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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY ORIE, FARNESE, ALLOWAY, RAFFERTY, BROWNE, VANCE, KASUNIC, WAUGH, SMUCKER, PICCOLA, STACK AND EICHELBERGER, APRIL 23, 2009 |
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| REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, APRIL 23, 2009 |
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| AN ACT |
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1 | Amending Title 4 (Amusements) of the Pennsylvania Consolidated |
2 | Statutes, further providing for the Pennsylvania Gaming |
3 | Control Board and its general and specific powers, for code |
4 | of conduct, for licensed gaming entity application appeals |
5 | from board, for license or permit application hearing process |
6 | and public input hearings, for board minutes and records, for |
7 | regulatory authority of board and for slot machine license |
8 | fee; providing for commencement of slot operations in cities |
9 | of the first class; repealing provisions relating to licensed |
10 | facility zoning and land use appeals; providing for |
11 | prosecutorial and adjudicatory functions; and further |
12 | providing for investigations and enforcement. |
13 | The General Assembly of the Commonwealth of Pennsylvania |
14 | hereby enacts as follows: |
15 | Section 1. Section 1201(h)(4) and (5) and (k) of Title 4 of |
16 | the Pennsylvania Consolidated Statutes are amended to read: |
17 | § 1201. Pennsylvania Gaming Control Board established. |
18 | * * * |
19 | (h) Qualifications and restrictions.-- |
20 | * * * |
21 | (4) No member, employee or independent contractor of the |
22 | board or other agency having regulatory authority over the |
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1 | board or over forms of gaming regulated by this part shall |
2 | [be employed,] hold any office or position or be engaged in |
3 | any activity which is incompatible with the position, |
4 | employment or contract. No member appointed after January 1, |
5 | 2009, shall engage in any business, employment or vocation |
6 | for which the member shall receive any remuneration except as |
7 | provided under this part. |
8 | (5) No member shall be paid or receive any fee or other |
9 | compensation other than salary and expenses provided by law |
10 | for any activity related to the duties or authority of the |
11 | board. [Nothing in this part shall prohibit a member from |
12 | engaging in any employment or receiving any compensation for |
13 | such employment that is not connected to or incompatible with |
14 | his service as a member of the board.] |
15 | * * * |
16 | (k) Appointments.--The appointing authorities shall make |
17 | their [initial] appointments within 60 days of [the effective |
18 | date of this part.] a vacancy in an office for which such |
19 | appointing authority is responsible for making an appointment. |
20 | No appointment shall be final until receipt by the appointing |
21 | authority of the required background investigation of the |
22 | appointee by the Pennsylvania State Police which shall be |
23 | completed within 30 days[.] and until the advice and consent of |
24 | two-thirds of the members elected to the Senate has been given. |
25 | No person who has been convicted in any domestic or foreign |
26 | jurisdiction of a felony, infamous crime or gaming offense shall |
27 | be appointed to the board. |
28 | * * * |
29 | Section 2. Section 1202(a)(4) of Title 4 is amended and |
30 | subsection (b) is amended by adding a paragraph to read: |
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1 | § 1202. General and specific powers. |
2 | (a) General powers.-- |
3 | * * * |
4 | (4) The board shall establish a system of classification |
5 | and compensation of its employees and shall [not] be subject |
6 | to the provisions of the act of April 9, 1929 (P.L.177, |
7 | No.175), known as The Administrative Code of 1929, as to |
8 | classification and compensation for its employees and conduct |
9 | its activities consistent with the practices and procedures |
10 | of Commonwealth agencies. |
11 | * * * |
12 | (b) Specific powers.--The board shall have the specific |
13 | power and duty: |
14 | * * * |
15 | (31) To collect and post information on its Internet |
16 | website of sufficient detail to inform the public of the |
17 | controlling interests and management structure of the |
18 | individual or entity which holds the license, including any |
19 | affiliate, intermediary, subsidiary or holding companies, and |
20 | all officers, directors and key employees. The posting shall |
21 | include the names of all persons who own a financial equity |
22 | share which equals or exceeds 1% in the licensee or any of |
23 | its affiliates, intermediaries, subsidiaries or holding |
24 | companies, unless the entity is a publicly held corporation |
25 | or the equity share consists merely of a financial investment |
26 | through an entity over which the person has no voting rights |
27 | or role in governance. The posting shall also include the |
28 | names of all persons who have voting rights, a role in |
29 | corporate governance or other managerial power as a director, |
30 | shareholder or officer with regard to the actions or |
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1 | decisions of the licensee and any affiliate, intermediary, |
2 | subsidiary or holding company and the extent of that power or |
3 | voting rights. |
4 | Section 3. Section 1202.1 of Title 4 is amended by adding |
5 | subsections to read: |
6 | § 1202.1. Code of conduct. |
7 | * * * |
8 | (c.1) Employment.--No member or executive level employee of |
9 | the board retained or appointed after January 1, 2009, may |
10 | accept employment with, nor represent, any person who has any |
11 | matter before the board for two years after the member or |
12 | officer leaves employment with the board. |
13 | * * * |
14 | (d.1) Referral to State Ethics Commission.--The board shall |
15 | refer all potential violations of this code of conduct or the |
16 | provisions of 65 Pa.C.S. Chs. 7 (relating to open meetings) and |
17 | 11 (relating to ethics standards and financial disclosure) to |
18 | the State Ethics Commission for an advisory opinion under 65 |
19 | Pa.C.S. § 1107 (relating to powers and duties of commission) or |
20 | for investigation under 65 Pa.C.S. § 1108 (relating to |
21 | investigations by commission). |
22 | * * * |
23 | Section 4. Sections 1204, 1205(a) and 1206(f) of Title 4 are |
24 | amended to read: |
25 | § 1204. Licensed gaming entity application appeals from board. |
26 | [The Supreme Court of Pennsylvania shall be vested with |
27 | exclusive appellate jurisdiction to] A court of competent |
28 | jurisdiction may consider appeals of any final order, |
29 | determination or decision of the board involving the approval, |
30 | issuance, denial or conditioning of a slot machine license. |
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1 | Notwithstanding the provisions of 2 Pa.C.S. Ch. 7 Subch. A |
2 | (relating to judicial review of Commonwealth agency action) and |
3 | 42 Pa.C.S. § 763 (relating to direct appeals from government |
4 | agencies), [the Supreme Court] a court shall affirm all final |
5 | orders, determinations or decisions of the board involving the |
6 | approval, issuance, denial or conditioning of a slot machine |
7 | license unless it shall find that the board committed an error |
8 | of law or that the order, determination or decision of the board |
9 | was arbitrary and there was a capricious disregard of the |
10 | evidence. |
11 | § 1205. License or permit application hearing process; public |
12 | input hearings. |
13 | (a) General rule.--The board's consideration and resolution |
14 | of all license or permit applications shall be conducted in |
15 | accordance with 2 Pa.C.S. (relating to administrative law and |
16 | procedure) or with procedures adopted by order of the board. |
17 | [Notwithstanding the requirements of 2 Pa.C.S. §§ 504 (relating |
18 | to hearing and record) and 505 (relating to evidence and cross- |
19 | examination) as they relate to the conduct of oral hearings, the |
20 | board may adopt procedures to provide parties before it with a |
21 | documentary hearing, and the board may resolve disputed material |
22 | facts without conducting an oral hearing where constitutionally |
23 | permissible.] |
24 | * * * |
25 | § 1206. Board minutes and records. |
26 | * * * |
27 | (f) Confidentiality of information.--All information |
28 | submitted by an applicant pursuant to section 1310(a) (relating |
29 | to slot machine license application character requirements) [or |
30 | obtained by the board or the bureau as part of a background |
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1 | investigation from any source] related to an applicant's |
2 | character requirements shall be considered confidential. Except |
3 | as provided in section 1517(f) (relating to [investigation] |
4 | investigations and enforcement), the information shall be |
5 | withheld from public disclosure in whole or in part, except that |
6 | any information shall be released upon the lawful order of a |
7 | court of competent jurisdiction or, with the approval of the |
8 | Attorney General, to a duly authorized law enforcement agency or |
9 | shall be released to the public, in whole or in part, to the |
10 | extent that such release is requested by an applicant and does |
11 | not otherwise contain confidential information about another |
12 | person. [The board may not require any applicant to waive any |
13 | confidentiality provided for in this subsection as a condition |
14 | for the approval of a license or any other action of the board.] |
15 | Any person who violates this subsection shall be |
16 | administratively disciplined by discharge, suspension or other |
17 | formal disciplinary action as the board deems appropriate. |
18 | Confidential information may include: |
19 | (1) Nonpublic personal information, including telephone |
20 | numbers, Social Security numbers, educational records, |
21 | memberships, medical records, tax returns and declarations, |
22 | actual or proposed compensation, financial account records, |
23 | creditworthiness or financial conditions relating to an |
24 | applicant, licensee or permittee or the immediate family |
25 | thereof. |
26 | (2) Documents and information relating to proprietary |
27 | information, trade secrets, patents or exclusive licenses, |
28 | architectural and engineering plans and information relating |
29 | to competitive marketing materials and strategies which may |
30 | include customer-identifying information or customer |
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1 | prospects for services subject to competition. |
2 | (3) Security information, including risk prevention |
3 | plans, detection and countermeasures, emergency management |
4 | plans, security and surveillance plans, equipment and usage |
5 | protocols and theft and fraud prevention plans and |
6 | countermeasures. |
7 | (4) Information with respect to which there is a |
8 | reasonable possibility that public release or inspection of |
9 | the information would constitute an unwarranted invasion into |
10 | personal privacy as determined by the board. |
11 | (5) Records of an applicant or licensee not required to |
12 | be filed with the Securities and Exchange Commission by |
13 | issuers that either have securities registered under section |
14 | 12 of the Securities Exchange Act of 1934 (48 Stat. 881, 15 |
15 | U.S.C. § 78a et seq.) or are required to file reports under |
16 | section 15(d) of the Securities Exchange Act of 1934. |
17 | (6) Records considered nonpublic matters or information |
18 | by the Securities and Exchange Commission as provided by 17 |
19 | CFR 200.80 (relating to commission records and information). |
20 | No claim of confidentiality shall be made to any information |
21 | that is otherwise publicly available. |
22 | * * * |
23 | Section 5. Section 1207 of Title 4 is amended by adding a |
24 | paragraph to read: |
25 | § 1207. Regulatory authority of board. |
26 | The board shall have the power and its duties shall be to: |
27 | * * * |
28 | (18) Require a surety bond or other form of performance |
29 | bond from a licensee whose application contained a proposed |
30 | facility to be considered by the board under section 1325(c) |
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1 | (relating to license or permit issuance) and the facility is |
2 | to be developed by the licensee. |
3 | Section 6. Section 1209(a) of Title 4 is amended and the |
4 | section is amended by adding a subsection to read: |
5 | § 1209. Slot machine license fee. |
6 | (a) Imposition.--Except as provided for a Category 3 |
7 | licensed gaming entity under section 1305 (relating to Category |
8 | 3 slot machine license) and subject to the requirements of this |
9 | section, at the time of license issuance the board shall impose |
10 | a one-time slot machine license fee to be paid by each |
11 | successful applicant for a conditional Category 1, a Category 1 |
12 | or a Category 2 license in the amount of $50,000,000 and |
13 | deposited in the State Gaming Fund. No fee shall be imposed by |
14 | the board for a Category 1 license if the applicant has paid a |
15 | $50,000,000 fee for a conditional Category 1 license. The board |
16 | may require that no applicant borrow or otherwise encumber the |
17 | fee paid by the applicant. |
18 | * * * |
19 | (g) Forfeiture of slot machine license fee.--The provisions |
20 | of this section shall not be deemed to limit the board's power |
21 | to require forfeiture of fees in the event of default or |
22 | revocation of an applicant in its authorization to conduct its |
23 | approved activities under section 1326(b) (relating to license |
24 | renewals). |
25 | Section 7. Title 4 is amended by adding a section to read: |
26 | § 1306.1. Commencement of slot operations in cities of the |
27 | first class. |
28 | The board shall not authorize the operation of slot machines |
29 | at a licensed facility within a city of the first class that |
30 | occupies, in whole or in part, submerged lands of the |
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1 | Commonwealth, until such time as the licensed gaming entity has |
2 | obtained an easement, right-of-way, license or lease under an |
3 | act of the General Assembly, enacted following the effective |
4 | date of this section, and has made payment to the Commonwealth |
5 | for the occupancy of the submerged lands in an amount |
6 | established by the General Assembly. |
7 | Section 8. Section 1506 of Title 4 is repealed: |
8 | [§ 1506. Licensed facility zoning and land use appeals. |
9 | In order to facilitate timely implementation of casino gaming |
10 | as provided in this part, notwithstanding 42 Pa.C.S. § 933(a)(2) |
11 | (relating to appeals from government agencies), the Supreme |
12 | Court of Pennsylvania is vested with exclusive appellate |
13 | jurisdiction to consider appeals of a final order, determination |
14 | or decision of a political subdivision or local instrumentality |
15 | involving zoning, usage, layout, construction or occupancy, |
16 | including location, size, bulk and use of a licensed facility. |
17 | The court, as appropriate, may appoint a master to hear an |
18 | appeal under this section.] |
19 | Section 9. Title 4 is amended by adding a section to read: |
20 | § 1516.1. Prosecutorial and adjudicatory functions. |
21 | The board shall adopt administrative regulations necessary to |
22 | prevent commingling of the prosecutorial functions of the Bureau |
23 | of Investigations and Enforcement as set forth in section 1517 |
24 | (relating to investigations and enforcement) and the |
25 | adjudicatory functions of the board. |
26 | Section 10. Section 1517(c.1) of Title 4 is amended to read: |
27 | § 1517. Investigations and enforcement. |
28 | * * * |
29 | (c.1) Powers and duties of Attorney General.--Within the |
30 | Office of Attorney General, the Attorney General shall establish |
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1 | a gaming unit. The unit shall investigate and institute criminal |
2 | proceedings as authorized by subsection (d). The Attorney |
3 | General may also investigate and prosecute or assist the board, |
4 | the Bureau of Investigations and Enforcement, the State Ethics |
5 | Commission or the Pennsylvania State Police in the investigation |
6 | and prosecution of violations of the code of conduct established |
7 | in section 1202.1 (relating to code of conduct), the provisions |
8 | of this section and section 1517.2 (relating to conduct of |
9 | public officials and employees) or the provisions of 65 Pa.C.S. |
10 | Chs. 7 (relating to open meetings) and 11 (relating to ethics |
11 | standards and financial disclosure). |
12 | * * * |
13 | Section 11. This act shall take effect in 60 days. |
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