77a et seq.). 5 * * * 6 "Subsidiary." A person other than an individual. The term 7 includes: 8 (1) a corporation, any significant part of whose 9 outstanding equity securities are owned, subject to a power 10 or right of control, or held with power to vote, by a holding 11 company or an intermediary company; 12 (2) a significant interest in a person, other than an 13 individual, which is owned, subject to a power or right of 14 control, or held with power to vote, by a holding company or 15 an intermediary company; or 16 (3) a person deemed to be a subsidiary by the 17 Pennsylvania Gaming Control Board. 18 * * * 19 "Underwriter." As defined in the act of December 5, 1972 20 (P.L.1280, No.284), known as the Pennsylvania Securities Act of 21 1972. 22 Section 2. Section 1201 of Title 4 is amended to read: 23 § 1201. Pennsylvania Gaming Control Board established. 24 (a) Board established.--There is established an independent 25 [administrative] board which shall be a body corporate and 26 politic to be known as the Pennsylvania Gaming Control Board[, 27 which shall be implemented as set forth in this section]. 28 (b) Membership.--The board shall consist of the following 29 members[, who shall serve a set term and may not be removed 30 except for good cause]: 20050S0862B2218 - 7 -
1 (1) Three members appointed by the Governor.[, each 2 being referred to as a "gubernatorial appointee."] 3 (2) One member appointed by each of the following 4 [legislative caucus leaders, each being referred to as a 5 "legislative appointee"]: 6 (i) The President pro tempore of the Senate. 7 (ii) The Minority Leader of the Senate. 8 (iii) The Speaker of the House of Representatives. 9 (iv) The Minority Leader of the House of 10 Representatives. 11 (b.1) Removal.--A member of the board shall be removed from 12 office by the appointing authority: 13 (1) for misconduct in office, willful neglect of duty or 14 conduct evidencing unfitness for office or incompetence; or 15 (2) upon conviction of an offense graded as a felony, an 16 infamous crime, an offense under this part or an equivalent 17 offense under Federal law or the law of another jurisdiction. 18 (c) Initial appointments to board.-- 19 (1) Gubernatorial [appointee members] appointees 20 initially appointed under subsection (b)(1) shall serve an 21 initial term of one, two and three years respectively as 22 designated by the Governor at the time of appointment and 23 until their successors are appointed and qualified. 24 (2) Legislative [appointee members] appointees initially 25 appointed under subsection (b)(2) shall serve until the third 26 Tuesday in January 2007 and until their successors are 27 appointed and qualified. 28 (3) [Any] An appointment to fill a vacancy created by a 29 member appointed in accordance with paragraph (1) or (2) 30 shall be for the remainder of the unexpired term. [Members so 20050S0862B2218 - 8 -
1 appointed to fill the unexpired term of an initial appointee 2 shall be subject to the provisions of subsection (d).] 3 (d) [Appointments after expiration of initial term or upon 4 vacancy] Terms of office.--Upon the expiration of a term of a 5 member appointed under [this subsection or upon the existence of 6 a vacancy of a member appointed pursuant to subsection (c) or 7 this] subsection (c), [the appointing authority shall appoint a 8 member subject to the following: 9 (1) For a gubernatorial appointment under subsection 10 (b)(1), the term shall be for three years and until a 11 successor is appointed and qualified.] the following shall 12 apply: 13 (1) The term of office of a gubernatorial appointee 14 shall be three years and until a successor is appointed and 15 qualified. 16 (2) [Terms for legislative appointee members appointed 17 under subsection (b)(2) shall be for a two-year term and 18 shall expire on the third Tuesday of January of such year, 19 but such members shall continue to serve until their 20 successors are appointed and qualified.] The term of office 21 of a legislative appointee shall be two years and until a 22 successor is appointed and qualified. 23 (3) [No] A legislative appointee [member] shall serve no 24 more than three full [successive] consecutive terms. 25 (4) [No] A gubernatorial appointee [member] shall serve 26 no more than two full [successive] consecutive terms. 27 (5) An appointment to fill a vacancy shall be for the 28 remainder of the unexpired term. 29 (6) A member appointed to fill a vacancy under paragraph 30 (3) may serve three full terms following the expiration of 20050S0862B2218 - 9 -
1 the term related to the vacancy. 2 (7) A member appointed to fill a vacancy under paragraph 3 (4) may serve two full terms following the expiration of the 4 term related to the vacancy. 5 (e) Ex officio members.--The Secretary of Revenue, the 6 Secretary of Agriculture and the State Treasurer, or their 7 designees, shall serve on the board as nonvoting ex officio 8 members of the board. The designee shall be a deputy secretary 9 or an equivalent position within the agency. 10 (f) Qualified majority vote.-- 11 (1) Except as permitted in paragraphs (2) and (3), any 12 action, including, but not limited to, the approval, 13 issuance, denial or conditioning of any license by the board 14 under this part or the making of any order or the 15 ratification of any permissible act done or order made by one 16 or more of the members, shall require a qualified majority 17 vote consisting of at least one gubernatorial appointee and 18 the four legislative appointees. 19 (2) Any action to suspend or revoke, not renew, void or 20 require forfeiture of a license or permit issued under this 21 part, to impose any administrative fine or penalty under this 22 part or to issue cease and desist orders or similar 23 enforcement actions shall require a majority vote of all the 24 members appointed to the board. 25 (3) Notwithstanding any other provision [to the 26 contrary] of this part or 65 Pa.C.S. § 1103(j) (relating to 27 restricted activities), a member shall disclose the nature of 28 his disqualifying interest, disqualify himself and abstain 29 from voting in a proceeding under this part in which his [or 30 her impartiality] objectivity, impartiality, integrity or 20050S0862B2218 - 10 -
1 independence of judgment may be reasonably questioned, 2 [including, but not limited to, instances where he or she 3 knows that they possess a substantial financial interest in 4 the subject matter of the proceeding or any other interest 5 that could be substantially affected by the outcome of the 6 proceeding. In such circumstances in which it is] as provided 7 in subsection (h)(6). If a legislative appointee [member that 8 has disqualified himself or herself] has disqualified 9 himself, the qualified majority shall consist of all of the 10 remaining [three] legislative appointees and at least two 11 gubernatorial appointees. 12 (g) Background investigation.--Appointees shall be subject 13 to a background investigation conducted by the Pennsylvania 14 State Police in accordance with this part. 15 (h) Qualifications and restrictions.-- 16 (1) Each member at the time of appointment shall be at 17 least 25 years of age and shall have been a resident of this 18 Commonwealth for a period of at least one year immediately 19 preceding appointment. Each member shall continue to remain a 20 resident of this Commonwealth during the term of membership 21 on the board. 22 (2) Except for ex officio members, no person shall be 23 appointed a member of the board or [hold any place, position 24 or office under the board if that person holds any other 25 elected office or party office] be employed by or be an 26 independent contractor of the board if that person is a 27 public official or party officer as defined in section 1512 28 (relating to [public official financial interest] financial 29 and employment interests) in this Commonwealth or any of its 30 political subdivisions. 20050S0862B2218 - 11 -
1 [(3) No member, appointee, employee or official shall 2 hold any office or employment position, the duties of which 3 are incompatible with the duties of the office. 4 (4) No member, employee, appointee or official engaged 5 in the service of or in any manner connected with the board 6 shall hold any office or position, or be engaged in any 7 employment or vocation, the duties of which are incompatible 8 with employment in the service of or in connection with the 9 work of the board.] 10 (3) Each member, employee and independent contractor of 11 the board shall sign an agreement not to disclose 12 confidential information. 13 (4) No member, employee or independent contractor of the 14 board or other agency having regulatory authority over the 15 board or over forms of gaming regulated by this part shall be 16 employed, hold any office or position or be engaged in any 17 activity which is incompatible with the position, employment 18 or contract. 19 (5) No member shall be paid or [accept for any service 20 connected with the office any fee other than the salary and 21 expenses provided by law.] receive any fee or other 22 compensation other than salary and expenses provided by law 23 for any activity related to the duties or authority of the 24 board. Nothing in this part shall prohibit a member from 25 engaging in any employment [or vocation] or receiving any 26 compensation for such employment [or vocation] that is not 27 [otherwise] connected to or incompatible with his [or her] 28 service as a member of the board. 29 (6) No member, employee[, appointee or official shall 30 participate in any hearing or proceeding in which that person 20050S0862B2218 - 12 -
1 has any direct or indirect pecuniary interest.] or 2 independent contractor of the board shall participate in a 3 hearing, proceeding or other matter in which the member, 4 employee or independent contractor, or the immediate family 5 thereof, has a financial interest in the subject matter of 6 the hearing or proceeding or other interest that could be 7 substantially affected by the outcome of the hearing or 8 proceeding, without first fully disclosing the nature of the 9 interest to the board and other persons participating in the 10 hearing or proceeding. The board shall determine if the 11 interest is a disqualifying interest that requires the 12 disqualification or nonparticipation of an employee or 13 independent contractor. For purposes of this paragraph, the 14 term "immediate family" shall mean spouse, parent, brother, 15 sister or child. 16 (7) At the time of appointment and annually thereafter, 17 each member shall disclose the existence of [all ownership 18 interests in licensed facilities and all securities in any 19 licensed entity or applicant, its affiliates or subsidiaries 20 held by the member, the member's spouse and any minor or 21 unemancipated children and must divest such ownership 22 interests in licensed facilities or securities prior to an 23 appointment becoming final. A member may not acquire any 24 security in any licensed entity, its affiliates or 25 subsidiaries during the member's tenure.] any financial 26 interest in any applicant, licensed entity or licensed 27 facility and in an affiliate, intermediary, subsidiary or 28 holding company thereof held by the member or known to be 29 held by the member's immediate family. The disclosure 30 statement shall be filed with the executive director of the 20050S0862B2218 - 13 -
1 board and with the appointing authority for such member and 2 shall be open to inspection by the public at the office of 3 the board during the normal business hours of the board 4 [during the tenure of the member] for the duration of the 5 member's term and for two years after the member leaves 6 office. For purposes of this paragraph, the term "immediate 7 family" shall mean spouse, parent, brother, sister or child. 8 (7.1) Prior to being sworn as a member, an appointee and 9 his immediate family shall divest any financial interest in 10 any applicant, licensed facility or licensed entity and in an 11 affiliate, intermediary, subsidiary or holding company 12 thereof owned or held by the appointee or known to be held by 13 the appointee's immediate family. For the duration of the 14 member's term, and for one year thereafter, the member and 15 the member's immediate family may not acquire a financial 16 interest in any applicant, licensed facility or licensed 17 entity or in an affiliate, intermediary, subsidiary or 18 holding company thereof. For purposes of this paragraph, the 19 term "immediate family" shall mean spouse and any minor or 20 unemancipated child. 21 (7.2) Prior to entering into employment or a contract 22 with the board and annually thereafter, an employee or 23 independent contractor shall disclose the existence of any 24 financial interest in any applicant, licensed facility or 25 licensed entity and in an affiliate, intermediary, subsidiary 26 or holding company thereof owned or held by the employee or 27 independent contractor or known to be held by the immediate 28 family of the employee or independent contractor. The 29 disclosure statement shall be filed with the board and shall 30 be open to inspection by the public at the office of the 20050S0862B2218 - 14 -
1 board during the normal business hours of the board and for 2 two years after termination of employment or a contract with 3 the board. For purposes of this paragraph, the term 4 "immediate family" shall mean spouse, parent, brother, sister 5 or child. 6 (7.3) Prior to entering into employment or contracting 7 with the board, an employee or independent contractor and the 8 employee's or independent contractor's immediate family shall 9 divest any financial interest in any applicant, licensed 10 facility or licensed entity, and in an affiliate, 11 intermediary, subsidiary or holding company thereof, owned or 12 held by the employee or independent contractor or known to be 13 held by the immediate family of the employee or independent 14 contractor. For the duration of the employee's employment 15 with the board or the independent contractor's contract with 16 the board, and for one year thereafter, the employee or 17 independent contractor and the immediate family thereof shall 18 not acquire, by purchase, gift, exchange or otherwise, any 19 financial interest in any applicant, licensed facility or 20 licensed entity and in any affiliate, intermediary, 21 subsidiary or holding company thereof. For purposes of this 22 paragraph, the term "immediate family" shall mean spouse and 23 any minor or unemancipated child. 24 (8) [Every member, employee, appointee or official of 25 the board, in the service of or in connection with the work 26 of the board, is forbidden, directly or indirectly, to 27 solicit or request from or to suggest or recommend to any 28 applicant, licensed entity, its] No member, employee or 29 independent contractor of the board may directly or 30 indirectly solicit, request, suggest or recommend to any 20050S0862B2218 - 15 -
1 applicant, licensed entity, or an affiliate, intermediary, 2 subsidiary[,] or holding company thereof or to any [officer, 3 attorney, agent or employee] principal, employee, independent 4 contractor or agent thereof, the appointment or employment of 5 any [individual to any office, place or position in or the 6 employment of any individual] person in any capacity by the 7 applicant, licensed entity, [its] or an affiliate, 8 intermediary, subsidiary or holding company thereof for a 9 period of two years from the termination of term of office, 10 employment or contract with the board. 11 [(9) Every member, executive-level employee, appointee 12 or official appointed to office in the service of or in 13 connection with the work of the board is prohibited from 14 accepting employment with any applicant, licensed gaming 15 entity, its affiliate, intermediary, subsidiary or holding 16 company for a period of one year from the termination of 17 employment or service with the board. Every member, 18 executive-level employee, appointee or official appointed to 19 office in the service of or in connection with the work of 20 the board is prohibited from appearing before the board on 21 behalf of any applicant, licensed gaming entity, its 22 affiliate, intermediary, subsidiary or holding company or 23 other licensee or permittee of the board for a period of two 24 years after terminating employment or service with the board. 25 (10) If any person employed or appointed in the service 26 of the board violates any provision of this section, the 27 appointing authority or the board shall forthwith remove the 28 person from the office or employment and the person shall be 29 ineligible for future employment or service with the board 30 and shall be ineligible to be approved for any license or 20050S0862B2218 - 16 -
1 permit under this part for a period of two years thereafter.] 2 (9) No member may accept employment with any applicant, 3 licensed entity, or an affiliate, intermediary, subsidiary or 4 holding company thereof, for a period of two years from the 5 termination of term of office. 6 (10) No member may appear before the board on behalf of 7 any applicant, licensed entity, or an affiliate, 8 intermediary, subsidiary or holding company thereof, or any 9 other licensee or permittee for a period of two years from 10 the termination of term of office. 11 (11) No member [or], employee or independent contractor 12 of the board shall accept a complimentary service, wager or 13 be paid any prize from any wager at any licensed facility 14 within this Commonwealth or at any other facility outside 15 this Commonwealth which is owned or operated by a licensed 16 gaming entity or any of its [affiliates or subsidiaries.] 17 affiliates, intermediaries, subsidiaries or holding companies 18 thereof for the duration of their term of office, employment 19 or contract with the board, and for a period of one year from 20 the termination of term of office, employment or contract 21 with the board. The provisions of this paragraph shall not 22 apply to employees who utilize slot machines for testing 23 purposes or to verify the performance of a machine as part of 24 an enforcement investigation. 25 (12) A member [of the board] who has been convicted 26 during his term in any domestic or foreign jurisdiction of a 27 felony, infamous crime [of moral turpitude] or gambling 28 offense shall, upon conviction, be automatically removed from 29 the board and shall be ineligible to become a [board] member 30 in the future. If an ex officio member is convicted during 20050S0862B2218 - 17 -
1 his term in any domestic or foreign jurisdiction of a felony, 2 infamous crime or gambling offense, the ex officio member 3 shall, upon conviction, be automatically removed from the 4 board, and a designee shall be designated pursuant to 5 subsection (e) to serve the remainder of the ex officio 6 member's term. 7 (13) No employee of the board or individual employed by 8 an independent contractor of the board whose duties 9 substantially involve licensing, enforcement or the 10 development or adoption of regulations or policy under this 11 part shall: 12 (i) accept employment with an applicant, licensed 13 entity, or an affiliate, intermediary, subsidiary or 14 holding company thereof, for a period of one year after 15 the termination of the employment relating to the conduct 16 of gaming or contract with the board; or 17 (ii) appear before the board in any hearing or 18 proceeding or participate in any other activity on behalf 19 of any applicant, licensee, permittee, licensed entity, 20 or an affiliate, intermediary, subsidiary or holding 21 company thereof, for a period of two years after 22 termination of the employment or contract with the board. 23 (14) Upon the written request of an employee of the 24 board, the executive branch of the Commonwealth or a 25 political subdivision or of the agency or political 26 subdivision employing an employee, the State Ethics 27 Commission shall determine whether the individual's duties 28 substantially involve the development or adoption of 29 regulations or policy, licensing or enforcement, under this 30 part, and shall provide a written determination to the 20050S0862B2218 - 18 -
1 employee to include any prohibition under this paragraph. An 2 individual who relies in good faith on a determination under 3 this paragraph shall not be subject to any penalty for an 4 action taken, provided that all material facts set forth in 5 the request for a determination are correct. 6 (15) If a member, employee or independent contractor of 7 the board violates any provision of this section, the 8 appointing authority or the board may, upon notice and 9 hearing, remove the person from the board, withdraw the 10 appointment or terminate the employment or contract and the 11 person shall be ineligible for future appointment, employment 12 or contract with the board and for approval of a license or 13 permit under this part for a period of two years thereafter. 14 (h.1) Fiduciary relationship.--A member or employee of the 15 board shall serve as a fiduciary of the Commonwealth. 16 (h.2) Standard of care.--Members shall exercise the standard 17 of care required by 20 Pa.C.S. Ch. 73 (relating to 18 municipalities investments) in the performance of their duties 19 under this part. 20 (h.3) Liability.--Members shall not be personally liable for 21 any of the following: 22 (1) Obligations of the board. 23 (2) Actions which were within the scope of their office 24 and made in good faith. 25 (i) Compensation.-- 26 (1) The Executive Board as established in the act of 27 April 9, 1929 (P.L.177, No.175), known as The Administrative 28 Code of 1929, shall establish the compensation of the members 29 [appointed pursuant to this section]. 30 (2) Members shall be reimbursed for all necessary and 20050S0862B2218 - 19 -
1 actual expenses. 2 (3) Members shall be eligible for retirement under the 3 State Employees' Retirement Code and shall, if the member 4 elects to participate, be considered a State employee for the 5 purposes of 71 Pa.C.S. Pt. XXV (relating to retirement for 6 State employees and officers). 7 (j) Chairman.--The chairman of the board shall be selected 8 by the Governor. 9 (k) Appointments.--The appointing authorities shall make 10 their initial appointments within 60 days of the effective date 11 of this part. No appointment shall be final until receipt by the 12 appointing authority of the required background investigation of 13 the appointee by the Pennsylvania State Police which shall be 14 completed within 30 days. No person who has been convicted in 15 any domestic or foreign jurisdiction of a felony [or gambling], 16 infamous crime or gaming offense shall be appointed to the 17 board. 18 [(l) Disclosure statements.--Members and employees of the 19 board are subject to the provisions of 65 Pa.C.S. Ch. 11 20 (relating to ethics standards and financial disclosure) and the 21 act of July 19, 1957 (P.L.1017, No.451), known as the State 22 Adverse Interest Act.] 23 (l) Prohibition against nepotism.--No member may solicit, 24 request, suggest or recommend the employment by the board of any 25 individual related within the second degree of consanguinity to 26 the member as set forth in 23 Pa.C.S. § 1304(e) (relating to 27 restrictions on issuance of license) or the spouse of the 28 individual. 29 (m) Employment requirements.-- 30 (1) Prospective employees shall submit an application 20050S0862B2218 - 20 -
1 and a personal disclosure form to the board which shall 2 include a complete criminal history, including convictions 3 and current charges for all felonies and misdemeanors. 4 (2) Prospective employees shall be required to undergo 5 testing which detects the presence of illegal substances in 6 the body. 7 (3) The board shall obtain fingerprints and photographs 8 for each prospective employee consistent with the standards 9 adopted by the Pennsylvania State Police. 10 (4) The board shall verify the identification, 11 employment and education of each prospective employee, 12 including: 13 (i) Legal name, including any alias. 14 (ii) All educational institutions attended 15 regardless of graduation status. 16 (iii) Places of residence for the past ten years. 17 (iv) Employment history for the past 15 years. 18 (5) The board shall not hire a prospective employee if 19 the prospective employee: 20 (i) has been convicted of a crime that bears a close 21 relationship to the duties and responsibilities of the 22 position for which employment is sought; 23 (ii) has been dismissed from other employment for 24 gross misconduct; or 25 (iii) has intentionally made a false statement 26 concerning a material fact in connection with the 27 application to the board. 28 (6) The board shall not employ a person unless the 29 requirements of paragraphs (1), (2), (3) and (4) have been 30 met. This paragraph shall apply only to persons employed 20050S0862B2218 - 21 -
1 after the effective date of this subsection. 2 (7) The board shall: 3 (i) Immediately refer any criminal matter involving 4 an employee to law enforcement. 5 (ii) Develop a disciplinary process for an employee 6 charged with a crime or with gross misconduct. 7 (iii) Immediately suspend from employment any 8 employee charged with a felony. 9 (iv) Develop a process to discipline all other 10 instances of misconduct. 11 (8) Disciplinary action shall be instituted promptly 12 against an employee who, while on or off duty, engages in 13 serious misconduct which may bring the board into disrepute. 14 (n) Definitions.--As used in this section, the following 15 words and phrases shall have the meanings given to them in this 16 subsection: 17 "Financial interest." An ownership, property, leasehold or 18 other beneficial interest in an entity. The term shall not 19 include an interest which is held or deemed to be held in any of 20 the following: 21 (1) Securities that are held in a pension plan, profit- 22 sharing plan, individual retirement account, tax sheltered 23 annuity, a plan established pursuant to section 457 of the 24 Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 25 1 et seq.), or any successor provision, deferred compensation 26 plan whether qualified or not qualified under the Internal 27 Revenue Code of 1986, or any successor provision, or other 28 retirement plan that: 29 (i) is not self-directed by the individual; and 30 (ii) is advised by an independent investment adviser 20050S0862B2218 - 22 -
1 who has sole authority to make investment decisions with 2 respect to contributions made by the individual to these 3 plans. 4 (2) A tuition account plan organized and operated 5 pursuant to section 529 of the Internal Revenue Code of 1986 6 (Public Law 99-514, 26 U.S.C. § 529) that is not self- 7 directed by the individual. 8 (3) A mutual fund where the interest owned by the mutual 9 fund in a licensed entity does not constitute a controlling 10 interest as defined in this part. 11 "Ownership interest." Owning or holding or being deemed to 12 hold, debt or equity securities or other ownership interest or 13 profit interest. 14 Section 3. Title 4 is amended by adding a section to read: 15 § 1201.1. Applicability of other statutes. 16 (a) General rule.--The following acts shall apply to the 17 board: 18 (1) The act of June 21, 1957 (P.L.390, No.212), referred 19 to as the Right-to-Know Law. 20 (2) The act of July 19, 1957 (P.L.1017, No.451), known 21 as the State Adverse Interest Act. 22 (3) The provisions of 65 Pa.C.S. Chs. 7 (relating to 23 open meetings) and 11 (relating to ethics standards and 24 financial disclosure). 25 (b) Status of board.-- 26 (1) The board shall be considered an independent agency 27 for the purposes of the following: 28 (i) 62 Pa.C.S. Pt. I (relating to Commonwealth 29 Procurement Code). The expediting of the payment of 30 revenue to the Commonwealth shall not be grounds for an 20050S0862B2218 - 23 -
1 emergency procurement by the board. 2 (ii) The act of October 15, 1980 (P.L.950, No.164), 3 known as the Commonwealth Attorneys Act. 4 (2) The board shall be considered an agency for the 5 purposes of the following: 6 (i) The act of July 31, 1968 (P.L.769, No.240), 7 referred to as the Commonwealth Documents Law. 8 (ii) The act of June 25, 1982 (P.L.633, No.181), 9 known as the Regulatory Review Act. 10 Section 4. Section 1202 of Title 4 is amended to read: 11 § 1202. General and specific powers. 12 (a) General powers.-- 13 (1) The board shall have general [jurisdiction] and sole 14 regulatory authority over [all gaming activities] the conduct 15 of gaming or related activities as described in this part. 16 The board shall [be responsible to] ensure the integrity of 17 the acquisition and operation of slot machines and associated 18 equipment and shall have [jurisdiction] sole regulatory 19 authority over every aspect of the authorization and 20 operation of slot machines. 21 (2) The board shall employ [an executive director, chief 22 counsel, deputies, secretaries, officers, hearing officers 23 and agents as it may deem necessary] individuals as necessary 24 to carry out the powers and duties of the board, who shall 25 serve at the board's pleasure. [The board shall also employ 26 other employees as it deems appropriate whose duties shall be 27 determined by the board. In order to ensure the ability of 28 the board to recruit and retain individuals necessary to 29 execute its responsibilities under this part, the board shall 30 set the] An employee of the board shall be considered a State 20050S0862B2218 - 24 -
1 employee for purposes of 71 Pa.C.S. Pt. XXV (relating to 2 retirement for State employees and officers). For the 3 purposes of this paragraph, the board shall not be considered 4 an executive or independent agency under the act of October 5 15, 1980 (P.L.950, No.164), known as the Commonwealth 6 Attorneys Act. 7 (3) In addition to employees authorized by the board, 8 each member may employ one special assistant whose 9 classification and compensation shall be established by the 10 board. A special assistant shall be a State employee for 11 purposes of 71 Pa.C.S. Pt. XXV, shall serve at the pleasure 12 of the member and may only be removed by the board for cause. 13 (4) The board shall establish a system of classification 14 and compensation of its employees and shall not be subject to 15 the provisions of the act of April 9, 1929 (P.L.177, No.175), 16 known as The Administrative Code of 1929, as to 17 classification and compensation for its employees and conduct 18 its activities consistent with the practices and procedures 19 of Commonwealth agencies. [For the purposes of the act of 20 October 15, 1980 (P.L.950, No.164), known as the Commonwealth 21 Attorneys Act, the board shall not be considered an executive 22 or independent agency. The board shall have such other powers 23 and authority necessary to carry out its duties and the 24 objectives of this part.] 25 (5) Within 90 days of the effective date of this 26 paragraph, the board shall publish in the Pennsylvania 27 Bulletin, and on its Internet website, the classification 28 system for all employees of the board. 29 (6) A request for proposal to conduct investigations of 30 employees and applicants under this part shall include a 20050S0862B2218 - 25 -
1 requirement that an offeror provide the number of employees 2 of the offeror who will be engaged in the conduct of 3 investigations and who are residents of this Commonwealth and 4 annuitants of a Federal, State or local law enforcement 5 agency. Preference shall be given to an offeror with a 6 substantial number of employees who will be engaged in the 7 conduct of investigations and who are residents of this 8 Commonwealth and annuitants of a Federal, State or local law 9 enforcement agency. 10 (b) Specific powers.--The board shall have the specific 11 power and duty: 12 (1) To adopt, use and alter a corporate seal. 13 (2) To pay or satisfy obligations of the board. 14 (3) To sue or be sued, implead and be impleaded, or 15 interplead. 16 (4) To contract and execute instruments as necessary to 17 carry out the powers and duties of the board. Contracts for 18 the purchase of supplies, services and construction shall be 19 for a term not to exceed two years. 20 (5) To sell, transfer, convey and dispose of tangible or 21 intangible property owned by the board. 22 (6) To establish, charge and collect fees and fines as 23 authorized by this part. 24 (7) To administer oaths, examine witnesses and issue 25 subpoenas compelling the attendance of witnesses or the 26 production of documents and records or other evidence. The 27 provisions of this paragraph shall apply to designated 28 officers and employees. 29 (8) To purchase insurance against a loss related to the 30 board's property or assets. 20050S0862B2218 - 26 -
1 (8.1) Retain attorneys, accountants, auditors and 2 financial and other experts, to render services as necessary. 3 For the purposes of this paragraph, the board shall be 4 considered an independent agency for purposes of the 5 Commonwealth Attorneys Act. 6 (9) To require background investigations on [prospective 7 or existing] applicants, licensees, principals, key employees 8 or permittees [or persons holding a controlling interest in 9 any prospective or existing licensee or permittee] under the 10 jurisdiction of the board. 11 [(2)] (10) To enter into an agreement with the 12 Pennsylvania State Police for the reimbursement of actual 13 costs as approved by the board to the Pennsylvania State 14 Police for the investigations. Investigations shall include 15 information in the possession of the Attorney General. 16 [(3)] (11) For purposes of licensing and enforcement and 17 for purposes of the background investigation, [the board may] 18 to receive information otherwise protected by 18 Pa.C.S. Ch. 19 91 (relating to criminal history record information). 20 [(4)] (12) At its discretion, to issue, approve, renew, 21 revoke, suspend, condition or deny issuance or renewal of 22 slot machine licenses. 23 [(5)] (13) At its discretion, to issue, approve, renew, 24 revoke, suspend, condition or deny issuance or renewal of 25 supplier and manufacturer licenses. 26 [(6)] (14) At its discretion, to issue, approve, renew, 27 revoke, suspend, condition or deny issuance or renewal of 28 [occupation permits] a license or permit for various classes 29 of employees as required under this part. 30 [(7)] (15) At its discretion, to issue, approve, renew, 20050S0862B2218 - 27 -
1 revoke, suspend, condition or deny issuance or renewal of any 2 additional licenses or permits which may be required by the 3 board under this part. [or by regulation, including, but not 4 limited to, violations of sections 1328 (relating to change 5 in ownership or control of slot machine licensee) and 1330 6 (relating to multiple slot machine license prohibition).] 7 [(8)] (16) At its discretion, to suspend, condition or 8 deny the issuance or renewal of any license or permit or levy 9 fines or other sanctions for any violation of this part. 10 [(9)] (17) To require prospective and existing 11 employees, independent contractors, applicants [for licenses 12 and permits], licensees and permittees to submit to 13 fingerprinting by the Pennsylvania State Police. The 14 Pennsylvania State Police shall submit the fingerprints to 15 the Federal Bureau of Investigation for purposes of verifying 16 the identity of the [applicants] individual and obtaining 17 records of criminal arrests and convictions. 18 [10] (18) To require prospective and existing employees, 19 independent contractors, applicants, licensees and permittees 20 to submit photographs consistent with the standards of the 21 Commonwealth Photo Imaging Network. 22 (19) To levy fines or other sanctions against an 23 applicant, licensed entity or other licensee, permittee or 24 employee of the board who possesses, uses, sells or offers 25 for sale any device, equipment or material subject to this 26 part in a manner which constitutes a violation of this part. 27 (20) In addition to the power of the board regarding 28 license and permit applicants, to determine at its discretion 29 the suitability of any person who furnishes or seeks to 30 furnish to a slot machine licensee directly or indirectly any 20050S0862B2218 - 28 -
1 services or property related to slot machines or associated 2 equipment or through any arrangements under which that person 3 receives payment based directly or indirectly on earnings, 4 profits or receipts from the slot machines and associated 5 equipment. The board may require any such person to comply 6 with the requirements of this part and the regulations of the 7 board and may prohibit the person from furnishing the 8 services or property. 9 [(11) As a board and through its designated officers, 10 employees or agents, to administer oaths, examine witnesses 11 and issue subpoenas to compel attendance of witnesses and 12 production of all relevant and material reports, books, 13 papers, documents and other evidence. 14 (12)] (21) Within six months after the effective date of 15 this part, in a manner that does not impede the immediate 16 implementation of the duties and responsibilities of the 17 board under this part during the immediate two years after 18 the effective date of this part, to develop and implement an 19 affirmative action plan to assure that all persons are 20 accorded equality of opportunity in employment and 21 contracting by the board, its contractors, subcontractors, 22 assignees, lessees, agents, vendors and suppliers. 23 [(13)] (22) Except for contracts related to the central 24 control computer [and such other contracts as the board, in 25 consultation with the Secretary of General Services, 26 determines would result in substantial savings to the board 27 if entered into for a longer period than provided in this 28 paragraph], all contracts entered into by the board during 29 the two-year period following the effective date of this part 30 shall not exceed a term of two years. 20050S0862B2218 - 29 -
1 [(14) To promulgate rules and regulations the board 2 deems necessary to carry out the policy and purposes of this 3 part and to enhance the credibility and the integrity of the 4 licensed operation of slot machines and associated equipment 5 in this Commonwealth. 6 (15)] (23) The board shall not issue or renew a license 7 or permit unless it is satisfied that the applicant is a 8 person of good character, honesty and integrity and is a 9 person whose prior activities, criminal record, if any, 10 reputation, habits and associations do not pose a threat to 11 the public interest or the effective regulation and control 12 of slot machine operations or create or enhance the danger of 13 unsuitable, unfair or illegal practices, methods and 14 activities in the conduct of slot machine operations or the 15 carrying on of the business and financial arrangements 16 incidental thereto. 17 [(16)] (24) Notwithstanding any other provision of law, 18 [the board is authorized] to sell, in whole or in part, the 19 Commonwealth's right, title and interest in State gaming 20 receipts to [an] the authority [created by the Commonwealth]. 21 The sale shall be subject to the terms and conditions 22 contained in agreements between the board and the authority. 23 Proceeds from the sale of State gaming receipts shall be 24 allocated and used in the manner otherwise provided by this 25 part for the distribution of State gaming receipts. The 26 authority [created by the Commonwealth] is authorized to 27 purchase State gaming receipts upon terms and conditions 28 agreed to by the board and to issue bonds to fund the 29 purchase of State gaming receipts in the manner provided for 30 the issuance of authority indebtedness in the law 20050S0862B2218 - 30 -
1 establishing the authority. The State Treasurer is authorized 2 and directed to enter into any agreements with the board and 3 the authority and establish accounts and funds, that shall 4 not be in the State Treasury, as the authority may direct as 5 being necessary or appropriate to effect the sale of State 6 gaming receipts to the authority and the collection and 7 transfer of the State gaming receipts sold to the authority. 8 State gaming receipts sold to the authority shall be the 9 property of the authority and shall not be the property of 10 the Commonwealth. 11 [(17)] (25) To [create a Bureau of Investigations and 12 Enforcement within the board. The board shall] promulgate 13 regulations pertaining to the operation of the bureau [which 14 shall] to insure separation of functions between the bureau 15 and the board. The board shall provide the employees 16 necessary to the bureau for enforcement of this part. 17 [(18)] (26) To enter into an agreement with the district 18 attorneys of the counties wherein licensed facilities are 19 located and the Office of Attorney General for the 20 reimbursement of actual costs for prosecutions of criminal 21 violations [of this part.] and for investigating a person 22 applying for a determination that an individual has been 23 rehabilitated under this part. 24 (27) To publish each January in the Pennsylvania 25 Bulletin and on the board's Internet website a complete list 26 of all persons or entities who applied for or held a slot 27 machine license, manufacturer license, supplier license or 28 racetrack license at any time during the preceding calendar 29 year and all affiliates, intermediaries, subsidiaries and 30 holding companies thereof and the status of the application 20050S0862B2218 - 31 -
1 or license. 2 (28) To prepare and, through the Governor, submit 3 annually to the General Assembly an itemized budget 4 consistent with Article VI of the act of April 9, 1929 5 (P.L.177, No.175), known as The Administrative Code of 1929, 6 consisting of the amounts necessary to be appropriated by the 7 General Assembly out of the accounts established under 8 section 1401 (relating to slot machine licensee deposits) 9 required to meet the obligations accruing during the fiscal 10 period beginning July 1 of the following year. The budget 11 shall include itemized recommendations for the Attorney 12 General, the department and the Pennsylvania State Police as 13 to the amount needed to meet their obligations under this 14 part. 15 (29) In the event that in any year, appropriations for 16 the administration of this part are not enacted by June 30, 17 any funds appropriated for the administration of this part 18 which are unexpended, uncommitted, and unencumbered at the 19 end of a fiscal year shall remain available for expenditure 20 by the board or other agency to which they were appropriated 21 until the enactment of appropriation for the ensuing fiscal 22 year. 23 (30) To promulgate rules and regulations necessary for 24 the administration and enforcement of this part, including 25 regulations in cooperation with the Pennsylvania Liquor 26 Control Board, regulations relating to the sale and service 27 of liquor and malt and brewed beverages by licensees. Except 28 as provided in section 1203 (relating to temporary 29 regulations), regulations shall be adopted pursuant to the 30 act of July 31, 1968 (P.L.769, No.240), referred to as the 20050S0862B2218 - 32 -
1 Commonwealth Documents Law, and the act of June 25, 1982 2 (P.L.633, No.181), known as the Regulatory Review Act. 3 Section 5. Title 4 is amended by adding a section to read: 4 § 1202.1. Code of conduct. 5 (a) Scope.--The board shall adopt a comprehensive code of 6 conduct prior to the consideration of any license, permit or 7 registration application. The code of conduct shall supplement 8 all other requirements under this part and 65 Pa.C.S. Pt. II 9 (relating to accountability) and shall provide guidelines 10 applicable to members, employees, independent contractors of the 11 board, and the immediate families of the members, employees and 12 independent contractors, to enable them to avoid any perceived 13 or actual conflict of interest and to promote public confidence 14 in the integrity and impartiality of the board. At a minimum, 15 the code of conduct adopted under this section shall include 16 registration under subsection (b) and the restrictions in 17 subsection (c). 18 (b) Registration.-- 19 (1) A licensed entity representative shall register with 20 the board in a manner prescribed by the board, which shall 21 include the name, employer or firm, address, telephone number 22 and the licensed entity being represented. 23 (2) A licensed entity representative shall have an 24 ongoing duty to update its registration information on an 25 ongoing basis. 26 (3) The registration list shall be available for public 27 inspection at the offices of the board and on the board's 28 Internet website. 29 (c) Restrictions.--A member of the board shall: 30 (1) Not engage in any ex parte communication with any 20050S0862B2218 - 33 -
1 person. 2 (2) Not accept any discount, gift, gratuity, 3 compensation, travel, lodging or other thing of value, 4 directly or indirectly, from any applicant, licensee, 5 permittee, registrant or licensed entity representative 6 thereof. 7 (3) Disclose and disqualify himself from any proceeding 8 in which the member's objectivity, impartiality, integrity or 9 independence of judgment may be reasonably questioned due to 10 the member's relationship or association with a party 11 connected to any proceeding or a person appearing before the 12 board. 13 (4) Refrain from any financial or business dealing which 14 would tend to reflect adversely on the member's objectivity, 15 impartiality or independence of judgment. 16 (5) Not hold or campaign for public office, hold an 17 office in any political party or political committee, 18 contribute to or solicit contributions to a political 19 campaign, party, committee or candidate, publicly endorse a 20 candidate or actively participate in a political campaign. 21 (6) Not solicit funds for any charitable, educational, 22 religious, health, fraternal, civic or other nonprofit entity 23 from an applicant, licensed entity or affiliate, subsidiary, 24 intermediary or holding company of a licensed entity, 25 interested party or licensed entity representative. A board 26 member may serve as an officer, employee or member of the 27 governing body of a nonprofit entity and may attend, make 28 personal contributions to and plan or preside over the 29 entity's fundraising events. A board member may permit his 30 name to appear on the letterhead used for fundraising events 20050S0862B2218 - 34 -
1 if the letterhead contains only the board member's name and 2 position with the nonprofit entity. 3 (7) Not meet or engage in discussions with any 4 applicant, person licensed under this part, or a licensed 5 entity representative unless the meeting or discussion occurs 6 on the business premises of the board and is recorded in a 7 log maintained for this purpose. The log shall be available 8 for public inspection during the regular business hours of 9 the board. The provisions of this paragraph shall not apply 10 to meetings of the board to consider matters requiring the 11 physical inspection of the equipment or premises of an 12 applicant or a licensed entity at their location. 13 (8) Avoid impropriety and the appearance of impropriety 14 at all times and observe standards and conduct that promote 15 public confidence in the oversight of gaming. 16 (9) Comply with any other laws, rules or regulations 17 relating to the conduct of a member. 18 (d) Ex officio members.--The restrictions under subsection 19 (c)(5) shall not apply to ex officio members. 20 (e) Definitions.--As used in this section, the following 21 words and phrases shall have the meanings given to them in this 22 subsection: 23 "Ex parte communication." An off-the-record communication by 24 a member or employee of the board regarding the merits of or any 25 fact in issue relating to a pending matter before the board or 26 which may reasonably be expected to come before the board in a 27 contested on-the-record proceeding. The term shall not include 28 off-the-record communications by or between a member or employee 29 of the board, Department of Revenue, Pennsylvania State Police, 30 Attorney General or other law enforcement official prior to the 20050S0862B2218 - 35 -
1 beginning of the proceeding solely for the purpose of seeking 2 clarification or correction to evidentiary materials intended 3 for use in the proceedings. 4 "Licensed entity representative." A person acting on behalf 5 of or representing the interest of any applicant, licensee, 6 permittee or registrant, including an attorney, agent or 7 lobbyist regarding any matter which may reasonably be expected 8 to come before the board. 9 Section 6. Sections 1203, 1204, 1205, 1206(a), (b), (c), (d) 10 and (f), 1207(6), 1208(1), 1209(a), 1210, 1211, 1213, 1304, 11 1305, 1306, 1309(a)(1) and 1311 of Title 4 are amended to read: 12 § 1203. Temporary regulations. 13 (a) Promulgation.--[Notwithstanding any other provision of 14 law to the contrary and in] In order to facilitate the prompt 15 implementation of this part, regulations promulgated by the 16 board [during the two years following the effective date of this 17 part] shall be deemed temporary regulations which shall expire 18 no later than three years following the effective date of this 19 part [or upon promulgation of regulations as generally provided 20 by law. The temporary regulations shall not be]. The board may 21 promulgate temporary regulations not subject to: 22 (1) Sections 201 [through 205], 202 and 203 of the act 23 of July 31, 1968 (P.L.769, No.240), referred to as the 24 Commonwealth Documents Law. 25 (2) The act of June 25, 1982 (P.L.633, No.181), known as 26 the Regulatory Review Act. 27 (b) Expiration.--The authority provided to the board to 28 adopt temporary regulations in subsection (a) shall expire [two 29 years from the effective date of this section] April 15, 2007. 30 Regulations adopted after [the two-year] this period shall be 20050S0862B2218 - 36 -
1 promulgated as provided by law. 2 § 1204. Licensed gaming entity application appeals from board. 3 The Supreme Court of Pennsylvania shall be vested with 4 exclusive appellate jurisdiction to consider appeals of any 5 final order, determination or decision of the board involving 6 the approval, issuance, denial or conditioning of [all licensed 7 entity applications] a slot machine license. Notwithstanding the 8 provisions of 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial 9 review of Commonwealth agency action) and 42 Pa.C.S. § 763 10 (relating to direct appeals from government agencies), the 11 Supreme Court shall affirm all final orders, determinations or 12 decisions of the board involving the approval, issuance, denial 13 or conditioning of [all licensed entity applications] a slot 14 machine license unless it shall find that the board committed an 15 error of law or that the order, determination or decision of the 16 board was arbitrary and there was a capricious disregard of the 17 evidence. 18 § 1205. License or permit application hearing process[.]; 19 public input hearings. 20 (a) General rule.--The board's consideration and resolution 21 of all license or permit applications shall be conducted in 22 accordance with 2 Pa.C.S. (relating to administrative law and 23 procedure) or with procedures adopted by order of the board. 24 Notwithstanding the [mandates] requirements of 2 Pa.C.S. §§ 504 25 (relating to hearing and record) and 505 (relating to evidence 26 and cross-examination)[, said procedures adopted by order of the 27 board shall] as they relate to the conduct of oral hearings, the 28 board may adopt procedures to provide parties before it with a 29 documentary hearing, [but] and the board may[, at its 30 discretion,] resolve disputed material facts without conducting 20050S0862B2218 - 37 -
1 an oral hearing where constitutionally permissible. 2 (b) Public input hearing requirement.-- 3 (1) Prior to licensing a facility under this part, the 4 board shall hold at least one public input hearing on the 5 matter. 6 (2) All public input hearings relating to an application 7 for a slot machine license shall be held in the municipality 8 where the facility will be located and shall be organized in 9 cooperation with the municipality. 10 (3) A list of all witnesses scheduled to testify at a 11 public input hearing shall be made public at least seven days 12 prior to the hearing. The list shall be updated at least 13 three days prior to the hearing. Additional witnesses shall 14 be posted on the board's Internet website as they are added 15 to the list. 16 § 1206. Board minutes and records. 17 [(a) Open proceedings and records.--The proceedings of the 18 board shall be conducted in accordance with the provisions of 65 19 Pa.C.S. Ch. 7 (relating to open meetings). The board shall be an 20 agency for purposes of the act of June 21, 1957 (P.L.390, 21 No.212), referred to as the Right-to-Know Law. Notwithstanding 22 any provision of law to the contrary, confidential documents 23 relative to personal background information provided to the 24 board pursuant to this part and any closed deliberations of the 25 board, including disciplinary proceedings, shall be confidential 26 and considered in closed executive session pursuant to 27 subsection (f).] 28 (b) Record of proceedings.--The board shall cause to be made 29 and kept a record of all proceedings held at public meetings of 30 the board. [A] The verbatim transcript of those proceedings 20050S0862B2218 - 38 -
1 shall be the property of the board and shall be prepared by the 2 board upon the request of any board member or upon the request 3 of any other person and the payment by that person of the costs 4 of preparation. 5 [(c) Information delivered to Governor and General 6 Assembly.--A true copy of the minutes of every meeting of the 7 board and of any regulations finally adopted by the board may be 8 forthwith delivered, by and under the certification of the 9 executive director, to the Governor, the Secretary of the Senate 10 and the Chief Clerk of the House of Representatives.] 11 (d) Applicant information.-- 12 (1) The board shall [keep and] maintain a list of all 13 applicants for licenses and permits. [under this part 14 together with] The list shall include a record of all actions 15 taken with respect to [the applicants, which file and record] 16 each applicant. The list shall be open to public inspection 17 during the normal business hours of the board. 18 (2) Information under paragraph (1) regarding any 19 applicant whose license or permit has been denied, revoked or 20 not renewed shall be removed from such list after seven years 21 from the date of the action. 22 * * * 23 (f) Confidentiality of information.--All information 24 [contained in the application process] submitted by an applicant 25 pursuant to section 1310(a) (relating to slot machine license 26 application character requirements) [and the report of an 27 applicant's background investigation furnished to] or obtained 28 by the board or the bureau as part of a background investigation 29 from any source shall be considered confidential [and]. Except 30 as provided in section 1517(f) (relating to investigation and 20050S0862B2218 - 39 -
1 enforcement), the information shall be withheld from public 2 disclosure in whole or in part, except that any information 3 shall be released upon the lawful order of a court of competent 4 jurisdiction or, with the approval of the Attorney General, to a 5 duly authorized law enforcement agency or shall be released to 6 the public, in whole or in part, to the extent that such release 7 is requested by an applicant and does not otherwise contain 8 confidential information about another person. The board may not 9 require any applicant to waive any confidentiality provided for 10 in this subsection as a condition for the approval of a license 11 or any other action of the board. Any person who violates this 12 subsection shall be administratively disciplined by discharge, 13 suspension or other formal disciplinary action as the board 14 deems appropriate. 15 * * * 16 § 1207. Regulatory authority of board. 17 The board shall have the power and its duties shall be to: 18 * * * 19 (6) Prescribe criteria and conditions for the operation 20 of slot machine progressive systems. A wide area progressive 21 slot system shall be collectively administered by 22 participating slot machine licensees in accordance with the 23 terms of a written agreement executed by each participating 24 slot machine licensee and 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 20050S0862B2218 - 40 -
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 20050S0862B2218 - 41 -
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. No fee shall be imposed by the board for a Category 4 1 license if the applicant has paid a $50,000,000 fee for a 5 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 20050S0862B2218 - 42 -
1 economic indicators it deems applicable in making its decision. 2 (c) Limitation.--For the two and one-half years following 3 the beginning of slot machine operations at the licensed 4 facility, no licensed gaming entity may make available for play 5 by its patrons at its licensed facility more than 50% of slot 6 machines from the same manufacturer or its affiliate, 7 intermediary, subsidiary or holding company. The provisions of 8 this subsection shall not apply to machines purchased pursuant 9 to a contract or order executed by a conditional Category 1 or 10 Category 1 slot machine licensee prior to October 20, 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 20050S0862B2218 - 43 -
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 20050S0862B2218 - 44 -
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 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 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 20050S0862B2218 - 45 -
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 20050S0862B2218 - 46 -
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. 20050S0862B2218 - 47 -
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 20050S0862B2218 - 48 -
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 license 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 20050S0862B2218 - 49 -
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 20050S0862B2218 - 50 -
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 "Patron of the amenities." Any individual who is a 8 registered attendee of a convention, meeting or banquet event or 9 a participant in a sport or recreational event or any other 10 social, cultural or business event held at a resort hotel or who 11 participates in one or more of the amenities provided to 12 registered guests of the resort hotel. 13 § 1306. Order of initial license issuance. 14 In order to facilitate the timely and orderly deployment of 15 licensed gaming operations in this Commonwealth, the board shall 16 adopt a schedule by which applicants for slot machine, 17 manufacturer and supplier licenses shall be filed, considered 18 and resolved in accordance with the provisions of this part. In 19 so doing, the board shall consider, approve, condition or deny 20 the approval of all filed applications for manufacturer and 21 supplier licenses as soon as administratively possible and at 22 least three months prior to the board's approval, conditioning 23 or denial of the approval of any Category 1 license application 24 pursuant to section 1315 (relating to conditional Category 1 25 licenses) or any other category of slot machine license pursuant 26 to section 1301 (relating to authorized slot machine licenses). 27 The board shall ensure that an adequate number of suppliers have 28 been licensed pursuant to section 1301 to meet market demand. 29 The board shall approve, approve with condition or deny all 30 initial applications for conditional Category 1 licenses under 20050S0862B2218 - 51 -
1 section 1315 (relating to conditional Category 1 licenses) prior 2 to considering applications for Category 1, Category 2 or 3 Category 3 slot machine licenses. 4 § 1309. Slot machine license application. 5 (a) General requirements.--In addition to any other 6 information required under this part or as may be required by 7 the board, the application for any category of slot machine 8 license shall include at a minimum: 9 (1) The name, address[,] and photograph [and handwriting 10 exemplar] of the applicant and of all directors and owners 11 and key employees and their positions within the corporation 12 or organization, as well as any additional financial 13 information required by the board. 14 * * * 15 § 1311. [Slot machine license application business entity 16 requirements. 17 (a) Key employee requirement qualification.--No corporation 18 or any other legal business entity shall be eligible to hold a 19 slot machine license unless the following would individually be 20 qualified for licensure as a key employee: each officer; each 21 director; each person who directly or indirectly holds any 22 beneficial interest or ownership of the securities in the 23 entity; each person who in the opinion of the board has the 24 ability to control the entity, has a controlling interest or 25 elects a majority of the board of directors of that corporation 26 or business entity, other than a banking or other licensed 27 lending institution which makes a loan or holds a mortgage or 28 other lien acquired in the ordinary course of business; each key 29 employee; each lender, other than a banking or other licensed 30 lending institution which makes a loan or holds a mortgage or 20050S0862B2218 - 52 -
1 other lien acquired in the ordinary course of business; each 2 underwriter; each agent; each employee of the corporation or 3 entity and each other person whom the board may consider 4 appropriate for approval or qualification. The board may waive 5 compliance with the provisions of this subsection on the part of 6 a publicly traded corporation as to a person directly or 7 indirectly holding ownership of securities of such corporation 8 where the board is satisfied that the security holder is not 9 significantly involved in the activities of the corporation and 10 does not have the ability to control the corporation or elect 11 one or more directors thereof. 12 (b) Slot machine license qualification requirement.--No 13 corporation or any other legal business entity or other form of 14 business organization which is a subsidiary shall be eligible to 15 receive or hold a slot machine license unless each holding and 16 intermediary company with respect thereto: 17 (1) if it is a corporation or other legal business 18 entity, shall comply with the provisions of subsection (a) as 19 if said holding or intermediary company were itself applying 20 for a slot machine license. The board may waive compliance 21 with the provisions of subsection (a) on the part of a 22 publicly traded corporation which is a holding company as to 23 any officer, director, lender, underwriter, agent or employee 24 thereof, or person directly or indirectly holding a 25 beneficial interest or ownership of the securities of such 26 corporation, where the board is satisfied that such officer, 27 director, lender, underwriter, agent or employee is not 28 significantly involved in the activities of the corporate 29 licensee and in the case of the security holder does not have 30 the ability to control or possess a controlling interest in 20050S0862B2218 - 53 -
1 the holding company or elect one or more directors thereof; 2 or 3 (2) if it is not a corporation, shall comply with the 4 provisions of subsection (c) as if said company were itself 5 applying for a slot machine license. The board may waive 6 compliance with the provisions of subsection (c) on the part 7 of a noncorporate business organization which is a holding 8 company as to any person who directly or indirectly holds any 9 beneficial interest or ownership in such company when the 10 board is satisfied that such person does not have the ability 11 to control the company. 12 (c) Noncorporate applicant requirement.--Any noncorporate 13 applicant for a slot machine license shall provide the 14 information required in this section in such form as may be 15 required by the board. No such applicant shall be eligible to 16 hold a slot machine license unless each person who directly or 17 indirectly holds any beneficial interest or ownership in the 18 applicant, or has the ability to control the applicant or whom 19 the board may consider appropriate for approval or 20 qualification, would individually be qualified for approval as a 21 key employee pursuant to the provisions of this part.] 22 Additional slot machine license requirements. 23 (a) Additional eligibility requirements.--In order to be 24 eligible for a slot machine license under this part, the 25 principals and key employees of the applicant shall obtain a 26 license to meet the character requirements of section 1310 27 (relating to slot machine license application character 28 requirements) or other eligibility requirements established by 29 the board. 30 (b) Classification system.--The board shall develop a 20050S0862B2218 - 54 -
1 classification system for other agents, employees or persons who 2 directly or indirectly hold or are deemed to be holding debt or 3 equity securities or other financial interest in the applicant, 4 and other persons which the board considers appropriate for 5 review under section 1310. 6 (c) Related entities.-- 7 (1) Except as provided in paragraph (2), no person shall 8 be eligible to receive a slot machine license unless the 9 principals and key employees of each intermediary, subsidiary 10 or holding company of the person meet the requirements of 11 subsection (a). 12 (2) The board may require that lenders and underwriters 13 of intermediaries, subsidiaries or holding companies of a 14 slot machine license applicant meet the requirements of 15 subsection (a) if the board determines that the suitability 16 of a lender or underwriter is at issue and is necessary to 17 consider a pending application for a slot machine license. 18 (d) Revocable privilege.--The issuance or renewal of a 19 license, permit or other authorization by the board under this 20 section shall be a revocable privilege. 21 (e) Waiver for publicly traded corporations.--The board may 22 waive the requirements of subsection (a) for a person directly 23 or indirectly holding ownership of securities in a publicly 24 traded corporation if the board determines that the holder of 25 the securities is not significantly involved in the activities 26 of the corporation and does not have the ability to control the 27 corporation or elect one or more directors thereof. 28 (f) Waiver for subsidiaries.--If the applicant is a 29 subsidiary, the board may waive the requirements of subsection 30 (a) for a holding company or intermediary as follows: 20050S0862B2218 - 55 -
1 (1) If the applicant is a publicly traded corporation, 2 the board may issue a waiver under this subsection if it 3 determines that the principal or key employee does not have 4 the ability to control, have a controlling interest in or 5 elect one or more directors of the holding company or 6 intermediary and is not actively involved in the activities 7 of the applicant. 8 (2) If the applicant is a noncorporate organization, the 9 board may issue a waiver under this subsection for a person 10 who directly or indirectly holds a beneficial or ownership 11 interest in the applicant if it determines that the person 12 does not have the ability to control the applicant. 13 (g) Ongoing duty.--A person applying for a license, permit 14 or other authorization under this part shall have the continuing 15 duty to provide information required by the board or the bureau 16 and to cooperate in any inquiry or investigation. 17 (h) Criminal history record check.--The board shall conduct 18 a criminal history record check on any person for whom a waiver 19 is granted under this section. 20 Section 7. Title 4 is amended by adding sections to read: 21 § 1311.1. Licensing of principals. 22 (a) License required.--All principals shall obtain a 23 principal license from the board. 24 (b) Application.--A principal license application shall be 25 in a form prescribed by the board and shall include the 26 following: 27 (1) Verification of status as a principal from a slot 28 machine licensee, manufacturer licensee or supplier licensee. 29 (2) A description of responsibilities as a principal. 30 (3) All releases necessary to obtain information from 20050S0862B2218 - 56 -
1 governmental agencies, employers and other organizations. 2 (4) Fingerprints, which shall be submitted to the 3 Pennsylvania State Police. 4 (5) A photograph that meets the standards of the 5 Commonwealth Photo Imaging Network. 6 (6) Details relating to a similar license, permit or 7 other authorization obtained in another jurisdiction. 8 (7) Any additional information required by the board. 9 (c) Issuance.--Following review of the application and the 10 background investigation, the board may issue a principal 11 license if the applicant has proven by clear and convincing 12 evidence that the applicant is a person of good character, 13 honesty and integrity and is eligible and suitable to be 14 licensed as a principal. 15 (d) Nontransferability.--A license issued under this section 16 shall be nontransferable. 17 (e) Principals.--An individual who receives a principal 18 license need not obtain a key employee license. 19 § 1311.2. Licensing of key employees. 20 (a) License required.--All key employees shall obtain a key 21 employee license from the board. 22 (b) Application.--A key employee license application shall 23 be in a form prescribed by the board and shall include the 24 following: 25 (1) Verification of status as a key employee from a slot 26 machine licensee, manufacturer licensee or supplier licensee. 27 (2) A description of employment responsibilities. 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 20050S0862B2218 - 57 -
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, permit or 5 other authorization obtained in another 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 if the applicant has proven by clear and convincing 10 evidence that the applicant is a person of good character, 11 honesty and integrity and is eligible and suitable to be 12 licensed as a key employee. 13 (d) Nontransferability.--A license issued under this section 14 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 20050S0862B2218 - 58 -
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 20050S0862B2218 - 59 -
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. A supplier 19 licensee shall maintain its principal place of business in 20 this Commonwealth to remain eligible for licensure. 21 (2) The consent to a background investigation of the 22 applicant, its [officers, directors, owners,] principals and 23 key employees or other persons required by the board and a 24 release to obtain any and all information necessary for the 25 completion of the background investigation. 26 (3) The details of any equivalent license granted or 27 denied by other jurisdictions where gaming activities as 28 authorized by this part are permitted and consent for the 29 board to acquire copies of applications submitted or licenses 30 issued in connection therewith. 20050S0862B2218 - 60 -
1 (4) The type of goods and services to be supplied [or 2 manufactured] and whether those goods and services will be 3 provided through purchase, lease, contract or otherwise. 4 (5) Any other information determined by the board to be 5 appropriate. 6 (c) Review and approval.--Upon being satisfied that the 7 requirements of subsection (b) have been met, the board may 8 approve the application and issue the applicant a supplier 9 license consistent with all of the following: 10 (1) The license shall be for a period of one year. Upon 11 expiration, the license may be renewed in accordance with 12 subsection (d). 13 (2) The license shall be nontransferable. 14 (3) Any other condition established by the board. 15 (d) Renewal.-- 16 (1) Two months prior to expiration of a supplier 17 license, the supplier licensee seeking renewal of its license 18 shall submit a renewal application accompanied by the renewal 19 fee to the board. 20 (2) If the renewal application satisfies the 21 requirements of subsection (b), the board may renew the 22 licensee's supplier license. 23 (3) If the board receives a complete renewal application 24 but fails to act upon the renewal application prior to the 25 expiration of the supplier license, the supplier license 26 shall continue in effect for an additional six-month period 27 or until acted upon by the board, whichever occurs first. 28 (e) Prohibitions.--No limitation shall be placed on the 29 number of supplier licenses issued or the time period to submit 30 applications for licensure except as required to comply with 20050S0862B2218 - 61 -
1 section 1306 (relating to order of initial license issuance). 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 slot 5 machines and associated equipment for use in this Commonwealth 6 shall apply to the board for a manufacturer license. 7 (b) Requirements.-- An application for a manufacturer 8 license shall be on the form required by the board, accompanied 9 by the application fee and shall include all of the following: 10 (1) The name and business address of the applicant and 11 the applicant's affiliates, intermediaries, subsidiaries and 12 holding companies; the principals and key employees of each 13 business; and a list of employees and their positions within 14 each business, as well as any financial information required 15 by the board. 16 (2) A statement that the applicant and each affiliate, 17 intermediary, subsidiary or holding company of the applicant 18 are not slot machine licensees. 19 (3) The consent to a background investigation of the 20 applicant, its principals and key employees or other persons 21 required by the board and a release to obtain any and all 22 information necessary for the completion of the background 23 investigation. 24 (4) The details of any equivalent license granted or 25 denied by other jurisdictions where gaming activities as 26 authorized by this part are permitted and consent for the 27 board to acquire copies of applications submitted or licenses 28 issued in connection therewith. 29 (5) The type of slot machines or associated equipment to 30 be manufactured or repaired. 20050S0862B2218 - 62 -
1 (6) Any other information determined by the board to be 2 appropriate. 3 (c) Review and approval.--Upon being satisfied that the 4 requirements of subsection (b) have been met, the board may 5 approve the application and grant the applicant a manufacturer 6 license consistent with all of the following: 7 (1) The license shall be for a period of one year. Upon 8 expiration, a license may be renewed in accordance with 9 subsection (d). 10 (2) The license shall be nontransferable. 11 (3) Any other condition established by the board. 12 (d) Renewal.-- 13 (1) Six months prior to expiration of a manufacturer 14 license, the manufacturer licensee seeking renewal of its 15 license shall submit a renewal application accompanied by the 16 renewal fee to the board. 17 (2) If the renewal application satisfies the 18 requirements of subsection (b), the board may renew the 19 licensee's manufacturer license. 20 (3) If the board receives a complete renewal application 21 but fails to act upon the renewal application prior to the 22 expiration of the manufacturer license, the manufacturer 23 license shall continue in effect for an additional six-month 24 period or until acted upon by the board, whichever occurs 25 first. 26 (d.1) Authority.--The following shall apply to a licensed 27 manufacturer: 28 (1) A licensed manufacturer or its designee, as licensed 29 by the board, may supply or repair any slot machine or 30 associated equipment manufactured by the licensed 20050S0862B2218 - 63 -
1 manufacturer. 2 (2) A manufacturer may contract with a supplier under 3 section 1317 (relating to supplier licenses) to provide slot 4 machines or associated equipment to a slot machine licensee 5 within this Commonwealth. 6 (e) Prohibitions.-- 7 (1) No person may manufacture slot machines or 8 associated equipment for use within this Commonwealth by a 9 slot machine licensee unless the person has been issued a 10 manufacturer license under this section. 11 (2) No slot machine licensee may use slot machines or 12 associated equipment unless the slot machines or associated 13 equipment were manufactured by a person that has been issued 14 a manufacturer license under this section. 15 (3) No person issued a license under this section shall 16 apply for or be issued a license under section 1317 (relating 17 to supplier licenses). 18 (4) No limitation shall be placed on the number of 19 manufacturer licenses issued or the time period to submit 20 applications for licensure, except as required to comply with 21 section 1306 (relating to order of initial license issuance). 22 Section 8. Sections 1318(b)(4) and 1323(a) of Title 4 are 23 amended to read: 24 § 1318. Occupation permit application. 25 * * * 26 (b) Requirements.--The application for an occupation permit 27 shall include, at a minimum: 28 * * * 29 (4) A photograph [and handwriting exemplar] of the 30 person. 20050S0862B2218 - 64 -
1 * * * 2 § 1323. Central control computer system. 3 (a) General rule.--To facilitate the auditing and security 4 programs critical to the integrity of slot machine gaming in 5 this Commonwealth, the department shall have overall control of 6 slot machines, and all slot machine terminals shall be linked, 7 at an appropriate time to be determined by the department, to a 8 central control computer under the control of the department and 9 accessible by the board to provide auditing program capacity and 10 individual terminal information as approved by the department 11 and shall include real-time information retrieval and terminal 12 activation and disabling programs. The central control computer 13 selected and employed by the department shall not unduly limit 14 or favor the participation of a vendor or manufacturer of a slot 15 machine as a result of the cost or difficulty of implementing 16 the necessary program modifications to communicate with and link 17 to the central control computer. The central control computer 18 employed by the department shall provide: 19 (1) A fully operational Statewide slot machine control 20 system that has the capability of supporting up to the 21 maximum number of slot machines that could be permitted to be 22 in operation under this part. 23 (2) The employment of a widely accepted gaming industry 24 protocol to facilitate slot machine manufacturers' ability to 25 communicate with the Statewide system. 26 (2.1) The delivery of a system that has the ability to 27 verify software, detect alterations in payout and detect 28 other methods of fraud in all aspects of the operation of 29 slot machines. 30 (3) The delivery of a system that has the capability to 20050S0862B2218 - 65 -
1 support in-house and wide-area progressive slot machines as
2 approved by the board.
3 (4) The delivery of a system that allows the slot
4 machine licensee to install independent player tracking
5 systems and cashless technology as approved by the board.
6 (5) The delivery of a system that does not alter the
7 statistical awards of slot machine games as designed by the
8 slot machine manufacturer and approved by the board.
9 (6) The delivery of a system that provides redundancy so
10 that each component of the network will be capable of
11 operating independently by the department if any component of
12 the network, including the central control computer, fails or
13 cannot be operated for any reason as determined by the
14 department, and to assure that all transactional data is
15 captured and secured. Costs associated with any computer
16 system required by the department to operate at a licensed
17 facility, whether independent or as part of the central
18 control computer, shall be paid by the slot machine licensee.
19 The computer system will be controlled by the department and
20 accessible to the board.
21 (7) The ability to meet all reporting and control
22 requirements as prescribed by the board and department.
23 (8) Any other capabilities as determined by the
24 department in consultation with the board.
25 * * *
26 Section 8.1. Section 1325 of Title 4 is amended by adding a
27 subsection to read:
28 § 1325. License or permit issuance.
29 * * *
30 (d) Trusts and similar business entities.--The board shall
20050S0862B2218 - 66 -
1 determine the eligibility of a trust or similar business entity 2 to be a licensed entity in accordance with the following: 3 (1) No trust or similar business entity shall be 4 eligible to hold any beneficial interest in a licensed entity 5 under this part unless each trustee, grantor and beneficiary 6 of the trust, including a minor child beneficiary, qualifies 7 for and is granted a license as a principal. The board may 8 waive compliance with this paragraph if the trustee is a 9 banking or lending institution and the board is satisfied 10 that the trustee is not significantly involved in the 11 activities of the licensed entity. In addition to other 12 information required by the board, a banking or lending 13 institution acting as a trustee shall produce at the request 14 of the board any documentation or information relating to the 15 trust. 16 (2) No beneficiary of a trust or similar business entity 17 who is a minor child shall control or be significantly 18 involved in the activities of a licensed entity or its 19 holding company or intermediary. No beneficiary of a trust or 20 similar business entity who is a minor child shall be 21 permitted to vote to elect directors of a licensed entity or 22 its holding company or intermediary. 23 (3) No trust or similar business entity may hold any 24 beneficial interest in a licensed entity unless the board 25 determines that the trust or similar business entity is not 26 engaged in any activity or otherwise being used to evade the 27 public protections under this part, including sections 1512 28 (relating to financial and employment interests) and 1513 29 (relating to political influence). 30 Section 8.2. Sections 1327 and 1402 of Title 4 are amended 20050S0862B2218 - 67 -
1 to read: 2 § 1327. Nontransferability of licenses. 3 A license or permit issued by the board is a grant of the 4 privilege to conduct a business in this Commonwealth. Except as 5 permitted by section 1328 (relating to change in ownership or 6 control of slot machine licensee), a license or permit granted 7 or renewed pursuant to this part shall not be sold, transferred 8 or assigned to any other person[,]; nor shall a licensee or 9 permittee pledge or otherwise grant a security interest in or 10 lien on the license or permit. Nothing contained in this part is 11 intended or shall be construed to create in any person an 12 entitlement to a license. The board has the sole discretion to 13 issue, renew, condition or deny the issuance of a slot machine 14 license based upon the purposes and requirements of this part. 15 § 1402. Gross terminal revenue deductions. 16 (a) Deductions.--After determining the appropriate 17 assessments for each slot machine licensee, the department shall 18 [deduct the following] determine costs, expenses or payments 19 from each account established under section 1401 (relating to 20 slot machine licensee deposits). The following costs and 21 expenses shall be transferred to the appropriate agency upon 22 appropriation by the General Assembly: 23 (1) The costs and expenses to be incurred by the 24 department in administering this part at each slot machine 25 licensee's licensed facility based upon a budget submitted by 26 the department to and approved by the board. 27 (2) The other costs and expenses to be incurred by the 28 department in administering this part based upon a budget 29 submitted by the department to and approved by the board. 30 (3) Sums necessary to repay any loans made by the 20050S0862B2218 - 68 -
1 General Fund to the department in connection with carrying 2 out its responsibilities under this part, including the costs 3 of the initial acquisition of the central control computer 4 and any accessories or associated equipment. 5 (4) The costs and expenses to be incurred by the 6 Pennsylvania State Police and the Office of Attorney General 7 and not otherwise reimbursed under this part in carrying out 8 their respective responsibilities under this part based upon 9 a budget submitted by the Pennsylvania State Police and the 10 Attorney General to and approved by the board. 11 (5) Sums necessary to repay any loans made by the 12 General Fund to the Pennsylvania State Police in connection 13 with carrying out its responsibilities under this part. 14 (6) The costs and expenses to be incurred by the board 15 in carrying out its responsibilities under this part based 16 upon a budget approved by the board. 17 (7) Sums necessary to repay any loans made by the 18 General Fund to the board in connection with carrying out its 19 responsibilities under this part. 20 (b) [Deferral of assessment.--Notwithstanding any other 21 provision of law to the contrary, the board may defer assessing 22 slot machine licensees for repayment of loans from the General 23 Fund under this section until all slot machine licenses have 24 been issued and all licensed gaming entities have commenced the 25 operation of slot machines.] (Reserved). 26 Section 8.3. Title 4 is amended by adding a section to read: 27 § 1402.1. Itemized budget reporting. 28 The board, department, Pennsylvania State Police and the 29 Attorney General shall prepare and annually submit to the 30 chairman of the Appropriations Committee of the Senate and the 20050S0862B2218 - 69 -
1 chairman of the Appropriations Committee of the House of 2 Representatives an itemized budget consisting of amounts to be 3 appropriated out of the accounts established under section 1401 4 (relating to slot machine licensee deposits) necessary to 5 administer this part. 6 Section 9. Section 1403(b), (c)(2)(i)(D) and (E), (ii)(E), 7 (iii)(A), (E) and (F), (iv) and (ix), (3)(i), (ii), (iii), (iv), 8 (v), (vi), (vii) and (viii) of Title 4 are amended, subsection 9 (c)(2)(iii) is amended by adding a clause, subsection (c)(3) is 10 amended by adding a subparagraph and the section is amended by 11 adding a subsection to read: 12 § 1403. Establishment of State Gaming Fund and net slot machine 13 revenue distribution. 14 * * * 15 (b) Slot machine tax.--[The department shall determine and 16 each slot machine licensee shall pay a daily tax of 34% and a 17 local share assessment of 4% of its daily gross terminal revenue 18 from the slot machines in operation at its facility into the 19 fund.] The department shall determine and each slot machine 20 licensee shall pay a daily tax of 34% from its daily gross 21 terminal revenue from the slot machines in operation at its 22 facility and a local share assessment as provided in subsection 23 (c) into the fund. All funds owed to the Commonwealth or a 24 municipality under this section shall be held in trust by the 25 licensed gaming entity until the funds are paid or transferred 26 and distributed. Unless otherwise agreed to by the Gaming Board, 27 a licensed gaming entity shall establish a separate bank account 28 to maintain gaming proceeds until such time as they are paid or 29 transferred under this section. 30 (c) Transfers and distributions.--The department shall: 20050S0862B2218 - 70 -
1 * * * 2 (2) From the local share assessment established in 3 subsection (b), make quarterly distributions among the 4 counties hosting a licensed facility in accordance with the 5 following schedule: 6 (i) If the licensed facility is a Category 1 7 licensed facility that is located at a harness racetrack 8 and the county, including a home rule county, in which 9 the licensed facility is located is: 10 * * * 11 (D) (I) A county of the third class: Except as 12 provided in subclause (II), 2% of the gross 13 terminal revenue from each such licensed facility 14 shall be deposited into a restricted account 15 established in the Department of Community and 16 Economic Development to be used exclusively for 17 grants for health, safety and economic 18 development projects to municipalities within the 19 county where the licensed facility is located. 20 Municipalities that are contiguous to the 21 municipality hosting such licensed facility shall 22 be given priority by the Department of Community 23 and Economic Development in the award of such 24 grants. 25 (II) If a licensed facility is located in 26 one of two counties of the third class where a 27 city of the third class is located in both 28 counties of the third class, the county in which 29 the licensed facility is located shall receive 30 1.2% of the gross terminal revenue to be 20050S0862B2218 - 71 -
1 distributed as follows: 20% to the host city, 2 30% to the host county and 50% to the host county 3 for the purpose of making municipal grants within 4 the county, with priority given to municipalities 5 contiguous to the host city. The county of the 6 third class, which includes a city of the third 7 class that is located in two counties of the 8 third class and is not the host county for the 9 licensed facility, shall receive .8% of the gross 10 terminal revenue to be distributed as follows: 11 60% to a nonhost city of the third class located 12 solely in the nonhost county in which the host 13 city of the third class is also located or 60% to 14 the nonhost city of the third class located both 15 in the host and nonhost counties of the third 16 class, 35% to the nonhost county and 5% to the 17 nonhost county for the purpose of making 18 municipal grants within the county. 19 (E) A county of the fourth class: 2% of the 20 gross terminal revenue from each such licensed 21 facility shall be deposited into a restricted account 22 established in the Department of Community and 23 Economic Development to be used exclusively for 24 grants to the county, to economic development 25 authorities [or organizations within the county] or 26 redevelopment authorities within the county for 27 grants for economic development projects, job 28 training, community improvement projects, other 29 projects in the public interest and reasonable 30 administrative costs. Notwithstanding the provisions 20050S0862B2218 - 72 -
1 of the act of February 9, 1999 (P.L.1, No.1), known 2 as the Capital Facilities Debt Enabling Act, grants 3 made under this clause may be utilized as local 4 matching funds for other grants or loans from the 5 Commonwealth. 6 * * * 7 (ii) If the licensed facility is a Category 1 8 licensed facility and is located at a thoroughbred 9 racetrack and the county in which the licensed facility 10 is located is: 11 * * * 12 (E) A county of the fourth class: 2% of the 13 gross terminal revenue from each such licensed 14 facility shall be deposited into a restricted account 15 established in the Department of Community and 16 Economic Development to be used exclusively for 17 grants to the county, to economic development 18 authorities [or organizations within the county] or 19 redevelopment authorities within the county for 20 grants for economic development projects, community 21 improvement projects, job training, other projects in 22 the public interest and reasonable administrative 23 costs. Notwithstanding the Capital Facilities Debt 24 Enabling Act, grants made under this clause may be 25 utilized as local matching funds for other grants or 26 loans from the Commonwealth. 27 * * * 28 (iii) If the facility is a Category 2 licensed 29 facility and if the county in which the licensed facility 30 is located is: 20050S0862B2218 - 73 -
1 (A) A county of the first class: 4% of the 2 gross terminal revenue to the county hosting the 3 licensed facility from each such licensed facility. 4 Notwithstanding any other provision to the contrary, 5 funds from licensed gaming entities located within a 6 county of the first class shall not be distributed 7 outside of a county of the first class. The first 8 $5,000,000 of the total amount distributed annually 9 to the county of the first class shall be distributed 10 to the Philadelphia School District. 11 * * * 12 (D.1) If a licensed facility is located in one 13 of two counties of the third class where a city of 14 the third class is located in both counties of the 15 third class, the county in which the licensed 16 facility is located shall receive 1.2% of the gross 17 terminal revenue to be distributed as follows: 20% 18 to the host city, 30% to the host county and 50% to 19 the host county for the purpose of making municipal 20 grants within the county, with priority given to 21 municipalities contiguous to the host city. The 22 county of the third class, which includes a city of 23 the third class that is located in two counties of 24 the third class and is not the host county for the 25 licensed facility, shall receive .8% of the gross 26 terminal revenue to be distributed as follows: 60% 27 to a nonhost city of the third class located solely 28 in the nonhost county in which the host city of the 29 third class is also located or 60% to the nonhost 30 city of the third class located both in the host and 20050S0862B2218 - 74 -
1 nonhost counties of the third class, 35% to the 2 nonhost county and 5% to the nonhost county for the 3 purpose of making municipal grants within the county. 4 (E) A county of the fourth class: 2% of the 5 gross terminal revenue from each such licensed 6 facility shall be deposited into a restricted account 7 established in the Department of Community and 8 Economic Development to be used exclusively for 9 grants to the county, to economic development 10 authorities [or organizations within the county] or 11 redevelopment authorities within the county for 12 grants for economic development projects, community 13 improvement projects, job training, other projects in 14 the public interest and reasonable administrative 15 costs. Notwithstanding the Capital Facilities Debt 16 Enabling Act, grants made under this clause may be 17 utilized as local matching funds for other grants or 18 loans from the Commonwealth. 19 (F) Counties of the fifth [through eighth 20 classes] class: 2% of the gross terminal revenue 21 from each such licensed facility shall be deposited 22 [into a restricted account established in the 23 Department of Community and Economic Development to 24 be used exclusively for grants to the county, to 25 contiguous counties, to economic development 26 authorities or organizations within the county or 27 contiguous counties or redevelopment authorities 28 within the county or contiguous counties for grants 29 for economic development projects, community 30 improvement projects, other projects in the public 20050S0862B2218 - 75 -
1 interest and reasonable administrative costs. 2 Notwithstanding the Capital Facilities Debt Enabling 3 Act, grants made under this clause may be utilized as 4 local matching funds for other grants or loans from 5 the Commonwealth.] and distributed as follows: 6 (I) One percent shall be deposited into a 7 restricted receipts account in the Department of 8 Community and Economic Development to be used 9 exclusively for grants within the county for 10 economic development projects, community 11 improvement projects and other projects in the 12 public interest within the county. The amount 13 under this subclause includes reasonable 14 administrative costs. 15 (II) One percent shall be deposited into a 16 restricted receipts account in the Department of 17 Community and Economic Development to be used 18 exclusively for grants within contiguous counties 19 for economic development projects, community 20 improvement projects and other projects in the 21 public interest within contiguous counties. The 22 amount under this subclause includes reasonable 23 administrative costs. 24 (III) Fifty percent of any revenue required 25 to be transferred under paragraph (3)(v) shall be 26 deposited into the restricted receipts account 27 established under subclause (I); and fifty 28 percent shall be deposited into the restricted 29 receipt account established under subclause (II). 30 Notwithstanding the Capital Facilities Debt 20050S0862B2218 - 76 -
1 Enabling act, grants made under this clause may 2 be utilized as local matching funds for other 3 grants or loans from the Commonwealth. 4 * * * 5 (iv) If the facility is a Category 3 licensed 6 facility, 2% of the gross terminal revenue from each such 7 licensed facility shall be deposited into a restricted 8 account established in the Department of Community and 9 Economic Development to be used exclusively for grants to 10 the county, to economic development authorities [or 11 organizations within the county] or redevelopment 12 authorities within the county for grants for economic 13 development projects and community improvement projects. 14 * * * 15 (ix) Nothing in this paragraph shall prevent any of 16 the above counties which directly receive a distribution 17 under this section from entering into intergovernmental 18 cooperative agreements with other jurisdictions for 19 sharing this money. 20 (3) From the local share assessment established in 21 subsection (b), make quarterly distributions among the 22 municipalities, including home rule municipalities, hosting a 23 licensed facility in accordance with the following schedule: 24 (i) To a city of the second class hosting a licensed 25 facility [or facilities], other than a Category 3 26 licensed facility, 2% of the gross terminal revenue or 27 $10,000,000 annually, whichever is greater, [of all 28 licensed facilities] shall be paid by each licensed 29 gaming entity operating a facility located in that city. 30 In the event that the revenues generated by the 2% do not 20050S0862B2218 - 77 -
1 meet the $10,000,000 minimum specified in this 2 [paragraph, the licensed gaming entity operating the 3 licensed facility or facilities in the city shall remit 4 the difference to the municipality.] subparagraph, the 5 department shall collect the remainder of the minimum 6 amount of $10,000,000 from each licensed gaming entity 7 operating a facility in the city and deposit that amount 8 in the city treasury. 9 (ii) To a city of the second class A hosting a 10 licensed facility [or facilities], other than a Category 11 3 licensed facility, 2% of the gross terminal revenue or 12 $10,000,000 annually, whichever is greater, [of all 13 licensed facilities] shall be paid by each licensed 14 entity operating a licensed facility located in that city 15 subject, however, to the budgetary limitation in this 16 subparagraph. The amount allocated to the designated 17 municipalities shall not exceed 50% of their total budget 18 for fiscal year 2003-2004, adjusted for inflation in 19 subsequent years by an amount not to exceed an annual 20 cost-of-living adjustment calculated by applying the 21 percentage change in the Consumer Price Index [for All 22 Urban Consumers for the Pennsylvania, New Jersey, 23 Delaware and Maryland area, for the most recent 12-month 24 period for which figures have been officially reported by 25 the United States Department of Labor, Bureau of Labor 26 Statistics,] immediately prior to the date the adjustment 27 is due to take effect. Any remaining moneys shall be 28 collected by the department from each licensed gaming 29 entity and distributed in accordance with paragraph (2) 30 based upon the classification of county where the 20050S0862B2218 - 78 -
1 licensed facility [or facilities] is located. In the 2 event that the revenues generated by the 2% do not meet 3 the $10,000,000 minimum specified in this subparagraph, 4 [the licensed gaming entity operating the licensed 5 facility or facilities in the city shall remit the 6 difference to the municipality.] the department shall 7 collect the remainder of the minimum amount of 8 $10,000,000 from each licensed gaming entity operating a 9 facility in the city, pay any balance due to the city and 10 transfer any remainder in accordance with paragraph (2). 11 (iii) To a city of the third class hosting a 12 licensed facility [or facilities], other than a Category 13 3 licensed facility, 2% of the gross terminal revenue or 14 $10,000,000 annually, whichever is greater, [of all 15 licensed facilities] shall be paid by each licensed 16 gaming entity operating a licensed facility located in 17 that city subject, however, to the budgetary limitation 18 in this subparagraph. [However, the foregoing limitations 19 shall not apply, notwithstanding any provision to the 20 contrary, if the licensed facility or facilities have 21 executed a written agreement with the city prior to the 22 effective date of this part to provide additional 23 compensation to the city in excess of the difference 24 between 2% of the gross terminal revenue and 25 $10,000,000.] In the event that the city has a written 26 agreement with a licensed gaming entity executed prior to 27 the effective date of this part, the amount paid under 28 the agreement to the city shall be applied and credited 29 to the difference between 2% of the gross terminal 30 revenue and the $10,000,000 owed under this subparagraph 20050S0862B2218 - 79 -
1 if the 2% of the gross terminal revenue is less than 2 $10,000,000. If 2% of the gross terminal revenue is 3 greater than the $10,000,000 required to be paid under 4 this subparagraph, the credit shall not apply. The amount 5 of gross terminal revenue required to be paid pursuant to 6 the agreement shall be deemed to be gross terminal 7 revenue for purposes of this subparagraph. The amount 8 allocated to the designated municipalities shall not 9 exceed 50% of their total budget for fiscal year 2003- 10 2004, adjusted for inflation in subsequent years by an 11 amount not to exceed an annual cost-of-living adjustment 12 calculated by applying the percentage change in the 13 Consumer Price Index [for All Urban Consumers for the 14 Pennsylvania, New Jersey, Delaware and Maryland area, for 15 the most recent 12-month period for which figures have 16 been officially reported by the United States Department 17 of Labor, Bureau of Labor Statistics,] immediately prior 18 to the date the adjustment is due to take effect. Any 19 remaining moneys shall be collected by the department 20 from each licensed gaming entity and distributed in 21 accordance with paragraph (2) based upon the 22 classification of county where the licensed facility [or 23 facilities] is located. In the event that the revenues 24 generated by the 2% do not meet the $10,000,000 minimum 25 specified in this subparagraph, [the licensed gaming 26 entity operating the licensed facility or facilities in 27 the city shall remit the difference to the municipality.] 28 the department shall collect the remainder of the minimum 29 amount of $10,000,000 from each licensed gaming entity 30 operating a facility, pay any balance due to the city of 20050S0862B2218 - 80 -
1 the third class and transfer any remainder in accordance 2 with paragraph (2). 3 (iii.1) If a licensed facility is located in a city 4 of the third class and the city is located in more than 5 one county of the third class, 2% of the gross terminal 6 revenue or $10,000,000 annually, whichever is greater, 7 shall be distributed as follows: 80% to the host city and 8 20% to the city of the third class located solely in a 9 nonhost county in which the host city of the third class 10 is also located. If a licensed facility is located in a 11 city of the third class and that city is located solely 12 in a host county of the third class in which a nonhost 13 city of the third class is also located, 2% of gross 14 terminal revenue or $10,000,000 annually, whichever is 15 greater, shall be distributed as follows: 80% to the 16 host city and 20% to a city of the third class located 17 both in a nonhost county of the third class and in a host 18 county of the third class in which the host city of the 19 third class is located. 20 (iv) To a township of the first 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 the township subject, however, to the budgetary 27 limitation in this subparagraph. The amount allocated to 28 the designated municipalities shall not exceed 50% of 29 their total budget for fiscal year 2003-2004, adjusted 30 for inflation in subsequent years by an amount not to 20050S0862B2218 - 81 -
1 exceed an annual cost-of-living adjustment calculated by 2 applying the percentage change in the Consumer Price 3 Index [for All Urban Consumers for the Pennsylvania, New 4 Jersey, Delaware and Maryland area, for the most recent 5 12-month period for which figures have been officially 6 reported by the United States Department of Labor, Bureau 7 of Labor Statistics,] immediately prior to the date the 8 adjustment is due to take effect. Any remaining money 9 shall be collected by the department from each licensed 10 gaming entity and distributed in accordance with 11 paragraph (2) based upon the classification of county 12 where the licensed facility [or facilities] is located. 13 In the event that the revenues generated by the 2% do not 14 meet the $10,000,000 minimum specified in this 15 subparagraph, [the licensed gaming entity operating the 16 licensed facility or facilities in the township shall 17 remit the difference to the municipality.] the department 18 shall collect the remainder of the minimum amount of 19 $10,000,000 from each licensed gaming entity operating a 20 licensed facility in the township, pay any balance due to 21 the township and transfer any remainder in accordance 22 with paragraph (2). 23 (v) To a township of the second class hosting a 24 licensed facility [or facilities], other than a Category 25 3 licensed facility, 2% of the gross terminal revenue or 26 $10,000,000 annually, whichever is greater, [of all 27 licensed facilities] shall be paid by each licensed 28 gaming entity operating a licensed facility located in 29 the township subject, however, to the budgetary 30 limitation in this subparagraph. The amount allocated to 20050S0862B2218 - 82 -
1 the designated municipalities shall not exceed 50% of 2 their total budget for fiscal year 2003-2004, adjusted 3 for inflation in subsequent years by an amount not to 4 exceed an annual cost-of-living adjustment calculated by 5 applying the percentage change in the Consumer Price 6 Index [for All Urban Consumers for the Pennsylvania, New 7 Jersey, Delaware and Maryland area, for the most recent 8 12-month period for which figures have been officially 9 reported by the United States Department of Labor, Bureau 10 of Labor Statistics,] immediately prior to the date the 11 adjustment is due to take effect. Any remaining money 12 shall be collected by the department from each licensed 13 gaming entity and distributed in accordance with 14 paragraph (2) based upon the classification of county 15 where the licensed facility [or facilities] is located. 16 Where the licensed facility is other than a Category 3 17 and is located in more than one second class township the 18 county commissioners of the county of the third class in 19 which the facility is located shall appoint an advisory 20 committee for the purpose of advising the county as to 21 the need for municipal grants for health, safety, 22 transportation and other projects in the public interest 23 to be comprised of two individuals from the host 24 municipality, two from contiguous municipalities within 25 the county of the third class and one from the host 26 county. A county other than a county of the third class 27 in which the licensed facility is located is not required 28 to appoint an advisory committee and may use funds 29 received under this subparagraph for purposes other than 30 municipal grants. In the event that the revenues 20050S0862B2218 - 83 -
1 generated by the 2% do not meet the $10,000,000 minimum 2 specified in this subparagraph, [the licensed gaming 3 entity operating the licensed facility or facilities in 4 the township shall remit the difference to the 5 municipality.] the department shall collect the remainder 6 of the minimum amount of $10,000,000 from each licensed 7 gaming entity operating a licensed facility in the 8 township, pay any balance due to the township and 9 transfer any remainder in accordance with paragraph (2). 10 (vi) To a borough hosting a licensed facility [or 11 facilities], other than a Category 3 licensed facility, 12 2% of the gross terminal revenue or $10,000,000 annually, 13 whichever is greater, [of all licensed facilities] shall 14 be paid by each licensed gaming entity operating a 15 licensed facility located in that borough subject, 16 however, to the budgetary limitation in this 17 subparagraph. The amount allocated to the designated 18 municipalities shall not exceed 50% of their total budget 19 for fiscal year 2003-2004, adjusted for inflation in 20 subsequent years by an amount not to exceed an annual 21 cost-of-living adjustment calculated by applying the 22 percentage change in the Consumer Price Index [for All 23 Urban Consumers for the Pennsylvania, New Jersey, 24 Delaware and Maryland area, for the most recent 12-month 25 period for which figures have been officially reported by 26 the United States Department of Labor, Bureau of Labor 27 Statistics,] immediately prior to the date the adjustment 28 is due to take effect. Any remaining money shall be 29 collected by the department from each licensed gaming 30 entity and distributed in accordance with paragraph (2) 20050S0862B2218 - 84 -
1 based upon the classification of county where the 2 licensed facility [or facilities] is located. In the 3 event that the revenues generated by the 2% do not meet 4 the $10,000,000 minimum specified in this subparagraph, 5 [the licensed gaming entity operating the licensed 6 facility or facilities in the borough shall remit the 7 difference to the municipality.] the department shall 8 collect the remainder of the minimum amount of 9 $10,000,000 from each licensed gaming entity operating a 10 licensed facility in the borough, pay any balance due to 11 the borough and transfer any remainder in accordance with 12 paragraph (2). 13 (vii) To an incorporated town hosting a licensed 14 facility [or facilities], other than a Category 3 15 licensed facility, 2% of the gross terminal revenue or 16 $10,000,000 annually, whichever is greater, [of all 17 licensed facilities] shall be paid by each licensed 18 entity operating a licensed facility located in the town 19 subject, however, to the budgetary limitation in this 20 subparagraph. The amount allocated to the designated 21 municipalities shall not exceed 50% of their total budget 22 for fiscal year 2003-2004, adjusted for inflation in 23 subsequent years by an amount not to exceed an annual 24 cost-of-living adjustment calculated by applying the 25 percentage change in the Consumer Price Index [for All 26 Urban Consumers for the Pennsylvania, New Jersey, 27 Delaware and Maryland area, for the most recent 12-month 28 period for which figures have been officially reported by 29 the United States Department of Labor, Bureau of Labor 30 Statistics,] immediately prior to the date the adjustment 20050S0862B2218 - 85 -
1 is due to take effect. Any remaining money shall be 2 collected by the department from each licensed gaming 3 entity and distributed in accordance with paragraph (2) 4 based upon the classification of county where the 5 licensed facility [or facilities] is located. In the 6 event that the revenues generated by the 2% do not meet 7 the $10,000,000 minimum specified in this subparagraph, 8 [the licensed gaming entity operating the licensed 9 facility or facilities in the town shall remit the 10 difference to the municipality.] the department shall 11 collect the remainder of the minimum amount of 12 $10,000,000 from each licensed gaming entity operating a 13 licensed facility in the incorporated town, pay any 14 balance due to the town and transfer any remainder in 15 accordance with paragraph (2). 16 (viii) To a municipality of any class hosting a 17 Category 3 facility, 2% of the gross terminal revenue 18 from the Category 3 licensed facility located in the 19 municipality, subject, however, to the budgetary 20 limitation in this subparagraph. The amount allocated to 21 the designated municipalities shall not exceed 50% of 22 their total budget for fiscal year 2003-2004, adjusted 23 for inflation in subsequent years by an amount not to 24 exceed an annual cost-of-living adjustment calculated by 25 applying the percentage change in the Consumer Price 26 Index [for All Urban Consumers for the Pennsylvania, New 27 Jersey, Delaware and Maryland area, for the most recent 28 12-month period for which figures have been officially 29 reported by the United States Department of Labor, Bureau 30 of Labor Statistics,] immediately prior to the date the 20050S0862B2218 - 86 -
1 adjustment is due to take effect. Any remaining money 2 shall be collected by the department from each licensed 3 gaming entity and distributed in accordance with 4 paragraph (2) based upon the classification of county 5 where the licensed facility [or facilities] is located. 6 * * * 7 (d) Consumer Price Index.--For purposes of subsection (c), 8 references to the Consumer Price Index shall mean the Consumer 9 Price Index for All Urban Consumers for the Pennsylvania, New 10 Jersey, Delaware and Maryland area, for the most recent 12-month 11 period for which figures have been officially reported by the 12 United States Department of Labor, Bureau of Labor Statistics. 13 Section 9.1. Sections 1406(a) and 1506 of Title 4 are 14 amended to read: 15 § 1406. Distributions from Pennsylvania Race Horse Development 16 Fund. 17 (a) Distributions.--Funds from the Pennsylvania Race Horse 18 Development Fund shall be distributed to each active and 19 operating Category 1 licensee conducting live racing in the 20 following manner: 21 (1) An amount equal to 18% of the daily gross terminal 22 revenue of each Category 1 licensee shall be distributed to 23 each active and operating Category 1 licensee conducting live 24 racing unless the daily assessments are affected by the daily 25 assessment cap provided for in section 1405(c) (relating to 26 Pennsylvania Race Horse Development Fund). In cases in which 27 the daily assessment cap affects daily assessments, the 28 distribution to each active and operating Category 1 licensee 29 conducting live racing for that day shall be a percentage of 30 the total daily assessments paid into the Pennsylvania Race 20050S0862B2218 - 87 -
1 Horse Development Fund for that day equal to the gross 2 terminal revenue of each active and operating Category 1 3 licensee conducting live racing for that day divided by the 4 total gross terminal revenue of all active and operating 5 Category 1 licensees conducting live racing for that day. The 6 distributions to licensed racing entities from the 7 Pennsylvania Race Horse Development Fund shall be allocated 8 as follows: 9 (i) Eighty percent [to] shall be deposited weekly 10 into a separate, interest-bearing purse account to be 11 established by and for the benefit of the horsemen. The 12 earned interest on the account shall be credited to the 13 purse account. Licensees shall combine these funds with 14 revenues from existing purse agreements to fund purses 15 for live races consistent with those agreements with the 16 advice and consent of the horsemen. 17 (ii) [From licensees that operate at] For 18 thoroughbred tracks, 16% [to] shall be deposited on a 19 monthly basis into the Pennsylvania Breeding Fund as 20 defined in section 223 of the Race Horse Industry Reform 21 Act. [From licensees that operate at] For standardbred 22 tracks, 8% [to] shall be deposited on a monthly basis in 23 the Pennsylvania Sire Stakes Fund as defined in section 24 224 of the Race Horse Industry Reform Act and 8% [to] 25 shall be deposited on a monthly basis into a restricted 26 account in the State Racing Fund to be known as the 27 Pennsylvania Standardbred Breeders Development Fund. The 28 State Harness Racing Commission shall, in consultation 29 with the Secretary of Agriculture by rule or by 30 regulation, adopt a standardbred breeders program that 20050S0862B2218 - 88 -
1 will include the administration of Pennsylvania Stallion 2 Award, Pennsylvania Bred Award and a Pennsylvania Sired 3 and Bred Award. 4 (iii) Four percent [to] shall be used to fund health 5 and pension benefits for the members of the horsemen's 6 organizations representing the owners and trainers at the 7 racetrack at which the licensed racing entity operates 8 for the benefit of the organization's members, their 9 families, employees and others in accordance with the 10 rules and eligibility requirements of the organization, 11 as approved by the State Horse Racing Commission or the 12 State Harness Racing Commission. This amount shall be 13 deposited within five business days of the end of each 14 month into a separate account to be established by each 15 respective horsemen's organization at a banking 16 institution of its choice. Of this amount, $250,000 shall 17 be paid annually by the horsemen's organization to the 18 thoroughbred jockeys or standardbred drivers organization 19 at the racetrack at which the licensed racing entity 20 operates for health insurance, life insurance or other 21 benefits to active and disabled thoroughbred jockeys or 22 standardbred drivers in accordance with the rules and 23 eligibility requirements of that organization. 24 (2) (Reserved). 25 * * * 26 § 1506. [Local land use preemption. 27 The conduct of gaming as permitted under this part, including 28 the physical location of any licensed facility, shall not be 29 prohibited or otherwise regulated by any ordinance, home rule 30 charter provision, resolution, rule or regulation of any 20050S0862B2218 - 89 -
1 political subdivision or any local or State instrumentality or 2 authority that relates to zoning or land use to the extent that 3 the licensed facility has been approved by the board. The board 4 may in its discretion consider such local zoning ordinances when 5 considering an application for a slot machine license. The board 6 shall provide the political subdivision, within which an 7 applicant for a slot machine license has proposed to locate a 8 licensed gaming facility, a 60-day comment period prior to the 9 board's final approval, condition or denial of approval of its 10 application for a slot machine license. The political 11 subdivision may make recommendations to the board for 12 improvements to the applicant's proposed site plans that take 13 into account the impact on the local community, including, but 14 not limited to, land use and transportation impact. This section 15 shall also apply to any proposed racetrack or licensed 16 racetrack.] Licensed facility zoning and land use appeals. 17 In order to facilitate timely implementation of casino gaming 18 as provided in this part, notwithstanding 42 Pa.C.S. § 933(a)(2) 19 (relating to appeals from government agencies), the Supreme 20 Court of Pennsylvania is vested with exclusive appellate 21 jurisdiction to consider appeals of a final order, determination 22 or decision of a political subdivision or local instrumentality 23 involving zoning, usage, layout, construction or occupancy, 24 including location, size, bulk and use of a licensed facility. 25 The court, as appropriate, may appoint a master to hear an 26 appeal under this section. 27 Section 9.2. Title 4 is amended by adding sections to read: <-- 28 § 1506.1. Conveyances in cities of the first class. 29 (a) Intention.--In order to maximize the policy mandates of 30 this part and to optimize development opportunities within a 20050S0862B2218 - 90 -
1 city of the first class, it is the intention of the General 2 Assembly to facilitate the timely conveyance of riparian rights 3 that the Commonwealth may own to any person approved for a slot 4 machine license by the board for a facility to be located on 5 land contiguous to navigable waterways. 6 (b) Authorization and direction.--The Department of General 7 Services, with the written approval of the Governor, is hereby 8 authorized and directed on behalf of the Commonwealth of 9 Pennsylvania to grant and convey by quitclaim deed for 10 consideration under subsection (e) to each person approved for a 11 slot machine license by the board for a licensed facility that 12 is to be located within a city of the first class and is 13 contiguous to navigable waters, the land further described in 14 subsection (c) and such conveyance shall be deemed as granting 15 the consent of the Commonwealth to the licensee for construction 16 thereon. 17 (c) Description.--The land to be transferred under 18 subsection (a) shall be all of the Commonwealth's lands between 19 the low-water line, or in cities of the first class, the 20 bulkhead line, and the established pierhead line, in a city of 21 the first class, consisting of all the muds and land currently 22 or previously under the navigable waters and lying adjacent to 23 the property owned by a licensee to the west of the bulkhead 24 line, and all riparian rights appertaining thereto. 25 (d) Licensee election of granted area.--Upon approval of a 26 slot machine license to a grantee, the grantee shall deliver to 27 the Department of General Services a copy of the deed or other 28 documentation evidencing its title to the licensed facility and 29 a survey and metes and bounds legal description of the land 30 described under subsection (c) to be included in its licensed 20050S0862B2218 - 91 -
1 facility. 2 (e) Consideration.--The consideration to be paid to the 3 Commonwealth by the grantee for the granted area shall be 4 determined by the Department of General Services with the 5 approval of the Governor based on an appraisal of fair market 6 value obtained from an independent appraiser who is experienced 7 in appraising riparian interests and commercial real estate in 8 cities of the first class and who is a member of the Appraisal 9 Institute or similar professional organization. 10 § 1506.2. Clean indoor air. 11 Licensed facilities shall only be subject to public smoking 12 rules or regulations as may be imposed by the Commonwealth and 13 applied in a comprehensive Statewide manner. 14 Section 10. Sections 1509(a), (b) and (d) and 1512 of Title 15 4 are amended to read: 16 § 1509. Compulsive and problem gambling program. 17 (a) Establishment of program.--The Department of Health, in 18 consultation with organizations similar to the Mid-Atlantic 19 Addiction Training Institute, shall develop program guidelines 20 for public education, awareness and training regarding 21 compulsive and problem gambling and the treatment and prevention 22 of compulsive and problem gambling. The guidelines shall include 23 strategies for the prevention of compulsive and problem 24 gambling. The Department of Health may consult with the board 25 and licensed gaming entities to develop such strategies. The 26 program shall include: 27 (1) Maintenance of a compulsive gamblers assistance 28 organization's toll-free problem gambling telephone number to 29 provide crisis counseling and referral services to families 30 experiencing difficulty as a result of problem or compulsive 20050S0862B2218 - 92 -
1 gambling.
2 (2) The promotion of public awareness regarding the
3 recognition and prevention of problem or compulsive gambling.
4 (3) Facilitation, through in-service training and other
5 means, of the availability of effective assistance programs
6 for problem and compulsive gamblers and family members
7 affected by problem and compulsive gambling.
8 (4) Conducting studies to identify adults and juveniles
9 in this Commonwealth who are or are at risk of becoming
10 problem or compulsive gamblers.
11 (5) Providing grants to and contracting with
12 organizations which provide services as set forth in this
13 section.
14 (6) Providing reimbursement for organizations for
15 reasonable expenses in assisting the Department of Health in
16 carrying out the purposes of this section.
17 (b) Compulsive and Problem Gambling Treatment Fund.--There
18 is hereby established in the State Treasury a special fund to be
19 known as the Compulsive and Problem Gambling Treatment Fund. All
20 moneys in the fund shall be expended for programs for the
21 prevention and treatment of gambling addiction and other
22 emotional and behavioral problems associated with or related to
23 gambling addiction and for the administration of the compulsive
24 and problem gambling program. The fund shall consist of money
25 annually allocated to it from the annual payment established
26 under section 1408 (relating to transfers from State Gaming
27 Fund), money which may be allocated by the board, interest
28 earnings on moneys in the fund and any other contributions,
29 payments or deposits which may be made to the fund.
30 * * *
20050S0862B2218 - 93 -
1 (d) Single county authorities.--The Department of Health may 2 make grants from the fund established under subsection (b) to a 3 single county authority created pursuant to the act of April 14, 4 1972 (P.L.221, No.63), known as the Pennsylvania Drug and 5 Alcohol Abuse Control Act, for the purpose of providing 6 compulsive gambling and gambling [addition] addiction 7 prevention, treatment and education programs. It is the 8 intention of the General Assembly that any grants that the 9 Department of Health may make to any single county authority in 10 accordance with the provisions of this subsection be used 11 exclusively for the development and implementation of compulsive 12 and problem gambling programs authorized under subsection (a). 13 * * * 14 § 1512. [Public official financial interest.] Financial and 15 employment interests. 16 [(a) General rule.--Except as may be provided by rule or 17 order of the Pennsylvania Supreme Court, no executive-level 18 State employee, public official, party officer or immediate 19 family member thereof shall have, at or following the effective 20 date of this part, a financial interest in or be employed, 21 directly or indirectly, by any licensed racing entity or 22 licensed gaming entity, or any holding, affiliate, intermediary 23 or subsidiary company, thereof, or any such applicant, nor 24 solicit or accept, directly or indirectly, any complimentary 25 service or discount from any licensed racing entity or licensed 26 gaming entity which he or she knows or has reason to know is 27 other than a service or discount that is offered to members of 28 the general public in like circumstances during his or her 29 status as an executive-level State employee, public official or 30 party officer and for one year following termination of the 20050S0862B2218 - 94 -
1 person's status as an executive-level State employee, public 2 official or party officer.] 3 (a) Financial interests.--Except as may be provided for the 4 judiciary by rule or order of the Pennsylvania Supreme Court, an 5 executive-level public employee, public official or party 6 officer, or an immediate family member thereof, shall not 7 intentionally or knowingly hold a financial interest in an 8 applicant or a slot machine licensee, manufacturer licensee, 9 supplier licensee or licensed racing entity, or in a holding 10 company, affiliate, intermediary or subsidiary thereof, while 11 the individual is an executive-level public employee, public 12 official or party officer and for one year following termination 13 of the individual's status as an executive-level public 14 employee, public official or party officer. 15 (a.1) Employment.--Except as may be provided by rule or 16 order of the Pennsylvania Supreme Court, no executive-level 17 public employee, public official or party officer, or an 18 immediate family member thereof, shall be employed by an 19 applicant or a slot machine licensee, manufacturer licensee, 20 supplier licensee or licensed racing entity, or by any holding 21 company, affiliate, intermediary or subsidiary thereof, while 22 the individual is an executive-level public employee, public 23 official or party officer and for one year following termination 24 of the individual's status as an executive-level public 25 employee, public official or party officer. 26 (a.2) Complimentary services.-- 27 (1) No executive-level public employee, public official 28 or party officer, or an immediate family member thereof, 29 shall solicit or accept, any complimentary service from an 30 applicant or a slot machine licensee, manufacturer licensee, 20050S0862B2218 - 95 -
1 supplier licensee or licensed racing entity, or from any 2 affiliate, intermediary, subsidiary or holding company 3 thereof, which the executive-level public employee, public 4 official or party officer, or an immediate family member 5 thereof, knows or has reason to know is other than a service 6 or discount which is offered to members of the general public 7 in like circumstances. 8 (2) No applicant, slot machine licensee, manufacturer 9 licensee, supplier licensee or licensed racing entity, or any 10 affiliate, intermediary, subsidiary or holding company 11 thereof, shall offer or deliver to an executive-level public 12 employee, public official or party officer, or an immediate 13 family member thereof, any complimentary service from the 14 applicant or slot machine licensee, manufacturer licensee, 15 supplier licensee or licensed racing entity, or an affiliate, 16 intermediary, subsidiary or holding company thereof, that the 17 applicant or slot machine licensee, manufacturer licensee, 18 supplier licensee or licensed racing entity, or any 19 affiliate, intermediary, subsidiary or holding company 20 thereof, knows or has reason to know is other than a service 21 or discount that is offered to members of the general public 22 in like circumstances. 23 (a.3) Grading.--An individual who violates this section 24 commits a misdemeanor and shall, upon conviction, be sentenced 25 to pay a fine of not more than $1,000 or to imprisonment for not 26 more than one year, or both. 27 (a.4) Divestiture.--An executive-level public employee, 28 public official or party officer, or an immediate family member 29 thereof, who holds a financial interest prohibited by this 30 section shall divest the financial interest within three months 20050S0862B2218 - 96 -
1 of the effective date of the restrictions set forth in 2 subsection (a), as applicable. Thereafter, any executive-level 3 public employee, public official, party officer or immediate 4 family member shall have 30 days from the date the individual 5 knew or had reason to know of the violation or 30 days from the 6 publication in the Pennsylvania Bulletin under § 1202(b)(27) 7 (relating to General and specific powers) of the application or 8 licensure of the executive-level public employee, public 9 official, party officer or immediate family member, whichever 10 occurs earlier, to divest the financial interest. The Ethics 11 Commission may, for good cause, extend the time period under 12 this subsection. 13 (a.5) Ethics Commission.--The Ethics Commission shall 14 publish a list of all State, county, municipal and other 15 government positions that meet the definitions of "public 16 official" or "executive-level public employee" under subsection 17 (b). The Office of Administration shall assist the Ethics 18 Commission in the development of the list, which shall be 19 published in the Pennsylvania Bulletin biennially and on the 20 board's website. Upon request, each public official shall have a 21 duty to provide the Ethics Commission with adequate information 22 to accurately develop and maintain the list. The Ethics 23 Commission may impose a civil penalty under 65 Pa.C.S. § 1109(f) 24 (relating to penalties) upon any public official or executive- 25 level public employee who fails to cooperate with the Ethics 26 Commission under this subsection. 27 (b) Definitions.--As used in this section, the following 28 words and phrases shall have the meanings given to them in this 29 subsection: 30 "Executive-level [State] public employee." [The Governor, 20050S0862B2218 - 97 -
1 Lieutenant Governor, cabinet members, deputy secretaries, the 2 Governor's office executive staff, any State employee with 3 discretionary powers which may affect the outcome of a State 4 agency's decision in relation to a private corporation or 5 business, with respect to any matter covered by this part or any 6 executive employee who by virtue of his job function could 7 influence the outcome of such a decision.] The term shall 8 include the following: 9 (1) Deputy Secretaries of the Commonwealth and the 10 Governor's office executive staff. 11 (2) An employee of the Executive Branch with 12 discretionary power which may affect or influence the outcome 13 of a State agency's action or decision and who is involved in 14 the development of regulations or policies relating to a 15 licensed entity or who is involved in other matters under 16 this part. The term shall include an employee with law 17 enforcement authority. 18 (3) An employee of a county or municipality with 19 discretionary powers which may affect or influence the 20 outcome of the county's or municipality's action or decision 21 and who is involved in the development of law, regulation or 22 policy relating to a licensed entity or who is involved in 23 other matters under this part. The term shall include an 24 employee with law enforcement authority. 25 (4) An employee of a department, agency, board, 26 commission, authority or other governmental body not included 27 in paragraph (1), (2) or (3) with discretionary power which 28 may affect or influence the outcome of the governmental 29 body's action or decision and who is involved in the 30 development of regulation or policy relating to a licensed 20050S0862B2218 - 98 -
1 entity or who is involved in other matters under this part. 2 The term shall include an employee with law enforcement 3 authority. 4 "Financial interest." Owning or holding, or being deemed to 5 hold, debt or equity securities [exceeding 1% of the equity or 6 fair market value of the licensed racing entity or licensed 7 gaming entity, its holding company, affiliate, intermediary or 8 subsidiary business.] or other ownership interest or profits 9 interest. A financial interest shall not include any [such stock 10 that is held in a blind trust over which the executive-level 11 State employee, public official, party officer or immediate 12 family member thereof may not exercise any managerial control or 13 receive income during the tenure of office and the period under 14 subsection (a).] debt or equity security, or other ownership 15 interest or profits interest, which is held or deemed to be held 16 in any of the following: 17 (1) A blind trust over which the executive level public 18 employee, public official, party officer or immediate family 19 member thereof may not exercise any managerial control or 20 receive income during the tenure of office and the period 21 under subsection (a). The provisions of this paragraph shall 22 apply only to blind trusts established prior to the effective 23 date of this paragraph. 24 (2) Securities that are held in a pension plan, profit- 25 sharing plan, individual retirement account, tax sheltered 26 annuity, a plan established pursuant to section 457 of the 27 Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 28 1 et seq.), or any successor provision, deferred compensation 29 plan whether qualified or not qualified under the Internal 30 Revenue Code of 1986, or any successor provision, or other 20050S0862B2218 - 99 -
1 retirement plan that: 2 (i) is not self-directed by the individual; and 3 (ii) is advised by an independent investment adviser 4 who has sole authority to make investment decisions with 5 respect to contributions made by the individual to these 6 plans. 7 (3) A tuition account plan organized and operated 8 pursuant to section 529 of the Internal Revenue Code of 1986 9 (Public Law 99-514, 26 U.S.C. § 529) that is not self- 10 directed by the individual. 11 (4) A mutual fund where the interest owned by the mutual 12 fund in a licensed entity does not constitute a controlling 13 interest as defined in this part. 14 "Immediate family." A [parent,] spouse, minor child or 15 unemancipated child[, brother or sister]. 16 "Law enforcement authority." The power to conduct 17 investigations of or to make arrests for criminal offenses. 18 "Party officer." A member of a national committee; a 19 chairman, vice chairman, secretary, treasurer or counsel of a 20 State committee or member of the executive committee of a State 21 committee; a county chairman, vice chairman, counsel, secretary 22 or treasurer of a county committee in which a licensed facility 23 is located; or a city chairman, vice chairman, counsel, 24 secretary or treasurer of a city committee of a city in which a 25 licensed facility is located. 26 ["Public official." Any person elected by the public or 27 elected or appointed by a governmental body or an appointed 28 official in the executive, legislative or judicial branch of 29 this Commonwealth or any political subdivision thereof, provided 30 that it shall not include members of advisory boards that have 20050S0862B2218 - 100 -
1 no authority to expend public funds other than reimbursement for 2 personal expense or to otherwise exercise the power of the 3 Commonwealth or any political subdivision or commissioner of any 4 authority or joint-state commission.] 5 "Public official." The term shall include the following: 6 (1) The Governor, Lieutenant Governor, a member of the 7 Governor's cabinet, Treasurer, Auditor General and Attorney 8 General of the Commonwealth. 9 (2) A member of the Senate or House of Representatives 10 of the Commonwealth. 11 (3) An individual elected or appointed to any office of 12 a county or municipality that directly receives a 13 distribution of revenue under this part. 14 (4) An individual elected or appointed to a department, 15 agency, board, commission, authority or other governmental 16 body not included in paragraph (1), (2) or (3) that directly 17 receives a distribution of revenue under this part. 18 (5) An individual elected or appointed to a department, 19 agency, board, commission, authority, county, municipality or 20 other governmental body not included in paragraph (1), (2) or 21 (3) with discretionary power which may influence or affect 22 the outcome of an action or decision and who is involved in 23 the development of regulation or policy relating to a 24 licensed entity or who is involved in other matters under 25 this part. 26 The term does not include a member of a school board or an 27 individual who held an uncompensated office with a governmental 28 body prior to January 1, 2006, and who no longer holds the 29 office as of January 1, 2006. The term includes a member of an 30 advisory board or commission which makes recommendations 20050S0862B2218 - 101 -
1 relating to a licensed facility. 2 Section 11. Section 1513(a) of Title 4 is amended and the 3 section is amended by adding subsections to read: 4 § 1513. Political influence. 5 [(a) Contribution restriction.--An applicant for a slot 6 machine license, manufacturer license or supplier license, 7 licensed racing entity licensee, licensed manufacturer, licensed 8 supplier or licensed gaming entity, or a person that holds a 9 similar gaming license or permit or a controlling interest in a 10 gaming license or permit in another jurisdiction, or any 11 holding, affiliate, intermediary or subsidiary company thereof, 12 or any officer, director or key employee of such applicant 13 licensed manufacturer or licensed supplier, licensed racing 14 entity or licensed gaming entity or any holding, affiliate, 15 intermediary or subsidiary company thereof, shall be prohibited 16 from contributing any money or in-kind contribution to a 17 candidate for nomination or election to any public office in 18 this Commonwealth, or to any political committee or State party 19 in this Commonwealth or to any group, committee or association 20 organized in support of any such candidate, political committee 21 or State party.] 22 (a) Contribution restriction.--The following persons shall 23 be prohibited from contributing any money or in-kind 24 contribution to a candidate for nomination or election to any 25 public office in this Commonwealth, or to any political party 26 committee or other political committee in this Commonwealth or 27 to any group, committee or association organized in support of a 28 candidate, political party committee or other political 29 committee in this Commonwealth: 30 (1) An applicant for a slot machine license, 20050S0862B2218 - 102 -
1 manufacturer license, supplier license, principal license or, <-- 2 key employee license, OR HORSE OR HARNESS RACING LICENSE. <-- 3 (2) A slot machine licensee, licensed manufacturer, 4 licensed supplier or licensed racing entity. 5 (3) A licensed principal or licensed key employee of a 6 slot machine licensee, licensed manufacturer, licensed 7 supplier or licensed racing entity. 8 (4) An affiliate, intermediary, subsidiary or holding 9 company of a slot machine licensee, licensed manufacturer, 10 licensed supplier or licensed racing entity. 11 (5) A licensed principal or licensed key employee of an 12 affiliate, intermediary, subsidiary or holding company of a 13 slot machine licensee, licensed manufacturer, licensed 14 supplier or licensed racing entity. 15 (6) A person who holds a similar gaming license in 16 another jurisdiction and the affiliates, intermediaries, 17 subsidiaries, holding companies, principals or key employees 18 thereof. 19 (a.1) Contributions to certain associations and 20 organizations barred.--The individuals prohibited from making 21 political contributions under subsection (a) shall not make a 22 political contribution of money or an in-kind contribution to 23 any association or organization, including a nonprofit 24 organization, that has been solicited by, or knowing that the 25 contribution or a portion thereof will be contributed to the 26 elected official, executive-level public employee or candidate 27 for nomination or election to a public office in this 28 Commonwealth. 29 (a.2) Internet website.-- 30 (1) The board shall establish an Internet website that 20050S0862B2218 - 103 -
1 includes a list of all applicants for and holders of a slot 2 machine license, manufacturer license, supplier license or 3 racing entity license, and the affiliates, intermediaries, 4 subsidiaries, holding companies, principals and key employees 5 thereof, all persons holding a similar gaming license in 6 another jurisdiction and the affiliates, intermediaries, 7 subsidiaries, holding companies, principals and key employees 8 thereof, and any other entity in which the applicant or 9 licensee has any debt or equity security or other ownership 10 or profits interest. An applicant or licensee shall notify 11 the board within seven days of the discovery of any change in 12 or addition to the information. The list shall be published 13 semiannually in the Pennsylvania Bulletin. 14 (2) An individual who acts in good faith and in reliance 15 on the information on the Internet website shall not be 16 subject to any penalties or liability imposed for a violation 17 of this section. 18 (3) The board shall request the information required 19 under paragraph (1) from persons licensed in another 20 jurisdiction who do not hold a license in this Commonwealth 21 and from regulatory agencies in the other jurisdiction. If a 22 licensee in another jurisdiction refuses to provide the 23 information required under paragraph (1), the person and its 24 officers, directors or persons with a controlling interest 25 shall be ineligible to receive any license under this part. 26 * * * 27 (d) Definitions.--As used in this section, the following 28 words and phrases shall have the meanings given to them in this 29 subsection: 30 "Contribution." Any payment, gift, subscription, assessment, 20050S0862B2218 - 104 -
1 contract, payment for services, dues, loan, forbearance, advance 2 or deposit of money or any valuable thing, made to a candidate 3 or political committee for the purpose of influencing any 4 election in this Commonwealth or for paying debts incurred by or 5 for a candidate or committee before or after any election. The 6 term shall include the purchase of tickets for events including 7 dinners, luncheons, rallies and other fund-raising events; the 8 granting of discounts or rebates not available to the general 9 public; or the granting of discounts or rebates by television 10 and radio stations and newspapers not extended on an equal basis 11 to all candidates for the same office; and any payments provided 12 for the benefit of any candidate, including payments for the 13 services of a person serving as an agent of a candidate or 14 committee by a person other than the candidate or committee or 15 person whose expenditures the candidate or committee must 16 report. The term also includes any receipt or use of anything of 17 value received by a political committee from another political 18 committee and also includes any return on investments by a 19 political committee. 20 "Political committee." Any committee, club, association or 21 other group of persons which receives contributions or makes 22 expenditures. 23 Section 12. Section 1517(a), (c) and (d) of Title 4 are 24 amended and the section is amended by adding subsections to 25 read: 26 § 1517. [Enforcement.] Investigations and enforcement. 27 [(a) Powers and duties.--The Bureau of Investigations and 28 Enforcement shall have the following powers and duties: 29 (1) Promptly investigate all licensees, permittees and 30 applicants as directed by the board in accordance with the 20050S0862B2218 - 105 -
1 provisions of section 1202 (relating to general and specific 2 powers). 3 (2) Enforce the rules and regulations promulgated under 4 this part. 5 (3) Initiate proceedings for administrative violations 6 of this part or regulations promulgated under this part. 7 (4) Provide the board with all information necessary for 8 all action under this part and for all proceedings involving 9 enforcement of this part or regulations promulgated under 10 this part. 11 (5) Investigate the circumstances surrounding any act or 12 transaction for which board approval is required. 13 (6) Conduct administrative inspections on the premises 14 of a licensed racetrack or nonprimary location or licensed 15 facility to ensure compliance with this part and the 16 regulations of the board and, in the course of inspections, 17 review and make copies of all documents and records that may 18 be required through onsite observation and other reasonable 19 means to assure compliance with this part and regulations 20 promulgated under this part. 21 (7) Receive and take appropriate action on any referral 22 from the board relating to any evidence of a violation. 23 (8) Conduct audits of slot machine operations at such 24 times, under such circumstances and to such extent as the 25 bureau determines. This paragraph includes reviews of 26 accounting, administrative and financial records and 27 management control systems, procedures and records utilized 28 by a slot machine licensee. 29 (9) Request and receive information, materials and other 30 data from any licensee, permittee or applicant. 20050S0862B2218 - 106 -
1 (10) Refer for investigation all possible criminal 2 violations to the Pennsylvania State Police and cooperate 3 fully in the investigation and prosecution of a criminal 4 violation arising under this part.] 5 (a) Establishment.--There is hereby established within the 6 board a Bureau of Investigations and Enforcement which shall be 7 independent of the board in matters relating to the enforcement 8 of this part. The bureau shall have the powers and duties set 9 forth in subsection (a.1). 10 (a.1) Powers and duties of bureau.--The Bureau of 11 Investigations and Enforcement shall have the following powers 12 and duties: 13 (1) Enforce the provisions of this part. 14 (2) Investigate and review all applicants and 15 applications for a license, permit or registration. 16 (3) Investigate licensees, permittees, registrants and 17 other persons regulated by the board for noncriminal 18 violations of this part, including potential violations 19 referred to the bureau by the board or other person. 20 (4) Monitor gaming operations to ensure all of the 21 following: 22 (i) Compliance with this part, the act of April 12, 23 1951 (P.L.90, No.21), known as the Liquor Code, and the 24 other laws of this Commonwealth. 25 (ii) The implementation of adequate security 26 measures by a licensed entity. 27 (5) Inspect and examine licensed entities as provided in 28 subsection (e). Inspections may include the review and 29 reproduction of any document or record. 30 (6) Conduct audits of a licensed entity as necessary to 20050S0862B2218 - 107 -
1 ensure compliance with this part. An audit may include the 2 review of accounting, administrative and financial records, 3 management control systems, procedures and other records 4 utilized by a licensed entity. 5 (7) Refer possible criminal violations to the 6 Pennsylvania State Police. The bureau shall not have the 7 power of arrest. 8 (8) Cooperate in the investigation and prosecution of 9 criminal violations related to this part. 10 (9) Be a criminal justice agency under 18 Pa.C.S. Ch. 91 11 (relating to criminal history record information). 12 (a.2) Office of Enforcement Counsel.-- 13 (1) There is established within the bureau an Office of 14 Enforcement Counsel which shall act as the prosecutor in all 15 noncriminal enforcement actions initiated by the bureau under 16 this part and shall have the following powers and duties: 17 (i) Advise the bureau on all matters, including the 18 granting of licenses, permits or registrations, the 19 conduct of background investigations, audits and 20 inspections and the investigation of potential violations 21 of this part. 22 (ii) File recommendations and objections relating to 23 the issuance of licenses, permits and registrations on 24 behalf of the bureau. 25 (iii) Initiate, in its sole discretion, proceedings 26 for noncriminal violations of this part by filing a 27 complaint or other pleading with the board. 28 (2) The director of the Office of Enforcement Counsel 29 shall report to the executive director of the board on 30 administrative matters. The director shall be selected by the 20050S0862B2218 - 108 -
1 board and shall be an attorney admitted to practice before 2 the Pennsylvania Supreme Court. 3 * * * 4 (c) Powers and duties of the Pennsylvania State Police.--The 5 Pennsylvania State Police shall have the following powers and 6 duties: 7 (1) Promptly [investigate all licensees, permittees and 8 applicants] conduct background investigations on persons as 9 directed by the board in accordance with the provisions of 10 section 1202 (relating to general and specific powers). The 11 Pennsylvania State Police may contract with other law 12 enforcement annuitants to assist in the conduct of 13 investigations under this paragraph. 14 [(2) Enforce the rules and regulations promulgated under 15 this part.] 16 (3) Initiate proceedings for [any] criminal violations 17 of this part [or regulations promulgated under this part]. 18 (4) Provide the board with all information necessary for 19 all actions under this part for all proceedings involving 20 criminal enforcement of this part [or regulations promulgated 21 under this part]. 22 (5) Inspect, when appropriate, a licensee's or 23 permittee's person and personal effects present in a licensed 24 facility under this part while that licensee or permittee is 25 present at a licensed facility. 26 (6) Enforce the criminal provisions of this part and all 27 other criminal laws of the Commonwealth. 28 (7) Fingerprint applicants for licenses and permits. 29 (8) Exchange fingerprint data with and receive national 30 criminal history record information from the FBI for use in 20050S0862B2218 - 109 -
1 investigating applications for any license or permit under 2 this part. 3 (9) Receive and take appropriate action on any referral 4 from the board relating to criminal conduct. 5 (10) Require the production of any information, material 6 and other data from any licensee, permittee or other 7 applicant seeking approval from the board. 8 (11) Conduct administrative inspections on the premises 9 of licensed racetrack or nonprimary location or licensed 10 facility at such times, under such circumstances and to such 11 extent as the bureau determines to ensure compliance with 12 this part and the regulations of the board and, in the course 13 of inspections, review and make copies of all documents and 14 records required by the inspection through onsite observation 15 and other reasonable means to assure compliance with this 16 part and regulations promulgated under this part. 17 (12) Conduct audits or verification of information of 18 slot machine operations at such times, under such 19 circumstances and to such extent as the bureau determines. 20 This paragraph includes reviews of accounting, administrative 21 and financial records and management control systems, 22 procedures and records utilized by a slot machine licensee. 23 (13) A member of the Pennsylvania State Police assigned 24 to duties of enforcement under this part shall not be counted 25 toward the complement as defined in the act of December 13, 26 2001 (P.L.903, No.100), entitled "An act repealing in part a 27 limitation on the complement of the Pennsylvania State 28 Police." 29 (c.1) Powers and duties of Attorney General.--Within the 30 Office of Attorney General, the Attorney General shall establish 20050S0862B2218 - 110 -
1 a gaming unit. The unit shall investigate and institute criminal 2 proceedings as authorized by subsection (d). 3 (d) Criminal action.-- 4 (1) The district attorneys of the several counties shall 5 have authority to investigate and to institute criminal 6 proceedings for [any] a violation of this part. 7 (2) In addition to the authority conferred upon the 8 Attorney General [by] under the act of October 15, 1980 9 (P.L.950, No.164), known as the Commonwealth Attorneys Act, 10 the Attorney General shall have the authority to investigate 11 and, following consultation with the appropriate district 12 attorney, to institute criminal proceedings for [any] a 13 violation of this part. [or any series of such violations 14 involving any county of this Commonwealth and another state. 15 No] A person charged with a violation of this part by the 16 Attorney General shall not have standing to challenge the 17 authority of the Attorney General to investigate or prosecute 18 the case, and, if any such challenge is made, the challenge 19 shall be dismissed and no relief shall be available in the 20 courts of this Commonwealth to the person making the 21 challenge. 22 (d.1) Regulatory action.--Nothing contained in subsection 23 (d) shall be construed to limit the existing regulatory or 24 investigative authority of an agency or the Commonwealth whose 25 functions relate to persons or matters within the scope of this 26 part. 27 * * * 28 Section 13. Title 4 is amended by adding sections to read: 29 § 1517.1. (Reserved). 30 § 1517.2. Conduct of public officials and employees. 20050S0862B2218 - 111 -
1 (a) Ex parte discussion prohibited.--An attorney 2 representing the bureau or the Office of Enforcement Counsel, or 3 an employee of the bureau or office involved in the hearing 4 process, shall not discuss the case ex parte with a hearing 5 officer, chief counsel or member. 6 (b) Other prohibitions.--A hearing officer, the chief 7 counsel or a member shall not discuss or exercise any 8 supervisory responsibility over any employee with respect to an 9 enforcement hearing with which the employee is involved. 10 (c) Disqualification.--If it becomes necessary for the chief 11 counsel or member to become involved on behalf of the board in 12 any enforcement proceeding, the chief counsel or member shall be 13 prohibited from participating in the adjudication of that matter 14 and shall designate appropriate individuals to exercise 15 adjudicatory functions. 16 Section 14. Section 1518 of Title 4 is amended to read: 17 § 1518. Prohibited acts; penalties. 18 (a) Criminal offenses.-- 19 (1) The provisions of 18 Pa.C.S. § 4902 (relating to 20 perjury), 4903 (relating to false swearing) or 4904 (relating 21 to unsworn falsification to authorities) shall apply to any 22 person providing information or making any statement, whether 23 written or oral, to the board, the bureau, the department, 24 the Pennsylvania State Police or the Office of Attorney 25 General, as required by this part. 26 (2) It [is] shall be unlawful for a person to willfully: 27 (i) fail to report, pay or truthfully account for 28 and pay over any license fee, tax or assessment imposed 29 under this part; or 30 (ii) attempt in any manner to evade or defeat any 20050S0862B2218 - 112 -
1 license fee, tax or assessment imposed under this [party] 2 part. 3 (3) It [is] shall be unlawful for any licensed entity, 4 gaming employee, key employee or any other person to permit a 5 slot machine to be operated, transported, repaired or opened 6 on the premises of a licensed facility by a person other than 7 a person licensed or permitted by the board pursuant to this 8 part. 9 (4) It [is] shall be unlawful for any licensed entity or 10 other person to manufacture, supply or place slot machines 11 into play or display slot machines on the premise of a 12 licensed facility without the authority of the board. 13 (5) Except as provided for in section 1326 (relating to 14 license renewals), it [is] shall be unlawful for a licensed 15 entity or other person to manufacture, supply, operate, carry 16 on or expose for play any slot machine after the person's 17 license has expired and prior to the actual renewal of the 18 license. 19 (6) (i) Except as set forth in subparagraph (ii), it 20 [is] shall be unlawful for an individual while on the 21 premises of a licensed facility to knowingly use currency 22 other than lawful coin or legal tender of the United 23 States or a coin not of the same denomination as the coin 24 intended to be used in the slot machine[.] with the 25 intent to cheat or defraud a licensed gaming entity or 26 the Commonwealth or damage the slot machine. 27 (ii) In the playing of a slot machine, it [is] shall 28 be lawful for an individual to use gaming billets, tokens 29 or similar objects issued by the licensed gaming entity 30 which are approved by the board. 20050S0862B2218 - 113 -
1 (7) (i) Except as set forth in subparagraph (ii), it 2 [is] shall be unlawful for an individual [on the premises 3 of a licensed facility] to use or possess a cheating or 4 thieving device, counterfeit or altered billet, ticket, 5 token or similar objects accepted by a slot machine or 6 counterfeit or altered slot machine-issued tickets or 7 vouchers at a licensed facility. 8 (ii) An authorized employee of a licensee or an 9 employee of the board may possess and use a cheating or 10 thieving device, counterfeit or altered billet, ticket, 11 token or similar objects accepted by a slot machine or 12 counterfeit or altered slot machine-issued tickets or 13 vouchers [only] in performance of the duties of 14 employment. 15 (iii) As used in this paragraph, the term "cheating 16 or thieving device" includes, but is not limited to, a 17 device to facilitate the alignment of any winning 18 combination or to remove from any slot machine money or 19 other contents. The term includes, but is not limited to, 20 a tool, drill, wire, coin or token attached to a string 21 or wire and any electronic or magnetic device. 22 (8) (i) Except as set forth in subparagraph (ii), it 23 [is] shall be unlawful for an individual to knowingly 24 possess or use while on the premises of a licensed 25 facility a key or device designed for the purpose of and 26 suitable for opening or entering any slot machine or coin 27 box which is located on the premises of the licensed 28 facility. 29 (ii) An authorized employee of a licensee or a 30 member of the board may possess and use a device referred 20050S0862B2218 - 114 -
1 to in subparagraph (i) [only] in the performance of the 2 duties of employment. 3 (9) It [is] shall be unlawful for a person or licensed 4 entity to possess any device, equipment or material which the 5 person or licensed entity knows has been manufactured, 6 distributed, sold, tampered with or serviced in violation of 7 the provisions of this part[.] with the intent to use the 8 device, equipment or material as though it had been 9 manufactured, distributed, sold, tampered with or serviced 10 pursuant to this part. 11 (9.1) It shall be unlawful for a person to sell, offer 12 for sale, represent or pass off as lawful any device, 13 equipment or material which the person or licensed entity 14 knows has been manufactured, distributed, sold, tampered with 15 or serviced in violation of this part. 16 (10) It [is] shall be unlawful for an individual to work 17 or be employed in a position the duties of which would 18 require licensing or permitting under the provisions of this 19 part without first obtaining the requisite license or permit 20 [as provided for in] issued under the provisions of this 21 part. 22 (11) It [is] shall be unlawful for a licensed gaming 23 entity that is a licensed racing entity and that has lost the 24 license issued to it by either the State Horse Racing 25 Commission or the State Harness Racing Commission under the 26 Race Horse Industry Reform Act or that has had that license 27 suspended to operate slot machines at the racetrack for which 28 its slot machine license was issued unless the license issued 29 to it by either the State Horse Racing Commission or the 30 State Harness Racing Commission will be subsequently reissued 20050S0862B2218 - 115 -
1 or reinstated within 30 days after the loss or suspension. 2 (12) It [is] shall be unlawful for a licensed entity to 3 employ or continue to employ an individual in a position the 4 duties of which require a license or permit under the 5 provisions of this part if the individual: 6 (i) [An individual] Is not licensed or permitted 7 under the provisions of this part. 8 (ii) [An individual who is] Is prohibited from 9 accepting employment from a licensee. 10 (13) It [is] shall be unlawful for any person under 18 11 years of age to be permitted in the area of a licensed 12 facility where slot machines are operated. 13 (b) Criminal penalties and fines.-- 14 (1) (i) A person [that violates subsection (a)(1) 15 commits an offense to be graded in accordance with 18 16 Pa.C.S. § 4902, 4903 or 4904, as applicable, for a first 17 conviction.] who commits a first offense in violation of 18 18 Pa.C.S § 4902, 4903 or 4904 in connection with 19 providing information or making any statement, whether 20 written or oral, to the board, the bureau, the 21 department, the Pennsylvania State Police, the Office of 22 Attorney General or a district attorney as required by 23 this part commits an offense to be graded in accordance 24 with the applicable section violated. A person that is 25 convicted of a second or subsequent violation of 26 [subsection (a)(1)] 18 Pa.C.S. § 4902, 4903 or 4904 in 27 connection with providing information or making any 28 statement, whether written or oral, to the board, the 29 bureau, the department, the Pennsylvania State Police, 30 the Office of Attorney General or a district attorney as 20050S0862B2218 - 116 -
1 required by this part commits a felony of the second
2 degree.
3 (ii) A person that violates subsection (a)(2)
4 through (12) commits a misdemeanor of the first degree. A
5 person that is convicted of a second or subsequent
6 violation of subsection (a)(2) through (12) commits a
7 felony of the second degree.
8 (2) (i) For a first violation of subsection (a)(1)
9 through (12), a person shall be sentenced to pay a fine
10 of:
11 (A) not less than $75,000 nor more than $150,000
12 if the person is an individual;
13 (B) not less than $300,000 nor more than
14 $600,000 if the person is a licensed gaming entity;
15 or
16 (C) not less than $150,000 nor more than
17 $300,000 if the person is a licensed manufacturer or
18 supplier.
19 (ii) For a second or subsequent violation of
20 subsection (a)(1) through (12), a person shall be
21 sentenced to pay a fine of:
22 (A) not less than $150,000 nor more than
23 $300,000 if the person is an individual;
24 (B) not less than $600,000 nor more than
25 $1,200,000 if the person is a licensed gaming entity;
26 or
27 (C) not less than $300,000 nor more than
28 $600,000 if the person is a licensed manufacturer or
29 supplier.
30 (c) Board-imposed administrative sanctions.--
20050S0862B2218 - 117 -
1 (1) In addition to any other penalty authorized by law, 2 the board may impose without limitation the following 3 sanctions upon any licensee or permittee: 4 (i) Revoke the license or permit of any person 5 convicted of a criminal offense under this part or 6 regulations promulgated under this part or committing any 7 other offense or violation of this part or applicable law 8 which would otherwise disqualify such person from holding 9 the license or permit. 10 (ii) Revoke the license or permit of any person 11 determined to have violated a provision of this part or 12 regulations promulgated under this part which would 13 otherwise disqualify such person from holding the license 14 or permit. 15 (iii) Revoke the license or permit of any person for 16 willfully and knowingly violating or attempting to 17 violate an order of the board directed to such person. 18 (iv) Suspend the license or permit of any person 19 pending the outcome of a hearing in any case in which 20 license or permit revocation could result. 21 (v) Suspend the license of any licensed gaming 22 entity for violation of or attempting to violate any 23 provisions of this part or regulations promulgated under 24 this part relating to its slot machine operations. 25 (vi) Assess administrative penalties as necessary to 26 punish misconduct and to deter future violations. 27 (vii) Order restitution of any moneys or property 28 unlawfully obtained or retained by a licensee or 29 permittee. 30 (viii) Enter cease and desist orders which specify 20050S0862B2218 - 118 -
1 the conduct which is to be discontinued, altered or 2 implemented by the licensee or permittee. 3 (ix) Issue letters of reprimand or censure, which 4 letters shall be made a permanent part of the file of 5 each licensee or permittee so sanctioned. 6 (2) If the board refuses to issue or renew a license or 7 permit, suspends or revokes a license or permit, assesses 8 civil penalties, orders restitution, enters a cease and 9 desist order or issues a letter of reprimand or censure, it 10 shall provide the applicant or licensee or permittee with 11 written notification of its decision, including a statement 12 of the reasons for its decision by certified mail within five 13 business days of the decision[. Any applicant or licensee or 14 permittee who has received notice of a refusal, suspension or 15 revocation of a license or permit, the assessment of civil 16 penalties, an order of restitution, the entrance of a cease 17 and desist order or the issuance of a letter of reprimand or 18 censure from] of the board. The applicant, licensee or 19 permittee shall have the right to [an administrative hearing 20 before the board] appeal the decision in accordance with 2 21 Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure 22 of Commonwealth agencies) and 7 Subch. A (relating to 23 judicial review of Commonwealth agency action). 24 (3) In addition to any other fines or penalties that the 25 board may impose under this part or regulation, if a person 26 violates subsection (a)(2), the board shall impose an 27 administrative penalty of three times the amount of the 28 license fee, tax or other assessment evaded and not paid, 29 collected or paid over. This subsection is subject to 2 30 Pa.C.S. Chs. 5 Subch. A and 7 Subch. A. 20050S0862B2218 - 119 -
1 Section 15. Title 4 is amended by adding sections to read: 2 § 1519. [(Reserved).] Detention. 3 A peace officer, licensee or licensee's security employee or 4 an agent under contract with the licensee who has probable cause 5 to believe that criminal violation of this part has occurred or 6 is occurring on or about a licensed facility and who has 7 probable cause to believe that a specific individual has 8 committed or is committing the criminal violation may detain the 9 suspect in a reasonable manner for a reasonable time on the 10 premises of the licensed facility for all or any of the 11 following purposes: to require the suspect to identify himself; 12 to verify such identification; or to inform a peace officer. 13 Such detention shall not impose civil or criminal liability upon 14 the peace officer, licensee, licensee's employee or agent so 15 detaining. 16 § 1522. Interception of oral communications. 17 The interception and recording of oral communications made in 18 a counting room of a licensed facility by a licensee shall not 19 be subject to the provisions of 18 Pa.C.S. Ch. 57 (relating to 20 wiretapping and electronic surveillance). Notice that oral 21 communications are being intercepted and recorded shall be 22 posted conspicuously in the counting room. 23 Section 16. Sections 1801 and 1802 of Title 4 are amended to 24 read: 25 § 1801. Duty to provide. 26 Notwithstanding the provisions of the Race Horse Industry 27 Reform Act or this part, the Pennsylvania State Police shall, at 28 the request of the commissions or the board, provide criminal 29 history background investigations, which shall include records 30 of criminal arrests [or] and convictions, no matter where 20050S0862B2218 - 120 -
1 occurring, including Federal criminal history record 2 information, on applicants for licensure and permit applicants 3 by the respective agencies pursuant to the Race Horse Industry 4 Reform Act or this part. Requests for criminal history 5 background investigations may, at the direction of the 6 commissions or the board, include, but not be limited to, 7 officers, directors and stockholders of licensed corporations, 8 key employees, financial backers, principals, gaming employees, 9 horse owners, trainers, jockeys, drivers and other persons 10 participating in thoroughbred or harness horse meetings and 11 other persons and vendors who exercise their occupation or 12 employment at such meetings, licensed facilities or licensed 13 [racetrack] racetracks. For the purposes of this [chapter] part, 14 the board and commissions may receive and retain information 15 otherwise protected by 18 Pa.C.S. Ch. 91 (relating to criminal 16 history record information). 17 § 1802. Submission of fingerprints and photographs. 18 [Applicants] Appointees, employees and prospective employees 19 engaged in the service of the commissions or the board, and 20 applicants under this part shall submit to fingerprinting and 21 photographing by the Pennsylvania State Police[.] or by a local 22 law enforcement agency capable of submitting fingerprints and 23 photographs electronically to the Pennsylvania State Police 24 utilizing the Integrated Automated Fingerprint Identification 25 System and the Commonwealth Photo Imaging Network or in a manner 26 and in such form as may be provided by the Pennsylvania State 27 Police. Fingerprinting pursuant to this part shall require, at a 28 minimum, the submission of a full set of fingerprints. 29 Photographing pursuant to this part shall require submission to 30 photographs of the face and any scars, marks or tattoos for 20050S0862B2218 - 121 -
1 purposes of comparison utilizing an automated biometric imaging 2 system. The Pennsylvania State Police shall submit [the] 3 fingerprints [if necessary] when requested by the commissions or 4 the board to the Federal Bureau of Investigation for purposes of 5 verifying the identity of the applicants and obtaining records 6 of criminal arrests and convictions in order to prepare criminal 7 history background investigations under section 1801 (relating 8 to duty to provide). [The] Fingerprints and photographs obtained 9 pursuant to this part may be maintained by the commissions, the 10 board and the Pennsylvania State Police for use pursuant to this 11 part and for general law enforcement purposes. In addition to 12 any other fee or cost assessed by the commissions or the board, 13 an applicant shall pay for the cost of fingerprinting and 14 photographing. 15 Section 17. Title 4 is amended by adding a section to read: 16 § 1901.1. Repayments to the State Gaming Fund. 17 The board shall defer assessing slot machine licensees for 18 payments to the State Gaming Fund for any loans made to the 19 State Gaming Fund until such time as all slot machine licenses 20 have been issued and all licensed gaming entities have commenced 21 the operation of slot machines. The board shall adopt a 22 repayment schedule that assesses to each slot machine licensee 23 costs for the repayment of any such loans in an amount that is 24 proportional to each slot machine licensee's gross terminal 25 revenue. 26 Section 18. Section 911(h)(1) of Title 18 is amended to 27 read: 28 § 911. Corrupt organizations. 29 * * * 30 (h) Definitions.--As used in this section: 20050S0862B2218 - 122 -
1 (1) "Racketeering activity" means all of the following: 2 (i) [any] An act which is indictable under any of 3 the following provisions of this title: 4 Chapter 25 (relating to criminal homicide) 5 Section 2706 (relating to terroristic threats) 6 Chapter 29 (relating to kidnapping) 7 Chapter 33 (relating to arson, etc.) 8 Chapter 37 (relating to robbery) 9 Chapter 39 (relating to theft and related 10 offenses) 11 Section 4108 (relating to commercial bribery and 12 breach of duty to act disinterestedly) 13 Section 4109 (relating to rigging publicly 14 exhibited contest) 15 Section 4117 (relating to insurance fraud) 16 Chapter 47 (relating to bribery and corrupt 17 influence) 18 Chapter 49 (relating to falsification and 19 intimidation) 20 Section 5111 (relating to dealing in proceeds of 21 unlawful activities) 22 Section 5512 through 5514 (relating to gambling) 23 Chapter 59 (relating to public indecency). 24 (ii) [any] An offense indictable under section 13 of 25 the act of April 14, 1972 (P.L.233, No.64), known as The 26 Controlled Substance, Drug, Device and Cosmetic Act 27 (relating to the sale and dispensing of narcotic 28 drugs)[;]. 29 (iii) [any] A conspiracy to commit any of the 30 offenses set forth in subparagraphs (i) [and (ii) of this 20050S0862B2218 - 123 -
1 paragraph; or], (ii) or (v). 2 (iv) [the] The collection of any money or other 3 property in full or partial satisfaction of a debt which 4 arose as the result of the lending of money or other 5 property at a rate of interest exceeding 25% per annum or 6 the equivalent rate for a longer or shorter period, where 7 not otherwise authorized by law. 8 (v) An offense indictable under 4 Pa.C.S. Pt. II 9 (relating to gaming). 10 [Any] An act which otherwise would be considered racketeering 11 activity by reason of the application of this paragraph, 12 shall not be excluded from its application solely because the 13 operative acts took place outside the jurisdiction of this 14 Commonwealth, if such acts would have been in violation of 15 the law of the jurisdiction in which they occurred. 16 * * * 17 Section 19. The amendment of 4 Pa.C.S. § 1205(b) shall apply 18 to any slot machine license application filed on or after the 19 effective date of this section. 20 Section 20. This act shall take effect immediately. A13L04DMS/20050S0862B2218 - 124 -