HOUSE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY EARLL, MELLOW, FONTANA, WOZNIAK, M. WHITE, KITCHEN, VANCE, WARD, TOMLINSON, TARTAGLIONE, ERICKSON, MUSTO, WASHINGTON, PIPPY, YAW, DINNIMAN, KASUNIC, LEACH, FARNESE, PILEGGI, ARGALL, ORIE, RAFFERTY, STACK AND COSTA, JUNE 22, 2009

AS REPORTED FROM COMMITTEE ON GAMING OVERSIGHT, HOUSE OF REPRESENTATIVES, AS AMENDED, OCTOBER 2, 2009   

AN ACT

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

<--

Statutes, further providing for legislative intent and for

the definitions of "conviction," "licensed entity" and "slot

machine licensee"; providing for the definitions of

"executive-level public employee," "licensed entity

representative" and "trustee"; further providing for the

Pennsylvania Gaming Control Board, for powers of the board

and for code of conduct; providing for expenses of

Pennsylvania Gaming Control Board; further providing for

license or permit application hearing process and public

hearings, for board minutes and records, for regulatory

authority of board, for collection of fees and fines, for

slot machine license fee, for reports of board, for license

or permit prohibition, for slot machine license application

character requirements, for applications for license or

permit, for supplier licenses, for manufacturer licenses, for

additional licenses and permits and approval of agreements,

for license renewals, for change in ownership or control of

slot machine licensees and for nonportability of slot machine

license; providing for appointment of trustee; further

providing for Pennsylvania Gaming Economic Development and

Tourism Fund, for transfers from State Gaming Fund and for

financial and employment interests; providing for

prosecutorial and adjudicative functions; and further

providing for investigations and enforcement and for conduct

of public officials and employees.

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

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Statutes, further providing for legislative intent, for

definitions, for the Pennsylvania Gaming Control Board

established, for applicability of other statutes, for powers

of the board and for code of conduct; providing for expenses

of regulatory agencies; further providing for licensed gaming

entity application appeals from board, for license or permit

application hearing process and public hearings, for board

minutes and records, for regulatory authority of board, for

collection of fees and fines, for slot machine license fee,

for number of slot machines and for reports of board;

providing for report by slot machine licensee; further

providing for diversity goals of board and for license or

permit prohibition; providing for specific authority to

suspend slot machine license; further providing for Category

3 slot machine license, for applications for license or

permit, for slot machine license application character

requirements, for slot machine license application financial

fitness requirements, for supplier licenses and for

manufacturer licenses; providing for gaming service provider

and for alternative supplier licensing standards; further

providing for occupation permit application, for additional

licenses and permits and approval of agreements, for license

renewals, for change in ownership or control of slot machine

licensee and for nonportability of slot machine license;

providing for appointment of trustee; authorizing table

games; further providing for slot machine license deposits;

providing for limitation on recovery of costs; further

providing for gross terminal revenue deductions, for itemized

budget reporting, for establishment of State Gaming Fund and

net slot machine revenue distribution, for distributions from

Pennsylvania Race Horse Development Fund, for Pennsylvania

Gaming Economic Development and Tourism Fund, for transfers

from State Gaming Fund, for responsibility and authority of

Department of Revenue, for wagering on credit, for no eminent

domain authority, for compulsive and problem gambling

program, for labor hiring preferences, for declaration of

exemption from Federal laws prohibiting slot machines and for

financial and employment interests; providing for additional

restrictions; further providing for political influence, for

regulation requiring exclusion of certain persons; providing

for prosecutorial and adjudicative functions; further

providing for investigations and enforcement, for conduct of

public officials and employees and for prohibited acts and

penalties; providing for additional authority and for report

of suspicious transactions; further providing for

interception of oral communications; providing for electronic

funds transfer terminals; regulating junkets; and providing

for gaming schools.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1102(11) of Title 4 of the Pennsylvania

Consolidated Statutes is amended and the section is amended by

adding paragraphs to read:

§ 1102.  Legislative intent.

The General Assembly recognizes the following public policy

purposes and declares that the following objectives of the

Commonwealth are to be served by this part:

* * *

(10.1)  The General Assembly has a compelling interest in

protecting the integrity of both the electoral process and

the legislative process by preventing corruption and the

appearance of corruption which may arise through permitting

campaign contributions by the gaming industry.

(11)  It is necessary to maintain the integrity of the

regulatory control and legislative oversight over the

operation of slot machines in this Commonwealth; to prevent

the actual or appearance of corruption that may result from

[large] campaign contributions; ensure the bipartisan

administration of this part; and avoid actions that may erode

public confidence in the system of representative government.

(11.1)  Completely banning political CAMPAIGN

contributions by certain individuals and entities subject to

this act is necessary to prevent corruption, or the

appearance of corruption, that may arise when politics and

gaming are intermingled.

Section 2.  The definitions of "conviction," licensed entity"

and "slot machine licensee" in section 1103 of Title 4 are

amended and the section is amended by adding definitions to

read:

§ 1103.  Definitions.

The following words and phrases when used in this part shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Conviction."  A finding of guilt or a plea of guilty or nolo

contendere, whether or not a judgment of sentence has been

imposed as determined by the law of the jurisdiction in which

the prosecution was held. The term does not include a conviction

that has been expunged or overturned or for which an individual

has been pardoned or an order of Accelerated Rehabilitative

Disposition which has been issued.

* * *

"Executive-level public employee."  The term shall include

the following:

(1)  Deputy Secretaries of the Commonwealth and the

Governor's Office executive staff.

(2)  An employee of the executive branch with

discretionary power which may affect or influence the outcome

of a State agency's action or decision and who is involved in

the development of regulations or policies relating to a

licensed entity or who is involved in other matters under

this part. The term shall include an employee with law

enforcement authority.

(3)  An employee of a county or municipality with

discretionary powers which may affect or influence the

outcome of the county's or municipality's action or decision

and who is involved in the development of law, regulation or

policy relating to a licensed entity or who is involved in

other matters under this part. The term shall include an

employee with law enforcement authority.

(4)  An employee of a department, agency, board,

commission, authority or other governmental body not included

in paragraph (1), (2) or (3) with discretionary power which

may affect or influence the outcome of the governmental

body's action or decision and who is involved in the

development of regulation or policy relating to a licensed

entity or who is involved in other matters under this part.

The term shall include an employee with law enforcement

authority.

* * *

"Licensed entity[.]" or "licensee."  Any slot machine

licensee, manufacturer licensee, supplier licensee or other

person licensed by the Pennsylvania Gaming Control Board under

this part.

"Licensed entity representative."  A person acting on behalf

of or representing the interest of any applicant, licensee,

permittee or registrant, including an attorney, agent or

lobbyist, regarding any matter which may reasonably be expected

to come before the board.

* * *

["Slot machine licensee."  A person that holds a slot machine

license.]

* * *

"Trustee."  A fiduciary appointed by the Pennsylvania Gaming

Control Board to preserve the viability of a licensed facility

and the integrity of gaming in this Commonwealth.

* * *

Section 3.  Section 1201(b), (b.1), (f)(3), (h)(5), (7.1),

(10), (11), (13), (14) and (15) and (k) of Title 4 are amended,

subsection (h) is amended by adding paragraphs and the section

is amended by adding a subsection to read:

§ 1201.  Pennsylvania Gaming Control Board established.

* * *

(b)  Membership.--

(1)  The board shall consist of the following members:

[(1)] (i)  Three members appointed by the Governor.

[(2)] (ii)  One member appointed by each of the

following:

[(i)] (A)  The President pro tempore of the

Senate.

[(ii)] (B)  The Minority Leader of the Senate.

[(iii)] (C)  The Speaker of the House of

Representatives.

[(iv)] (D)  The Minority Leader of the House of

Representatives.

(2)  The chairman of the Community, Economic and

Recreational Development Committee of the Senate may hold a

public hearing on an appointee under paragraph (1).

(b.1)  Removal.--A member of the board shall serve at the

pleasure of the appointing authority and shall be removed from

office by the appointing authority:

(1)  for misconduct in office, willful neglect of duty or

conduct evidencing unfitness for office or incompetence; or

(2)  upon conviction of an offense graded as a felony, an

infamous crime, an offense under this part or an equivalent

offense under Federal law or the law of another jurisdiction.

* * *

(f)  Qualified majority vote.--

* * *

(3)  Notwithstanding any other provision of this part or

65 Pa.C.S. § 1103(j) (relating to restricted activities), a

member shall disclose the nature of his disqualifying

interest, disqualify himself and abstain from voting in a

proceeding under this part in which his objectivity,

impartiality, integrity or independence of judgment may be

reasonably questioned, as provided in subsection (h)(6) or

section 1202.1(c)(3) (relating to code of conduct). If a

legislative appointee has disqualified himself, the qualified

majority shall consist of all of the remaining legislative

appointees and at least two gubernatorial appointees.

* * *

(h)  Qualifications and restrictions.--

* * *

(4.1)  No member appointed after the effective date of

this paragraph shall engage in any business, employment or

vocation for which the member shall receive any COMPENSATION

OR remuneration except for an individual who is reappointed

and who is a member of the board on the effective date of

this paragraph.

(5)  No member shall be paid or receive any fee or other

compensation other than salary and expenses provided by law

for any activity related to the duties or authority of the

board. [Nothing in this part shall prohibit a member from

engaging in any employment or receiving any compensation for

such employment that is not connected to or incompatible with

his service as a member of the board.]

* * *

(7.1)  Prior to being sworn as a member, an appointee and

his immediate family shall divest any financial interest in

any applicant, licensed facility or licensed entity and in an

affiliate, intermediary, subsidiary or holding company

thereof owned or held by the appointee or known to be held by

the appointee's immediate family. For the duration of the

member's term and for [one year] two years thereafter, the

member and the member's immediate family may not acquire a

financial interest in any applicant, licensed facility or

licensed entity or in an affiliate, intermediary, subsidiary

or holding company thereof. For purposes of this paragraph,

the term "immediate family" shall mean spouse and any minor

or unemancipated child.

* * *

(10)  No former member may appear before the board in any

hearing or proceeding or participate in any other activity on

behalf of any applicant, licensed entity, or an affiliate,

intermediary, subsidiary or holding company thereof, or any

other licensee or permittee for a period of two years from

the termination of term of office.

(11)  No member, employee or independent contractor of

the board shall accept a complimentary service, wager or be

paid any prize from any wager at any licensed facility within

this Commonwealth or at any other facility outside this

Commonwealth which is owned or operated by a licensed gaming

entity or any of its affiliates, intermediaries, subsidiaries

or holding companies thereof for the duration of their term

of office, employment or contract with the board and for a

period of [one year] two years from the termination of term

of office, employment or contract with the board. The

provisions of this paragraph prohibiting wagering during the

term of employment shall not apply to employees [who] when

the employees utilize slot machines for testing purposes or

to verify the performance of a machine as part of an

enforcement investigation.

* * *

(13)  No employee of the board [or individual employed by

an independent contractor of the board] whose duties

substantially involve licensing[,] or enforcement [or], the

development or adoption of laws, regulations or policy or who

has other discretionary authority which may affect the

outcome of an action or decision under this part, including

the executive director, bureau directors and attorneys, shall

do any of the following:

(i)  [accept] Accept employment with or be retained

by an applicant or licensed entity, or an affiliate,

intermediary, subsidiary or holding company thereof, for

a period of [one year] two years after the termination of

the employment relating to the conduct of gaming [or

contract with the board; or].

(ii)  [appear] Appear before the board in any hearing

or proceeding or participate in any other activity on

behalf of any applicant, licensee, permittee or licensed

entity, or an affiliate, intermediary, subsidiary or

holding company thereof, for a period of two years after

termination of the employment [or contract with the

board].

(iii)  As a condition of employment, an employee

under this paragraph shall sign an affidavit that the

employee will not accept employment with or be retained

by any applicant, licensed entity or an affiliate,

intermediary, subsidiary or holding company thereof for a

period of two years from the termination of employment.

An applicant or licensed entity or an affiliate,

intermediary, subsidiary or holding company thereof shall

not employ or retain an individual who signed an

affidavit signed under this subparagraph. An applicant or

licensed entity or an affiliate, intermediary, subsidiary

or holding company that knowingly employs or retains an

individual in violation of this subparagraph shall be

subject to a penalty under section 1518(c) (relating to

prohibited acts; penalties).

(13.1)  No independent contractor or individual employed

by an independent contractor of the board whose duties

substantially involve consultation relating to licensing,

enforcement or the development or adoption of regulations or

policy under this part shall:

(i)  Accept employment with or be retained by an

applicant or a licensed entity or an affiliate,

intermediary, subsidiary or holding company thereof for a

period of one year after the termination of the contract

with the board.

(ii)  Appear before the board in any hearing or

proceeding or participate in any other activity on behalf

of an applicant, licensee, permittee or licensed entity

or an affiliate, intermediary, subsidiary or holding

company of an applicant, licensee, permittee or licensed

entity for a period of two years after termination of the

contract with the board.

(iii)  As a condition of a contract, an independent

contractor or individual employed by an independent

contractor of the board under this paragraph shall sign

an affidavit to not accept employment with or be retained

by any applicant, licensed entity or an affiliate,

intermediary, subsidiary or holding company of an

applicant, licensed entity or affiliate for a period of

one year from the termination of employment. A licensed

entity or an affiliate, intermediary, subsidiary or

holding company of an applicant, licensed entity or

affiliate shall not employ or retain an individual who

signed an affidavit signed under this subparagraph. A

licensed entity or an affiliate, intermediary, subsidiary

or holding company thereof that knowingly employs or

retains an individual in violation of this subparagraph

shall be subject to a penalty under section 1518(c).

(14)  Upon the written request of an employee of the

board, the executive branch of the Commonwealth or a

political subdivision or of the agency or political

subdivision employing an employee, the State Ethics

Commission shall determine whether the individual's duties

substantially involve the development or adoption of laws, 

regulations or policy, licensing or enforcement under this

part or other discretionary authority which may affect the

outcome of an action or decision under this part and shall

provide a written determination to the employee to include

any prohibition under this paragraph. An individual who

relies in good faith on a determination under this paragraph

shall not be subject to any penalty for an action taken,

provided that all material facts set forth in the request for

a determination are correct.

(15)  If a member[, employee or independent contractor] 

of the board violates any provision of this section, the

appointing authority [or the board may, upon notice and

hearing,] may remove the person from the board[, withdraw the

appointment or]. A member removed under this paragraph shall

be prohibited from future appointment to the board and shall

be prohibited from applying for a license or permit, from

becoming an independent contractor of the board, or

registering as a licensed entity representative for a period

of five years from the date of removal from the board. If an

employee or independent contractor of the board violates any

provision of this section, the board may, upon notice and

hearing, terminate the employment or contract, and the person

shall be ineligible for future [appointment,] employment or

contract with the board and [for approval of a license or

permit under this part for a period of two years thereafter] 

shall be prohibited from applying for a license or permit,

becoming an independent contractor or registering as a

licensed entity representative for a period of five years

from the date of termination of the employment or contract.

* * *

(k)  Appointments.--[The appointing authorities] Following

the initial appointment of members under subsection (b), the

appointing authority shall make [their initial] appointments

within 60 days of [the effective date of this part] a vacancy in

an office. No appointment shall be final until receipt by the

appointing authority of the required background investigation of

the appointee by the Pennsylvania State Police which shall be

completed within 30 days. No person who has been convicted in

any domestic or foreign jurisdiction of a felony, infamous crime

or gaming offense shall be appointed to the board.

* * *

(m.1)  Budgetary impasse.--If, in the event of a budgetary or

other fiscal crisis, the Governor implements a system in order

to ORDERS THE furlough OF employees or close THE CLOSING OF any

Commonwealth agency, the board and its employees and all

employees of the Department of Revenue, the Pennsylvania State

Police and the Office of Attorney General whose duties involve

the regulation and oversight of gaming under this part shall not

be subject to furlough but shall continue to perform their

duties.

* * *

Section 4.  Section 1202(a)(4) and (b)(7), (23) and (30) of

Title 4 are amended and subsections (a) and (b) are amended by

adding paragraphs to read:

§ 1202.  General and specific powers.

(a)  General powers.--

* * *

[(4)  The board shall establish a system of

classification and compensation of its employees and shall

not be subject to the provisions of the act of April 9, 1929

(P.L.177, No.175), known as The Administrative Code of 1929,

as to classification and compensation for its employees and

conduct its activities consistent with the practices and

procedures of Commonwealth agencies.]

(4.1)  Within 90 days of the effective date of this

paragraph, the board shall establish a system of

classification and compensation of its employees and shall be

subject to the provisions of the act of April 9, 1929

(P.L.177, No.175), known as The Administrative Code of 1929,

as to classification and compensation for its employees and

conduct its activities consistent with the practices and

procedures of Commonwealth agencies. The provisions of this

paragraph shall apply to employees hired after the effective

date of this paragraph. Nothing in this paragraph shall

prevent the board from altering a system, or establishing a

new system, of classification or compensation for employees

hired prior to the effective date of this section.

* * *

(b)  Specific powers.--The board shall have the specific

power and duty:

* * *

(7)  To administer oaths, examine witnesses and issue

subpoenas compelling the attendance of witnesses or the

production of documents and records or other evidence[. The

provisions of this paragraph shall apply to designated

officers and employees.], or to designate officers or

employees to perform these duties.

(7.1)  To order a person to answer a question or produce

evidence of any kind. If, in the course of an investigation

or hearing conducted under this part, a person refuses to

answer a question or to produce evidence on the grounds that

the answer or evidence will expose the person to criminal

prosecution, the board may adopt a resolution recommending a

grant of immunity that includes the specific question to be

posed or information or evidence being sought from the person

as follows:

(i)  The resolution shall be submitted to the

Attorney General for approval or disapproval within 20

days of receipt of the resolution. Upon the written

approval of the Attorney General, the board may issue an

order to compel the person to answer or produce evidence

with immunity.

(ii)  If the person who is the subject of the

immunity order provides the answer or evidence, the

person shall be immune from criminal prosecution based on

the answer or evidence that was the subject of the

immunity order.

(iii)  The person may be prosecuted for perjury

committed in the answer or production of evidence or held

in contempt for failing to give an answer or produce

evidence in accordance with the order. The answer or

evidence shall be admissible only against the person in a

criminal investigation, or a trial or other proceeding

for perjury or contempt.

(iv)  Immunity under this paragraph shall not

preclude the use of any other remedy or sanction

authorized by law.

* * *

(23)  The board shall not issue or renew a license or

permit unless it is satisfied that the applicant has

demonstrated by clear and convincing evidence that the

applicant is a person of good character, honesty and

integrity and is a person whose prior activities, criminal

record, if any, reputation, habits and associations do not

pose a threat to the public interest or the effective

regulation and control of slot machine operations or create

or enhance the danger of unsuitable, unfair or illegal

practices, methods and activities in the conduct of slot

machine operations or the carrying on of the business and

financial arrangements incidental thereto.

* * *

(30)  To promulgate rules and regulations necessary for

the administration and enforcement of this part, including

regulations in cooperation with the Pennsylvania Liquor

Control Board and regulations relating to the sale and

service of liquor and malt and brewed beverages by licensees.

[Except as provided in section 1203 (relating to temporary

regulations), regulations] Regulations shall be adopted

pursuant to the act of July 31, 1968 (P.L.769, No.240),

referred to as the Commonwealth Documents Law, and the act of

June 25, 1982 (P.L.633, No.181), known as the Regulatory

Review Act.

(31)  To collect and post information on its Internet

website with sufficient detail to inform the public of the

controlling interest or ownership interest of an applicant

for a slot machine license or a licensed gaming entity or

affiliate, intermediary, subsidiary or holding company

thereof. The posting shall include:

(i)  The names of all persons with a controlling

interest in a publicly traded domestic or foreign

corporation, partnership, limited liability company or

other legal entity.

(ii)  The names of all persons who own a financial

equity share or interest with an ownership interest equal

to or greater than 1% of a privately held domestic or

foreign corporation, partnership, limited liability

company or other legal entity.

(iii)  The name of a trustee entitled to cast the

vote of a person under subparagraph (i) or (ii).

(iv)  The names of all officers, directors,

principals and key employees of a licensed gaming entity.

(32)  To appoint a trustee as prescribed in section 1332

(relating to appointment of trustee) to act on behalf of the

Commonwealth and the board to operate a licensed facility and

ensure compliance with this part.

Section 5.  Section 1202.1 of Title 4 is amended to read:

§ 1202.1.  Code of conduct.

(a)  Scope.--The board shall adopt a comprehensive code of

conduct prior to the consideration of any license, permit or

registration application. The code of conduct shall supplement

all other requirements under this part and 65 Pa.C.S. Pt. II

(relating to accountability) and shall provide guidelines

applicable to members, employees, independent contractors of the

board and the immediate families of the members, as defined in

subsection (e), employees and independent contractors to enable

them to avoid any perceived or actual conflict of interest and

to promote public confidence in the integrity and impartiality

of the board. At a minimum, the code of conduct adopted under

this section shall include registration of licensed entity

representatives under subsection (b) and the restrictions under

[subsection (c)] subsections (c) and (c.1).

(b)  Registration.--

(1)  A licensed entity representative shall register with

the board in a manner prescribed by the board, which shall

include the name, employer or firm, address, telephone number

of both the licensed entity representative and the [licensed

entity] applicant, licensee, permittee or registrant or

individual being represented.

(2)  A licensed entity representative shall have an

[ongoing] affirmative duty to update its registration

information on an ongoing basis.

(3)  The [registration list] board shall maintain a

registration list which shall contain the information

required under paragraph (1) and which shall be available for

public inspection at the offices of the board and on the

board's Internet website.

(c)  Restrictions.--A member of the board shall:

(1)  Not engage in any ex parte communication with any

person.

(2)  Not accept any discount, gift, gratuity,

compensation, travel, lodging or other thing of value,

directly or indirectly, from any applicant, [licensee,] 

licensed entity, including any affiliate, subsidiary,

intermediary or holding company thereof, permittee,

registrant or licensed entity representative thereof.

(3)  Disclose and [disqualify] recuse himself from any

hearing or other proceeding in which the member's

objectivity, impartiality, integrity or independence of

judgment may be reasonably questioned due to the member's

relationship or association with a party connected to any

hearing or proceeding or a person appearing before the board.

(4)  Refrain from any financial or business dealing which

would tend to reflect adversely on the member's objectivity,

impartiality or independence of judgment.

(5)  Not hold or campaign for public office, hold an

office in any political party or political committee as

defined in section 1513(d)(relating to political influence),

contribute to or solicit contributions to a political

campaign, [party,] political party, political committee or

candidate, publicly endorse a candidate or actively

participate in a political campaign.

(6)  Not solicit funds for any charitable, educational,

religious, health, fraternal, civic or other nonprofit entity

from an applicant, licensed entity or affiliate, subsidiary,

intermediary or holding company of a licensed entity,

interested party, permittee or licensed entity

representative. [A] Unless prohibited under § 1201(h)(4.1)

(relating to Pennsylvania Gaming Control Board established),

a board member may serve as an officer, employee or member of

the governing body of a nonprofit entity and may attend, make

personal contributions to and plan or preside over the

entity's fundraising events. A board member may permit his

name to appear on the letterhead used for fundraising events

if the letterhead contains only the board member's name and

position with the nonprofit entity.

(7)  Not meet or engage in discussions with any

applicant, [person licensed under this part] licensed entity,

permittee, [or a] licensed entity representative or person

who provides goods, property or services to a slot machine

licensee unless the meeting or discussion occurs on the

business premises of the board and is recorded in a log

maintained for this purpose. The log shall be available for

public inspection during the regular business hours of the

board and shall be posted on the board's Internet website.

The log shall include the date and time of the meeting or

discussion, the names of the participants and the subject

matter discussed. The provisions of this paragraph shall not

apply to meetings [of the board] to consider matters

requiring the physical inspection of the equipment or

premises of an applicant or a licensed entity at [their] the 

location of the licensed facility.

(8)  Avoid impropriety and the appearance of impropriety

at all times and observe standards and conduct that promote

public confidence in the oversight of gaming.

(9)  Comply with any other laws, rules or regulations

relating to the conduct of a member.

(c.1)  Prohibitions.--

(1)  No member or attorney of the Office of Chief Counsel

advising the board on a particular licensing issue or

proceeding or employee whose duties relate to licensing and

who is advising the board on a particular licensing issue or

proceeding shall engage in any ex parte communication with

any person.

(2)  No attorney representing the bureau or the Office of

Enforcement Counsel or an applicant, licensee or permittee in

any proceeding shall engage in an ex parte communication with

a member, an attorney of the Office of Chief Counsel advising

the board on a proceeding or a hearing officer of the board.

(3)  No employee of the bureau or the Office of

Enforcement Counsel who is involved in a proceeding shall

engage in an ex parte communication with a member, an

attorney of the Office of Chief Counsel who is advising the

board on the proceeding or a hearing officer of the board.

(c.2)  Procedures relating to ex parte communications.--

(1)  An ex parte communication received or engaged in by

a board member, employee or hearing officer shall be recorded

in a log maintained for this purpose. The log shall be

available for public inspection during the regular business

hours of the board and shall be posted on the board's

Internet website. The LOG SHALL INCLUDE:

(I) The individual recording the ex parte

communication. shall include:

(i) (ii)  The date and time of the ex parte

communication.

(ii)  The name of any other individual (iii)  The

names of all individuals involved in the ex parte

communication.

(iii) (iv)  The subject matter and substance of the

ex parte communication.

(2)  In addition to documenting an ex parte communication

under paragraph (1), notification and an opportunity to

respond shall be provided to the following as follows:

(i)  A board member or employee shall promptly notify

the board and all persons directly affected by the

anticipated vote or action of the board of the substance

of the communication.

(ii)  A hearing officer shall promptly notify the

board and all parties to the proceeding before the

hearing officer of the substance of the communication.

(3)  (i)  A board member, employee or hearing officer who

received or engaged in an ex parte communication shall

recuse himself from any hearing or other proceeding

related to the ex parte communication if the context and

substance of the ex parte communication creates

substantial reasonable doubt as to the individual's

ability to act objectively, independently or impartially.

(ii)  A board member, employee or hearing officer who

elects not to recuse himself based on an ex parte

communication shall state his reasons for doing so on the

record prior to the commencement of the hearing or

proceeding.

(iii)  If a legislative appointee recuses himself

from any hearing or other proceeding under this section,

any qualified majority vote required under this part

shall consist of all of the remaining legislative

appointees and at least two gubernatorial appointees.

(iv)  Failure of a hearing officer or employee to

recuse himself from a hearing or other proceeding due to

receipt of an ex parte communication under this section

shall be grounds for appeal to the board of the failure

to recuse.

(v)  Failure of a board member to recuse himself from

a hearing or other proceeding due to receipt of an ex

parte communication under this section shall be grounds

for appeal of a decision to a court of competent

jurisdiction if the board action being appealed would not

have occurred without the participation of the board

member who received the ex parte communication.

(d)  Ex officio members.--The restrictions under subsection

(c)(5) shall not apply to ex officio members.

(e)  Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection:

"Ex parte communication."  An off-the-record communication

engaged in or received by a member [or], employee or hearing

officer of the board regarding the merits of or any fact in

issue relating to a pending matter before the board or which may

reasonably be expected to come before the board in a contested

on-the-record proceeding. The term shall not include off-the-

record communications by or between a member [or], employee or

hearing officer of the board, Department of Revenue,

Pennsylvania State Police, Attorney General or other law

enforcement official prior to the beginning of the proceeding

solely for the purpose of seeking clarification or correction to

evidentiary materials intended for use in the proceedings.

"Immediate family."  The spouse, parents, children and

siblings and the spouses of any of those individuals.

["Licensed entity representative."  A person acting on behalf

of or representing the interest of any applicant, licensee,

permittee or registrant, including an attorney, agent or

lobbyist, regarding any matter which may reasonably be expected

to come before the board.]

Section 6.  Title 4 is amended by adding a section to read:

§ 1202.2.  Expenses of the Pennsylvania Gaming Control Board.

Members and employees of the board shall only be reimbursed

for actual and reasonable expenses incurred during the

performance of their duties. In order to receive reimbursement

for an expense in excess of $10, the member or employee shall

submit a receipt validating the expense incurred.

Reimbursements, allowances or other payments in an amount

greater than the expenses for which receipts are submitted are

prohibited. Receipts and requests for reimbursement shall be

financial records for purposes of the act of February 14, 2008

(P.L.6, No.3), known as the Right-to-Know Law.

Section 7.  Section 1205(b)(1) and (2) of Title 4 are amended

and the subsection is amended by adding paragraphs to read:

§ 1205.  License or permit application hearing process; public

input hearings.

* * *

(b)  Public input hearing requirement.--

(1)  [Prior to licensing a facility under this part, the

board shall hold at least one public input hearing on the

matter.] The board shall hold at least one public input

hearing prior to:

(i)  Licensing a facility.

(ii)  Approving the structural redesign of a licensed

facility located in a city of the first class.

(2)  All public input hearings [relating to an

application for a slot machine license] under paragraph (1) 

shall be held in the municipality where the licensed facility

will be, or is, located and shall be organized in cooperation

with the municipality.

* * *

(4)  In addition to any witnesses scheduled to testify

under paragraph (3), the board shall establish a public

comment period during which time members of the public may

address the board regarding the proposed license or

structural redesign under paragraph (1). The board, in its

discretion, may place reasonable time limits on an

individual's comments.

Section 8.  Sections 1206(f), 1207(4), 1208(1)(i) and (ii)

and 1209(b) of Title 4 are amended to read:

§ 1206.  Board minutes and records.

* * *

(f)  Confidentiality of information.--[All]

(1)  The following information submitted by an applicant

or licensee pursuant to section 1310(a) (relating to slot

machine license application character requirements) or

1308(a.1) (relating to applications for license or permit) or

obtained by the board or the bureau as part of a background

or other investigation from any source shall be [considered] 

confidential[.] and withheld from public disclosure:

(i)  All information relating to good character,

honesty and integrity, including family, habits,

reputation, history of criminal activity, business

activities, financial affairs and business, professional

and personal associations submitted under section 1310(a)

or 1308(a.1) or otherwise obtained by the board or the

bureau.

(ii)  Nonpublic personal information, including

telephone numbers, Social Security numbers, educational

records, memberships, medical records, tax returns and

declarations, actual or proposed compensation, financial

account records, creditworthiness or a financial

condition relating to an applicant, licensee or permittee

or the immediate family thereof.

(iii)  Documents and information relating to

proprietary information, trade secrets, patents or

exclusive licenses, architectural and engineering plans

and information relating to competitive marketing

materials and strategies, which may include customer-

identifying information or customer prospects for

services subject to competition.

(iv)  Security information, including risk prevention

plans, detection and countermeasures, location of count

rooms, emergency management plans, security and

surveillance plans, equipment and usage protocols and

theft and fraud prevention plans and countermeasures.

(v)  Information with respect to which there is a

reasonable possibility that public release or inspection

of the information would constitute an unwarranted

invasion into personal privacy of any individual as

determined by the board.

(vi)  Records of an applicant or licensee not

required to be filed with the Securities and Exchange

Commission by issuers that either have securities

registered under section 12 of the Securities Exchange

Act of 1934 (48 Stat. 881, 15 U.S.C. § 78a et seq.) or

are required to file reports under section 15(d) of the

Securities Exchange Act of 1934.

(vii)  Records considered nonpublic matters or

information by the Securities and Exchange Commission as

provided by 17 CFR 200.80 (relating to commission records

and information).

(viii)  Any financial information deemed confidential

by the board upon a showing of good cause by the

applicant or licensee.

(2)  No claim of confidentiality shall be made regarding

any information from a criminal history record check that is

available to the public under 18 Pa.C.S. Ch. 91 (relating to

criminal history record information) or § 9121(b) (relating

to noncriminal justice agencies and individuals).

(3)  This subsection shall not apply to any information 

that is otherwise publicly available in this Commonwealth or

another jurisdiction.

(2)  (4)  Except as provided in section 1517(f) (relating

to [investigation] investigations and enforcement), the

confidential information shall be withheld from public

disclosure in whole or in part, except that any confidential 

information shall be released upon the lawful order of a

court of competent jurisdiction or, with the approval of the

Attorney General, to a duly authorized law enforcement agency

or shall be released to the public, in whole or in part, to

the extent that such release is requested by an applicant and

does not otherwise contain confidential information about

another person.

(3)  (5)  The board may seek a voluntary waiver of

confidentiality from an applicant or licensed entity but may 

not require any applicant or licensed entity to waive any

confidentiality provided for in this subsection as a

condition for the approval of a license or any other action

of the board. Any [person who violates this subsection] 

current or former board member employee or contractor who

publicly discloses confidential information in violation of

this subsection commits a misdemeanor and shall be

administratively disciplined by discharge, suspension,

termination of contract or other formal disciplinary action

as the board deems appropriate.

* * *

§ 1207.  Regulatory authority of board.

The board shall have the power and its duties shall be to:

* * *

(4)  Require that each licensed entity provide to the

board its audited annual financial statements, with such

additional detail as the board from time to time shall

require, which information shall be submitted not later than

[60] 90 days after the end of the licensee's fiscal year.

* * *

§ 1208.  Collection of fees and fines.

The board has the following powers and duties:

(1)  To levy and collect fees from the various

applicants, licensees and permittees to fund the operations

of the board. The fees shall be deposited into the State

Gaming Fund as established in section 1403 (relating to

establishment of State Gaming Fund and net slot machine

revenue distribution) and distributed to the board upon

appropriation by the General Assembly. In addition to the

fees set forth in sections 1209 (relating to slot machine

license fee) and 1305 (relating to Category 3 slot machine

license), the board shall assess and collect fees as follows:

(i)  Supplier licensees shall pay a fee of $25,000

upon the issuance of a license and $10,000 for the annual

renewal of a supplier license. When the renewal period

under section 1317(c)(1) (relating to supplier licenses)

is three years, the fee shall be $30,000 for the renewal.

(ii)  Manufacturer licensees shall pay a fee of

$50,000 upon the issuance of a license and $25,000 for

the annual renewal of a manufacturer license. When the

renewal period under section 1317.1(c)(1) (relating to

manufacturer licenses) is three years, the fee shall be

$75,000 for the renewal.

* * *

§ 1209.  Slot machine license fee.

* * *

(b)  Term.--A slot machine license, after payment of the fee,

shall be in effect unless suspended, revoked or not renewed by

the board upon good cause consistent with the license

requirements as provided for in this part. Slot machine

licensees shall be required to update the information in their

initial applications annually, and the license of a licensee in

good standing shall be updated and renewed annually for two

subsequent years following the initial license issuance.

Thereafter, license renewals shall be every three years. As to

the renewal of a license, no additional license fee pursuant to

subsection (a) shall be required.

* * *

Section 9.  Section 1211 of Title 4 is amended by adding a

subsection to read:

§ 1211.  Reports of board.

* * *

(a.1)  Expenses.--Beginning 30 days after the effective date

of this subsection, the board shall post by the fifteenth of

each month on its Internet website a list of all its itemized

expenses of employees and members for the preceding month. The

list shall identify the nature of the expense and the employee

or board member to which an expense is attributable. The list

shall include each expense for which a receipt is submitted to

obtain reimbursement. If the expense is directly attributable to

or paid by a licensed facility, the list shall identify the

facility. By October 1 of each year, a final report of all

expenses for the preceding fiscal year shall be posted on the

board's Internet website and shall be transmitted to the

Appropriations Committee of the Senate, the Community, Economic

and Recreational Development Committee of the Senate, the

Appropriations Committee of the House of Representatives and the

Gaming Oversight Committee of the House of Representatives.

* * *

Section 10.  Section 1213 of Title 4 is amended to read:

§ 1213.  License or permit prohibition.

(1)  [No applicant for a license or permit under this