PRINTER'S NO. 4482
No. 2812 Session of 2008
INTRODUCED BY SCHRODER, HENNESSEY, M. O'BRIEN, KAUFFMAN, CLYMER,
VULAKOVICH AND ROCK, OCTOBER 3, 2008
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, OCTOBER 3, 2008
AN ACT
1 Amending Title 4 (Amusements) of the Pennsylvania Consolidated
2 Statutes, further providing for the membership, terms of
3 office, procedure, and qualifications and restrictions of the
4 Pennsylvania Gaming Control Board.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 1201(b), (b.1), (d), (f) and (h) of Title
8 4 of the Pennsylvania Consolidated Statutes are amended and the
9 section is amended by adding a subsection to read:
10 § 1201. Pennsylvania Gaming Control Board established.
11 * * *
12 (b) Membership.--The board shall consist of [the following
13 members:
14 (1) Three members appointed by the Governor.
15 (2) One member appointed by each of the following:
16 (i) The President pro tempore of the Senate.
17 (ii) The Minority Leader of the Senate.
18 (iii) The Speaker of the House of Representatives.
1 (iv) The Minority Leader of the House of
2 Representatives.] five members appointed by the Governor
3 with the advice and consent of a majority of the members
4 of the Senate. No more than three members of the board
5 may be of the same political party.
6 (b.1) Removal.--A member of the board shall be removed from
7 office by the [appointing authority] Governor:
8 (1) for misconduct in office, willful neglect of duty or
9 conduct evidencing unfitness for office or incompetence; or
10 (2) upon conviction of an offense graded as a felony, an
11 infamous crime, an offense under this part or an equivalent
12 offense under Federal law or the law of another jurisdiction.
13 * * *
14 (d) Terms of office.--Upon the expiration of a term of a
15 member appointed under subsection (c), the following shall
16 apply:
17 (1) The term of office of [a gubernatorial] an appointee
18 shall be three years and until a successor is appointed and
19 qualified.
20 [(2) The term of office of a legislative appointee shall
21 be two years and until a successor is appointed and
22 qualified.
23 (3) A legislative appointee shall serve no more than
24 three full consecutive terms.]
25 (4) [A gubernatorial] An appointee shall serve no more
26 than [two] three full 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
30 paragraph (3) may serve three full terms following the
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1 expiration of the term related to the vacancy.]
2 (7) A member appointed to fill a vacancy [under
3 paragraph (4) may serve two] may serve three full terms
4 following the expiration of the term related to the vacancy.
5 (d.1) Transition of board members.--Upon the effective date
6 of this subsection, current members of the board shall remain in
7 office until the length of their current term expires.
8 * * *
9 (f) [Qualified majority vote.--
10 (1) Except as permitted in paragraphs (2) and (3), any
11 action, including, but not limited to, the approval,
12 issuance, denial or conditioning of any license by the board
13 under this part or the making of any order or the
14 ratification of any permissible act done or order made by one
15 or more of the members, shall require a qualified majority
16 vote consisting of at least one gubernatorial appointee and
17 the four legislative appointees.
18 (2) Any action to suspend or revoke, not renew, void or
19 require forfeiture of a license or permit issued under this
20 part, to impose any administrative fine or penalty under this
21 part or to issue cease and desist orders or similar
22 enforcement actions shall require a majority vote of all the
23 members appointed to the board.
24 (3) Notwithstanding any other provision of this part or
25 65 Pa.C.S. § 1103(j) (relating to restricted activities), a
26 member shall disclose the nature of his disqualifying
27 interest, disqualify himself and abstain from voting in a
28 proceeding under this part in which his objectivity,
29 impartiality, integrity or independence of judgment may be
30 reasonably questioned, as provided in subsection (h)(6). If a
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1 legislative appointee has disqualified himself, the qualified
2 majority shall consist of all of the remaining legislative
3 appointees and at least two gubernatorial appointees.] Quorum
4 and majority vote.--Four members of the board shall
5 constitute a quorum for the conduct of business. Any action
6 of the board shall require an affirmative vote of at least
7 three members of the board.
8 * * *
9 (h) Qualifications and restrictions.--
10 (1) Each member at the time of appointment shall be at
11 least 25 years of age and shall have been a resident of this
12 Commonwealth for a period of at least one year immediately
13 preceding appointment. Each member shall continue to remain a
14 resident of this Commonwealth during the term of membership
15 on the board.
16 (2) Except for ex officio members, no person shall be
17 appointed a member of the board or be employed by or be an
18 independent contractor of the board if that person is a
19 public official or party officer as defined in section 1512
20 (relating to financial and employment interests) in this
21 Commonwealth or any of its political subdivisions.
22 (3) Each member, employee and independent contractor of
23 the board shall sign an agreement not to disclose
24 confidential information.
25 (4) No member, employee or independent contractor of the
26 board or other agency having regulatory authority over the
27 board or over forms of gaming regulated by this part shall be
28 employed, hold any office or position or be engaged in any
29 activity which is incompatible with the position, employment
30 or contract.
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1 (5) No member shall be paid or receive any fee or other
2 compensation other than salary and expenses provided by law
3 for any activity related to the duties or authority of the
4 board. [Nothing in this part shall prohibit a member from
5 engaging in any employment or receiving any compensation for
6 such employment that is not connected to or incompatible with
7 his service as a member of the board.]
8 (5.1) Each member shall devote the member's entire time
9 and attention to the member's duties and shall not hold any
10 other office or position or be engaged in any other
11 employment or receive any other compensation for such
12 employment.
13 (6) No member, employee or independent contractor of the
14 board shall participate in a hearing, proceeding or other
15 matter in which the member, employee or independent
16 contractor, or the immediate family thereof, has a financial
17 interest in the subject matter of the hearing or proceeding
18 or other interest that could be substantially affected by the
19 outcome of the hearing or proceeding without first fully
20 disclosing the nature of the interest to the board and other
21 persons participating in the hearing or proceeding. The board
22 shall determine if the interest is a disqualifying interest
23 that requires the disqualification or nonparticipation of an
24 employee or independent contractor. For purposes of this
25 paragraph, the term "immediate family" shall mean spouse,
26 parent, brother, sister or child.
27 (7) At the time of appointment and annually thereafter,
28 each member shall disclose the existence of any financial
29 interest in any applicant, licensed entity or licensed
30 facility and in an affiliate, intermediary, subsidiary or
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1 holding company thereof held by the member or known to be
2 held by the member's immediate family. The disclosure
3 statement shall be filed with the executive director of the
4 board and with the appointing authority for such member and
5 shall be open to inspection by the public at the office of
6 the board during the normal business hours of the board for
7 the duration of the member's term and for two years after the
8 member leaves office. For purposes of this paragraph, the
9 term "immediate family" shall mean spouse, parent, brother,
10 sister or child.
11 (7.1) Prior to being sworn as a member, an appointee and
12 his immediate family shall divest any financial interest in
13 any applicant, licensed facility or licensed entity and in an
14 affiliate, intermediary, subsidiary or holding company
15 thereof owned or held by the appointee or known to be held by
16 the appointee's immediate family. For the duration of the
17 member's term and for one year thereafter, the member and the
18 member's immediate family may not acquire a financial
19 interest in any applicant, licensed facility or licensed
20 entity or in an affiliate, intermediary, subsidiary or
21 holding company thereof. For purposes of this paragraph, the
22 term "immediate family" shall mean spouse and any minor or
23 unemancipated child.
24 (7.2) Prior to entering into employment or a contract
25 with the board and annually thereafter, an employee or
26 independent contractor shall disclose the existence of any
27 financial interest in any applicant, licensed facility or
28 licensed entity and in an affiliate, intermediary, subsidiary
29 or holding company thereof owned or held by the employee or
30 independent contractor or known to be held by the immediate
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1 family of the employee or independent contractor. The
2 disclosure statement shall be filed with the board and shall
3 be open to inspection by the public at the office of the
4 board during the normal business hours of the board and for
5 two years after termination of employment or a contract with
6 the board. For purposes of this paragraph, the term
7 "immediate family" shall mean spouse, parent, brother, sister
8 or child.
9 (7.3) Prior to entering into employment or contracting
10 with the board, an employee or independent contractor and the
11 employee's or independent contractor's immediate family shall
12 divest any financial interest in any applicant, licensed
13 facility or licensed entity, and in an affiliate,
14 intermediary, subsidiary or holding company thereof, owned or
15 held by the employee or independent contractor or known to be
16 held by the immediate family of the employee or independent
17 contractor. For the duration of the employee's employment
18 with the board or the independent contractor's contract with
19 the board and for one year thereafter, the employee or
20 independent contractor and the immediate family thereof shall
21 not acquire, by purchase, gift, exchange or otherwise, any
22 financial interest in any applicant, licensed facility or
23 licensed entity and in any affiliate, intermediary,
24 subsidiary or holding company thereof. For purposes of this
25 paragraph, the term "immediate family" shall mean spouse and
26 any minor or unemancipated child.
27 (8) No member, employee or independent contractor of the
28 board may directly or indirectly solicit, request, suggest or
29 recommend to any applicant, licensed entity, or an affiliate,
30 intermediary, subsidiary or holding company thereof or to any
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1 principal, employee, independent contractor or agent thereof,
2 the appointment or employment of any person in any capacity
3 by the applicant, licensed entity, or an affiliate,
4 intermediary, subsidiary or holding company thereof for a
5 period of two years from the termination of term of office,
6 employment or contract with the board.
7 (9) No member may accept employment with any applicant,
8 licensed entity, or an affiliate, intermediary, subsidiary or
9 holding company thereof, for a period of two years from the
10 termination of term of office.
11 (10) No member may appear before the board on behalf of
12 any applicant, licensed entity, or an affiliate,
13 intermediary, subsidiary or holding company thereof, or any
14 other licensee or permittee for a period of two years from
15 the termination of term of office.
16 (11) No member, employee or independent contractor of
17 the board shall accept a complimentary service, wager or be
18 paid any prize from any wager at any licensed facility within
19 this Commonwealth or at any other facility outside this
20 Commonwealth which is owned or operated by a licensed gaming
21 entity or any of its affiliates, intermediaries, subsidiaries
22 or holding companies thereof for the duration of their term
23 of office, employment or contract with the board and for a
24 period of one year from the termination of term of office,
25 employment or contract with the board. The provisions of this
26 paragraph shall not apply to employees who utilize slot
27 machines for testing purposes or to verify the performance of
28 a machine as part of an enforcement investigation.
29 (12) A member who has been convicted during his term in
30 any domestic or foreign jurisdiction of a felony, infamous
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1 crime or gambling offense shall, upon conviction, be
2 automatically removed from the board and shall be ineligible
3 to become a member in the future. If an ex officio member is
4 convicted during his term in any domestic or foreign
5 jurisdiction of a felony, infamous crime or gambling offense,
6 the ex officio member shall, upon conviction, be
7 automatically removed from the board, and a designee shall be
8 designated pursuant to subsection (e) to serve the remainder
9 of the ex officio member's term.
10 (13) No employee of the board or individual employed by
11 an independent contractor of the board whose duties
12 substantially involve licensing, enforcement or the
13 development or adoption of regulations or policy under this
14 part shall:
15 (i) accept employment with an applicant or licensed
16 entity, or an affiliate, intermediary, subsidiary or
17 holding company thereof, for a period of one year after
18 the termination of the employment relating to the conduct
19 of gaming or contract with the board; or
20 (ii) appear before the board in any hearing or
21 proceeding or participate in any other activity on behalf
22 of any applicant, licensee, permittee or licensed entity,
23 or an affiliate, intermediary, subsidiary or holding
24 company thereof, for a period of two years after
25 termination of the employment or contract with the board.
26 (14) Upon the written request of an employee of the
27 board, the executive branch of the Commonwealth or a
28 political subdivision or of the agency or political
29 subdivision employing an employee, the State Ethics
30 Commission shall determine whether the individual's duties
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1 substantially involve the development or adoption of
2 regulations or policy, licensing or enforcement under this
3 part and shall provide a written determination to the
4 employee to include any prohibition under this paragraph. An
5 individual who relies in good faith on a determination under
6 this paragraph shall not be subject to any penalty for an
7 action taken, provided that all material facts set forth in
8 the request for a determination are correct.
9 (15) If a member, employee or independent contractor of
10 the board violates any provision of this section, the
11 appointing authority or the board may, upon notice and
12 hearing, remove the person from the board, withdraw the
13 appointment or terminate the employment or contract, and the
14 person shall be ineligible for future appointment, employment
15 or contract with the board and for approval of a license or
16 permit under this part for a period of two years thereafter.
17 * * *
18 Section 2. This act shall take effect as follows:
19 (1) The amendment of 4 Pa.C.S. § 1201(h) shall take
20 effect immediately.
21 (2) This section shall take effect immediately.
22 (3) The remainder of this act shall take effect January
23 1, 2009.
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