PRINTER'S NO. 1940
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1408
Session of
2015
INTRODUCED BY KOTIK, PAYNE, MUSTIO, D. COSTA, READSHAW, KORTZ,
THOMAS, MILLARD, KINSEY, COHEN, McNEILL, YOUNGBLOOD, MATZIE
AND EVERETT, JUNE 25, 2015
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, JUNE 25, 2015
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, in general provisions relating to gaming, further
providing for definitions; in licensees, providing for
Category 1 slot machines in qualified airports, further
providing for additional Category 1 slot machine license
requirements, providing for Category 2 slot machines in
qualified airports and for Category 3 slot machines in
qualified airports; further providing for establishment of
State Gaming Fund and net slot machine revenue distribution;
and establishing the Municipal Services Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1103 of Title 4 of the Pennsylvania
Consolidated Statutes is amended by adding definitions to read:
ยง 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:
* * *
"Qualified airport." A qualified first class airport, a
qualified second class airport and a qualified municipal
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airport.
"Qualified first class airport." An airport that is governed
by a municipal authority and located in a county of the first
class.
"Qualified municipal airport." An airport located in a
county other than a county of the first class or county of the
second class and that provides services for an airline passenger
flight outside the contiguous United States at least once
annually.
"Qualified second class airport." An airport that is
governed by a municipal authority and located in a county of the
second class.
* * *
Section 2. Title 4 is amended by adding a section to read:
ยง 1302.1. Category 1 slot machines in qualified airports.
(a) Eligibility.--Notwithstanding section 1307 (relating to
number of slot machine licenses) or any other provision of this
part or regulation to the contrary, a slot machine licensee may
operate slot machines in specified areas located within a
qualified airport, only if:
(1) Approval sought from the governing authority of a
qualified airport for a licensee currently operating under
section 1302 (relating to Category 1 slot machine license) is
granted.
(2) Subsequent approval is granted by the board.
(b) Number of slot machines.--
(1) A qualified airport may enter into a contract with
more than one slot machine licensee, provided that the total
number of slot machines in the qualified airport does not
exceed 500.
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(2) Notwithstanding section 1210 (relating to number of
slot machines) the board may approve not more than:
(i) For a qualified first class airport, 100 slot
machines per slot machine licensee.
(ii) For a qualified second class airport, 250 slot
machines per slot machine licensee.
(iii) For a qualified municipal airport, 500 slot
machines per slot machine licensee.
(c) Application.--In order to be approved by a governing
authority of a qualified airport and the board, a licensee under
section 1302 must provide a detailed plan to both entities
describing execution of the plan in accordance with current
procedures maintained by the board.
(d) Qualified airport slot machine license fee.--
(1) The board shall impose a one-time fee to be paid by
each slot machine licensee that operates slot machines within
a specified area of a qualified airport and shall be
deposited in the fund.
(2) The amount of the fee shall be as follows:
(i) For a qualified first class airport, the fee
shall be $10,000 per slot machine.
(ii) For a qualified second class airport, the fee
shall be $5,000 per slot machine.
(iii) For a qualified municipal airport, the fee
shall be $1,000 per slot machine.
(3) The provisions of section 1209(b), (c), (d) and (e)
(relating to slot machine license fee) shall apply to this
one-time fee.
(e) Conduct of table games.--A qualified airport slot
machine licensee shall not be authorized to conduct table games.
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Section 3. Section 1303(c) of Title 4 is amended to read:
ยง 1303. Additional Category 1 slot machine license
requirements.
* * *
(c) Limitations.--The issuance of a Category 1 slot machine
license shall entitle the licensee to operate slot machines only
within the grounds of a licensed racetrack[.] and, if approved
by the board and governing authority of a qualified airport,
within specified areas of a qualified airport as provided in
section 1302.1 (relating to Category 1 slot machines in
qualified airports).
* * *
Section 4. Title 4 is amended by adding sections to read:
ยง 1304.1. Category 2 slot machines in qualified airports.
(a) Eligibility.--Notwithstanding section 1307 (relating to
number of slot machine licenses) or any other provision of this
part or regulation to the contrary, a slot machine licensee may
operate slot machines in specified areas located within a
qualified airport, only if:
(1) Approval sought from the governing authority of a
qualified airport for a licensee currently operating under
section 1304 (relating to Category 2 slot machine license) is
granted.
(2) Subsequent approval is granted by the board.
(b) Number of slot machines.--
(1) A qualified airport may enter into a contract with
more than one slot machine licensee, provided that the total
number of slot machines in the qualified airport does not
exceed 500.
(2) Notwithstanding section 1210 (relating to number of
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slot machines) the board may approve not more than:
(i) For a qualified first class airport, 100 slot
machines per slot machine licensee.
(ii) For a qualified second class airport, 250 slot
machines per slot machine licensee.
(iii) For a qualified municipal airport, 500 slot
machines per slot machine licensee.
(c) Application.--In order to be approved by a governing
authority of a qualified airport and the board, a licensee under
section 1304 must provide a detailed plan to both entities
describing execution of the plan in accordance with current
procedures maintained by the board.
(d) Qualified airport slot machine license fee.--
(1) The board shall impose a one-time fee to be paid by
each slot machine licensee that operates slot machines within
a specified area of a qualified airport and shall be
deposited in the fund.
(2) The amount of the fee shall be as follows:
(i) For a qualified first class airport, the fee
shall be $10,000 per slot machine.
(ii) For a qualified second class airport, the fee
shall be $5,000 per slot machine.
(iii) For a qualified municipal airport, the fee
shall be $1,000 per slot machine.
(3) The provisions of section 1209(b), (c), (d) and (e)
(relating to slot machine license fee) shall apply to this
one-time fee.
(e) Conduct of table games.--A qualified airport slot
machine licensee shall not be authorized to conduct table games.
ยง 1305.1. Category 3 slot machines in qualified airports.
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(a) Eligibility.--Notwithstanding section 1307 (relating to
number of slot machine licenses) or any other provision of this
part or regulation to the contrary, a slot machine licensee may
operate slot machines in specified areas located within a
qualified airport, only if:
(1) Approval sought from the governing authority of a
qualified airport for a licensee currently operating under
section 1305 (relating to Category 3 slot machine license) is
granted.
(2) Subsequent approval is granted by the board.
(b) Number of slot machines.--
(1) A qualified airport may enter into a contract with
more than one slot machine licensee, provided that the total
number of slot machines in the qualified airport does not
exceed 500.
(2) Notwithstanding sections 1210 (relating to number of
slot machines) and 1305(c) the board may approve not more
than:
(i) For a qualified first class airport, 100 slot
machines per slot machine licensee.
(ii) For a qualified second class airport, 250 slot
machines per slot machine licensee.
(iii) For a qualified municipal airport, 500 slot
machines per slot machine licensee.
(c) Application.--In order to be approved by a governing
authority of a qualified airport and the board, a licensee under
section 1305 must provide a detailed plan to both entities
describing execution of the plan in accordance with current
procedures maintained by the board.
(d) Qualified airport slot machine license fee.--
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(1) The board shall impose a one-time fee to be paid by
each slot machine licensee that operates slot machines within
a specified area of a qualified airport and shall be
deposited in the fund.
(2) The amount of the fee shall be as follows:
(i) For a qualified first class airport, the fee
shall be $10,000 per slot machine.
(ii) For a qualified second class airport, the fee
shall be $5,000 per slot machine.
(iii) For a qualified municipal airport, the fee
shall be $1,000 per slot machine.
(3) The provisions of section 1209(b), (c), (d) and (e)
(relating to slot machine license fee) shall apply to this
one-time fee.
(e) Conduct of table games.--A qualified airport slot
machine licensee shall not be authorized to conduct table games.
Section 5. Section 1403(b) of Title 4 is amended and
subsection (c) is amended by adding a paragraph to read:
ยง 1403. Establishment of State Gaming Fund and net slot machine
revenue distribution.
* * *
(b) Slot machine tax.--
(1) The department shall determine and each slot machine
licensee shall pay a daily tax of 34% from its daily gross
terminal revenue from the slot machines in operation at its
facility and from the slot machines of the slot machine
licensee in operation at a qualified airport, if applicable,
and a local share assessment as provided in subsection (c).
(2) All funds owed to the Commonwealth, a county or a
municipality under this section shall be held in trust by the
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licensed gaming entity for the Commonwealth, the county
[and], the municipality and, where applicable, the municipal
authority governing a qualified airport until the funds are
paid or transferred to the fund.
(3) Unless otherwise agreed to by the board, a licensed
gaming entity shall establish a separate bank account to
maintain gross terminal revenue until such time as the funds
are paid or transferred under this section.
(4) Moneys in the fund are hereby appropriated to the
department on a continuing basis for the purposes set forth
in subsection (c).
(c) Transfers and distributions.--The department shall:
* * *
(1.1) From the slot machine tax collected from each
qualified airport, distribute and deposit the slot machine
tax as follows:
(i) Sixty percent to the licensed gaming entity that
operates the slot machines at the qualified airport.
(ii) Ten percent to the municipal authority
governing the qualified airport.
(iii) Thirty percent to be deposited into the
Municipal Services Fund, which fund is hereby established
in the State Treasury.
* * *
Section 6. This act shall take effect in 60 days.
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