CORRECTIVE REPRINTHOUSE AMENDED

 

PRIOR PRINTER'S NOS. 1196, 1247, 1460, 1464,

PRINTER'S NO.  1468

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

711

Session of

2009

  

  

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

  

  

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, OCTOBER 5, 2009   

  

  

  

AN ACT

  

1

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

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2

Statutes, further providing for legislative intent and for

3

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

4

machine licensee"; providing for the definitions of

5

"executive-level public employee," "licensed entity

6

representative" and "trustee"; further providing for the

7

Pennsylvania Gaming Control Board, for powers of the board

8

and for code of conduct; providing for expenses of

9

Pennsylvania Gaming Control Board; further providing for

10

license or permit application hearing process and public

11

hearings, for board minutes and records, for regulatory

12

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

13

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

14

or permit prohibition, for slot machine license application

15

character requirements, for applications for license or

16

permit, for supplier licenses, for manufacturer licenses, for

17

additional licenses and permits and approval of agreements,

18

for license renewals, for change in ownership or control of

19

slot machine licensees and for nonportability of slot machine

20

license; providing for appointment of trustee; further

21

providing for Pennsylvania Gaming Economic Development and

22

Tourism Fund, for transfers from State Gaming Fund and for

23

financial and employment interests; providing for

24

prosecutorial and adjudicative functions; and further

25

providing for investigations and enforcement and for conduct

26

of public officials and employees.

27

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

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1

Statutes, further providing for legislative intent, for

2

definitions, for the Pennsylvania Gaming Control Board

3

established, for applicability of other statutes, for powers

4

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

5

of regulatory agencies; further providing for licensed gaming

6

entity application appeals from board, for license or permit

7

application hearing process and public hearings, for board

8

minutes and records, for regulatory authority of board, for

9

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

10

for number of slot machines and for reports of board;

11

providing for report by slot machine licensee; further

12

providing for diversity goals of board and for license or

13

permit prohibition; providing for specific authority to

14

suspend slot machine license and for Auditor General's

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15

reports; further providing for Category 3 slot machine

16

license, for applications for license or permit, for slot

17

machine license application character requirements, for slot

18

machine license application financial fitness requirements,

19

for supplier licenses and for manufacturer licenses;

20

providing for gaming service provider and for alternative

21

supplier licensing standards; further providing for

22

occupation permit application, for additional licenses and

23

permits and approval of agreements, for license renewals, for

24

change in ownership or control of slot machine licensee and

25

for nonportability of slot machine license; providing for

26

appointment of trustee and for additional table game

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27

assessment; authorizing table games; further providing for

28

slot machine license deposits; providing for limitation on

29

recovery of costs; further providing for gross terminal

30

revenue deductions, for itemized budget reporting, for

31

establishment of State Gaming Fund and net slot machine

32

revenue distribution, for distributions from Pennsylvania

33

Race Horse Development Fund, for Pennsylvania Gaming Economic

34

Development and Tourism Fund, for transfers from State Gaming

35

Fund, for responsibility and authority of Department of

36

Revenue, for wagering on credit, and for no eminent domain

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37

authority,; providing for deteriorated designations; further

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38

providing for compulsive and problem gambling program, for

39

labor hiring preferences, for declaration of exemption from

40

Federal laws prohibiting slot machines and for financial and

41

employment interests; providing for additional restrictions;

42

further providing for political influence, for regulation

43

requiring exclusion of certain persons; providing for

44

prosecutorial and adjudicative functions; further providing

45

for investigations and enforcement, for conduct of public

46

officials and employees and for prohibited acts and

47

penalties; providing for additional authority and for report

48

of suspicious transactions; further providing for

49

interception of oral communications; providing for electronic

50

funds transfer terminals; regulating junkets; and providing

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51

for gaming schools.

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1

The General Assembly of the Commonwealth of Pennsylvania

2

hereby enacts as follows:

3

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

4

Consolidated Statutes is amended and the section is amended by

5

adding paragraphs to read:

6

§ 1102.  Legislative intent.

7

The General Assembly recognizes the following public policy

8

purposes and declares that the following objectives of the

9

Commonwealth are to be served by this part:

10

* * *

11

(10.1)  The General Assembly has a compelling interest in

12

protecting the integrity of both the electoral process and

13

the legislative process by preventing corruption and the

14

appearance of corruption which may arise through permitting

15

campaign contributions by the gaming industry.

16

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

17

regulatory control and legislative oversight over the

18

operation of slot machines in this Commonwealth; to prevent

19

the actual or appearance of corruption that may result from

20

[large] campaign contributions; ensure the bipartisan

21

administration of this part; and avoid actions that may erode

22

public confidence in the system of representative government.

23

(11.1)  Completely banning political CAMPAIGN

24

contributions by certain individuals and entities subject to

25

this act is necessary to prevent corruption, or the

26

appearance of corruption, that may arise when politics and

27

gaming are intermingled.

28

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

29

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

30

amended and the section is amended by adding definitions to

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1

read:

2

§ 1103.  Definitions.

3

The following words and phrases when used in this part shall

4

have the meanings given to them in this section unless the

5

context clearly indicates otherwise:

6

* * *

7

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

8

contendere, whether or not a judgment of sentence has been

9

imposed as determined by the law of the jurisdiction in which

10

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

11

that has been expunged or overturned or for which an individual

12

has been pardoned or an order of Accelerated Rehabilitative

13

Disposition which has been issued.

14

* * *

15

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

16

the following:

17

(1)  Deputy Secretaries of the Commonwealth and the

18

Governor's Office executive staff.

19

(2)  An employee of the executive branch with

20

discretionary power which may affect or influence the outcome

21

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

22

the development of regulations or policies relating to a

23

licensed entity or who is involved in other matters under

24

this part. The term shall include an employee with law

25

enforcement authority.

26

(3)  An employee of a county or municipality with

27

discretionary powers which may affect or influence the

28

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

29

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

30

policy relating to a licensed entity or who is involved in

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1

other matters under this part. The term shall include an

2

employee with law enforcement authority.

3

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

4

commission, authority or other governmental body not included

5

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

6

may affect or influence the outcome of the governmental

7

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

8

development of regulation or policy relating to a licensed

9

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

10

The term shall include an employee with law enforcement

11

authority.

12

* * *

13

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

14

licensee, manufacturer licensee, supplier licensee or other

15

person licensed by the Pennsylvania Gaming Control Board under

16

this part.

17

"Licensed entity representative."  A person acting on behalf

18

of or representing the interest of any applicant, licensee,

19

permittee or registrant, including an attorney, agent or

20

lobbyist, regarding any matter which may reasonably be expected

21

to come before the board.

22

* * *

23

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

24

license.]

25

* * *

26

"Trustee."  A fiduciary appointed by the Pennsylvania Gaming

27

Control Board to preserve the viability of a licensed facility

28

and the integrity of gaming in this Commonwealth.

29

* * *

30

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

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1

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

2

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

3

is amended by adding a subsection to read:

4

§ 1201.  Pennsylvania Gaming Control Board established.

5

* * *

6

(b)  Membership.--

7

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

8

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

9

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

10

following:

11

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

12

Senate.

13

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

14

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

15

Representatives.

16

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

17

Representatives.

18

(2)  The chairman of the Community, Economic and

19

Recreational Development Committee of the Senate may hold a

20

public hearing on an appointee under paragraph (1).

21

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

22

pleasure of the appointing authority and shall be removed from

23

office by the appointing authority:

24

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

25

conduct evidencing unfitness for office or incompetence; or

26

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

27

infamous crime, an offense under this part or an equivalent

28

offense under Federal law or the law of another jurisdiction.

29

* * *

30

(f)  Qualified majority vote.--

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1

* * *

2

(3)  Notwithstanding any other provision of this part or

3

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

4

member shall disclose the nature of his disqualifying

5

interest, disqualify himself and abstain from voting in a

6

proceeding under this part in which his objectivity,

7

impartiality, integrity or independence of judgment may be

8

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

9

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

10

legislative appointee has disqualified himself, the qualified

11

majority shall consist of all of the remaining legislative

12

appointees and at least two gubernatorial appointees.

13

* * *

14

(h)  Qualifications and restrictions.--

15

* * *

16

(4.1)  No member appointed after the effective date of

17

this paragraph shall engage in any business, employment or

18

vocation for which the member shall receive any COMPENSATION

19

OR remuneration except for an individual who is reappointed

20

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

21

this paragraph.

22

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

23

compensation other than salary and expenses provided by law

24

for any activity related to the duties or authority of the

25

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

26

engaging in any employment or receiving any compensation for

27

such employment that is not connected to or incompatible with

28

his service as a member of the board.]

29

* * *

30

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

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1

his immediate family shall divest any financial interest in

2

any applicant, licensed facility or licensed entity and in an

3

affiliate, intermediary, subsidiary or holding company

4

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

5

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

6

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

7

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

8

financial interest in any applicant, licensed facility or

9

licensed entity or in an affiliate, intermediary, subsidiary

10

or holding company thereof. For purposes of this paragraph,

11

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

12

or unemancipated child.

13

* * *

14

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

15

hearing or proceeding or participate in any other activity on

16

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

17

intermediary, subsidiary or holding company thereof, or any

18

other licensee or permittee for a period of two years from

19

the termination of term of office.

20

(11)  No member, employee or independent contractor of

21

the board shall accept a complimentary service, wager or be

22

paid any prize from any wager at any licensed facility within

23

this Commonwealth or at any other facility outside this

24

Commonwealth which is owned or operated by a licensed gaming

25

entity or any of its affiliates, intermediaries, subsidiaries

26

or holding companies thereof for the duration of their term

27

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

28

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

29

of office, employment or contract with the board. The

30

provisions of this paragraph prohibiting wagering during the

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1

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

2

the employees utilize slot machines for testing purposes or

3

to verify the performance of a machine as part of an

4

enforcement investigation.

5

* * *

6

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

7

an independent contractor of the board] whose duties

8

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

9

development or adoption of laws, regulations or policy or who

10

has other discretionary authority which may affect the

11

outcome of an action or decision under this part, including

12

the executive director, bureau directors and attorneys, shall

13

do any of the following:

14

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

15

by an applicant or licensed entity, or an affiliate,

16

intermediary, subsidiary or holding company thereof, for

17

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

18

the employment relating to the conduct of gaming [or

19

contract with the board; or].

20

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

21

or proceeding or participate in any other activity on

22

behalf of any applicant, licensee, permittee or licensed

23

entity, or an affiliate, intermediary, subsidiary or

24

holding company thereof, for a period of two years after

25

termination of the employment [or contract with the

26

board].

27

(iii)  As a condition of employment, an employee

28

under this paragraph shall sign an affidavit that the

29

employee will not accept employment with or be retained

30

by any applicant, licensed entity or an affiliate,

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1

intermediary, subsidiary or holding company thereof for a

2

period of two years from the termination of employment.

3

An applicant or licensed entity or an affiliate,

4

intermediary, subsidiary or holding company thereof shall

5

not employ or retain an individual who signed an

6

affidavit signed under this subparagraph. An applicant or

7

licensed entity or an affiliate, intermediary, subsidiary

8

or holding company that knowingly employs or retains an

9

individual in violation of this subparagraph shall be

10

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

11

prohibited acts; penalties).

12

(13.1)  No independent contractor or individual employed

13

by an independent contractor of the board whose duties

14

substantially involve consultation relating to licensing,

15

enforcement or the development or adoption of regulations or

16

policy under this part shall:

17

(i)  Accept employment with or be retained by an

18

applicant or a licensed entity or an affiliate,

19

intermediary, subsidiary or holding company thereof for a

20

period of one year after the termination of the contract

21

with the board.

22

(ii)  Appear before the board in any hearing or

23

proceeding or participate in any other activity on behalf

24

of an applicant, licensee, permittee or licensed entity

25

or an affiliate, intermediary, subsidiary or holding

26

company of an applicant, licensee, permittee or licensed

27

entity for a period of two years after termination of the

28

contract with the board.

29

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

30

contractor or individual employed by an independent

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1

contractor of the board under this paragraph shall sign

2

an affidavit to not accept employment with or be retained

3

by any applicant, licensed entity or an affiliate,

4

intermediary, subsidiary or holding company of an

5

applicant, licensed entity or affiliate for a period of

6

one year from the termination of employment. A licensed

7

entity or an affiliate, intermediary, subsidiary or

8

holding company of an applicant, licensed entity or

9

affiliate shall not employ or retain an individual who

10

signed an affidavit signed under this subparagraph. A

11

licensed entity or an affiliate, intermediary, subsidiary

12

or holding company thereof that knowingly employs or

13

retains an individual in violation of this subparagraph

14

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

15

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

16

board, the executive branch of the Commonwealth or a

17

political subdivision or of the agency or political

18

subdivision employing an employee, the State Ethics

19

Commission shall determine whether the individual's duties

20

substantially involve the development or adoption of laws, 

21

regulations or policy, licensing or enforcement under this

22

part or other discretionary authority which may affect the

23

outcome of an action or decision under this part and shall

24

provide a written determination to the employee to include

25

any prohibition under this paragraph. An individual who

26

relies in good faith on a determination under this paragraph

27

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

28

provided that all material facts set forth in the request for

29

a determination are correct.

30

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

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1

of the board violates any provision of this section, the

2

appointing authority [or the board may, upon notice and

3

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

4

appointment or]. A member removed under this paragraph shall

5

be prohibited from future appointment to the board and shall

6

be prohibited from applying for a license or permit, from

7

becoming an independent contractor of the board, or

8

registering as a licensed entity representative for a period

9

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

10

employee or independent contractor of the board violates any

11

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

12

hearing, terminate the employment or contract, and the person

13

shall be ineligible for future [appointment,] employment or

14

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

15

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

16

shall be prohibited from applying for a license or permit,

17

becoming an independent contractor or registering as a

18

licensed entity representative for a period of five years

19

from the date of termination of the employment or contract.

20

* * *

21

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

22

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

23

appointing authority shall make [their initial] appointments

24

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

25

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

26

appointing authority of the required background investigation of

27

the appointee by the Pennsylvania State Police which shall be

28

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

29

any domestic or foreign jurisdiction of a felony, infamous crime

30

or gaming offense shall be appointed to the board.

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1

* * *

2

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

3

other fiscal crisis, the Governor implements a system in order

4

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

5

Commonwealth agency, the board and its employees and all

6

employees of the Department of Revenue, the Pennsylvania State

7

Police and the Office of Attorney General whose duties involve

8

the regulation and oversight of gaming under this part shall not

9

be subject to furlough but shall continue to perform their

10

duties.

11

* * *

12

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

13

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

14

adding paragraphs to read:

15

§ 1202.  General and specific powers.

16

(a)  General powers.--

17

* * *

18

[(4)  The board shall establish a system of

19

classification and compensation of its employees and shall

20

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

21

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

22

as to classification and compensation for its employees and

23

conduct its activities consistent with the practices and

24

procedures of Commonwealth agencies.]

25

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

26

paragraph, the board shall establish a system of

27

classification and compensation of its employees and shall be

28

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

29

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

30

as to classification and compensation for its employees and

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1

conduct its activities consistent with the practices and

2

procedures of Commonwealth agencies. The provisions of this

3

paragraph shall apply to employees hired after the effective

4

date of this paragraph. Nothing in this paragraph shall

5

prevent the board from altering a system, or establishing a

6

new system, of classification or compensation for employees

7

hired prior to the effective date of this section.

8

* * *

9

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

10

power and duty:

11

* * *

12

(7)  To administer oaths, examine witnesses and issue

13

subpoenas compelling the attendance of witnesses or the

14

production of documents and records or other evidence[. The

15

provisions of this paragraph shall apply to designated

16

officers and employees.], or to designate officers or

17

employees to perform these duties.

18

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

19

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

20

or hearing conducted under this part, a person refuses to

21

answer a question or to produce evidence on the grounds that

22

the answer or evidence will expose the person to criminal

23

prosecution, the board may adopt a resolution recommending a

24

grant of immunity that includes the specific question to be

25

posed or information or evidence being sought from the person

26

as follows:

27

(i)  The resolution shall be submitted to the

28

Attorney General for approval or disapproval within 20

29

days of receipt of the resolution. Upon the written

30

approval of the Attorney General, the board may issue an

- 14 -

 


1

order to compel the person to answer or produce evidence

2

with immunity.

3

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

4

immunity order provides the answer or evidence, the

5

person shall be immune from criminal prosecution based on

6

the answer or evidence that was the subject of the

7

immunity order.

8

(iii)  The person may be prosecuted for perjury

9

committed in the answer or production of evidence or held

10

in contempt for failing to give an answer or produce

11

evidence in accordance with the order. The answer or

12

evidence shall be admissible only against the person in a

13

criminal investigation, or a trial or other proceeding

14

for perjury or contempt.

15

(iv)  Immunity under this paragraph shall not

16

preclude the use of any other remedy or sanction

17

authorized by law.

18

* * *

19

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

20

permit unless it is satisfied that the applicant has

21

demonstrated by clear and convincing evidence that the

22

applicant is a person of good character, honesty and

23

integrity and is a person whose prior activities, criminal

24

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

25

pose a threat to the public interest or the effective

26

regulation and control of slot machine operations or create

27

or enhance the danger of unsuitable, unfair or illegal

28

practices, methods and activities in the conduct of slot

29

machine operations or the carrying on of the business and

30

financial arrangements incidental thereto.

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1

* * *

2

(30)  To promulgate rules and regulations necessary for

3

the administration and enforcement of this part, including

4

regulations in cooperation with the Pennsylvania Liquor

5

Control Board and regulations relating to the sale and

6

service of liquor and malt and brewed beverages by licensees.

7

[Except as provided in section 1203 (relating to temporary

8

regulations), regulations] Regulations shall be adopted

9

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

10

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

11

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

12

Review Act.

13

(31)  To collect and post information on its Internet

14

website with sufficient detail to inform the public of the

15

controlling interest or ownership interest of an applicant

16

for a slot machine license or a licensed gaming entity or

17

affiliate, intermediary, subsidiary or holding company

18

thereof. The posting shall include:

19

(i)  The names of all persons with a controlling

20

interest in a publicly traded domestic or foreign

21

corporation, partnership, limited liability company or

22

other legal entity.

23

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

24

equity share or interest with an ownership interest equal

25

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

26

foreign corporation, partnership, limited liability

27

company or other legal entity.

28

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

29

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

30

(iv)  The names of all officers, directors,

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1

principals and key employees of a licensed gaming entity.

2

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

3

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

4

Commonwealth and the board to operate a licensed facility and

5

ensure compliance with this part.

6

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

7

§ 1202.1.  Code of conduct.

8

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

9

conduct prior to the consideration of any license, permit or

10

registration application. The code of conduct shall supplement

11

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

12

(relating to accountability) and shall provide guidelines

13

applicable to members, employees, independent contractors of the

14

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

15

subsection (e), employees and independent contractors to enable

16

them to avoid any perceived or actual conflict of interest and

17

to promote public confidence in the integrity and impartiality

18

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

19

this section shall include registration of licensed entity

20

representatives under subsection (b) and the restrictions under

21

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

22

(b)  Registration.--

23

(1)  A licensed entity representative shall register with

24

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

25

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

26

of both the licensed entity representative and the [licensed

27

entity] applicant, licensee, permittee or registrant or

28

individual being represented.

29

(2)  A licensed entity representative shall have an

30

[ongoing] affirmative duty to update its registration

- 17 -

 


1

information on an ongoing basis.

2

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

3

registration list which shall contain the information

4

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

5

public inspection at the offices of the board and on the

6

board's Internet website.

7

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

8

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

9

person.

10

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

11

compensation, travel, lodging or other thing of value,

12

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

13

licensed entity, including any affiliate, subsidiary,

14

intermediary or holding company thereof, permittee,

15

registrant or licensed entity representative thereof.

16

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

17

hearing or other proceeding in which the member's

18

objectivity, impartiality, integrity or independence of

19

judgment may be reasonably questioned due to the member's

20

relationship or association with a party connected to any

21

hearing or proceeding or a person appearing before the board.

22

(4)  Refrain from any financial or business dealing which

23

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

24

impartiality or independence of judgment.

25

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

26

office in any political party or political committee as

27

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

28

contribute to or solicit contributions to a political

29

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

30

candidate, publicly endorse a candidate or actively

- 18 -

 


1

participate in a political campaign.

2

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

3

religious, health, fraternal, civic or other nonprofit entity

4

from an applicant, licensed entity or affiliate, subsidiary,

5

intermediary or holding company of a licensed entity,

6

interested party, permittee or licensed entity

7

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

8

(relating to Pennsylvania Gaming Control Board established),

9

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

10

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

11

personal contributions to and plan or preside over the

12

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

13

name to appear on the letterhead used for fundraising events

14

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

15

position with the nonprofit entity.

16

(7)  Not meet or engage in discussions with any

17

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

18

permittee, [or a] licensed entity representative or person

19

who provides goods, property or services to a slot machine

20

licensee unless the meeting or discussion occurs on the

21

business premises of the board and is recorded in a log

22

maintained for this purpose. The log shall be available for

23

public inspection during the regular business hours of the

24

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

25

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

26

discussion, the names of the participants and the subject

27

matter discussed. The provisions of this paragraph shall not

28

apply to meetings [of the board] to consider matters

29

requiring the physical inspection of the equipment or

30

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

- 19 -

 


1

location of the licensed facility.

2

(8)  Avoid impropriety and the appearance of impropriety

3

at all times and observe standards and conduct that promote

4

public confidence in the oversight of gaming.

5

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

6

relating to the conduct of a member.

7

(c.1)  Prohibitions.--

8

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

9

advising the board on a particular licensing issue or

10

proceeding or employee whose duties relate to licensing and

11

who is advising the board on a particular licensing issue or

12

proceeding shall engage in any ex parte communication with

13

any person.

14

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

15

Enforcement Counsel or an applicant, licensee or permittee in

16

any proceeding shall engage in an ex parte communication with

17

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

18

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

19

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

20

Enforcement Counsel who is involved in a proceeding shall

21

engage in an ex parte communication with a member, an

22

attorney of the Office of Chief Counsel who is advising the

23

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

24

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

25

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

26

a board member, employee or hearing officer shall be recorded

27

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

28

available for public inspection during the regular business

29

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

30

Internet website. The LOG SHALL INCLUDE:

- 20 -

 


1

(I) The individual recording the ex parte

2

communication. shall include:

3

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

4

communication.

5

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

6

names of all individuals involved in the ex parte

7

communication.

8

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

9

ex parte communication.

10

(2)  In addition to documenting an ex parte communication

11

under paragraph (1), notification and an opportunity to

12

respond shall be provided to the following as follows:

13

(i)  A board member or employee shall promptly notify

14

the board and all persons directly affected by the

15

anticipated vote or action of the board of the substance

16

of the communication.

17

(ii)  A hearing officer shall promptly notify the

18

board and all parties to the proceeding before the

19

hearing officer of the substance of the communication.

20

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

21

received or engaged in an ex parte communication shall

22

recuse himself from any hearing or other proceeding

23

related to the ex parte communication if the context and

24

substance of the ex parte communication creates

25

substantial reasonable doubt as to the individual's

26

ability to act objectively, independently or impartially.

27

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

28

elects not to recuse himself based on an ex parte

29

communication shall state his reasons for doing so on the

30

record prior to the commencement of the hearing or

- 21 -

 


1

proceeding.

2

(iii)  If a legislative appointee recuses himself

3

from any hearing or other proceeding under this section,

4

any qualified majority vote required under this part

5

shall consist of all of the remaining legislative

6

appointees and at least two gubernatorial appointees.

7

(iv)  Failure of a hearing officer or employee to

8

recuse himself from a hearing or other proceeding due to

9

receipt of an ex parte communication under this section

10

shall be grounds for appeal to the board of the failure

11

to recuse.

12

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

13

a hearing or other proceeding due to receipt of an ex

14

parte communication under this section shall be grounds

15

for appeal of a decision to a court of competent

16

jurisdiction if the board action being appealed would not

17

have occurred without the participation of the board

18

member who received the ex parte communication.

19

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

20

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

21

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

22

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

23

subsection:

24

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

25

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

26

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

27

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

28

reasonably be expected to come before the board in a contested

29

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

30

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

- 22 -

 


1

hearing officer of the board, Department of Revenue,

2

Pennsylvania State Police, Attorney General or other law

3

enforcement official prior to the beginning of the proceeding

4

solely for the purpose of seeking clarification or correction to

5

evidentiary materials intended for use in the proceedings.

6

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

7

siblings and the spouses of any of those individuals.

8

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

9

of or representing the interest of any applicant, licensee,

10

permittee or registrant, including an attorney, agent or

11

lobbyist, regarding any matter which may reasonably be expected

12

to come before the board.]

13

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

14

§ 1202.2.  Expenses of the Pennsylvania Gaming Control Board.

15

Members and employees of the board shall only be reimbursed

16

for actual and reasonable expenses incurred during the

17

performance of their duties. In order to receive reimbursement

18

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

19

submit a receipt validating the expense incurred.

20

Reimbursements, allowances or other payments in an amount

21

greater than the expenses for which receipts are submitted are

22

prohibited. Receipts and requests for reimbursement shall be

23

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

24

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

25

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

26

and the subsection is amended by adding paragraphs to read:

27

§ 1205.  License or permit application hearing process; public

28

input hearings.

29

* * *

30

(b)  Public input hearing requirement.--

- 23 -

 


1

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

2

board shall hold at least one public input hearing on the

3

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

4

hearing prior to:

5

(i)  Licensing a facility.

6

(ii)  Approving the structural redesign of a licensed

7

facility located in a city of the first class.

8

(2)  All public input hearings [relating to an

9

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

10

shall be held in the municipality where the licensed facility

11

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

12

with the municipality.

13

* * *

14

(4)  In addition to any witnesses scheduled to testify

15

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

16

comment period during which time members of the public may

17

address the board regarding the proposed license or

18

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

19

discretion, may place reasonable time limits on an

20

individual's comments.

21

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

22

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

23

§ 1206.  Board minutes and records.

24

* * *

25

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

26

(1)  The following information submitted by an applicant

27

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

28

machine license application character requirements) or

29

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

30

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

- 24 -

 


1

or other investigation from any source shall be [considered] 

2

confidential[.] and withheld from public disclosure:

3

(i)  All information relating to good character,

4

honesty and integrity, including family, habits,

5

reputation, history of criminal activity, business

6

activities, financial affairs and business, professional

7

and personal associations submitted under section 1310(a)

8

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

9

bureau.

10

(ii)  Nonpublic personal information, including

11

telephone numbers, Social Security numbers, educational

12

records, memberships, medical records, tax returns and

13

declarations, actual or proposed compensation, financial

14

account records, creditworthiness or a financial

15

condition relating to an applicant, licensee or permittee

16

or the immediate family thereof.

17

(iii)  Documents and information relating to

18

proprietary information, trade secrets, patents or

19

exclusive licenses, architectural and engineering plans

20

and information relating to competitive marketing

21

materials and strategies, which may include customer-

22

identifying information or customer prospects for

23

services subject to competition.

24

(iv)  Security information, including risk prevention

25

plans, detection and countermeasures, location of count

26

rooms, emergency management plans, security and

27

surveillance plans, equipment and usage protocols and

28

theft and fraud prevention plans and countermeasures.

29

(v)  Information with respect to which there is a

30

reasonable possibility that public release or inspection

- 25 -

 


1

of the information would constitute an unwarranted

2

invasion into personal privacy of any individual as

3

determined by the board.

4

(vi)  Records of an applicant or licensee not

5

required to be filed with the Securities and Exchange

6

Commission by issuers that either have securities

7

registered under section 12 of the Securities Exchange

8

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

9

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

10

Securities Exchange Act of 1934.

11

(vii)  Records considered nonpublic matters or

12

information by the Securities and Exchange Commission as

13

provided by 17 CFR 200.80 (relating to commission records

14

and information).

15

(viii)  Any financial information deemed confidential

16

by the board upon a showing of good cause by the

17

applicant or licensee.

18

(2)  No claim of confidentiality shall be made regarding

19

any information from a criminal history record check that is

20

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

21

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

22

to noncriminal justice agencies and individuals).

23

(3)  This subsection shall not apply to any information 

24

that is otherwise publicly available in this Commonwealth or

25

another jurisdiction.

26

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

27

to [investigation] investigations and enforcement), the

28

confidential information shall be withheld from public

29

disclosure in whole or in part, except that any confidential 

30

information shall be released upon the lawful order of a

- 26 -

 


1

court of competent jurisdiction or, with the approval of the

2

Attorney General, to a duly authorized law enforcement agency

3

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

4

the extent that such release is requested by an applicant and

5

does not otherwise contain confidential information about

6

another person.

7

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

8

confidentiality from an applicant or licensed entity but may 

9

not require any applicant or licensed entity to waive any

10

confidentiality provided for in this subsection as a

11

condition for the approval of a license or any other action

12

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

13

current or former board member employee or contractor who

14

publicly discloses confidential information in violation of

15

this subsection commits a misdemeanor and shall be

16

administratively disciplined by discharge, suspension,

17

termination of contract or other formal disciplinary action

18

as the board deems appropriate.

19

* * *

20

§ 1207.  Regulatory authority of board.

21

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

22

* * *

23

(4)  Require that each licensed entity provide to the

24

board its audited annual financial statements, with such

25

additional detail as the board from time to time shall

26

require, which information shall be submitted not later than

27

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

28

* * *

29

§ 1208.  Collection of fees and fines.

30

The board has the following powers and duties:

- 27 -

 


1

(1)  To levy and collect fees from the various

2

applicants, licensees and permittees to fund the operations

3

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

4

Gaming Fund as established in section 1403 (relating to

5

establishment of State Gaming Fund and net slot machine

6

revenue distribution) and distributed to the board upon

7

appropriation by the General Assembly. In addition to the

8

fees set forth in sections 1209 (relating to slot machine

9

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

10

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

11

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

12

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

13

renewal of a supplier license. When the renewal period

14

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

15

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

16

(ii)  Manufacturer licensees shall pay a fee of

17

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

18

the annual renewal of a manufacturer license. When the

19

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

20

manufacturer licenses) is three years, the fee shall be

21

$75,000 for the renewal.

22

* * *

23

§ 1209.  Slot machine license fee.

24

* * *

25

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

26

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

27

the board upon good cause consistent with the license

28

requirements as provided for in this part. Slot machine

29

licensees shall be required to update the information in their

30

initial applications annually, and the license of a licensee in

- 28 -

 


1

good standing shall be updated and renewed annually for two

2

subsequent years following the initial license issuance.

3

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

4

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

5

subsection (a) shall be required.

6

* * *

7

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

8

subsection to read:

9

§ 1211.  Reports of board.

10

* * *

11

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

12

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

13

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

14

expenses of employees and members for the preceding month. The

15

list shall identify the nature of the expense and the employee

16

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

17

shall include each expense for which a receipt is submitted to

18

obtain reimbursement. If the expense is directly attributable to

19

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

20

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

21

expenses for the preceding fiscal year shall be posted on the

22

board's Internet website and shall be transmitted to the

23

Appropriations Committee of the Senate, the Community, Economic

24

and Recreational Development Committee of the Senate, the

25

Appropriations Committee of the House of Representatives and the

26

Gaming Oversight Committee of the House of Representatives.

27

* * *

28

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

29

§ 1213.  License or permit prohibition.

30

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

- 29 -

 


1

part, including principals and key employees,] The board

2

shall be prohibited from granting a principal license or key

3

employee license to a person who has been convicted of a

4

felony [or gambling offense] in any jurisdiction [shall be

5

issued a license or permit unless 15 years has elapsed from

6

the date of expiration of the sentence for the offense].

7

(2)  [When determining whether to issue a license or

8

permit to an applicant who has been convicted in any

9

jurisdiction of a felony or gambling offense,] In addition to

10

the prohibition under paragraph (1), the board shall be

11

prohibited from granting the following:

12

(i)  A principal license or key employee license to a

13

person who has been convicted of a gambling offense in

14

any jurisdiction that is not classified as a felony

15

unless 15 years has elapsed from the date of the

16

expiration of the sentence for the offense.

17

(ii)  A gaming employee permit or license other than

18

a principal license or key employee license to a person

19

who has been convicted of a felony or gambling offense in

20

any jurisdiction unless 15 years has elapsed from the

21

date of the expiration of the sentence for the offense.

22

(3)  In determining whether to issue a license or permit

23

under paragraph (2), the board shall consider the following

24

factors:

25

[(1)] (i)  The nature and duties of the applicant's

26

position with the licensed entity.

27

[(2)] (ii)  The nature and seriousness of the offense

28

or conduct.

29

[(3)] (iii)  The circumstances under which the

30

offense or conduct occurred.

- 30 -

 


1

[(4)] (iv)  The age of the applicant when the offense

2

or conduct was committed.

3

[(5)] (v)  Whether the offense or conduct was an

4

isolated or a repeated incident.

5

[(6)] (vi)  Any evidence of rehabilitation, including

6

good conduct in the community, counseling or psychiatric

7

treatment received and the recommendation of persons who

8

have substantial contact with the applicant.

9

Section 10.1.  Section 1308 of Title 4 is amended by adding a

10

subsection to read:

11

§ 1308.  Applications for license or permit.

12

* * *

13

(a.1)  Submission of information.--Notwithstanding the

14

provisions of 18 Pa.C.S. § 9124(b) (relating to use of records

15

by licensing agencies), an application for a license or permit

16

under this part shall include all arrests and convictions of the

17

applicant, including summary offenses. The information shall

18

include:

19

(1)  A brief description of the circumstances surrounding

20

the arrest.

21

(2)  The specific offense charged.

22

(3)  The ultimate disposition of the charges, including

23

the details of any dismissal, plea bargain, conviction or

24

sentence, including any pardon, expungement or order of

25

Accelerated Rehabilitative Disposition.

26

* * *

27

Section 10.2.  Sections 1310, 1317(c)(1), 1317.1(c)(1),

28

1321(a)(2), 1326(a), 1328(b) 1328(A)(1) and (B) and 1329 of

29

Title 4 are amended to read:

30

§ 1310.  Slot machine license application character

- 31 -

 


1

requirements.

2

(a)  Application.--

3

(1)  Every application for a slot machine license shall

4

include such information, documentation and assurances as may

5

be required to establish by clear and convincing evidence the

6

applicant's suitability, including good character, honesty

7

and integrity. Information shall include, without limitation,

8

information pertaining to family, habits, character,

9

reputation, criminal history background, business activities,

10

financial affairs and business, professional and personal

11

associates, covering at least the ten-year period immediately

12

preceding the filing date of the application.

13

(2)  Notwithstanding 18 Pa.C.S. § 9124(b) (relating to

14

use of records by licensing agencies), a conviction that has

15

been expunged or overturned, or for which a person has been

16

pardoned or an order of Accelerated Rehabilitative

17

Disposition has been issued, shall be included with an

18

application and shall be considered by the board as part of

19

the review of the applicant's suitability under paragraph

20

(1).

21

(b)  Civil judgments and law enforcement agency

22

information.--Each applicant shall notify the board of any civil

23

judgments obtained against the applicant pertaining to antitrust

24

or security regulation laws of the Federal Government, this

25

Commonwealth or any other state, jurisdiction, province or

26

country. In addition, each applicant shall produce a letter of

27

reference from law enforcement agencies having jurisdiction in

28

the applicant's place of residence and principal place of

29

business, which letter of reference shall indicate that the law

30

enforcement agencies do not have any pertinent information

- 32 -

 


1

concerning the applicant or, if the law enforcement agency does

2

have information pertaining to the applicant, shall specify the

3

nature and content of that information. If no letters are

4

received within 30 days of the request, the applicant may submit

5

a statement under oath which is subject to the penalty for false

6

swearing under 18 Pa.C.S. § 4903 (relating to false swearing)

7

that the applicant is or was during the period the activities

8

were conducted in good standing with the gaming or casino

9

enforcement or control agency.

10

(c)  Gaming or casino enforcement agency information.--If the

11

applicant has held a gaming license in a jurisdiction where

12

gaming activities are permitted, the applicant shall produce a

13

letter of reference from the gaming or casino enforcement or

14

control agency which shall specify the experiences of that

15

agency with the applicant, the applicant's associates and the

16

applicant's gaming operation. If no letters are received within

17

30 days of the request, the applicant may submit a statement

18

under oath which is subject to the penalty for false swearing

19

under 18 Pa.C.S. § 4903 that the applicant is or was during the

20

period the activities were conducted in good standing with the

21

gaming or casino enforcement or control agency.

22

(d)  Agency records.--Each applicant for a slot machine

23

license, principal license or key employee license shall be

24

required to apply to the Federal Government regarding agency

25

records under the Freedom of Information Act (Public Law 89-554,

26

5 U.S.C. § 522) pertaining to the applicant and provide the

27

board with the complete record received from the Federal

28

Government. The board may issue a conditional license to the

29

applicant prior to the receipt of information under this

30

subsection.

- 33 -

 


1

§ 1317.  Supplier licenses.

2

* * *

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 issue the applicant a supplier

6

license consistent with all of the following:

7

(1)  [The license shall be for a period of one year. Upon

8

expiration, the license may be renewed in accordance with

9

subsection (d)] The initial license shall be for a period of

10

one year and shall be subject to renewal annually under

11

subsection (d) for two consecutive one-year periods following

12

the initial issuance. Thereafter, a license shall be subject

13

to renewal every three years. Nothing in this paragraph shall

14

relieve the licensee of the affirmative duty to notify the

15

board of changes to any information contained in the original

16

application.

17

* * *

18

§ 1317.1.  Manufacturer licenses.

19

* * *

20

(c)  Review and approval.--Upon being satisfied that the

21

requirements of subsection (b) have been met, the board may

22

approve the application and grant the applicant a manufacturer

23

license consistent with all of the following:

24

(1)  [The license shall be for a period of one year. Upon

25

expiration, a license may be renewed in accordance with

26

subsection (d)] The initial license shall be for a period of

27

one year and shall be subject to renewal annually under

28

subsection (d) for two consecutive one-year periods following

29

the initial issuance. Thereafter, a license shall be subject

30

to renewal every three years. Nothing in this paragraph shall

- 34 -

 


1

relieve the licensee of the affirmative duty to notify the

2

board of any changes relating to the status of its license or

3

relieve the licensee of its responsibility to notify the

4

board of changes to any information contained in the original

5

application.

6

* * *

7

§ 1321.  Additional licenses and permits and approval of

8

agreements.

9

(a)  Requirements.--In addition to the requirements for a

10

license or permit specifically set forth in this part, the board

11

may require a license [or], permit or other authorization, and

12

set a fee for the same, for any key or gaming employee or any

13

person who satisfies any of the following criteria:

14

* * *

15

(2)  The person is presently not [otherwise] required to

16

be licensed or permitted under this part and provides any

17

goods, property or services, including, but not limited to,

18

management contracts for compensation to a slot machine

19

licensee at the licensed facility. The board may by

20

regulation establish a classification system for a person who

21

provides goods, property or services to a slot machine

22

licensee. If the classification system requires the person

23

providing goods, property or services to submit to a criminal

24

history record check under 18 Pa.C.S. Ch. 91 (relating to

25

criminal history record information), the board shall notify

26

the slot machine licensee if the person providing goods,

27

property or services has been convicted of a felony or

28

gambling offense.

29

* * *

30

§ 1326.  License renewals.

- 35 -

 


1

(a)  Renewal.--All permits and licenses issued under this

2

part unless otherwise provided shall be subject to renewal on an

3

annual basis [upon the application of the holder of the permit

4

or license submitted to the board at least 60 days prior to the

5

expiration of the permit or license] for the first two years

6

following the initial issuance. Thereafter, all permits and

7

licenses shall be subject to renewal every three years. The

8

application for renewal shall be submitted at least 60 days

9

prior to the expiration of the permit or license and shall 

10

include an update of the information contained in the initial

11

and any prior renewal applications and the payment of any

12

renewal fee required by this part. A permit or license for which

13

a completed renewal application and fee, if required, has been

14

received by the board will continue in effect unless and until

15

the board sends written notification to the holder of the permit

16

or license that the board has denied the renewal of such permit

17

or license.

18

* * *

19

§ 1328.  Change in ownership or control of slot machine

20

licensee.

21

* * *

22

(a)  Notification and approval.--

23

(1)  A slot machine licensee shall notify the board

24

[prior to or] immediately upon becoming aware of any proposed

25

or contemplated change of ownership of the slot machine

26

licensee by a person or group of persons acting in concert

27

which involves any of the following:

28

(i)  More than 5% of a slot machine licensee's

29

securities or other ownership interests.

30

(ii)  More than 5% of the securities or other

- 36 -

 


1

ownership interests of a corporation or other form of

2

business entity that owns directly or indirectly at least

3

20% of the voting or other securities or other ownership

4

interests of the licensee.

5

(iii)  The sale other than in the ordinary course of

6

business of a licensee's assets.

7

(iv)  Any other transaction or occurrence deemed by

8

the board to be relevant to license qualifications.

9

* * *

10

(b)  Qualification of purchaser of slot machine licensee;

11

change of control.--The purchaser of the slot machine license or 

12

assets, other than in the ordinary course of business, of any

13

slot machine licensee shall independently qualify for a license

14

in accordance with this part and shall pay the license fee as

15

required by section 1209 (relating to slot machine license fee).

16

A change in control of any slot machine licensee shall require

17

that the slot machine licensee independently qualify for a

18

license in accordance with this part, and the slot machine

19

licensee shall pay a new license fee as required by section

20

1209, except as otherwise required by the board pursuant to this

21

section. The new license fee under this section shall be paid

22

upon the assignment and actual change of control or ownership of

23

the slot machine license.

24

* * *

25

§ 1329.  [Nonportability] Portability and relocation of slot

26

machine license.

27

(a)  General rule.--Each slot machine license shall only be

28

valid for the specific physical location within the municipality

29

and county for which it was originally granted.

30

(b)  Petition.--In evaluating a petition to relocate, the

- 37 -

 


1

board shall consider the following factors:

2

(1)  The reason for the relocation.

3

(2)  A comparative analysis, submitted by the petitioner,

4

detailing estimated gross terminal revenues at the new

5

location with estimated gross terminal revenues at the

6

original location.

7

(3)  A comparative analysis, submitted by the petitioner,

8

detailing the economic impact of the licensed facility at the

9

new location with the estimated economic impact at the

10

original location. The comparative analysis shall include the

11

total cost of the project and projected direct and indirect

12

employment figures.

13

(4)  A comprehensive traffic study commissioned by the

14

board.

15

(5)  Community support or opposition.

16

(6)  Any other information requested by the board.

17

(c)  Relocation.--A [No] slot machine licensee [shall] may be

18

permitted to move or relocate the physical location of the

19

licensed facility [without] with board approval [for] upon good

20

cause shown if:

21

(1)  the relocated licensed facility remains within the

22

same county as originally licensed;

23

(2)  the relocation will facilitate the timely operation

24

of slot machines;

25

(3)  the relocated licensed facility complies with all

26

other provisions of this part related to the siting and

27

location of a licensed facility; and

28

(4)  relocation of the licensed facility is in the best

29

interests of the Commonwealth.

30

(d)  Public input hearing.--The board shall hold at least one

- 38 -

 


1

public input hearing in the municipality where the licensed

2

facility will be located prior to approval of the relocation.

3

(e)  No grant or loan from the Commonwealth may be awarded

4

for the purpose of relocating or developing the relocated

5

licensed facility to comply with any conditions of approval of

6

the relocation.

7

Section 11.  Title 4 is amended by adding a section to read:

8

§ 1332.  Appointment of trustee.

9

(a)  Appointment.--Upon petition of the Office of Enforcement

10

Counsel, the board may order the appointment of a trustee from

11

the list required under subsection (j) to act on behalf of the

12

interests of the Commonwealth and the board to assure compliance

13

with this part and any conditions imposed upon the slot machine

14

license in the following circumstances:

15

(1)  Upon the revocation, suspension or nonrenewal of a

16

slot machine license or a principal license of an individual

17

who the board has determined controls a slot machine license

18

if the principal licensee is the only principal who exercises

19

operational control of the licensed facility.

20

(2)  Upon the failure to renew a slot machine license or

21

a principal license of an individual who the board has

22

determined controls a slot machine licensee if the principal

23

licensee is the only principal who exercises operational

24

control of the licensed facility until the slot machine or

25

principal license is renewed or until the discontinuation of

26

the trusteeship pursuant to subsection (i).

27

(3)  If necessary to protect the best interests of the

28

Commonwealth.

29

(b)  Qualifications.--The following shall apply:

30

(1)  A trustee shall be required to obtain a principal

- 39 -

 


1

license. The board may appoint a trustee and award the

2

trustee a temporary principal license as prescribed in board

3

regulations.

4

(2)  Before assuming duties, a trustee shall execute and

5

file a bond for the faithful performance of the trustee's

6

duties. The bond shall be payable to the board with sureties

7

and in the amount and form as required by board order. The

8

cost of the bond shall be paid by the former or suspended

9

licensee.

10

(c)  Powers.--A trustee appointed under this section shall

11

have all of the power and duties granted to exercise only those

12

powers and perform those duties expressly conferred upon the

13

trustee by the board. The board's order appointing the trustee

14

shall set forth the powers, duties and responsibilities of the

15

trustees which may include:

16

(1)  Maintaining and operating the licensed facility in a

17

manner that complies with this part and any conditions

18

imposed by the board.

19

(2)  Maintaining and operating the licensed facility

20

consistent with the measures generally taken in the ordinary

21

course of business including:

22

(i)  Entering into contracts.

23

(ii)  Borrowing money.

24

(iii)  Pledging, mortgaging or otherwise encumbering

25

the licensed facility or property thereof as security for

26

the repayment of the trustee's loans subject to any

27

provisions and restrictions in any existing credit

28

documents.

29

(iv)  Hiring, firing and disciplining employees.

30

(3)  Exercising the rights and obligations of the former

- 40 -

 


1

or suspended licensee.

2

(4)  Taking possession of all of the property of the slot

3

machine licensee, including its books, records and papers.

4

(5)  Establishing accounts with financial institutions.

5

An account may not be established with a financial

6

institution in which an affiliate of the former or suspended

7

licensee, or in which the trustee, has a financial

8

controlling interest.

9

(6)  Meeting with the former or suspended licensee.

10

(7)  Meeting with principals and key employees at the

11

licensed facility.

12

(8)  Meeting with the independent audit committee.

13

(9)  Meeting with the board's executive director and

14

keeping the board's executive director apprised of actions

15

taken and the trustee's plans and goals for the future.

16

(10)  Hiring legal counsel, accountants or other

17

consultants or assistants, with prior approval of the board,

18

as necessary to carry out the trustee's duties and

19

responsibilities.

20

(11)  Settling or compromising with any debtor or

21

creditor of the former or suspended licensee, including any

22

taxing authority.

23

(12)  Reviewing outstanding agreements to which the

24

former or suspended licensee is a party and advising the

25

board as to which, if any, of the agreements should be the

26

subject of scrutiny, examination or investigation by the

27

board.

28

(13)  Obtaining board approval prior to any sale, change

29

of ownership, change of control, change of financial status,

30

restructuring, transfer of assets or execution of a contract

- 41 -

 


1

or any other action taken outside of the ordinary course of

2

business.

3

(14)  Obtaining board approval for any payments outside

4

of those made in the ordinary course of business.

5

Notwithstanding any provision contained in this subsection to

6

the contrary, the trustee shall have the duty to conserve and

7

preserve the assets of the licensed entity.

8

(d)  Compensation.--The board shall establish the

9

compensation of the trustee and shall review and approve actual

10

and reasonable costs and expenses of the trustee, legal counsel,

11

accountants or other consultants or assistants hired by the

12

trustee and other persons the board may appoint in connection

13

with the trusteeship action. The compensation, costs and

14

expenses shall be paid by the former or suspended licensee.

15

Total compensation for the trustee and all individuals hired or

16

retained by the trustee under subsection (c)(10) shall not

17

exceed $600 per hour in the aggregate.

18

(e)  Reports.--A trustee shall file reports with regard to

19

the administration of the trusteeship with the board in the form

20

and at intervals as the board orders. The board may direct that

21

copies or portions of the trustee's reports be mailed to

22

creditors or other parties in interest and make summaries of the

23

reports available to the public and shall post them on the

24

board's Internet website.

25

(f)  Review of actions.--A creditor or party in interest

26

aggrieved by any alleged breach of a delegated power or duty of

27

a trustee in the discharge of the trustee's duties may request a

28

review of the trustee's action or inaction by filing a petition

29

in accordance with board regulations. The petition must set

30

forth in detail the pertinent facts and the reasons why the

- 42 -

 


1

facts constitute the alleged breach. The board will review any

2

petition filed under this section and take whatever action, if

3

any, it deems appropriate.

4

(g)  Effect of the trusteeship.--After issuance of an order

5

to appoint a trustee, the former or suspended principal or slot

6

machine licensee may not exercise any of its privileges, collect

7

or receive any debts and pay out, sell, assign or transfer any

8

of its property to anyone without prior approval of the

9

appointed trustee and the board.

10

(h)  Disposition of net earnings income.--During the period

11

of trusteeship, net earnings income shall be deposited in an

12

escrow account maintained for that purpose. Payment of net

13

earnings income during the period of trusteeship may not be made

14

by the trustee without the prior approval of the board. A

15

suspended or former principal or slot machine licensee may

16

request payment distribution of all or a portion of the net

17

earnings income during the period of trusteeship by filing a

18

petition in accordance with board regulation. The suspended or

19

former principal or slot machine licensee shall have the burden

20

of demonstrating good cause for the payment distribution of the

21

net earnings income requested.

22

(i)  Discontinuation.--The board may issue an order to

23

discontinue a trusteeship when:

24

(1)  The board determines that the cause for which the

25

trustee was appointed no longer exists.

26

(2)  The trustee has, with the prior approval of the

27

board, consummated the sale, assignment, conveyance or other

28

disposition of all the property or interest of the former

29

principal or slot machine licensee relating to the slot

30

machine license.

- 43 -

 


1

Upon board approval of the discontinuation of the trusteeship,

2

the trustee shall, in an orderly manner, transfer the property

3

of the former or suspended principal or slot machine licensee.

4

(j)  List of approved trustees.--The board shall promulgate

5

regulations to establish a list of persons approved by the board

6

qualified to serve as a trustee. At a minimum, the regulations

7

shall provide for the following:

8

(1)  The minimum qualifications an individual must

9

possess to be approved as a trustee, which shall include

10

possession of a principal license.

11

(2)  The procedure for placement on or removal from the

12

list.

13

(3)  Any other information the board deems necessary to

14

carry out the intent of this section.

15

Section 12.  Section 1407 of Title 4 is amended by adding

16

subsections to read:

17

§ 1407.  Pennsylvania Gaming Economic Development and Tourism

18

Fund.

19

* * *

20

(e)  Annual report.--The Office of the Budget in cooperation

21

with the Department of Community and Economic Development shall

22

submit an annual report of all distribution of funds under this

23

section to the chairman and minority chairman of the

24

Appropriations Committee of the Senate, the chairman and

25

minority chairman of the Community, Economic and Recreational

26

Development Committee of the Senate, the chairman and minority

27

chairman of the Appropriations Committee of the House of

28

Representatives and the chairman and minority chairman of the

29

Gaming Oversight Committee of the House of Representatives. The

30

report shall include detailed information relating to transfers

- 44 -

 


1

made from the Pennsylvania Gaming Economic Development and

2

Tourism Fund and all reimbursements, distributions and payments

3

made under subsection (b) or the act of July 25, 2007 (P.L.342,

4

No.53), known as Pennsylvania Gaming Economic Development and

5

Tourism Fund Capital Budget Itemization Act of 2007. The report

6

shall be submitted by January 31, 2010, and by January 31 of

7

each year thereafter.

8

(f)  Local report.--A city of the first class, city of the

9

second class, county of the second class, convention center or

10

convention center authority, professional hockey franchise

11

sports and exhibition authority of a county of the second class, 

12

urban redevelopment authority, airport authority or other entity

13

that receives money from the fund pursuant to an Economic

14

Development Capital Budget under this section subsection (b) or

15

the act of July 25, 2007 (P.L.342, No.53), known as Pennsylvania

16

Gaming Economic Development and Tourism Fund Capital Budget

17

Itemization Act of 2007, shall submit an annual report to the

18

Office of the Budget, the chairman and minority chairman of the

19

Appropriations Committee of the Senate, the chairman and

20

minority chairman of the Community, Economic and Recreational

21

Development Committee of the Senate, the chairman and minority

22

chairman of the Appropriations Committee of the House of

23

Representatives and the chairman and the minority chairman of

24

the Gaming Oversight Committee of the House of Representatives.

25

The report shall include detailed information, including records

26

of expenditures, payments and other distributions made from

27

money received under subsection (b). The initial report shall

28

include information on all funds received prior to January 31,

29

2010. The report shall be submitted by January 31, 2010, and by

30

January 31 of each year thereafter until all funds under this

- 45 -

 


1

section are distributed or received. An entity that receives

2

funds after the effective date of this section shall submit an

3

initial report by January 31 of the year following receipt of

4

the funds.

5

(g)  Distribution to international airport.--Notwithstanding

6

the provisions of section 7(d) of the act of July 25, 2007

7

(P.L.342, No.53), known as the Pennsylvania Gaming Economic

8

Development and Tourism Fund Capital Budget Itemization Act of

9

2007, following the distribution of $42.5 million of funds

10

allocated to the county for debt service and economic

11

development projects for an international airport in a county of

12

the second class under section 3(2)(i)(E) of said act, all

13

remaining funds shall be distributed directly to an authority

14

that operates an international airport in a county of the second

15

class.

16

Section 13.  Sections 1408(c) and 1512(a.5) and (b) of Title

17

4 are amended to read:

18

§ 1408.  Transfers from State Gaming Fund.

19

* * *

20

(c)  Local law enforcement grants.--Annually, the sum of

21

[$5,000,000] $3,000,000 shall be transferred to the board for

22

the purpose of issuing grants to local law enforcement agencies

23

to enforce and prevent [the unlawful operation of slot machines] 

24

all forms of unlawful gambling in this Commonwealth. For

25

purposes of this subsection, the term "local law enforcement

26

agency" shall include Pennsylvania State Police activities in a

27

municipality which does not have a municipal police department

28

for activities in that municipality.

29

* * *

30

§ 1512.  Financial and employment interests.

- 46 -

 


1

* * *

2

(a.5)  State Ethics Commission.--The State Ethics Commission

3

shall publish a list of all State, county, municipal and other

4

government positions that meet the definitions of "public

5

official" as defined under subsection (b) or "executive-level

6

public employee" [under subsection (b)]. The Office of

7

Administration shall assist the [Ethics Commission] commission 

8

in the development of the list, which shall be published in the

9

Pennsylvania Bulletin biennially and on the board's website.

10

Upon request, each public official shall have a duty to provide

11

the [Ethics Commission] commission with adequate information to

12

accurately develop and maintain the list. The [Ethics

13

Commission] commission may impose a civil penalty under 65

14

Pa.C.S. § 1109(f) (relating to penalties) upon any public

15

official or executive-level public employee who fails to

16

cooperate with the [Ethics Commission] commission under this

17

subsection. An individual who relies in good faith on the list

18

published by the commission shall not be subject to any penalty

19

for a violation of this section.

20

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

21

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

22

subsection:

23

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

24

the following:

25

(1)  Deputy Secretaries of the Commonwealth and the

26

Governor's Office executive staff.

27

(2)  An employee of the Executive Branch with

28

discretionary power which may affect or influence the outcome

29

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

30

the development of regulations or policies relating to a

- 47 -

 


1

licensed entity or who is involved in other matters under

2

this part. The term shall include an employee with law

3

enforcement authority.

4

(3)  An employee of a county or municipality with

5

discretionary powers which may affect or influence the

6

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

7

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

8

policy relating to a licensed entity or who is involved in

9

other matters under this part. The term shall include an

10

employee with law enforcement authority.

11

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

12

commission, authority or other governmental body not included

13

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

14

may affect or influence the outcome of the governmental

15

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

16

development of regulation or policy relating to a licensed

17

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

18

The term shall include an employee with law enforcement

19

authority.]

20

"Financial interest."  Owning or holding, or being deemed to

21

hold, debt or equity securities or other ownership interest or

22

profits interest. A financial interest shall not include any

23

debt or equity security, or other ownership interest or profits

24

interest, which is held or deemed to be held in any of the

25

following:

26

(1)  A blind trust over which the executive-level public

27

employee, public official, party officer or immediate family

28

member thereof may not exercise any managerial control or

29

receive income during the tenure of office and the period

30

under subsection (a). The provisions of this paragraph shall

- 48 -

 


1

apply only to blind trusts established prior to the effective

2

date of this paragraph.

3

(2)  Securities that are held in a pension plan, profit-

4

sharing plan, individual retirement account, tax-sheltered

5

annuity, a plan established pursuant to section 457 of the

6

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

7

1 et seq.) or any successor provision deferred compensation

8

plan whether qualified or not qualified under the Internal

9

Revenue Code of 1986 or any successor provision or other

10

retirement plan that:

11

(i)  is not self-directed by the individual; and

12

(ii)  is advised by an independent investment adviser

13

who has sole authority to make investment decisions with

14

respect to contributions made by the individual to these

15

plans.

16

(3)  A tuition account plan organized and operated

17

pursuant to section 529 of the Internal Revenue Code of 1986

18

(Public Law 99-514, 26 U.S.C. § 529) that is not self-

19

directed by the individual.

20

(4)  A mutual fund where the interest owned by the mutual

21

fund in a licensed entity does not constitute a controlling

22

interest as defined in this part.

23

"Immediate family."  A spouse, minor child or unemancipated

24

child.

25

"Law enforcement authority."  The power to conduct

26

investigations of or to make arrests for criminal offenses.

27

"Party officer."  A member of a national committee; a

28

chairman, vice chairman, secretary, treasurer or counsel of a

29

State committee or member of the executive committee of a State

30

committee; a county chairman, vice chairman, counsel, secretary

- 49 -

 


1

or treasurer of a county committee in which a licensed facility

2

is located; or a city chairman, vice chairman, counsel,

3

secretary or treasurer of a city committee of a city in which a

4

licensed facility is located.

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

- 50 -

 


1

relating to a licensed facility.

2

Section 14.  Title 4 is amended by adding a section to read:

3

§ 1516.1.  Prosecutorial and adjudicatory functions.

4

The board shall adopt regulations and procedures necessary to

5

ensure that the Bureau of Investigations and Enforcement is a

6

distinct administrative entity and to prevent commingling of the

7

investigatory and prosecutorial functions of the Bureau of

8

Investigations and Enforcement under section 1517 (relating to

9

investigations and enforcement) and the adjudicatory functions

10

of the board.

11

Section 15.  Section 1517(a.1)(6) of Title 4 is amended,

12

subsection (a.2)(1) is amended by adding a subparagraph

13

subparagraphs and subsection (c) is amended by adding a

14

paragraph to read:

15

§ 1517.  Investigations and enforcement.

16

* * *

17

(a.1)  Powers and duties of bureau.--The Bureau of

18

Investigations and Enforcement shall have the following powers

19

and duties:

20

* * *

21

(6)  Conduct [audits] reviews of a licensed entity as

22

necessary to ensure compliance with this part. [An audit] A

23

review may include the review of accounting, administrative

24

and financial records, management control systems, procedures

25

and other records utilized by a licensed entity.

26

* * *

27

(a.2)  Office of Enforcement Counsel.--

28

(1)  There is established within the bureau an Office of

29

Enforcement Counsel which shall act as the prosecutor in all

30

noncriminal enforcement actions initiated by the bureau under

- 51 -

 


1

this part and shall have the following powers and duties:

2

* * *

3

(iv)  Petition the board for the appointment of a

4

trustee under section 1332 (relating to appointment of

5

trustee).

6

(v)  Notwithstanding 42 Pa.C.S. § 5947 (relating to

7

immunity of witnesses), the Commonwealth Court may grant

8

an immunity order, in the course of an investigation or

9

hearing conducted under this part, a person refuses to

10

answer a question or to produce evidence on the grounds

11

that the answer or evidence will expose the person to

12

criminal prosecution. The chief enforcement counsel of

13

the bureau may petition the Commonwealth Court for a

14

grant of immunity that includes the specific question to

15

be posed or information or evidence being sought from the

16

person as follows:

17

(A)  A copy of the petition shall be provided to

18

the Attorney General and the district attorney of the

19

person's county of residence who may object to the

20

petition.

21

(B)  The court shall hold an in camera proceeding

22

with the person to hear the evidence that will be

23

offered if the order to produce evidence is granted.

24

(C)  The court may issue an order to compel the

25

person to answer or produce evidence with immunity

26

if:

27

(I)  the testimony or other information from

28

a witness may be necessary to the public

29

interest; and

30

(II)  a witness has refused or is likely to

- 52 -

 


1

refuse to testify or provide other information on

2

the basis of his privilege against self-

3

incrimination.

4

(D)  The court shall grant or deny the request

5

for immunity within 45 days of the filing of the

6

request.

7

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

8

immunity order provides the answer or evidence, the

9

person shall be immune from criminal prosecution

10

based on the answer or evidence that was the subject

11

of the immunity order.

12

(F)  The person may be prosecuted for perjury

13

committed in the answer or production of evidence or

14

held in contempt for failing to give an answer or

15

produce evidence in accordance with the order. The

16

answer or evidence shall be admissible against the

17

person only in a criminal investigation, or a trial

18

or other proceeding for perjury or contempt.

19

(G)  Immunity under this paragraph shall not

20

preclude the use of any other remedy or sanction

21

authorized by law.

22

* * *

23

(c)  Powers and duties of the Pennsylvania State Police.--The

24

Pennsylvania State Police shall have the following powers and

25

duties:

26

* * *

27

(14)  By March 1 of each year, the Commissioner of the

28

Pennsylvania State Police shall submit a report to the

29

Appropriations Committee of the Senate, the Community,

30

Economic and Recreational Development Committee of the

- 53 -

 


1

Senate, the Appropriations Committee of the House of

2

Representatives and the Gaming Oversight Committee of the

3

House of Representatives. The report shall summarize law

4

enforcement activities at each licensed facility during the

5

previous calendar year and shall include all of the

6

following:

7

(i)  The number of arrests at each licensed facility.

8

(ii)  A list of specific offenses charged for each

9

offense.

10

(iii)  The number of criminal prosecutions resulting

11

from arrests.

12

(iv)  The number of convictions resulting from

13

prosecutions.

14

(v)  The number of Pennsylvania State Police troopers

15

assigned to each licensed facility and to the gaming unit

16

at the Pennsylvania State Police headquarters.

17

(vi)  The number and nature of disciplinary actions

18

taken and complaints made against Pennsylvania State

19

Police troopers in a licensed facility.

20

(vii)  The closest local police station, Pennsylvania

21

State Police station and regional Pennsylvania State

22

Police headquarters to each licensed facility.

23

* * *

24

Section 16.  Section 1517.2 of Title 4 is amended to read:

25

§ 1517.2.  Conduct of [public officials and] board employees.

26

(a)  [Ex parte discussion prohibited.--An attorney

27

representing the bureau or the Office of Enforcement Counsel, or

28

an employee of the bureau or office involved in the hearing

29

process, shall not discuss the case ex parte with a hearing

30

officer, chief counsel or member] (Reserved).

- 54 -

 


1

(b)  [Other prohibitions.--A hearing officer, the chief

2

counsel or a member shall not discuss or exercise any

3

supervisory responsibility over any employee with respect to an

4

enforcement hearing with which the employee is involved] 

5

(Reserved).

6

(c)  Disqualification.--If it becomes necessary for the chief

7

counsel or member to become involved on behalf of the board in

8

any enforcement proceeding, the chief counsel or member shall be

9

prohibited from participating in the adjudication of that matter

10

and shall designate appropriate individuals to exercise

11

adjudicatory functions.

12

Section 17.  The amendment of 4 Pa.C.S. § 1213 shall not

13

apply to any of the following:

14

(1)  An application submitted before the effective date

15

of this section.

16

(2)  Any license or permit issued prior to the effective

17

date of this section.

18

(3)  The renewal of any license or permit issued prior to

19

the effective date of this section.

20

Section 18.  This act shall take effect in 60 days.

21

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

<--

22

Consolidated Statutes is amended and the section is amended by

23

adding paragraphs to read:

24

§ 1102.  Legislative intent.

25

The General Assembly recognizes the following public policy

26

purposes and declares that the following objectives of the

27

Commonwealth are to be served by this part:

28

* * *

29

(2.1)  The legalization of table games as authorized in

30

this part is intended to supplement slot machine gaming by

- 55 -

 


1

increasing revenues to the Commonwealth and providing new

2

employment opportunities by creating skilled jobs for

3

individuals related to the conduct of table games at licensed

4

facilities in this Commonwealth.

5

* * *

6

(10.1)  The General Assembly has a compelling interest in

7

protecting the integrity of both the electoral process and

8

the legislative process by preventing corruption and the

9

appearance of corruption which may arise through permitting

10

campaign contributions by the gaming industry.

11

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

12

regulatory control and legislative oversight over the

13

operation of slot machines and table games in this

14

Commonwealth; to prevent the actual or appearance of

15

corruption that may result from [large] campaign

16

contributions; ensure the bipartisan administration of this

17

part; and avoid actions that may erode public confidence in

18

the system of representative government.

19

(11.1)  Completely banning campaign contributions by

20

certain individuals and entities subject to this act is

21

necessary to prevent corruption, or the appearance of

22

corruption, that may arise when politics and gaming are

23

intermingled.

24

(12)  It is the intent of the General Assembly to

25

authorize the operation of slot machines and table games

26

under a single slot machine license issued to a slot machine

27

licensee under this part.

28

Section 2.  The definitions of "associated equipment,"

29

"cheat," "conduct of gaming," "conviction," "gaming employee,"

30

"key employee," "licensed facility," "manufacturer,"

- 56 -

 


1

"manufacturer license," "slot machine," "supplier" and "supplier

2

license" in section 1103 of Title 4 are amended and the section

3

is amended by adding definitions to read:

4

§ 1103.  Definitions.

5

The following words and phrases when used in this part shall

6

have the meanings given to them in this section unless the

7

context clearly indicates otherwise:

8

* * *

9

"Associated equipment."  Any equipment or mechanical,

10

electromechanical or electronic contrivance, component or

11

machine used in connection with [gaming] slot machines or table 

12

games, including linking devices which connect to progressive

13

slot machines or slot machines, replacement parts, equipment

14

which affects the proper reporting and counting of gross

15

terminal revenue and gross table game revenue, computerized

16

systems for controlling and monitoring slot machines or table

17

games, including, but not limited to, the central control

18

computer to which all slot machines communicate and devices for

19

weighing or counting money.

20

* * *

21

"Banking game."  Any table game in which players compete

22

against a certificate holder rather than against one another.

23

* * *

24

"Cash."  United States currency and coin.

25

"Cash equivalent."  An asset that is readily convertible to 

26

cash, including, but not limited to, any of the following:

27

(1)  Chips, tokens or other representations of value.

28

(2)  Travelers checks.

29

(3)  Foreign currency and coin.

30

(4)  Certified checks, cashier's checks and money orders.

- 57 -

 


1

(5)  Personal checks or drafts.

2

(6)  A negotiable instrument applied against credit

3

extended by a certificate holder, a recognized credit card

4

company or a financial institution.

5

(7)  Any other instrument that the Pennsylvania Gaming 

6

Control Board deems a cash equivalent. Other than recognized 

7

credit cards or credit extended by a certificate holder, all

8

instruments that constitute a cash equivalent shall be made

9

payable to the slot machine licensee, to the bearer or to

10

cash. An instrument made payable to a third party shall not

11

be considered a cash equivalent and shall be prohibited.

12

* * *

13

"Certificate holder."  A slot machine licensee that holds a

14

table games operation certificate from the Pennsylvania Gaming

15

Control Board in accordance with Chapter 13A (relating to table

16

games).

17

"Cheat."  To [alter without authorization] defraud or steal

18

from any patron, slot machine licensee or the Commonwealth,

19

including causing, aiding, abetting or conspiring with another

20

person to do so. The term shall also mean to unlawfully alter 

21

the elements of chance, skill, method of selection or criteria

22

which determine:

23

(1)  The result of a slot machine game or table game.

24

(2)  The amount or frequency of payment in a slot machine

25

game or table game.

26

(3)  The value of a wagering instrument.

27

(4)  The value of a wagering credit.

28

The term does not include altering a slot machine, table game

29

device or associated equipment for [required] maintenance [and]

30

or repair with the approval of a slot machine licensee.

- 58 -

 


1

"Cheating or thieving device."  A device used or possessed

2

with the intent to use, on or during the play of any slot

3

machine or table game to cheat or steal. The term shall also

4

include any device used to alter slot machines or table game

5

devices without the approval of a slot machine licensee.

6

"Chip."  A representation of value, including plaques, issued

7

by and redeemable with the issuing certificate holder for use in

8

playing a table game at the certificate holder's licensed

9

facility.

10

* * *

11

"Conduct of gaming."  The licensed placement and operation of

12

games of skill or chance under this part, as authorized and

13

approved by the Pennsylvania Gaming Control Board at a licensed

14

facility.

15

"Contest."  A table game competition among players for a

16

prize, whether or not the prize is a specified amount of money

17

or players are required to pay consideration to participate in

18

the competition.

19

* * *

20

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

21

contendere, whether or not a judgment of sentence has been

22

imposed as determined by the law of the jurisdiction in which

23

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

24

that has been expunged or overturned or for which an individual

25

has been pardoned or had an order of Accelerated Rehabilitative

26

Disposition entered.

27

* * *

28

"Count room."  The secured room at a licensed facility

29

designated for counting, wrapping and recording a slot machine

30

licensee's slot machine or table game receipts, or both.

- 59 -

 


1

"Counterfeit chips."  Any chip or similar object not issued

2

by a certificate holder for use in playing a table game at the

3

certificate holder's licensed facility.

4

* * *

5

"Electronic table game."  A table game which, as determined

6

by the Pennsylvania Gaming Control Board, is a mechanical,

7

electrical or computerized contrivance, terminal, machine or

8

other device approved by the Pennsylvania Gaming Control Board

9

which, upon insertion of a coin, bill, ticket, token or similar

10

object therein or upon payment of any consideration whatsoever,

11

including the use of any electronic payment system, is playable

12

or operable without either the required assistance of or

13

required interaction with a gaming employee. The term does not

14

include a slot machine.

15

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

16

the following:

17

(1)  Deputy Secretaries of the Commonwealth and the

18

Governor's Office executive staff.

19

(2)  An employee of the executive branch with

20

discretionary power which may affect or influence the outcome

21

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

22

the development of regulations or policies relating to a

23

licensed entity or who is involved in other matters under

24

this part. The term shall include an employee with law

25

enforcement authority.

26

(3)  An employee of a county or municipality with

27

discretionary powers which may affect or influence the

28

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

29

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

30

policy relating to a licensed entity or who is involved in

- 60 -

 


1

other matters under this part. The term shall include an

2

employee with law enforcement authority.

3

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

4

commission, authority or other governmental body not included

5

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

6

may affect or influence the outcome of the governmental

7

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

8

development of regulation or policy relating to a licensed

9

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

10

The term shall include an employee with law enforcement

11

authority.

12

* * *

13

"Gaming employee."  Any employee of a slot machine licensee,

14

including, but not limited to:

15

(1)  Cashiers.

16

(2)  Change personnel.

17

(3)  [Counting] Count room personnel.

18

(4)  Slot attendants.

19

(5)  Hosts or other persons authorized to extend

20

complimentary services.

21

(6)  Machine mechanics [or], computer machine technicians

22

or table game device technicians.

23

(7)  Security personnel.

24

(8)  Surveillance personnel.

25

(9)  Supervisors and managers.

26

(10)  Boxmen.

27

(11)  Dealers or croupiers.

28

(12)  Floormen.

29

The term includes employees of a person holding a supplier's

30

license whose duties are directly involved with the repair or

- 61 -

 


1

distribution of slot machines, table game devices and associated

2

equipment sold or provided to [the] a licensed facility within

3

this Commonwealth as determined by the Pennsylvania Gaming

4

Control Board. The term does not include bartenders, cocktail

5

servers or other persons engaged solely in preparing or serving

6

food or beverages, clerical or secretarial personnel, parking

7

attendants, janitorial, stage, sound and light technicians and

8

other nongaming personnel as determined by the board.

9

"Gaming junket."  An arrangement made by a gaming junket

10

representative for an individual who is all of the following:

11

(1)  Selected or approved for participation in the

12

arrangement based on the individual's ability to satisfy

13

specific financial qualifications.

14

(2)  Likely to participate in gaming and to patronize a

15

licensed facility for the purpose of gaming.

16

(3)  Receives as consideration for participation in the

17

arrangement part or all of the costs of transportation, food,

18

lodging or entertainment which are directly or indirectly

19

paid by a slot machine licensee or an agent or an employee of

20

a slot machine licensee.

21

"Gaming junket enterprise."  A person, other than a slot

22

machine licensee, who employs or otherwise engages the services

23

of a gaming junket representative to arrange gaming junkets to a

24

license facility, regardless of whether the activities of the

25

gaming junket enterprise occur within this Commonwealth.

26

"Gaming junket representative."  An individual who is not an

27

employee of a slot machine licensee who arranges and negotiates

28

the terms of a gaming junket or selects individuals to

29

participate in a gaming junket to a licensed facility,

30

regardless of whether the activities of the gaming junket

- 62 -

 


1

enterprise occur within this Commonwealth.

2

"Gaming school."  Any educational institution which is

3

approved by the the Department of Education as an accredited

4

college or university, community college, Pennsylvania private

5

licensed school or its equivalent and which is approved by the

6

Pennsylvania Gaming Control Board in consultation with the

7

Department of Education to provide education and training

8

related to employment opportunities associated with slot

9

machines or table games, including slot machine, table game 

10

device and associated equipment maintenance and repair.

11

"Gaming service provider."  A person that:

<--

12

(1)  provides goods or services to a slot machine

13

licensee or an applicant for a slot machine license;

14

(2)  provides goods or services at a licensed facility;

15

and

16

(3)  is not required to be licensed as a manufacturer,

17

manufacturer designee, supplier, management company or gaming

18

junket enterprise.

19

"Gross table game revenue."  The total of:

20

(1)  Cash or cash equivalents received in the playing of

21

a table game minus the total of:

22

(i)  Cash or cash equivalents paid out to patrons as

23

a result of playing a table game.

24

(ii)  Cash paid to purchase annuities to fund prizes

25

payable to patrons over a period of time as a result of

26

playing a table game.

27

(iii)  The actual cost paid by the certificate holder

28

for any personal property distributed to a patron as a

29

result of playing a table game. This does not include

30

travel expenses, food, refreshments, lodging or services.

- 63 -

 


1

(2)  All table game contest or tournament fees. Table

2

game contest or tournament fees shall be calculated as all

3

fees or payments, including entry fees, buy-ins, re-buys and

4

administrative fees, imposed by a certificate holder to

5

participate in a table game contest or tournament less cash

6

or actual cost paid by a certificate holder for prizes

7

awarded to tournament or contest winners.

8

(3)  The total amount of the rake collected by a

9

certificate holder each day.

10

The term does not include counterfeit money or chips; coins or

11

currency of other countries received in the playing of a table

12

game, except to the extent that they are readily convertible to

13

United States currency; cash taken in a fraudulent act

14

perpetrated against a certificate holder for which the

15

certificate holder is not reimbursed.

16

* * *

17

"Hotel."  One or more buildings owned or operated by a

18

certificate holder which is attached to, physically connected to

19

or adjacent to the certificate holder's licensed facility at

20

which the public may obtain sleeping rooms and is located on the

21

same parcel of land as the licensed facility.

22

* * *

23

"Key employee."  Any individual who is employed in a director

24

or department head capacity and who is empowered to make

25

discretionary decisions that regulate slot machine or table game

26

operations, including the general manager and assistant manager

27

of the licensed facility, director of slot operations, director

28

of table games, pit supervisors, shift supervisors, credit

29

supervisors, cashier supervisors, table game managers and

30

assistant managers, director of cage and/or credit operations,

- 64 -

 


1

director of surveillance, director of marketing, director of

2

management information systems, director of security,

3

comptroller and any employee who supervises the operations of

4

these departments or to whom these department directors or

5

department heads report and such other positions which the

6

Pennsylvania Gaming Control Board shall determine based on

7

detailed analyses of job descriptions as provided in the

8

internal controls of the licensee as approved by the

9

Pennsylvania Gaming Control Board. All other gaming employees

10

unless otherwise designated by the Pennsylvania Gaming Control

11

Board shall be classified as non-key employees.

12

* * *

13

"Licensed entity representative."  A person acting on behalf

14

of or authorized to represent the interest of any applicant,

15

licensee or permittee, including an attorney, agent or lobbyist,

16

regarding any matter which may reasonably be expected to come

17

before the board.

18

"Licensed facility."  The physical land-based location at

19

which a licensed gaming entity is authorized to place and

20

operate slot machines and, if authorized by the Pennsylvania

21

Gaming Control Board under Chapter 13A (relating to table

22

games), to conduct table games. The term includes any area of a

23

licensed racetrack previously authorized pursuant to section

24

1207(17) (relating to regulatory authority of board) to operate

25

slot machines and any area of a hotel which the Pennsylvania

26

Gaming Control Board determines is suitable to conduct table

27

games.

28

* * *

29

"Manufacturer."  A person who manufactures, builds, rebuilds,

30

fabricates, assembles, produces, programs, designs or otherwise

- 65 -

 


1

makes modifications to any slot machine, table game device or

2

associated equipment for use or play of slot machines or table 

3

games in this Commonwealth for gaming purposes.

4

"Manufacturer license."  A license issued by the Pennsylvania

5

Gaming Control Board authorizing a manufacturer to manufacture

6

or produce slot machines, table game devices or associated

7

equipment for use in this Commonwealth for gaming purposes.

8

* * *

9

"Municipal authority."  A body politic and corporate created

10

under the former act of June 28, 1935 (P.L.463, No.191), known

11

as the Municipality Authorities Act of 1935, the former act of

12

May 2, 1995 (P.L.382, No.164), known as the Municipality

13

Authorities Act of 1945 or the act of July 29, 1953 (P.L.1034,

14

No.270), known as the Public Auditorium Authorities Law.

15

* * *

16

"Nonbanking game."  Any table game in which players compete

17

against one another and in which the certificate holder collects

18

a rake.

19

"Nonelectronic table game."  Any table game that, as

20

determined by the Pennsylvania Gaming Control Board, is not an

21

electronic table game.

22

* * *

23

"Party."  The Pennsylvania Gaming Control Board, the Bureau

24

of Investigations and Enforcement of the Pennsylvania Gaming

25

Control Board or any applicant, licensee, permittee, registrant

26

or other person appearing of record in any proceeding before the

27

board or in any proceeding for judicial review of any action,

28

decision or order of the board.

29

* * *

30

"Rake."  A set fee or percentage assessed by a certificate

- 66 -

 


1

holder for providing the services of a dealer, table or location

2

for playing any nonbanking game.

3

* * *

4

"Slot machine."  Any mechanical [or], electrical or

5

computerized contrivance, terminal, machine or other device

6

approved by the Pennsylvania Gaming Control Board which, upon

7

insertion of a coin, bill, ticket, token or similar object

8

therein or upon payment of any consideration whatsoever,

9

including the use of any electronic payment system except a

10

credit card or debit card, is available to play or operate, the

11

play or operation of which, whether by reason of skill or

12

application of the element of chance or both, may deliver or

13

entitle the person or persons playing or operating the

14

contrivance, terminal, machine or other device to receive cash,

15

billets, tickets, tokens or electronic credits to be exchanged

16

for cash or to receive merchandise or anything of value

17

whatsoever, whether the payoff is made automatically from the

18

machine or manually. A slot machine:

19

(1)  May utilize spinning reels or video displays or

20

both.

21

(2)  May or may not dispense coins, tickets or tokens to

22

winning patrons.

23

(3)  May use an electronic credit system for receiving

24

wagers and making payouts.

25

The term shall include associated equipment necessary to conduct

26

the operation of the contrivance, terminal, machine or other

27

device. The term does not include an electronic table game.

28

* * *

29

"Supplier."  A person that sells, leases, offers or otherwise

30

provides, distributes or services any slot machine, table game

- 67 -

 


1

device or associated equipment for use or play of slot machines

2

or table games in this Commonwealth.

3

"Supplier license."  A license issued by the Pennsylvania

4

Gaming Control Board authorizing a supplier to provide products

5

or services related to slot machines, table games devices or

6

associated equipment to slot machine licensees.

7

* * *

8

"Suspicious transaction."  The acceptance or redeeming of

9

cash or a cash equivalent involving or aggregating $5,000 if the

10

slot machine licensee or person knows or has reason to believe

11

the transaction:

12

(1)  involves funds derived from illegal activities or is

13

intended or conducted in order to conceal or disguise funds

14

or assets derived from illegal activities;

15

(2)  is part of a plan to violate or evade any law or

16

regulation or to avoid any transaction reporting requirement

17

under the law or regulations of this Commonwealth or the

18

United States, including a plan to structure a series of

19

transactions to avoid any transaction reporting requirement

20

under the laws or regulations of this Commonwealth or the

21

United States; or

22

(3)  has no lawful business or other apparent lawful

23

purpose or is not the sort of transaction in which a person

24

would normally be expected to engage and the slot machine

25

licensee or person knows of no reasonable explanation for the

26

transaction after examining the available facts, including

27

the background and possible purpose of the transaction.

28

"Table game."  Any banking, nonbanking or percentage game

29

played which utilizes a table game device for cash, a cash

30

equivalent or any representation of value. The term includes

- 68 -

 


1

roulette, baccarat, blackjack, poker, craps, big six wheel, red

2

dog, pai gow, casino war and sic bo and any other banking,

3

nonbanking or percentage game approved by the Pennsylvania

4

Gaming Control Board. The term shall also include any game

5

authorized for use in a licensed facility that is used for

6

gaming contests or tournaments in which players compete against

7

one another. The term shall not include:

8

(1)  Lottery games of the Pennsylvania State Lottery as

9

authorized under the act of August 26, 1971 (P.L.351, No.91),

10

known as the State Lottery Law.

11

(2)  Bingo as authorized under the act of July 10, 1981

12

(P.L.214, No.67), known as the Bingo Law.

13

(3)  Pari-mutuel betting on the outcome of thoroughbred

14

or harness horse racing as authorized under the act of

15

December 17, 1981 (P.L.435, No.135), known as the Race Horse

16

Industry Reform Act.

17

(4)  Small games of chance as authorized under the act of

18

December 19, 1988 (P.L.1262, No.156), known as the Local

19

Option Small Games of Chance Act.

20

(5)  Slot machine gaming and progressive slot machine

21

gaming as defined and authorized under this part.

22

(6)  Keno.

23

"Table game device."  Includes gaming tables, cards, dice,

24

chips, shufflers, tiles, dominoes, wheels, drop boxes or any

25

mechanical, electrical or computerized contrivance, terminal,

26

machine or other device, apparatus, equipment or supplies

27

approved by the Pennsylvania Gaming Control Board and used to

28

conduct a table game.

29

"Table game operation certificate."  A certificate from the

30

Pennsylvania Gaming Control Board that authorizes a slot machine

- 69 -

 


1

licensee to conduct table games in accordance with this part.

2

"Tournament."  An organized series of table game contests

3

approved by the Pennsylvania Gaming Control Board.

4

"Trustee."  A person appointed by the Pennsylvania Gaming

5

Control Board to manage and control the operations of a licensed

6

facility to ensure compliance with this part and who has the

7

fiduciary responsibility to make decisions for the benefit of

8

the licensed gaming entity and the Commonwealth.

9

* * *

10

Section 3.  Section 1201(f)(3), (h)(7.1), (10), (11), (13),

11

(14) and (15), (i)(1) and (k) of Title 4 are amended, subsection

<--

12

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

13

by adding a subsection subsections to read:

<--

14

§ 1201.  Pennsylvania Gaming Control Board established.

15

* * *

16

(f)  Qualified majority vote.--

17

* * *

18

(3)  Notwithstanding any other provision of this part or

19

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

20

member shall disclose the nature of his disqualifying

21

interest, disqualify himself and abstain from voting in a

22

proceeding under this part in which his objectivity,

23

impartiality, integrity or independence of judgment may be

24

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

25

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

26

legislative appointee has disqualified himself, the qualified

27

majority shall consist of all of the remaining legislative

28

appointees and at least two gubernatorial appointees.

29

* * *

30

(h)  Qualifications and restrictions.--

- 70 -

 


1

* * *

2

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

3

his immediate family shall divest any financial interest in

4

any applicant, licensed facility or licensed entity and in an

5

affiliate, intermediary, subsidiary or holding company

6

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

7

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

8

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

9

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

10

financial interest in any applicant, licensed facility or

11

licensed entity or in an affiliate, intermediary, subsidiary

12

or holding company thereof. For purposes of this paragraph,

13

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

14

or unemancipated child.

15

* * *

16

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

17

hearing or proceeding or participate in any other activity on

18

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

19

intermediary, subsidiary or holding company thereof, or any

20

other licensee or permittee for a period of two years from

21

the termination of term of office.

22

(11)  No member, employee or independent contractor of

23

the board shall accept a complimentary service, wager or be

24

paid any prize from any wager at any licensed facility within

25

this Commonwealth or at any other facility outside this

26

Commonwealth which is owned or operated by a licensed gaming

27

entity or any of its affiliates, intermediaries, subsidiaries

28

or holding companies thereof for the duration of their term

29

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

30

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

- 71 -

 


1

of office, employment or contract with the board. The

2

provisions of this paragraph prohibiting wagering during the

3

term of employment shall not apply to employees or

4

independent contractors of the board who utilize slot

5

machines or table game devices for testing purposes or to

6

verify the performance of a machine or table game as part of

7

an enforcement investigation.

8

* * *

9

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

10

an independent contractor of the board] whose duties

11

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

12

development [or adoption] of laws, or the development or

13

adoption of regulations or policy or who has other

14

discretionary authority which may affect the outcome of an

15

action or decision under this part, including the executive

16

director, bureau directors and attorneys, shall do any of the

17

following:

18

(i)  [accept] Accept employment with an applicant or

19

licensed entity, or an affiliate, intermediary,

20

subsidiary or holding company thereof, for a period of

21

[one year] two years after the termination of the

22

employment relating to the conduct of gaming [or contract

23

with the board; or].

24

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

25

or proceeding or participate in any other activity on

26

behalf of any applicant, licensee, permittee or licensed

27

entity, or an affiliate, intermediary, subsidiary or

28

holding company thereof, for a period of two years after

29

termination of the employment [or contract with the

30

board].

- 72 -

 


1

(iii)  As a condition of employment, an employee

2

subject to this paragraph shall sign an affidavit that

3

the employee will not accept employment with or be

4

retained by any applicant, licensed entity or an

5

affiliate, intermediary, subsidiary or holding company

6

thereof for a period of two years from the termination of

7

employment. An applicant or licensed entity or an

8

affiliate, intermediary, subsidiary or holding company

9

thereof shall not employ or retain an individual who

10

signed an affidavit required by this subparagraph. An

11

applicant or licensed entity or an affiliate,

12

intermediary, subsidiary or holding company that

13

knowingly employs or retains an individual in violation

14

of this subparagraph shall be subject to a penalty under

15

section 1518(c) (relating to prohibited acts; penalties).

16

(13.1)  Nothing shall prevent a current or former

17

employee of the board from appearing in any proceeding as a

18

witness where the employee is called to testify concerning

19

any fact or information obtained while employed with the

20

board or related to the performance of duties while so

21

employed.

22

(13.2)  No independent contractor or individual employed

23

by an independent contractor of the board whose duties

24

substantially involve consultation relating to licensing,

25

enforcement or the development or adoption of regulations or

26

policy under this part shall:

27

(i)  Accept employment with or be retained by an

28

applicant or a licensed entity or an affiliate,

29

intermediary, subsidiary or holding company thereof for a

30

period of one year after the termination of the contract

- 73 -

 


1

with the board.

2

(ii)  Appear before the board in any hearing or

3

proceeding or participate in any other activity on behalf

4

of an applicant, licensee, permittee or licensed entity

5

or an affiliate, intermediary, subsidiary or holding

6

company of an applicant, licensee, permittee or licensed

7

entity for a period of two years after termination of the

8

contract with the board. Nothing shall prevent a current

9

or former independent contractor or employee of an

10

independent contractor of the board from appearing in any

11

proceeding as a witness where the independent contractor

12

or employee of the independent contractor is being called

13

to testify concerning any fact or information obtained

14

while contracting with the board or related to the

15

performance of the contract.

16

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

17

contractor or individual employed by an independent

18

contractor of the board under this paragraph shall sign

19

an affidavit to not accept employment with or be retained

20

by any applicant, licensed entity or an affiliate,

21

intermediary, subsidiary or holding company of an

22

applicant, licensed entity or affiliate for a period of

23

one year from the termination of employment. A licensed

24

entity or an affiliate, intermediary, subsidiary or

25

holding company of an applicant, licensed entity or

26

affiliate shall not employ or retain an individual who

27

signed an affidavit required by this subparagraph. A

28

licensed entity or an affiliate, intermediary, subsidiary

29

or holding company thereof that knowingly employs or

30

retains an individual in violation of this subparagraph

- 74 -

 


1

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

2

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

3

board, the executive branch of the Commonwealth or a

4

political subdivision or of the agency or political

5

subdivision employing an employee, the State Ethics

6

Commission shall determine whether the individual's duties

7

substantially involve the development [or adoption] of laws,

8

or the development or adoption of regulations or policy,

9

licensing or enforcement under this part or other

10

discretionary authority which may affect the outcome of an

11

action, proceeding or decision under this part and shall

12

provide a written determination to the employee or the agency

13

or political subdivision employing the employee to include

14

any prohibition under this paragraph. An individual who

15

relies in good faith on a determination under this paragraph

16

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

17

provided that all material facts set forth in the request for

18

a determination are correct.

19

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

20

of the board violates any provision of this section, the

21

appointing authority [or the board may, upon notice and

22

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

23

appointment or]. A member removed under this paragraph shall

24

be prohibited from future appointment to the board and shall

25

be prohibited from applying for a license, permit or other

26

authorization and from becoming an independent contractor of

27

the board, or registering as a licensed entity representative

28

for a period of five years from the date of removal from the

29

board. If an employee or independent contractor of the board

30

violates any provision of this section, the board may, upon

- 75 -

 


1

notice and hearing, terminate the employment or contract, and

2

the person shall be ineligible for future [appointment,]

3

employment or [contract] contracting with the board and [for

4

approval of a license or permit under this part for a period

5

of two years thereafter] shall be prohibited from applying

6

for a license, permit or other authorization and from

7

becoming an independent contractor or registering as a

8

licensed entity representative for a period of five years

9

from the date of termination of the employment or contract.

10

* * *

<--

11

(h.4)  Restrictions on appointment of legislators.--No member

12

of the Senate or House of Representatives shall be eligible for

13

appointment as a member of the board during the term of office

14

for which the person was elected and for a period of 12 months

15

thereafter.

16

(i)  Compensation.--

<--

17

(1)  [The Executive Board as established in the act of

18

April 9, 1929 (P.L.177, No.175), known as The Administrative

19

Code of 1929, shall establish the compensation of the

20

members.]

21

(i)  Members, including members serving on the

22

effective date of this subparagraph, shall receive an

23

annual salary of $68,284, except the chairman, who shall

24

receive an annual salary of $71,084.

25

(ii)  Members shall be eligible to receive a cost-of-

26

living adjustment consistent with the provisions of

27

section 3(e) of the act of September 30, 1983 (P.L.160,

28

No.39), known as the Public Official Compensation Law.

29

* * *

30

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

- 76 -

 


1

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

2

appointing authority shall make [their initial] appointments

3

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

4

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

5

appointing authority of the required background investigation of

6

the appointee by the Pennsylvania State Police which shall be

7

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

8

any domestic or foreign jurisdiction of a felony, infamous crime

9

or gaming offense shall be appointed to the board.

10

* * *

11

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

12

other fiscal crisis, the Governor orders the furlough of

13

Commonwealth employees or the closing of any Commonwealth

14

agency, the board and its employees and all employees of the

15

Department of Revenue, the Pennsylvania State Police and the

16

Office of Attorney General whose duties involve the regulation

17

and oversight of gaming under this part shall not be subject to

18

furlough but shall continue to perform their duties of

19

employment.

20

* * *

21

Section 3.1.  Section 1201.1(a)(1) of Title 4 is amended to

22

read:

23

§ 1201.1.  Applicability of other statutes.

24

(a)  General rule.--The following acts shall apply to the

25

board:

26

(1)  The act of [June 21, 1957 (P.L.390, No.212),

27

referred to] February 14, 2008 (P.L.6, No.3), known as the

28

Right-to-Know Law.

29

* * *

30

Section 4.  Section 1202(a)(1) and (2) and (b)(7), (20), (23)

<--

- 77 -

 


1

and (30) of Title 4 are amended and subsection (b) is amended by

2

adding paragraphs to read:

3

§ 1202.  General and specific powers.

4

(a)  General powers.--

5

(1)  The board shall have general and sole regulatory

6

authority over the conduct of gaming or related activities as

7

described in this part. The board shall ensure the integrity

8

of the acquisition and operation of slot machines, table

9

games, table game devices and associated equipment and shall

10

have sole regulatory authority over every aspect of the

11

authorization and operation of slot machines and table games.

12

(2)  The board shall employ individuals as necessary to

<--

13

carry out the powers and duties of the board, who shall serve

14

at the board's pleasure. An employee of the board shall be

15

considered a State employee for purposes of 71 Pa.C.S. Pt.

16

XXV (relating to retirement for State employees and

17

officers). For the purposes of this paragraph, the board

18

shall not be considered an executive or independent agency

19

under the act of October 15, 1980 (P.L.950, No.164), known as

20

the Commonwealth Attorneys Act. The board shall not take

21

final action in filling the positions of executive director

22

of the board, director of the bureau, chief counsel of the

23

board or director of the Office of Enforcement Counsel until

24

receipt and review of the results of the background

25

investigation under section 1517(c)(1.1) (relating to

26

investigations and enforcement).

27

* * *

28

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

29

power and duty:

30

* * *

- 78 -

 


1

(7)  To administer oaths, examine witnesses and issue

2

subpoenas compelling the attendance of witnesses or the

3

production of documents and records or other evidence[. The

4

provisions of this paragraph shall apply to designated

5

officers and employees.], or to designate officers or

6

employees to perform these duties.

7

* * *

8

(12.1)  To issue, approve, authorize, renew, revoke,

9

suspend, condition or deny issuance or renewal of a table

10

game operation certificate to a slot machine licensee in

11

accordance with Chapter 13A (relating to table games).

12

* * *

13

(20)  In addition to the power of the board regarding

14

license and permit applicants, to determine at its discretion

15

the suitability of any person who furnishes or seeks to

16

furnish to a slot machine licensee directly or indirectly any

17

goods, services or property related to slot machines, table

18

games or associated equipment or through any arrangements

19

under which that person receives payment based directly or

20

indirectly on earnings, profits or receipts from the slot

21

machines, table games and associated equipment. The board may

22

require any such person to comply with the requirements of

23

this part and the regulations of the board and may prohibit

24

the person from furnishing the services or property.

25

* * *

26

(23)  The board shall not approve, issue or renew a

27

license, certificate or permit unless it is satisfied that

28

the applicant has demonstrated by clear and convincing

29

evidence that the applicant is a person of good character,

30

honesty and integrity and is a person whose prior activities,

- 79 -

 


1

criminal record, if any, reputation, habits and associations

2

do not pose a threat to the public interest or the effective

3

regulation and control of slot machine or table game 

4

operations or create or enhance the danger of unsuitable,

5

unfair or illegal practices, methods and activities in the

6

conduct of slot machine or table game operations or the

7

carrying on of the business and financial arrangements

8

incidental thereto.

9

* * *

10

(27.1)  To publish each January in the Pennsylvania

11

Bulletin and on the Pennsylvania Gaming Control Board's

12

Internet website a complete list of all slot machine

13

licensees who filed a petition seeking authorization to

14

conduct table games and the status of each petition or table

15

game operation certificate.

16

* * *

17

(30)  To promulgate rules and regulations necessary for

18

the administration and enforcement of this part, including

19

regulations in cooperation with the Pennsylvania Liquor

20

Control Board and regulations relating to the sale and

21

service of liquor and malt and brewed beverages by licensees.

22

[Except as provided in section 1203 (relating to temporary

23

regulations), regulations] Regulations shall be adopted

24

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

25

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

26

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

27

Review Act.

28

(31)  To collect and post information on its Internet

29

website with sufficient detail to inform the public of the

30

controlling interest or ownership interest of an applicant

- 80 -

 


1

for a slot machine license or a licensed gaming entity or

2

affiliate, intermediary, subsidiary or holding company

3

thereof. The posting shall include:

4

(i)  The names of all persons with a controlling

5

interest in a publicly traded domestic or foreign

6

corporation, partnership, limited liability company or

7

other legal entity.

8

(ii)  The names of all persons with an ownership

9

interest equal to or greater than 1% of a privately held

10

domestic or foreign corporation, partnership, limited

11

liability company or other legal entity.

12

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

13

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

14

(iv)  The names of all officers, directors,

15

principals and key employees of a licensed gaming entity.

16

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

17

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

18

Commonwealth and the board to operate a licensed facility and

19

ensure compliance with this part.

20

(33)  To develop regulations, in consultation and

21

collaboration with the State Ethics Commission and the

22

Administrative Office of the Pennsylvania Courts, to govern

23

the postemployment limitations and restrictions of employees

24

of the board who are members of the Pennsylvania Bar and

25

whose duties with the board substantially involve the

26

practice of law.

27

(34)  To review detailed site plans identifying a

28

petitioner's proposed table game area within a licensed

29

facility or any proposed temporary facility to determine the

30

adequacy of the proposed internal and external security and

- 81 -

 


1

proposed surveillance measures.

2

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

3

§ 1202.1.  Code of conduct.

4

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

5

conduct prior to the consideration of any license, permit or

6

registration application. The code of conduct shall supplement

7

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

8

(relating to accountability) and shall provide guidelines

9

applicable to members, employees, independent contractors of the

10

board and the immediate [families] family members of the

11

members, employees and independent contractors of the board to

12

enable them to avoid any perceived or actual conflict of

13

interest and to promote public confidence in the integrity and

14

impartiality of the board. At a minimum, the code of conduct

15

adopted under this section shall include registration of

16

licensed entity representatives under subsection (b) and the

17

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

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, business address[,] and

22

business telephone number of both the licensed entity

23

representative and [the] any licensed entity or applicant for

24

licensed entity licensure being represented.

25

(2)  A licensed entity representative shall have an

26

[ongoing] affirmative duty to update its registration

27

information on an ongoing basis and failure to do so shall be

28

punishable by the board.

29

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

30

registration list which shall contain the information

- 82 -

 


1

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

2

public inspection at the offices of the board and on the

3

board's Internet website.

4

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

5

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

6

person.

7

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

8

compensation, travel, lodging or other thing of value,

9

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

10

licensed entity, including any affiliate, subsidiary,

11

intermediary or holding company thereof, permittee[,

12

registrant] or licensed entity representative thereof.

13

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

14

hearing or other proceeding in which the member's

15

objectivity, impartiality, integrity or independence of

16

judgment may be reasonably questioned due to the member's

17

relationship or association with a party connected to any

18

hearing or proceeding or a person appearing before the board.

19

(4)  Refrain from any financial or business dealing which

20

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

21

impartiality or independence of judgment.

22

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

23

office in any political party or political committee as

24

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

25

contribute to or solicit contributions to a political

26

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

27

candidate, publicly endorse a candidate or actively

28

participate in a political campaign.

29

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

30

religious, health, fraternal, civic or other nonprofit entity

- 83 -

 


1

from an applicant, licensed entity or affiliate, subsidiary,

2

intermediary or holding company of a licensed entity,

3

interested party, permittee or licensed entity

4

representative. A board member may serve as an officer,

5

employee or member of the governing body of a nonprofit

6

entity and may attend, make personal contributions to and

7

plan or preside over the entity's fundraising events. A board

8

member may permit his name to appear on the letterhead used

9

for fundraising events if the letterhead contains only the

10

board member's name and position with the nonprofit entity.

11

(7)  Not meet or engage in discussions with any

12

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

13

permittee, [or a] licensed entity representative, person who

14

provides goods, property or services to a slot machine

15

licensee or any other person or entity under the jurisdiction

16

of the board unless the meeting or discussion occurs on the

17

business premises of the board and is recorded in a log

18

maintained for this purpose. The log shall be available for

19

public inspection during the regular business hours of the

20

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

21

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

22

discussion, the names of the participants and a description

23

of the subject matter discussed. The provisions of this

24

paragraph shall not apply to meetings [of the board] to

25

consider matters requiring the physical inspection of the

26

equipment or premises of an applicant or a licensed entity at

27

[their] the location of the licensed facility.

28

(8)  Avoid impropriety and the appearance of impropriety

29

at all times and observe standards and conduct that promote

30

public confidence in the oversight of gaming.

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1

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

2

relating to the conduct of a member.

3

(c.1)  Prohibitions.--

4

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

5

advising the board on a particular licensing issue or

6

proceeding or employee whose duties relate to licensing and

7

who is advising the board on a particular licensing issue or

8

proceeding shall engage in any ex parte communication with

9

any person.

10

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

11

Enforcement Counsel or an applicant, licensee or permittee in

12

any proceeding shall engage in an ex parte communication with

13

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

14

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

15

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

16

Enforcement Counsel who is involved in a proceeding shall

17

engage in an ex parte communication with a member, an

18

attorney of the Office of Chief Counsel who is advising the

19

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

20

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

21

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

22

a board member, employee or hearing officer shall be recorded

23

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

24

available for public inspection during the regular business

25

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

26

Internet website. The log shall include:

27

(i)  The name of the individual documenting the ex

28

parte communication.

29

(ii)  The date and time of the ex parte

30

communication.

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1

(iii)  The names of all individuals involved in the

2

ex parte communication.

3

(iv)  A description of the subject matter discussed

4

and a summary of the substance of the ex parte

5

communication.

6

(2)  In addition to documenting an ex parte communication

7

under paragraph (1), notification of the substance of the

8

communication and an opportunity to respond shall be provided

9

to all persons directly affected by the anticipated vote or

10

action of the board related to the ex parte communication.

11

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

12

engaged in or received an ex parte communication shall

13

recuse himself from any hearing or other proceeding

14

related to the ex parte communication if the context and

15

substance of the ex parte communication creates

16

substantial reasonable doubt as to the individual's

17

ability to act objectively, independently or impartially.

18

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

19

engaged in or received an ex parte communication who

20

elects not to recuse himself from a hearing or other

21

proceeding shall state his reasons for not recusing

22

himself on the record prior to the commencement of the

23

hearing or proceeding.

24

(iii)  If a legislative appointee recuses himself

25

from any hearing or other proceeding under this section,

26

any qualified majority vote required under this part

27

shall consist of all of the remaining legislative

28

appointees and at least two gubernatorial appointees.

29

(iv)  Failure of a hearing officer or employee who

30

engaged in or received an ex parte communication to