THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY EARLL, SEPTEMBER 14, 2009

SENATOR EARLL, COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, RE-REPORTED AS AMENDED, OCTOBER 8, 2009   

AN ACT

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

<--

Statutes, in administration and enforcement, further

providing for declaration of exemption from Federal laws

prohibiting slot machines.

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

<--

Statutes, further providing for legislative intent and for

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

machine licensee"; providing for the definitions of

"executive-level public employee," "licensed entity

representative" and "trustee"; further providing for the

Pennsylvania Gaming Control Board, for the applicability of

other statutes, for powers of the board and for code of

conduct; providing for expenses of Pennsylvania Gaming

Control Board; further providing for license or permit

application hearing process and public hearings, for board

minutes and records, for slot machine license fee, for

reports of board, for license or permit prohibition, for

application for license or permit, for slot machine license

application character requirements, for license renewals, for

change in ownership or control of slot machine licensees and

for nonportability of slot machine license; providing for

appointment of trustee; further providing for Pennsylvania

Gaming Economic Development and Tourism Fund, for declaration

of exemption from Federal laws prohibiting slot machines and

for financial and employment interests; providing for

prosecutorial and adjudicative functions; further providing

for investigations and enforcement and for conduct of public

officials and employees; and providing for additional

authority.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1511(b) of Title 4 of the Pennsylvania

<--

Consolidated Statutes is amended to read:

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

<--

Consolidated Statutes is amended and the section is amended by

adding paragraphs to read:

§ 1102.  Legislative intent.

The General Assembly recognizes the following public policy

purposes and declares that the following objectives of the

Commonwealth are to be served by this part:

* * *

(10.1)  The General Assembly has a compelling interest in

protecting the integrity of both the electoral process and

the legislative process by preventing corruption and the

appearance of corruption which may arise through permitting

campaign contributions by the gaming industry.

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

regulatory control and legislative oversight over the

operation of slot machines in this Commonwealth; to prevent

the actual or appearance of corruption that may result from

[large] campaign contributions; ensure the bipartisan

administration of this part; and avoid actions that may erode

public confidence in the system of representative government.

(11.1)  Completely banning campaign contributions by

certain individuals and entities subject to this act is

necessary to prevent corruption, or the appearance of

corruption, that may arise when politics and gaming are

intermingled.

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

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

are amended and the section is amended by adding definitions to

read:

§ 1103.  Definitions.

The following words and phrases when used in this part shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

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

contendere, whether or not a judgment of sentence has been

imposed as determined by the law of the jurisdiction in which

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

that has been expunged or overturned or for which an individual

has been pardoned or an order of Accelerated Rehabilitative

Disposition entered.

* * *

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

the following:

(1)  Deputy Secretaries of the Commonwealth and the

Governor's Office executive staff.

(2)  An employee of the executive branch with

discretionary power which may affect or influence the outcome

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

the development of regulations or policies relating to a

licensed entity or who is involved in other matters under

this part. The term shall include an employee with law

enforcement authority.

(3)  An employee of a county or municipality with

discretionary powers which may affect or influence the

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

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

policy relating to a licensed entity or who is involved in

other matters under this part. The term shall include an

employee with law enforcement authority.

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

commission, authority or other governmental body not included

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

may affect or influence the outcome of the governmental

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

development of regulation or policy relating to a licensed

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

The term shall include an employee with law enforcement

authority.

* * *

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

licensee, manufacturer licensee, supplier licensee or other

person licensed by the Pennsylvania Gaming Control Board under

this part.

"Licensed entity representative."  A person acting on behalf

of or representing the interest of any applicant, licensee,

permittee or registrant, including an attorney, agent or

lobbyist, regarding any matter which may reasonably be expected

to come before the board.

* * *

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

license.]

* * *

"Trustee."  An individual appointed by the Pennsylvania

Gaming Control Board to manage and control the operations of a

licensed facility to ensure compliance with this part and who

has the fiduciary responsibility to make decisions to preserve

the viability of a licensed facility and the integrity of gaming

in this Commonwealth.

* * *

Section 3.  Section 1201(f)(3), (h)(5), (7.1), (10), (11),

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

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

by adding a subsection to read:

§ 1201.  Pennsylvania Gaming Control Board established.

* * *

(f)  Qualified majority vote.--

* * *

(3)  Notwithstanding any other provision of this part or

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

member shall disclose the nature of his disqualifying

interest, disqualify himself and abstain from voting in a

proceeding under this part in which his objectivity,

impartiality, integrity or independence of judgment may be

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

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

legislative appointee has disqualified himself, the qualified

majority shall consist of all of the remaining legislative

appointees and at least two gubernatorial appointees.

* * *

(h)  Qualifications and restrictions.--

* * *

(4.1)  No member appointed after the effective date of

this paragraph shall engage in any business, employment or

vocation for which the member shall receive any compensation

or remuneration except for an individual who is reappointed

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

this paragraph.

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

compensation other than salary and expenses provided by law

for any activity related to the duties or authority of the

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

engaging in any employment or receiving any compensation for

such employment that is not connected to or incompatible with

his service as a member of the board.]

* * *

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

his immediate family shall divest any financial interest in

any applicant, licensed facility or licensed entity and in an

affiliate, intermediary, subsidiary or holding company

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

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

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

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

financial interest in any applicant, licensed facility or

licensed entity or in an affiliate, intermediary, subsidiary

or holding company thereof. For purposes of this paragraph,

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

or unemancipated child.

* * *

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

hearing or proceeding or participate in any other activity on

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

intermediary, subsidiary or holding company thereof, or any

other licensee or permittee for a period of two years from

the termination of term of office.

(11)  No member, employee or independent contractor of

the board shall accept a complimentary service, wager or be

paid any prize from any wager at any licensed facility within

this Commonwealth or at any other facility outside this

Commonwealth which is owned or operated by a licensed gaming

entity or any of its affiliates, intermediaries, subsidiaries

or holding companies thereof for the duration of their term

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

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

of office, employment or contract with the board. The

provisions of this paragraph prohibiting wagering during the

term of employment shall not apply to employees or

independent contractors of the board who utilize slot

machines for testing purposes or to verify the performance of

a machine as part of an enforcement investigation.

* * *

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

an independent contractor of the board] whose duties

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

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

adoption of regulations or policy or who has other

discretionary authority which may affect the outcome of an

action or decision under this part, including the executive

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

following:

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

by an applicant or licensed entity, or an affiliate,

intermediary, subsidiary or holding company thereof, for

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

the employment relating to the conduct of gaming [or

contract with the board; or].

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

or proceeding or participate in any other activity on

behalf of any applicant, licensee, permittee or licensed

entity, or an affiliate, intermediary, subsidiary or

holding company thereof, for a period of two years after

termination of the employment [or contract with the

board].

(iii)  As a condition of employment, an employee

subject to this paragraph shall sign an affidavit that

the employee will not accept employment with or be

retained by any applicant, licensed entity or an

affiliate, intermediary, subsidiary or holding company

thereof for a period of two years from the termination of

employment. An applicant or licensed entity or an

affiliate, intermediary, subsidiary or holding company

thereof shall not employ or retain an individual who

signed an affidavit required by this subparagraph. An

applicant or licensed entity or an affiliate,

intermediary, subsidiary or holding company that

knowingly employs or retains an individual in violation

of this subparagraph shall be subject to a penalty under

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

(13.1)  No independent contractor or individual employed

by an independent contractor of the board whose duties

substantially involve consultation relating to licensing,

enforcement or the development or adoption of regulations or

policy under this part shall:

(i)  Accept employment with or be retained by an

applicant or a licensed entity or an affiliate,

intermediary, subsidiary or holding company thereof for a

period of one year after the termination of the contract

with the board.

(ii)  Appear before the board in any hearing or

proceeding or participate in any other activity on behalf

of an applicant, licensee, permittee or licensed entity

or an affiliate, intermediary, subsidiary or holding

company of an applicant, licensee, permittee or licensed

entity for a period of two years after termination of the

contract with the board.

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

contractor or individual employed by an independent

contractor of the board under this paragraph shall sign

an affidavit to not accept employment with or be retained

by any applicant, licensed entity or an affiliate,

intermediary, subsidiary or holding company of an

applicant, licensed entity or affiliate for a period of

one year from the termination of employment. A licensed

entity or an affiliate, intermediary, subsidiary or

holding company of an applicant, licensed entity or

affiliate shall not employ or retain an individual who

signed an affidavit signed under this subparagraph. A

licensed entity or an affiliate, intermediary, subsidiary

or holding company thereof that knowingly employs or

retains an individual in violation of this subparagraph

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

(13.2)  Nothing shall prevent a current or former

employee of the board under paragraph (13), or a current or

former independent contractor or a current or former employee

of an independent contractor of the board under paragraph

(13.1), from appearing as a witness or testifying as to any

fact or information.

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

board, the executive branch of the Commonwealth or a

political subdivision or of the agency or political

subdivision employing an employee, the State Ethics

Commission shall determine whether the individual's duties

substantially involve the development [or adoption] of laws,

or the development or adoption of regulations or policy,

licensing or enforcement under this part or other

discretionary authority which may affect the outcome of an

action, proceeding or decision under this part and shall

provide a written determination to the employee or the agency

or political subdivision employing the employee to include

any prohibition under this paragraph. An individual who

relies in good faith on a determination under this paragraph

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

provided that all material facts set forth in the request for

a determination are correct.

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

of the board violates any provision of this section, the

appointing authority [or the board may, upon notice and

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

appointment or]. A member removed under this paragraph shall

be prohibited from future appointment to the board and shall

be prohibited from applying for a license or permit or other

authorization and from becoming an independent contractor of

the board, or registering as a licensed entity representative

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

board. If an employee or independent contractor of the board

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

notice and hearing, terminate the employment or contract, and

the person shall be ineligible for future [appointment,]

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

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

of two years thereafter] shall be prohibited from applying

for a license, permit or other authorization and from

becoming an independent contractor or registering as a

licensed entity representative for a period of five years

from the date of termination of the employment or contract.

* * *

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

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

appointing authority shall make [their initial] appointments

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

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

appointing authority of the required background investigation of

the appointee by the Pennsylvania State Police which shall be

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

any domestic or foreign jurisdiction of a felony, infamous crime

or gaming offense shall be appointed to the board.

* * *

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

other fiscal crisis, the Governor orders the furlough of

Commonwealth employees or the closing of any Commonwealth

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

Department of Revenue, the Pennsylvania State Police and the

Office of Attorney General whose duties involve the regulation

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

furlough but shall continue to perform their duties of

employment.

* * *

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

read:

§ 1201.1.  Applicability of other statutes.

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

board:

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

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

Right-to-Know Law.

* * *

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

(30) of Title 4 are amended and subsections (a) and (b) are

amended by adding paragraphs to read:

§ 1202.  General and specific powers.

(a)  General powers.--

* * *

(2)  The board shall employ individuals as necessary to

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

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

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

XXV (relating to retirement for State employees and

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

shall not be considered an executive or independent agency

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

the Commonwealth Attorneys Act. The board shall not take

final action to fill any vacancy in the positions of

executive director of the board, director of the bureau,

chief counsel of the board or director of the Office of

Enforcement Counsel until receipt and review of the results

of the background investigation under section 1517(c)(1.1)

(relating to investigations and enforcement).

* * *

[(4)  The board shall establish a system of

classification and compensation of its employees and shall

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

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

as to classification and compensation for its employees and

conduct its activities consistent with the practices and

procedures of Commonwealth agencies.]

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

paragraph, the board shall establish a system of

classification and compensation of its employees and shall be

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

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

as to classification and compensation for its employees and

conduct its activities consistent with the practices and

procedures of Commonwealth agencies. The provisions of this

paragraph shall apply to employees hired after the effective

date of this paragraph. Nothing in this paragraph shall

prevent the board from altering a system, or establishing a

new system, of classification or compensation for employees

hired prior to the effective date of this section.

* * *

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

power and duty:

* * *

(7)  To administer oaths, examine witnesses and issue

subpoenas compelling the attendance of witnesses or the

production of documents and records or other evidence[. The

provisions of this paragraph shall apply to designated

officers and employees.], or to designate officers or

employees to perform these duties.

* * *

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

permit unless it is satisfied that the applicant has

demonstrated by clear and convincing evidence that the

applicant is a person of good character, honesty and

integrity and is a person whose prior activities, criminal

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

pose a threat to the public interest or the effective

regulation and control of slot machine operations or create

or enhance the danger of unsuitable, unfair or illegal

practices, methods and activities in the conduct of slot

machine operations or the carrying on of the business and

financial arrangements incidental thereto.

* * *

(30)  To promulgate rules and regulations necessary for

the administration and enforcement of this part, including

regulations in cooperation with the Pennsylvania Liquor

Control Board and regulations relating to the sale and

service of liquor and malt and brewed beverages by licensees.

[Except as provided in section 1203 (relating to temporary

regulations), regulations] Regulations shall be adopted

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

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

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

Review Act.

(31)  To collect and post information on its Internet

website with sufficient detail to inform the public of the

controlling interest or ownership interest of an applicant

for a slot machine license or a licensed gaming entity or

affiliate, intermediary, subsidiary or holding company

thereof. The posting shall include:

(i)  The names of all persons with a controlling

interest in a publicly traded domestic or foreign

corporation, partnership, limited liability company or

other legal entity.

(ii)  The names of all persons with an ownership

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

domestic or foreign corporation, partnership, limited

liability company or other legal entity.

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

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

(iv)  The names of all officers, directors,

principals and key employees of a licensed gaming entity.

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

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

Commonwealth and the board to operate a licensed facility and

ensure compliance with this part.

(33)  To develop regulations. The board may consult with

the State Ethics Commission and other governmental agencies

in developing the regulations to govern the postemployment

limitations and restrictions of employees of the board whose

duties substantially involve licensing or enforcement, the

development of laws or the development or adoption of

regulations or policy or employees of the board who have

other discretionary authority which may affect the outcome of

an action or decision under this part. The board shall

consult with the Administrative Office of the Pennsylvania

Courts regarding postemployment limitations and restrictions

on members and employees of the board who are members of the

Pennsylvania Bar.

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

§ 1202.1.  Code of conduct.

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

conduct prior to the consideration of any license, permit or

registration application. The code of conduct shall supplement

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

(relating to accountability) and shall provide guidelines

applicable to members, employees, independent contractors of the

board and the immediate [families] family of the members, as

defined in subsection (e), employees and independent contractors

of the board to enable them to avoid any perceived or actual

conflict of interest and to promote public confidence in the

integrity and impartiality of the board. At a minimum, the code

of conduct adopted under this section shall include registration

of licensed entity representatives under subsection (b) and the

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

(b)  Registration.--

(1)  A licensed entity representative shall register with

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

include the name, employer or firm, business address[,] and

business telephone number of both the licensed entity

representative and [the] any licensed entity or applicant for

licensed entity licensure being represented.

(2)  A licensed entity representative shall have an

[ongoing] affirmative duty to update its registration

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

punishable by the board.

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

registration list which shall contain the information

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

public inspection at the offices of the board and on the

board's Internet website.

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

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

person.

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

compensation, travel, lodging or other thing of value,

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

licensed entity, including any affiliate, subsidiary,

intermediary or holding company thereof, permittee,

registrant or licensed entity representative thereof.

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

hearing or other proceeding in which the member's

objectivity, impartiality, integrity or independence of

judgment may be reasonably questioned due to the member's

relationship or association with a party connected to any

hearing or proceeding or a person appearing before the board.

(4)  Refrain from any financial or business dealing which

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

impartiality or independence of judgment.

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

office in any political party or political committee as

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

contribute to or solicit contributions to a political

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

candidate, publicly endorse a candidate or actively

participate in a political campaign.

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

religious, health, fraternal, civic or other nonprofit entity

from an applicant, licensed entity or affiliate, subsidiary,

intermediary or holding company of a licensed entity,

interested party, permittee or licensed entity

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

(relating to Pennsylvania Gaming Control Board established),

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

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

personal contributions to and plan or preside over the

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

name to appear on the letterhead used for fundraising events

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

position with the nonprofit entity.

(7)  Not meet or engage in discussions with any

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

permittee, [or a] licensed entity representative or person

who provides goods, property or services to a slot machine

licensee or any other person or entity under the jurisdiction

of the board unless the meeting or discussion occurs on the

business premises of the board and is recorded in a log

maintained for this purpose. The log shall be available for

public inspection during the regular business hours of the

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

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

discussion, the names of the participants and the subject

matter discussed. The provisions of this paragraph shall not

apply to meetings [of the board] to consider matters

requiring the physical inspection of the equipment or

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

location of the licensed facility.

(8)  Avoid impropriety and the appearance of impropriety

at all times and observe standards and conduct that promote

public confidence in the oversight of gaming.

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

relating to the conduct of a member.

(c.1)  Prohibitions.--

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

advising the board on a particular licensing issue or

proceeding or employee whose duties relate to licensing and

who is advising the board on a particular licensing issue or

proceeding shall engage in any ex parte communication with

any person.

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

Enforcement Counsel or an applicant, licensee or permittee in

any proceeding shall engage in an ex parte communication with

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

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

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

Enforcement Counsel who is involved in a proceeding shall

engage in an ex parte communication with a member, an

attorney of the Office of Chief Counsel who is advising the

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

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

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

a board member, employee or hearing officer shall be recorded

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

available for public inspection during the regular business

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

Internet website. The log shall include:

(i)  The name of the individual documenting the ex

parte communication.

(ii)  The date and time of the ex parte

communication.

(iii)  The names of all individuals involved in the

ex parte communication.

(iv)  A description of the subject matter discussed

and a summary of the substance of the ex parte

communication.

(2)  In addition to documenting an ex parte communication

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

communication and an opportunity to respond shall be provided

to all persons directly affected by the anticipated vote or

action of the board related to the ex parte communication.

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

engaged in or received an ex parte communication shall

recuse himself from any hearing or other proceeding

related to the ex parte communication if the context and

substance of the ex parte communication creates

substantial reasonable doubt as to the individual's

ability to act objectively, independently or impartially.

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

engaged in or received an ex parte communication who

elects not to recuse himself from a hearing or other

proceeding shall state his reasons for not recusing

himself on the record prior to the commencement of the

hearing or proceeding.

(iii)  If a legislative appointee recuses himself

from any hearing or other proceeding under this section,

any qualified majority vote required under this part

shall consist of all of the remaining legislative

appointees and at least two gubernatorial appointees.

(iv)  Failure of a hearing officer or employee who

engaged in or received an ex parte communication to

recuse himself when required under subparagraph (i) from

a hearing or other proceeding shall be grounds for appeal

to the board.

(v)  Failure of a board member who engaged in or

received an ex parte communication to recuse himself from

a hearing or other proceeding when required under

subparagraph (i) shall be grounds for appeal to a court

of competent jurisdiction if the board action being

appealed would not have occurred without the

participation of the board member.

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

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

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

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

subsection:

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

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

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

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

reasonably be expected to come before the board in a contested

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

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

hearing officer of the board, [Department of Revenue]

department, Pennsylvania State Police, Attorney General or other

law enforcement official prior to the beginning of the

proceeding solely for the purpose of seeking clarification or

correction to evidentiary materials intended for use in the

proceedings.

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

siblings.

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

of or representing the interest of any applicant, licensee,

permittee or registrant, including an attorney, agent or

lobbyist, regarding any matter which may reasonably be expected

to come before the board.]

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

§ 1202.2.  Expenses of the Pennsylvania Gaming Control Board.

Members and employees of the board shall only be reimbursed

for actual and reasonable expenses incurred during the

performance of their duties under this part. In order to receive

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

employee shall submit a receipt validating the expense incurred.

Reimbursements, allowances or other payments in an amount

greater than the expenses for which receipts are submitted are

prohibited. Receipts and requests for reimbursement shall be

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

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

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

and the subsection is amended by adding paragraphs to read:

§ 1205.  License or permit application hearing process; public

input hearings.

* * *

(b)  Public input hearing requirement.--

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

board shall hold at least one public input hearing on the

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

hearing prior to:

(i)  Approving a slot machine license application or

renewing a slot machine license.

(ii)  Approving the structural redesign of a licensed

facility located in a city of the first class.

(2)  All public input hearings [relating to an

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

shall be held in the municipality where the licensed facility

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

with the municipality.

* * *

(4)  In addition to any witnesses scheduled to testify

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

comment period during which time members of the public may

address the board regarding the proposed license or

structural redesign of a licensed facility under paragraph

(1). The board, in its discretion, may place reasonable time

limits on an individual's comments.

Section 8.  Sections 1206(f) and 1209(b) of Title 4 are

amended to read:

§ 1206.  Board minutes and records.

* * *

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

(1)  The following information submitted by an applicant

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

machine license application character requirements) or

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

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

or other investigation from any source shall be [considered]

confidential[.] and withheld from public disclosure:

(i)  All information relating to good character,

honesty and integrity, including family, habits,

reputation, history of criminal activity, business

activities, financial affairs and business, professional

and personal associations submitted under section 1310(a)

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

bureau.

(ii)  Nonpublic personal information, including

telephone numbers, Social Security numbers, educational

records, memberships, medical records, tax returns and

declarations, actual or proposed compensation, financial

account records, creditworthiness or a financial

condition relating to an applicant, licensee or permittee

or the immediate family thereof.

(iii)  Documents and information relating to

proprietary information, trade secrets, patents or

exclusive licenses, architectural and engineering plans

and information relating to competitive marketing

materials and strategies, which may include customer-

identifying information or customer prospects for

services subject to competition.

(iv)  Security information, including risk prevention

plans, detection and countermeasures, location of count

rooms, emergency management plans, security and

surveillance plans, equipment and usage protocols and

theft and fraud prevention plans and countermeasures.

(v)  Information with respect to which there is a

reasonable possibility that public release or inspection

of the information would constitute an unwarranted

invasion into personal privacy of any individual as

determined by the board.

(vi)  Records of an applicant or licensee not

required to be filed with the Securities and Exchange

Commission by issuers that either have securities

registered under section 12 of the Securities Exchange

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

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

Securities Exchange Act of 1934.

(vii)  Records considered nonpublic matters or

information by the Securities and Exchange Commission as

provided by 17 CFR 200.80 (relating to commission records

and information).

(viii)  Any financial information deemed confidential

by the board upon a showing of good cause by the

applicant or licensee.

(2)  No claim of confidentiality shall be made regarding

any information from a criminal history record check that is

available to the public under 18 Pa.C.S. § 9121(b) (relating

to noncriminal justice agencies and individuals).

(3)  No claim of confidentiality shall be made regarding

any record in possession of the board that is otherwise

publicly available from a Commonwealth agency, local agency

or other jurisdiction.

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

[investigation] investigations and enforcement), the

information made confidential pursuant to this section shall

be withheld from public disclosure in whole or in part,

except that any confidential information shall be released

upon the lawful order of a court of competent jurisdiction

or, with the approval of the Attorney General, to a duly

authorized law enforcement agency or shall be released to the

public, in whole or in part, to the extent that such release

is requested by an applicant and does not otherwise contain

confidential information about another person.

(5)  The board may seek a voluntary waiver of

confidentiality from an applicant or licensed entity but may 

not require any applicant or licensed entity to waive any

confidentiality provided for in this subsection as a

condition for the approval or renewal of a license or any

other action of the board. Any [person who violates this

subsection] current or former board member, employee or

independent contractor and any current or former employee of

the department, Attorney General or Pennsylvania State Police

who publicly discloses confidential information in violation

of this subsection commits a misdemeanor and shall be

administratively disciplined by discharge, suspension,

termination of contract or other formal disciplinary action

as [the board deems] appropriate.

* * *

§ 1209.  Slot machine license fee.

* * *

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

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

the board upon good cause consistent with the license

requirements as provided for in this part. Slot machine

licensees shall be required to update the information in their

initial applications annually, and the license of a licensee in

good standing shall be updated and renewed annually for two

subsequent years following the initial license issuance.

Thereafter, license renewals shall be every three years. Nothing

in this subsection shall relieve a licensee of the affirmative

duty to notify the board of any changes relating to the status

of its license or to any other information contained in the

application materials on file with the board. As to the renewal

of a license, no additional license fee pursuant to subsection

(a) shall be required.

* * *

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

subsections to read:

§ 1211.  Reports of board.

* * *

(a.1)  Additional reporting requirements.--(Reserved).

(a.2)  Facility responsibility.--(Reserved).

(a.3)  Expenses.--Beginning 30 days after the effective date

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

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

expenses of employees and board members for the preceding month.

The list shall identify the nature of the expense and the

employee or board member to which an expense is attributable.

The list shall include each expense for which a receipt is

submitted to obtain reimbursement. If the expense is directly

attributable to or paid by a licensed gaming entity, the list

shall identify the licensed gaming entity and whether the

expense was paid by the licensed gaming entity. By October 1 of

each year, a final report of all expenses for the preceding

fiscal year shall be posted on the board's Internet website and

shall be submitted to the Appropriations Committee of the

Senate, the Community, Economic and Recreational Development

Committee of the Senate, the Appropriations Committee of the

House of Representatives and the Gaming Oversight Committee of

the House of Representatives.

* * *

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

§ 1213.  License or permit prohibition.

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

part, including principals and key employees,] The board

shall be prohibited from granting a principal license or key

employee license to a person who has been convicted of a

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

issued a license or permit unless 15 years has elapsed from

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

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

permit to an applicant who has been convicted in any

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

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

prohibited from granting the following:

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

person who has been convicted of a misdemeanor gambling

offense in any jurisdiction unless 15 years has elapsed

from the date of the expiration of the sentence for the

offense.

(ii)  A gaming employee permit or license other than

a principal license or key employee license to a person

who has been convicted of a felony or gambling offense in

any jurisdiction unless 15 years has elapsed from the

date of the expiration of the sentence for the offense.

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

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

factors:

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

position with the licensed entity.

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

or conduct.

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

offense or conduct occurred.

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

or conduct was committed.

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

isolated or a repeated incident.

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

good conduct in the community, counseling or psychiatric

treatment received and the recommendation of persons who

have substantial contact with the applicant.

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

subsection to read:

§ 1308.  Applications for license or permit.

* * *

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

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

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

under this part shall include all arrests and convictions of the

applicant, including summary offenses. The information shall

include:

(1)  A brief description of the circumstances surrounding

the arrest.

(2)  The specific offense charged.

(3)  The ultimate disposition of the charges, including

the details of any dismissal, plea bargain, conviction or

sentence, including any pardon, expungement or order of

Accelerated Rehabilitative Disposition.

* * *

Section 10.2.  Sections 1310, 1326(a), 1328(a)(1) and (b) and

1329 of Title 4 are amended to read:

§ 1310.  Slot machine license application character

requirements.

(a)  Application.--

(1)  Every application for a slot machine license shall

include such information, documentation and assurances as may

be required to establish by clear and convincing evidence the

applicant's suitability, including good character, honesty

and integrity. Information shall include, without limitation,

information pertaining to family, habits, character,

reputation, criminal history background, business activities,

financial affairs and business, professional and personal

associates, covering at least the ten-year period immediately

preceding the filing date of the application.

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

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

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

pardoned or an order of Accelerated Rehabilitative

Disposition has been entered, shall be included with an

application and shall be considered by the board as part of

the review of the applicant's suitability under paragraph

(1).

(b)  Civil judgments and law enforcement agency

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

judgments obtained against the applicant pertaining to antitrust

or security regulation laws of the Federal Government, this

Commonwealth or any other state, jurisdiction, province or

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

reference from law enforcement agencies having jurisdiction in

the applicant's place of residence and principal place of

business, which letter of reference shall indicate that the law

enforcement agencies do not have any pertinent information

concerning the applicant or, if the law enforcement agency does

have information pertaining to the applicant, shall specify the

nature and content of that information. If no letters are

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

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

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

that the applicant is or was during the period the activities

were conducted in good standing with the gaming or casino

enforcement or control agency.

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

applicant has held a gaming license in a jurisdiction where

gaming activities are permitted, the applicant shall produce a

letter of reference from the gaming or casino enforcement or

control agency which shall specify the experiences of that

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

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

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

under oath which is subject to the penalty for false swearing

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

period the activities were conducted in good standing with the

gaming or casino enforcement or control agency.

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

license, principal license or key employee license shall be

required to apply to the Federal agency deemed appropriate by

the board for agency records under the Freedom of Information

Act (Public Law 89-554, 5 U.S.C. § 522) pertaining to the

applicant and provide the board with the complete record

received from the Federal Government. The board may issue a

license to the applicant prior to the receipt of information

under this subsection.

§ 1326.  License renewals.

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

part unless otherwise provided shall be subject to renewal on an

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

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

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

following the initial issuance. Thereafter, all permits and

licenses shall be subject to renewal every three years. Nothing

in this subsection shall relieve a licensee of the affirmative

duty to notify the board of any changes relating to the status

of its license or to any other information contained in the

application materials on file with the board. The application

for renewal shall be submitted at least 60 days prior to the

expiration of the permit or license and shall include an update

of the information contained in the initial and any prior

renewal applications and the payment of any renewal fee required

by this part. The amount of any renewal fee shall be calculated

by the board to reflect the longer renewal period. A permit or

license for which a completed renewal application and fee, if

required, has been received by the board will continue in effect

unless and until the board sends written notification to the

holder of the permit or license that the board has denied the

renewal of such permit or license.

* * *

§ 1328.  Change in ownership or control of slot machine

licensee.

(a)  Notification and approval.--

(1)  A slot machine licensee shall notify the board

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

or contemplated change of ownership of the slot machine

licensee by a person or group of persons acting in concert

which involves any of the following:

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

securities or other ownership interests.

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

ownership interests of a corporation or other form of

business entity that owns directly or indirectly at least

20% of the voting or other securities or other ownership

interests of the licensee.

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

business of a licensee's assets.

(iv)  Any other transaction or occurrence deemed by

the board to be relevant to license qualifications.

* * *

(b)  Qualification of purchaser of slot machine licensee;

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

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

slot machine licensee shall independently qualify for a license

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

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

A change in control of any slot machine licensee shall require

that the slot machine licensee independently qualify for a

license in accordance with this part, and the slot machine

licensee shall pay a new license fee as required by section

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

section. The new license fee shall be paid upon the assignment

and actual change of control or ownership of the slot machine

license.

* * *

§ 1329.  [Nonportability] Portability and relocation of slot

machine license.

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

valid for the specific physical location within the municipality

and county for which it was originally granted.

(b)  Petition.--An applicant for a slot machine license or a

slot machine licensee may petition the board to relocate the

approved physical location of a licensed facility. In evaluating

a petition to relocate, the board shall consider the following

factors:

(1)  The address of the proposed new location and the

reason for the relocation.

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

detailing estimated gross terminal revenues at the new

location with estimated gross terminal revenues at the

original location.

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

detailing the economic impact of the licensed facility at the

new location with the estimated economic impact at the

original location. The comparative analysis shall include the