See other bills
under the
same topic
PRINTER'S NO. 2440
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1796
Session of
2017
INTRODUCED BY KORTZ, BURNS, WARNER, READSHAW, BARBIN, DeLUCA AND
D. COSTA, SEPTEMBER 19, 2017
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, SEPTEMBER 19, 2017
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, providing for video gaming; and establishing the
Video Gaming Account and the City of the First Class Nuisance
Bar Enforcement Tax Force Account.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 4 of the Pennsylvania Consolidated Statutes
is amended by adding a chapter to read:
CHAPTER 11A
VIDEO GAMING
Sec.
11A01. Definitions.
11A02. Powers and duties of board.
11A03. Authority of department.
11A04 Licensing of manufacturers, suppliers, terminal operators
and service technicians.
11A05. Video gaming license.
11A06. License prohibitions.
11A07. Multiple types of licenses prohibited.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
11A08. Video gaming limitations.
11A09. Video gaming terminal placement agreements.
11A10. Central computer system.
11A11. Video gaming terminal and redemption terminal.
11A12. Unlawful acts.
11A13. Enforcement.
11A14. Local option.
11A15. Taxes and assessments.
11A16. Municipal share assessment.
11A17. Regulatory assessments.
11A18. Transfers from Video Gaming Account.
11A19. Initial funding.
11A20. Preemption of local taxes and license fees.
11A21. Exemption from State gaming laws.
11A22. Exemption from Federal regulation.
11A23. Preemption.
11A24. Compulsive and problem gambling.
11A25. Provisional licenses.
11A26. Temporary video gaming regulations.
11A27. City of the First Class Nuisance Bar Enforcement Task
Force Account.
11A28. Report.
11A29. Expiration.
§ 11A01. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Central computer system." A central site computer system
controlled by the department and accessible by the board that at
all times is connected to video gaming terminals at licensed
20170HB1796PN2440 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
establishments and that, at a minimum, is capable of monitoring,
communicating, auditing, retrieving information, generating
games, activating and disabling each video gaming terminal.
"Club." A club as defined under section 102 of the act of
April 12, 1951 (P.L.90, No.21), known as the Liquor Code, which:
(1) is a nonprofit organization under section 501(c)(3)
of the Internal Revenue Code of 1986 (Public Law 99-514, 26
U.S.C. § 501(c)(3)); and
(2) operates under a valid liquor or malt or brewed
beverage license under Article IV of the Liquor Code.
"Coin-operated amusement game." A machine that requires the
insertion of a coin, currency or token to play or activate a
game, the outcome of which is predominantly and primarily
determined by the skill of the player. The term does not include
a video gaming terminal.
"Department." The Department of Revenue of the Commonwealth.
"Gaming machine." A device or game that has the outcome of
play primarily determined by chance. The term includes an
antique slot machine under 18 Pa.C.S. § 5513(c) (relating to
gambling devices, gambling, etc.) when used for profit. The term
shall not include any of the following:
(1) A coin-operated amusement game.
(2) A video gaming terminal that has all of its seals or
identification plates.
(3) A slot machine as defined under section 1103
(relating to definitions).
(4) A game of chance under the act of December 19, 1988
(P.L.1262, No.156), known as the Local Option Small Games of
Chance Act.
(5) A lottery terminal used under the act of August 26,
20170HB1796PN2440 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1971 (P.L.351, No.91), known as the State Lottery Law.
"Gross revenue." The total of cash or cash equivalents used
for the play of a video gaming terminal minus cash or cash
equivalent paid to players as a result of playing a video gaming
terminal.
"Incentive." Any consideration, including a promotion or
prize, provided from a licensee under this chapter or an
employee of a licensee to a patron of a licensed establishment
as an enticement to play a video gaming terminal.
"Inducement." Any consideration paid directly or indirectly,
from a terminal operator, employee of the terminal operator or
any other person on behalf of the terminal operator, to a
licensed establishment owner or an employee of the licensed
establishment, directly or indirectly as an enticement to
solicit or maintain the licensed establishment owner's business.
The term includes cash, a gift, a loan and prepayment of gross
revenue.
"Licensed establishment." A club with a video gaming license
granted under section 11A06 (relating to license prohibitions).
"Manufacturer." A person that manufactures, builds,
fabricates, designs, produces, assembles or otherwise modifies
video gaming terminals or major parts and components of video
gaming terminals.
"Redemption terminal." The collective hardware, software,
communications technology and other ancillary equipment used to
facilitate the payment of cash or cash equivalent to a player as
a result of playing a video gaming terminal.
"Service technician." A person that services, maintains or
repairs video gaming terminals.
"State Lottery." The lottery established and operated under
20170HB1796PN2440 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the act of August 26, 1971 (P.L.351, No.91), known as the State
Lottery Law.
"Supplier." A person that sells, leases, offers or otherwise
provides, distributes or services any video gaming terminal,
redemption terminal or associated equipment to a licensed
terminal operator for use or play in this Commonwealth.
"Terminal operator." A person that owns, services or
maintains video gaming terminals for placement and operation in
licensed establishments.
"Video gaming license." A license issued by the board
authorizing the placement and operation of video gaming
terminals at the licensed establishment specified in the
application for licensure.
"Video gaming terminal." A device or terminal:
(1) that, upon insertion of a coin or currency, will
play or simulate the play of a video poker, bingo, keno, slot
machine, blackjack or any other game authorized by the board;
(2) that utilizes a video display and microprocessor;
and
(3) in which, by the skill of the player or by chance,
the player may receive a free game or credit that may be
redeemed for cash at a redemption terminal.
"Video gaming terminal area." The area of a licensed
establishment's premises where video gaming terminals are
installed for operation and play.
§ 11A02. Powers and duties of board.
(a) General powers.--The board shall regulate and adopt
standards for video gaming as authorized under this chapter.
(b) Specific powers.--The board shall have the specific
powers and duties:
20170HB1796PN2440 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) To require background investigations on applicants
and licensees under the jurisdiction of the board.
(2) To issue, approve, renew, revoke, suspend, condition
or deny issuance or renewal of all licenses or permits that
may be required by the board under this chapter.
(3) To suspend, condition or deny the issuance or
renewal of a license or permit or levy a fine or other
sanction for a violation of this chapter.
(4) To authorize acceptable forms of identification that
each video gaming terminal must utilize to establish a
person's identity and age prior to play of a video gaming
terminal.
(5) To determine the adequacy of a licensed
establishment's site plans for identifying the proposed video
gaming terminal area and security and surveillance measures
related to the operation of video gaming terminals.
(6) In addition to the power of the board relating to
license and permit applicants, to determine the suitability
of an individual who furnishes or seeks to furnish to a
licensed terminal operator directly or indirectly goods,
services or property related to video gaming terminals,
redemption terminals or equipment.
(7) To levy and collect fees and fines from applicants,
licensees and permittees. Fees and fines shall be deposited
into the Video Gaming Account.
(8) To publish each January in the Pennsylvania Bulletin
and on the board's publicly accessible Internet website a
complete list of individuals or entities who applied for or
held a terminal operator license, video gaming license,
manufacturer license or supplier license at any time during
20170HB1796PN2440 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the preceding calendar year and affiliates, intermediaries,
subsidiaries and holding companies thereof and the status of
the application or license.
(9) To prepare and, through the Governor, submit
annually to the General Assembly an itemized budget
consistent with Article VI of the act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code of 1929,
consisting of the amounts necessary to be appropriated by the
General Assembly out of the accounts established under
section 11A17 (relating to regulatory assessments) required
to meet the obligations under this chapter accruing during
the fiscal year beginning July 1 of the following year . The
budget shall include itemized recommendations for the
department, the Bureau of Liquor Control Enforcement and the
Pennsylvania State Police as to the amount needed to meet
their obligations under this chapter.
(10) To prescribe and require periodic financial
reporting and internal control requirements for terminal
operator licensees.
(11) To require that each terminal operator licensee
provide to the board its annual financial statements, with
additional detail as the board requires, which shall be
submitted not later than 90 days after the end of the
licensee's fiscal year.
(12) To prescribe the procedures to be followed by
terminal operator licensees for a financial event that occurs
in the operation and play of video gaming terminals.
(13) To establish procedures for the inspection and
certification of compliance of video gaming terminals,
redemption terminals and associated equipment prior to being
20170HB1796PN2440 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
placed into use by a terminal operator licensee.
(14) To require that no video gaming terminal may be set
to pay out less than 85%, as specifically approved by the
board.
(15) To maintain a list of municipalities in this
Commonwealth that have approved a municipal referendum under
section 11A14 (relating to local option).
§ 11A03. Authority of department.
(a) General rule.--The department shall administer and
collect taxes imposed under this chapter and interest imposed
under section 806 of the act of April 9, 1929 (P.L.343, No.176),
known as The Fiscal Code , and promulgate and enforce rules and
regulations to carry out the department's prescribed duties in
accordance with this chapter, including the collection of taxes,
penalties and interest imposed by this chapter.
(b) Application of rules and regulations.--The department
may prescribe the extent, if any, to which any rules and
regulations shall be applied without retroactive effect. The
department shall prescribe the forms and the system of
accounting and recordkeeping to be employed and through the
department's representatives shall, at all times, have power of
access to and examination and audit of any equipment and records
relating to all aspects of the operation of video gaming
terminals and redemption terminals under this chapter.
(c) Procedure.--For purposes of implementing this chapter,
the department may promulgate regulations in the same manner in
which the board is authorized under section 11A26 (relating to
temporary video gaming regulations).
(d) Additional penalty.--A person who fails to timely remit
to the department or the State Treasurer amounts required under
20170HB1796PN2440 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
this chapter shall be liable, in addition to liability imposed
elsewhere in this chapter, for a penalty of 5% per month up to a
maximum of 25% of the amounts ultimately found to be due, to be
recovered by the department.
(e) Liens and suits for taxes.--The provisions of this
chapter shall be subject to the provisions of sections 242 and
243 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971.
§ 11A04. Licensing of manufacturers, suppliers, terminal
operators and service technicians.
(a) Application.--A person that applies to the board for a
manufacturer, supplier, terminal operator or service technician
license related to video gaming under this section shall do so
on a form prescribed by the board.
(b) Application fee.--
(1) An applicant for a manufacturer or supplier license
must pay a nonrefundable application fee of $50,000.
(2) An applicant for a terminal operator license must
pay a nonrefundable application fee of $10,000.
(3) An applicant for a service technician license must
pay a nonrefundable application fee of $100.
(c) Production of information.--An applicant must produce
information, documentation and assurances as required by the
board, including:
(1) Written consent by the applicant to provide for the
examination of financial and business accounts, bank
accounts, tax returns and related records in the applicant's
possession or under the applicant's control that establish
the financial stability, integrity and responsibility of the
license applicant.
20170HB1796PN2440 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(2) Written authorization by the applicant for third
parties in possession or control of accounts or records under
paragraph (1) to allow for examination of such documents as
deemed necessary by the board or the Pennsylvania State
Police in conducting background investigations.
(3) If the applicant has conducted a gaming operation in
a jurisdiction that permits such activity, a letter of
reference from the gaming or casino enforcement or control
agency that specifies the experience of the agency with the
applicant, the applicant's associates and the applicant's
gaming operations. If the applicant is unable to obtain the
letter within 60 days of the request, the applicant may
submit a copy of the letter requesting the information,
together with a statement under oath or affirmation that,
during the period activities were conducted, the applicant
was in good standing with the appropriate gambling or casino
enforcement control agency.
(4) Information, documentation and assurances as
required by the board to establish the applicant's good
character, honesty and integrity. Information under this
paragraph may relate to family, habits, character,
reputation, business affairs, financial affairs, business
associates, professional associates and personal associates
covering the 10-year period immediately preceding the filing
of the application.
(d) Background investigation.--The Pennsylvania State Police
shall conduct, at the request of the board, a background
investigation of an applicant for a manufacturer, supplier or
terminal operator license as follows:
(1) The applicant shall consent to a background
20170HB1796PN2440 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
investigation and provide any and all information requested
by the Pennsylvania State Police and consent to a release of
any and all information necessary for the completion of the
background investigation, which information shall include
fingerprints.
(2) The background investigation shall include a
security, criminal and credit investigation by the
Pennsylvania State Police, which shall include records of
criminal arrests and convictions, in any jurisdiction,
including Federal criminal history record information. The
investigation may utilize information about the applicant
compiled by the Pennsylvania Liquor Control Board. The
Pennsylvania State Police may share investigation information
with the board to the extent permitted by Federal and State
law as determined by the Pennsylvania State Police. None of
the information obtained by the Pennsylvania State Police may
be disclosed publicly nor be subject to disclosure under the
act of February 14, 2008 (P.L.6, No.3), known as the Right-
to-Know Law.
(3) The background investigation shall include an
examination of personal, financial or business records,
including tax returns, bank accounts, business accounts,
mortgages and contracts to which the applicant is a party or
has an interest.
(4) The background investigation shall include an
examination of personal or business relationships that:
(i) Include a partial ownership or voting interest
in a partnership, association or corporation.
(ii) Bear on the fitness of the applicant for
licensure.
20170HB1796PN2440 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(5) The applicant shall reimburse the Pennsylvania State
Police for the actual costs of conducting the background
investigation. The board may not approve an applicant that
has not fully reimbursed the Pennsylvania State Police for
the investigation.
(e) Eligibility.--To be eligible for a license under this
section, an applicant for a manufacturer, supplier, terminal
operator or service technician license must comply with all of
the following:
(1) Be of good moral character and reputation in the
community.
(2) Be 18 years of age or older.
(3) Be current in the payment of all taxes, interest and
penalties owed to the Commonwealth and political subdivisions
of the Commonwealth. This paragraph excludes taxes subject to
a timely administrative or judicial appeal or subject to a
duly authorized deferred payment plan.
(4) An applicant for a manufacturer, supplier or
terminal operator license must also demonstrate sufficient
financial resources to support the activities required of,
respectively, a manufacturer, supplier or terminal operator
related to video gaming terminals.
(f) Review and approval.--The board shall review the
information submitted by the applicant and the investigation
information provided by the Pennsylvania State Police. If being
satisfied that the requirements of subsection (e) have been met,
the board may approve the application and grant the applicant a
manufacturer, supplier, terminal operator or service technician
license consistent with all of the following:
(1) The license shall be valid for a period of four
20170HB1796PN2440 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
years. Nothing in this paragraph shall be construed to
relieve the licensee of the affirmative duty to notify the
board of any change relating to the status of its license or
to any other information contained in application materials
on file with the board.
(2) The license shall be nontransferable.
(3) Any other condition established by the board.
(g) Annual fees.--
(1) The annual fee for a terminal operator license shall
be $10,000 for a terminal operator that has placed 50 or
fewer video gaming terminals at licensed establishments in
this Commonwealth. The annual fee shall be $25,000 for a
terminal operator that has placed more than 50 video gaming
terminals at licensed establishments in this Commonwealth.
(1.1) A terminal operator shall pay an additional fee of
$250 per video gaming terminal located at licensed
establishments in a city of the first class. The funds
collected from this additional fee shall be deposited in the
City of the First Class Nuisance Bar Enforcement Task Force
Account.
(2) The annual fee for a manufacturer or supplier
license shall be $10,000.
(3) The annual fee for a service technician license
shall be $100.
(h) Renewal and late filing fees.--
(1) Ninety days prior to expiration of the license, the
licensee seeking renewal of the license shall submit a
renewal application accompanied by the annual fee or the
license shall be subject to appropriate late filing fees.
(2) If the renewal application satisfies the
20170HB1796PN2440 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
requirements of subsection (e), the board may renew the
license.
(3) If the board receives a complete renewal application
but fails to act upon the renewal application prior to the
expiration of the license, the license shall continue in
effect for an additional six-month period or until acted upon
by the board, whichever occurs first.
(4) The board may accept renewal applications filed less
than 90 days before the effective date of renewal upon the
payment of the requisite annual fees and an additional late
filing fee of $100. A renewal application filed on or after
the effective date of renewal shall be accompanied by the
requisite annual fee and an additional late filing fee of
$250. A renewal application may not be considered for
approval unless accompanied by the requisite annual and late
filing fees, tax clearance and any other information required
by the board.
(i) Third-party disclosure.--An applicant must accept any
risk of adverse public notice, embarrassment, criticism, damages
or financial loss, which may result from disclosure or
publication by a third party of material or information
requested by the board pursuant to action on an application. The
applicant expressly must waive a claim against the board or the
Commonwealth and the applicant's employees from damages as a
result of disclosure or publication by a third party.
(j) Hearing upon denial.--A person that is denied a license
or the renewal of a license under this section has the right to
a hearing before the board in accordance with the provisions of
2 Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of
Commonwealth agencies) and 7 Subch. A (relating to judicial
20170HB1796PN2440 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
review of Commonwealth agency action).
(k) Deposit of fees.--All fees imposed and collected by the
board under this section shall be deposited in the Video Gaming
Account.
§ 11A05. Video gaming license.
(a) Application.--A person that applies to the board for a
video gaming license under this section shall do so on a form
prescribed by the board. The form shall be accompanied by:
(1) detailed site plans of the proposed video gaming
terminal area; and
(2) a description of the proposed security and
surveillance measures for ensuring the integrity of video
gaming and preventing underage video gaming within the
proposed licensed establishment.
(b) Issuance.--Subject to section 11A06 (relating to license
prohibitions) and section 11A14 (relating to local option), the
board shall issue a video gaming license to a club upon a
showing that the club's liquor or retail dispenser license is
valid and is in good standing with the Pennsylvania Liquor
Control Board.
(c) Application fee.--An applicant for a video gaming
license shall pay an application fee of $100.
(d) License fee.--Upon approval for a video gaming license,
a licensed establishment shall pay a licensing fee equal to
$5,000 per video gaming terminal that will be operated at the
licensed establishment. Subject to the limitation contained in
section 11A08(a)(1) (relating to video gaming limitations), if a
licensed establishment increases the number of video gaming
terminals in operation at the licensed establishment's premises
after the payment of the licensing fee, the licensed
20170HB1796PN2440 - 15 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
establishment shall pay a licensing fee of $5,000 for each
additional video gaming terminal. The fees under this subsection
shall not apply to a licensed establishment that is a volunteer
fire company.
(e) Annual fees.--Except for a year in which the licensed
establishment pays the license fee under subsection (d), a
licensed establishment shall pay an annual fee of $1,000 and an
annual fee of $500 per video gaming terminal.
(e.1) Additional annual fee in cities of the first class.--A
licensed establishment in a city of the first class shall pay an
additional annual fee of $500 per video gaming terminal. The
funds generated from the additional fee shall be deposited in
the City of the First Class Nuisance Bar Enforcement Task Force
Account.
(f) Review and approval.--The board shall review the
information submitted by the applicant. If satisfied that the
requirements for a video gaming license have been met, the board
shall approve the application and grant the applicant a video
gaming license consistent with all of the following:
(1) The license shall be valid for a period of four
years. Nothing in this paragraph shall be construed to
relieve the licensee of the affirmative duty to notify the
board of any change relating to the status of its license or
to any other information contained in application materials
on file with the board.
(2) The license shall be nontransferable.
(3) Any other condition established by the board.
(g) Renewal and late filing fees.--
(1) Ninety days prior to expiration of the license, the
licensee seeking renewal of the license shall submit a
20170HB1796PN2440 - 16 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
renewal application accompanied by the annual fee or the
license shall be subject to appropriate late filing fees.
(2) If the renewal application satisfies the
requirements for the video gaming license, the board may
renew the license.
(3) If the board receives a complete renewal application
but fails to act upon the renewal application prior to the
expiration of the license, the license shall continue in
effect for an additional six-month period or until acted upon
by the board, whichever occurs first.
(4) The board may accept a renewal application filed
less than 90 days before the effective date of renewal upon
the payment of the requisite license and filing fee and an
additional late filing fee of $100. A renewal application
filed on or after the effective date of renewal shall be
accompanied by the requisite license and filing fee and an
additional late filing fee of $250. A renewal application may
not be considered for approval unless accompanied by the
requisite annual and late filing fees, tax clearance and any
other information required by the board.
(h) Third-party disclosure.--An applicant must accept any
risk of adverse public notice, embarrassment, criticism, damages
or financial loss, which may result from disclosure or
publication by a third party of material or information
requested by the board pursuant to action on an application. The
applicant expressly must waive a claim against the board or the
Commonwealth and the applicant's employees from damages as a
result of disclosure or publication by a third party.
(i) Hearing upon denial.--A person who is denied a license
or the renewal of a license under this section has the right to
20170HB1796PN2440 - 17 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
a hearing before the board in accordance with the provisions of
2 Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of
Commonwealth agencies) and 7 Subch. A (relating to judicial
review of Commonwealth agency action).
(j) Prerequisite.--Notwithstanding any other provision of
this chapter, the board may not issue a video gaming license to
an applicant for a video gaming license:
(1) unless the applicant's proposed licensed
establishment is located in a municipality that has approved
a municipal referendum under section 11A14 (relating to local
option); and
(2) until the board has determined the adequacy of the
applicant's proposed site plans for identifying the proposed
video gaming terminal area and proposed security and
surveillance measures relating to the operation of video
gaming terminals.
(k) Deposit of fees.--All fees imposed and collected by the
board under this section shall be deposited in the Video Gaming
Account.
§ 11A06. License prohibitions.
(a) Felony conviction prohibition.--A person that has been
convicted of a felony in any jurisdiction may not be issued a
license under this chapter.
(b) Gambling offense prohibition.--A person that has been
convicted in any jurisdiction of a gambling offense, including a
violation of 18 Pa.C.S. § 5513 (relating to gambling devices,
gambling, etc.), unless 15 years have elapsed from the date of
conviction for the offense, may not be issued a license under
this chapter.
(c) Factors to be considered.--Following the expiration of
20170HB1796PN2440 - 18 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
any prohibition period applicable to an applicant under
subsection (b), in determining whether to issue a license, the
board shall consider the following factors:
(1) The nature and seriousness of the offense or
conduct.
(2) The circumstances under which the offense or conduct
occurred.
(3) The age of the applicant when the offense or conduct
was committed.
(4) Whether the offense or conduct was an isolated or
repeated incident.
(5) 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.
(d) Felony offenses.--For purposes of this section, a felony
offense is any of the following:
(1) An offense punishable under the laws of this
Commonwealth by imprisonment for more than five years.
(2) An offense which, under the laws of another
jurisdiction, is:
(i) classified as a felony; or
(ii) punishable by imprisonment for more than five
years.
(3) An offense under the laws of another jurisdiction
which, if committed in this Commonwealth, would be subject to
imprisonment for more than five years.
§ 11A07. Multiple types of licenses prohibited.
(a) Manufacturer restriction.--A manufacturer may not be
licensed as a terminal operator or own, manage or control a
20170HB1796PN2440 - 19 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
licensed establishment, but may be licensed as a supplier.
(b) Terminal operator restriction.--A terminal operator may
not be licensed as a manufacturer or supplier or own, manage or
control a licensed establishment or own, manage or control
premises used by a licensed establishment. A slot machine
licensee may be licensed as a terminal operator.
(c) Licensed establishment restriction.--An owner of a
licensed establishment may not be licensed as a manufacturer,
supplier, service technician or terminal operator.
§ 11A08. Video gaming limitations.
(a) Licensed establishment limitations.--A licensed
establishment shall be subject to the following limitations:
(1) No more than three video gaming terminals may be
placed on the premises of the licensed establishment.
(2) With the exception of tickets indicating amounts
won, which are redeemable for cash, or which can be
reinserted into video gaming machines for play of games
authorized by the board, no video gaming terminal may
directly dispense a coin, cash, token or anything else of
value. The winning ticket may, however, be used in other
video gaming terminals in the same licensed establishment.
(3) Video gaming terminals may only be placed in a
licensed establishment by a licensed terminal operator
pursuant to a written placement agreement.
(4) (i) All video gaming terminals shall be located in
the video gaming terminal area.
(ii) It shall be unlawful for an individual under 21
years of age to enter and remain in any video gaming
area, except that an individual at least 18 years of age
employed by a terminal operator licensee, a gaming
20170HB1796PN2440 - 20 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
service provider, a licensed establishment, the board or
another regulatory or emergency response agency may enter
and remain in the area while engaged in the performance
of the individual's employment duties.
(iii) The video gaming terminal area shall be in a
secure and visibly segregated area of the licensed
establishment's premises. A floor-to-ceiling wall is not
required.
(iv) A visible sign shall be posted at the entrance
to the video gaming terminal area stating that any
individual under 21 years of age is prohibited from
entering the area.
(v) The video gaming area shall, at all times, be
monitored by an employee of the licensed establishment,
who is at least 18 years of age, either directly or
through video surveillance.
(5) Except as may be approved by the board, no licensed
establishment may generally advertise video gaming to the
general public. A customer of a licensed establishment may
opt-in to receive written advertising materials from a
licensed establishment.
(6) No licensed establishment or employee of a licensed
establishment may offer an incentive to a patron of the
licensed establishment related to the play of a video gaming
terminal.
(7) No licensed establishment may make structural
alterations or significant renovations to a video gaming area
unless the licensed establishment has notified the licensed
terminal operator and obtained prior approval from the board.
(8) No licensed establishment may move a video gaming
20170HB1796PN2440 - 21 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
terminal or redemption terminal after installation by a
licensed terminal operator, unless the licensed establishment
has notified the licensed terminal operator and obtained
prior approval from the board.
(9) No visibly intoxicated individual shall be permitted
to play a video gaming terminal.
(10) No licensed establishment may extend credit or
accept a credit card or debit card for play of a video gaming
terminal.
(b) Licensed terminal operator limitations.--A licensed
terminal operator may place and operate video gaming terminals
on the premises of a licensed establishment, subject to the
following:
(1) No more than three video gaming terminals may be
placed on the premises of the licensed establishment.
(2) Redemption tickets shall only be exchanged for cash
through a redemption terminal located within the same video
gaming area or reinserted into another video gaming terminal
located in the same video gaming area as the video gaming
terminal.
(3) Video gaming terminals located on the premises of a
licensed establishment shall be placed and operated pursuant
to a terminal placement agreement.
(4) No licensed terminal operator may generally
advertise video gaming terminals to the general public.
(5) No licensed terminal operator may provide an
incentive.
(6) No licensed terminal operator may place and operate
video gaming terminals within a licensed facility.
(7) No licensed terminal operator may extend credit or
20170HB1796PN2440 - 22 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
accept a credit card or debit card for play of a video gaming
terminal.
(8) No licensed terminal operator may give or offer to
give, directly or indirectly, any type of inducement to a
licensed establishment to secure or maintain a terminal
placement agreement.
(9) No licensed terminal operator may give a licensed
establishment a percentage of gross terminal revenue that is
less than 25% of the gross terminal revenue of the video
gaming terminals operating in the licensed establishment's
premises.
(10) No licensed terminal operator may make structural
alterations or significant renovations to a video gaming area
unless the licensed terminal operator has notified the
licensed establishment and obtained prior approval from the
board.
(11) No licensed terminal operator may move a video
gaming terminal or redemption terminal after installation
unless prior approval is obtained from the board.
(c) Penalties.--
(1) A person f ound in violation of the limitations under
subsection (a) or (b) shall be subject to the following
fines:
(i) A fine of not less than $300, nor more than
$1,000, for a first violation.
(ii) For a second or subsequent violation, a fine of
not less than $1,000, nor more than $5,000.
(2) The right to suspend and revoke licenses granted
under this chapter shall be in addition to the fines
enumerated in this subsection.
20170HB1796PN2440 - 23 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
§ 11A09. Video gaming terminal placement agreements.
(a) Intent.--It is the intent of the General Assembly that
the board have exclusive jurisdiction to determine the
enforceability and validity of terminal placement agreements as
is necessary and appropriate to protect the integrity of video
gaming in this Commonwealth.
(b) General rule.--Video gaming terminals may only be placed
in a licensed establishment by a terminal operator pursuant to a
written terminal placement agreement.
(c) Form of agreement.--The form of a terminal placement
agreement shall be approved by the board and kept on file and
available for inspection at the licensed establishment.
(d) Length of agreement.--A terminal placement agreement
shall be valid for a maximum of a 60-month term.
(e) Disclosure.--Any person soliciting the execution of a
terminal placement agreement on behalf of an applicant or
licensee sh all be disclosed to the board. No payment may be made
to an individual or entity for or with respect to the
procurement of terminal placement agreement to an individual or
entity which or whom is not licensed by or disclosed to the
board.
(f) Transferability of agreements.--No terminal placement
agreement may be transferred or assigned unless the individual
or entity making the assignment and the individual or entity
receiving the assignment of the terminal placement agreement are
both applicants or licensees under this chapter.
(g) Provisions required.--A terminal placement agreement
shall include a provision that provides the licensed
establishment no less than 25% of gross terminal revenue from
each video gaming terminal located on the premises of the
20170HB1796PN2440 - 24 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
licensed establishment.
(h) Void agreements.--The following apply:
(1) If an application for a terminal operator license is
denied, not renewed, revoked, surrendered or withdrawn, the
video gaming terminal placement agreement shall be null and
void.
(2) A terminal placement agreement not in compliance
with this section is void.
(3) Any agreement entered into by a club, prior to the
effective date of this section, with any person for the
placement, operation, service or maintenance of video gaming
terminals, including any agreement granting a person the
right to enter into an agreement or match any offer made
after the effective date of this section, is void.
§ 11A10. Central computer system.
(a) General rule.--The department shall have overall control
of video gaming terminals and shall establish and procure a
central computer system capable of monitoring and communicating
with each video gaming terminal. The following shall apply:
(1) All video gaming terminals shall be linked to the
central computer system under the control of the department
and accessible by the board.
(2) All video gaming terminals shall include real-time
information retrieval and terminal activation and disabling
programs.
(3) The department may utilize the central control
computer system employed by the department to monitor slot
machine gaming or the State Lottery.
(4) All communications data collected by the central
computer system may be provided to the terminal operator.
20170HB1796PN2440 - 25 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(5) Interconnection of jackpots, pursuant to a wide area
progressive system, shall be allowed.
§ 11A11. Video gaming terminal and redemption terminal.
(a) Specifications.--
(1) The board shall approve one or more video gaming
terminals and redemption terminals that include hardware and
software specifications. All video gaming terminals and
redemption terminals offered for play or use in this
Commonwealth shall conform to the approved specifications.
(2) The board may utilize the standards and models
approved by other states and may contract for the services of
the board's testing laboratory.
(b) Service contracts authorized.--The board may also
contract for services of one or more independent outside testing
laboratories that have been accredited by a national
accreditation body and that, in the judgment of the board, are
qualified to perform such examinations and tests.
(c) Contents of specifications.--The specifications shall
include:
(1) All video gaming terminals shall have the ability to
interact with the central communications system.
(2) Unremovable identification plates shall appear on
the exterior of the video gaming terminal containing the name
of the manufacturer and the serial and model number of the
video gaming terminal.
(3) Rules of play shall be displayed on the video gaming
terminal face or screen as promulgated by the board.
(4) A video gaming terminal may not directly dispense
coins, cash, tokens or any other article of exchange or value
except for tickets. Tickets shall be dispensed by pressing
20170HB1796PN2440 - 26 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the ticket dispensing button on the video gaming terminal at
the end of one's turn or play. The ticket shall indicate the
total amount of the cash award. The player shall be permitted
to insert the ticket into another terminal in the same
licensed establishment or turn in the ticket for redemption.
Redemption shall be made by giving the ticket to the
responsible person in charge who is over 18 years of age at
the licensed establishment or through the use of an approved
redemption machine. A redemption machine is required at the
licensed establishment if the licensed establishment has
three or more terminals.
(5) The cost of a credit shall be 1¢, 5¢, 10¢ or 25¢ and
the maximum wager played per game shall not exceed $2.50. A
game may result in one or more prizes.
(6) No cash award for any individual game may exceed
$1,000.
(7) All video gaming terminals must be designed and
manufactured with total accountability to include gross
proceeds, net profits, winning percentages and any other
information the board requires.
(8) Each video gaming terminal shall pay out a minimum
of 85% of the amount wagered.
(9) Each video gaming terminal shall be designed to
verify a person's identity and age prior to play of the video
gaming terminal. The board shall approve acceptable forms of
identification a video gaming terminal may utilize to verify
identity and age.
§ 11A12. Unlawful acts.
(a) General rule.--It shall be unlawful for any person to do
any of the following:
20170HB1796PN2440 - 27 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) To operate or attempt to operate a video gaming
terminal or to receive or attempt to receive payment from a
redemption terminal if the person is under 21 years of age.
(2) To permit a person under 21 years of age to play a
video gaming terminal or to provide payment as a result of
playing video gaming to a person under 21 years of age.
(3) To permit a visibly intoxicated person to play a
video gaming terminal.
(4) To possess a gaming machine.
(5) To install or operate more video gaming terminals in
a licensed establishment than permitted by this chapter or
the board.
(6) To tamper with the connection of a video gaming
terminal to the central communications system.
(7) To sell, distribute, service, own, operate or place
on location a video gaming terminal unless the person holds
the appropriate license under this chapter and is in
compliance with all requirements of this chapter.
(8) As a terminal operator, to give, or offer to give,
directly or indirectly, any type of inducement to a club to
secure a video gaming terminal placement agreement.
(9) As a club, to accept any inducement from a terminal
operator or any other third party, directly or indirectly,
associated with a terminal operator.
(b) Penalties and fines.--In addition to any other penalty
provided by law, the following shall apply:
(1) Except as set forth in paragraphs (2) and (3):
(i) A person who violates subsection (a) commits a
misdemeanor of the third degree and shall, upon
conviction, be sentenced to pay a fine of not less than
20170HB1796PN2440 - 28 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
$5,000.
(ii) For a second or subsequent violation of
subsection (a), a person commits a misdemeanor of the
second degree and shall, upon conviction, be sentenced to
pay a fine of not less than $15,000.
(2) A person who violates subsection (a)(1) or (3)
commits a summary offense. For a second or subsequent
violation of subsection (a)(1), a person commits a
misdemeanor of the third degree and shall, upon conviction,
be sentenced to pay a fine of not less than $5,000.
(3) A person who violates subsection (a)(4) commits a
felony of the third degree and shall, upon conviction, be
subject to additional penalties as provided in subsection
(c).
(c) Seizure, forfeiture and destruction of gaming machines
and fines.--
(1) A licensee under this chapter shall consent to
seizure of its gaming machines. Gaming machines and the
proceeds of gaming machines shall be subject to seizure under
sections 1517(e) (relating to investigations and enforcement)
and 1518(f) (relating to prohibited acts; penalties).
(2) In the case of a gaming machine seized from a
licensed establishment:
(i) For a first violation, the penalty shall be a
fine of at least $10,000 and not more than $25,000 and a
suspension of the licensed establishment's liquor license
for not less than seven consecutive days.
(ii) For a second or subsequent violation, the
penalty shall be a fine of $50,000 and a suspension of
the licensed establishment's liquor license for not less
20170HB1796PN2440 - 29 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
than 60 consecutive days or a revocation of the
establishment's license.
(3) In the case of a gaming machine seized from a place
of business other than a licensed establishment:
(i) For a first violation, the penalty shall be a
fine of at least $10,000 and not more than $25,000
against the owner of the business from which the gaming
machine was seized and a suspension of the licensed
establishment's liquor license for not less than 30
consecutive days.
(ii) For a second or subsequent violation, the
penalty shall be a fine of $50,000 and a suspension of
the licensed establishment's liquor license for not less
than 60 consecutive days.
(d) Enforcing void agreements.--In addition to any other
penalty authorized by law, if a person attempts to enforce an
agreement entered into prior to the effective date of this
section related to the placement, operation, service or
maintenance of video gaming terminals, including any agreement
granting a person or entity the right to enter into an agreement
or match any offer made after the effective date of this
section, the board shall assess an administrative penalty on the
applicant and, if applicable, revoke any license issued to the
applicant by the board under this chapter.
§ 11A13. Enforcement.
In addition to any other law enforcement agency with
jurisdiction, the Bureau of Liquor Control Enforcement shall
have the jurisdiction and the authority to enter a business in
order to enforce the provisions of this chapter.
§ 11A14. Local option.
20170HB1796PN2440 - 30 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(a) Election to be held.--An election may be held in a
municipality on the date of the primary election immediately
preceding any municipal election, but not more than once in four
years, to determine the will of the electors with respect to the
issuance of licenses within the limits of the municipality under
the provisions of this chapter. If an election was held at the
primary election preceding a municipal election in any year,
another election may be held under the provisions of this
chapter at the primary election occurring the fourth year after
the prior election. Whenever t he governing body of the
municipality adopts, by a majority vote, a resolution to place a
question on the ballot and a copy of the resolution is filed
with the board of elections of the county, for a referendum on
the question of issuing licenses, the county board of elections
shall cause a question to be placed on the ballot or on the
voting machine board and submitted at the primary election
immediately preceding the municipal election. The question shall
be in the following form:
Do you favor the issuance of licenses to allow nonprofit
clubs with a valid liquor license located in the _________of
___________ to place up to three video gaming terminals
within their establishment?
(b) Vote.--If a majority of the electors voting on the
question vote "yes," then licenses shall be issued by the board
in the municipality, but if a majority of the electors voting on
any question vote "no," then the board shall have no power to
issue any licenses in the municipality, unless and until, at a
later election, a majority of the voting electors vote "yes" on
the question.
(c) Voting proceedings.--Proceedings under this section
20170HB1796PN2440 - 31 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
shall be in accordance with the provisions of the act of June 3,
1937 (P.L.1333, No.320), known as the Pennsylvania Election
Code.
(d) Applicability.--Only clubs located in municipalities
which have adopted the provisions of this chapter by an
affirmative vote in a municipal referendum in accordance with
the provisions of this section are eligible to apply for and be
issued a video gaming license under this chapter.
(e) Withdrawal of approval.--The referendum procedure
contained in this section shall also be available to withdraw
the approval of the issuance of licenses within a municipality
which was granted through a prior referendum.
§ 11A15. Taxes and assessments.
(a) Video Gaming Account.--The Video Gaming Account is
established as a separate account in the State Treasury. Except
as otherwise provided in this chapter, fees, fines and taxes
collected under this chapter shall be deposited in the Video
Gaming Account. Money in the fund shall be appropriated on a
continuing basis for the purposes under subsection (c).
(b) Video gaming terminal tax and assessments.--
(1) The department shall determine and each licensed
terminal operator shall pay on a bimonthly basis:
(i) A tax of 50% of its gross terminal revenue from
all video gaming terminals operated by the licensed
terminal operator within this Commonwealth.
(ii) A municipal share assessment of an amount equal
to $1,000 per video gaming terminal located within this
Commonwealth, divided by 24.
(iii) A regulatory assessment established in section
11A17 (relating to regulatory assessments) from the
20170HB1796PN2440 - 32 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
licensed terminal operator's weekly gross terminal
revenue.
(2) All money owed under this section shall be held in
trust by the licensed terminal operator until the money is
paid or transferred to the Video Gaming Fund.
(3) Unless otherwise agreed to by the board, a licensed
terminal operator shall establish a separate bank account to
maintain gross terminal revenue until such time as the money
is paid or transferred under this section.
(c) Transfers and distributions.--The department shall:
(1) Transfer the tax imposed under subsection (b) to the
Video Gaming Account.
(2) From the municipal share assessment established
under subsection (b)(ii), make distributions among the
municipalities that host licensed establishments in
accordance with section 11A16 (relating to municipal share
assessment).
(3) Transfer the regulatory assessment imposed under
subsection (b)(iii) in accordance with section 11A17.
(d) Duty of terminal operator.--A licensed terminal operator
shall continuously provide the department with records,
documents or other information necessary to effectuate the
requirements of this section.
§ 11A16. Municipal share assessment.
(a) Account established.--A restricted receipts account
shall be established within the Video Gaming Account for the
deposit of a municipal share assessment amount required under
section 11A15 (relating to taxes and assessments). All money
owed under this section shall be appropriated to the department
for the purposes set forth in this section.
20170HB1796PN2440 - 33 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(b) Distribution of municipal share.--The department shall
distribute, in a manner and according to a schedule adopted by
the department, to each municipality that has one or more
licensed establishments an amount equal to $1,000 per video
gaming terminal located in the municipality.
(c) Duty of terminal operator.--A licensed terminal operator
shall continuously provide the department with records,
documents or other information necessary to effectuate the
requirements of this section.
(d) Use of municipal shares.--A municipality that receives a
municipal share distribution from the department under
subsection (a) may use the funds for any purpose and as local
matching funds for other grants or loans from the Commonwealth.
(e) Reporting.--A municipality that receives a local share
distribution under this section shall submit information to the
Department of Community and Economic Development on a form
prepared by the Department of Community and Economic Development
that states the amount and use of the money received in the
prior fiscal year. The form shall specify whether the money
received was deposited in the municipality's General Fund or
committed to a specific project or use.
§ 11A17. Regulatory assessments.
(a) Account established.--The State Treasurer shall
establish within the State Treasury an account for each terminal
operator for the deposit of a regulatory assessment amount
required under subsection (b) to recover costs or expenses
incurred by the board, the department, the Bureau of Liquor
Control Enforcement and the Pennsylvania State Police in
carrying out their powers and duties under this chapter based
upon a budget submitted by the department under subsection (c).
20170HB1796PN2440 - 34 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(b) Bimonthly deposits.--
(1) The department shall determine the appropriate
regulatory assessment amount for each licensed terminal
operator, which shall be a percentage assessed on the
licensed terminal operator's gross terminal revenue.
(2) The percentage assessed shall not exceed an amount
equal to the lesser of:
(i) the costs or expenses incurred by the board, the
department, the Bureau of Liquor Control Enforcement and
the Pennsylvania State Police in carrying out their
powers and duties under this chapter based upon a budget
submitted by the department under subsection (c); or
(ii) two percent of the licensed terminal operator's
weekly gross terminal revenue.
(c) Itemized budget reporting.--
(1) The department shall prepare and annually submit to
the chairperson of the Appropriations Committee of the Senate
and the chairperson of the Appropriations Committee of the
House of Representatives an itemized budget consisting of
amounts to be appropriated out of the accounts established
under this section necessary to administer this chapter.
(2) As soon as practicable after submitting copies of
the itemized budget, the department shall submit to the
chairperson of the Appropriations Committee of the Senate and
the chairperson of the Appropriations Committee of the House
of Representatives analyses of and recommendations regarding
the itemized budget.
(d) Appropriation.--
(1) Costs and expenses may be paid from the accounts
established under subsection (a) only upon appropriation by
20170HB1796PN2440 - 35 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the General Assembly.
(2) In the event that appropriations for the
administration of this chapter are not enacted by June 30 of
any year, funds appropriated for the administration of this
chapter which are unexpended, uncommitted and unencumbered at
the end of a fiscal year shall remain available for
expenditure by the board or other agency to which they were
appropriated until the enactment of an appropriation for the
following f iscal year.
§ 11A18. Transfers from Video Gaming Account.
(a) Transfer for compulsive and problem gambling
treatment.--On June 30, 2018, and on the last day of each fiscal
year thereafter, the State Treasurer shall transfer from the
Video Gaming Account the sum of $1,000,000 to the Compulsive and
Problem Gambling Treatment Fund established in section 1509
(relating to compulsive and problem gambling program).
(b) General Fund transfer.--On June 30, 2018, and on June 30
of each fiscal year th ereafter, the State Treasurer shall
transfer the remaining balance in the Video Gaming Account that
is not transferred under subsection (a) to the General Fund.
§ 11A19. Initial funding.
(a) Appropriation.--The General Assembly appropriates the
following:
(1) The sum of $5,000,000 is appropriated to the board
for the fiscal year July 1, 2017, to June 30, 2018, to
implement and administer the provisions of this part.
(2) The sum of $3,000,000 is appropriated from the
General Fund to the department for the fiscal year July 1,
2017, to June 30, 2018, to prepare for, implement and
administer the provisions of this chapter.
20170HB1796PN2440 - 36 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(b) Repayment required.--The money appropriated under this
section shall be repaid to the General Fund from the Video
Gaming Fund according to a schedule adopted by the board under
subsection (c).
(c) Repayment schedule.--
(1) The board shall assess licensed terminal operators
for payment to the Video Gaming Fund in an aggregate amount
equal to the appropriations under subsection (a) beginning
one year from the date the board authorizes the first video
gaming terminal to be connected to the central control
computer system and is made available for public use.
(2) The board shall adopt a repayment schedule that
assesses licensed terminal operators the amount that is
proportional to each licensed terminal operator's gross
terminal revenue.
(3) The repayment schedule adopted by the board shall
require payments made under this section to be repaid to the
General Fund no later than June 30, 2022.
§ 11A20. Preemption of local taxes and license fees.
(a) Statutes.--Video gaming terminals shall be exempt from
taxes levied under the following:
(1) The act of August 5, 1932 (1st Sp.Sess., P.L.45,
No.45), referred to as the Sterling Act.
(2) The act of December 31, 1965 (P.L.1257, No.511),
known as The Local Tax Enabling Act.
(3) 53 Pa.C.S. Pt. III Subpt. E (relating to home rule
and optional plan government).
(4) Any statute that confers taxing authority to a
political subdivision.
(b) Licensing fees.--
20170HB1796PN2440 - 37 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) Video gaming terminals are exempt from local
licensing fees.
(2) Local licensing fees imposed on all other coin-
operated amusement games shall not exceed $100.
§ 11A21. Exemption from State gaming laws.
Video gaming terminals authorized under this chapter and the
use of video gaming terminals as authorized under this chapter
are exempt from 18 Pa.C.S. § 5513 (relating to gambling devices,
gambling, etc.).
§ 11A22. Exemption from Federal regulation.
The General Assembly declares that the Commonwealth is exempt
from section 2 of the Gambling Devices Transportation Act (64
Stat. 1134, 15 U.S.C. § 1172). Shipments of approved video
gaming terminals into this Commonwealth in compliance with
sections 3 and 4 of the Gambling Devices Transportation Act (15
U.S.C. §§ 1173 and 1174) shall be deemed legal shipments into
this Commonwealth.
§ 11A23. Preemption.
This chapter shall preempt all laws of units of local
government to the extent they are inconsistent with this
chapter.
§ 11A24. Compulsive and problem gambling.
(a) Establishment of program.--
(1) The Department of Health or the Department of Drug
and Alcohol Programs shall develop program guidelines for
public education, awareness and training regarding compulsive
and problem gambling and the treatment and prevention of
compulsive and problem gambling, specifically in the area of
video gaming. The program shall supplement and be
complimentary to the existing program under section 1509
20170HB1796PN2440 - 38 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(relating to compulsive and problem gambling program).
(2) Except as otherwise provided in this subsection, the
provisions of section 1509 shall be fully applicable to video
gaming. The guidelines shall include strategies for the
prevention of compulsive and problem gambling. The Department
of Health or the Department of Drug and Alcohol Programs may
consult with the board and licensed gaming entities to
develop such strategies.
(3) The program shall include the following,
specifically with respect to video gaming:
(i) Maintenance of a compulsive gamblers assistance
organization's toll-free problem gambling telephone
number to provide crisis counseling and referral services
to families experiencing difficulty as a result of
problem or compulsive gambling.
(ii) The promotion of public awareness regarding the
recognition and prevention of problem or compulsive
gambling.
(iii) Facilitation, through in-service training and
other means, of the availability of effective assistance
programs for problem and compulsive gamblers and family
members affected by problem and compulsive gambling.
(iv) Studies to identify adults and juveniles in
this Commonwealth who are, or are at risk of becoming,
problem or compulsive gamblers.
(v) Grants to and contracting with organizations
which provide services as provided in this section.
(vi) Reimbursement for organizations for reasonable
expenses in assisting the Department of Health or the
Department of Drug and Alcohol Programs in carrying out
20170HB1796PN2440 - 39 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the purposes of this section.
(b) Notice of availability of assistance.--
(1) A licensed establishment shall post the toll-free 1-
800-GAMBLER telephone number, or if no longer in use, another
toll-free problem gambling telephone number maintained by the
Department of Health or the Department of Drug and Alcohol
Programs, to be used to provide persons with information on
assistance for compulsive or problem gambling. A licensed
establishment shall conspicuously post at least two signs
containing language similar to the following statement:
If you or someone you know has a gambling problem, help
is available. Call (Toll-free telephone number).
The signs shall be posted within 50 feet of each entrance and
exit and within 50 feet of each automated video gaming area
within the licensed establishment and in other appropriate
public areas of the licensed establishment as determined by
the licensed establishment.
(2) A licensed establishment shall have available in its
premises written handout materials in a format prescribed by
the Department of Health or the Department of Drug and
Alcohol Programs which contain the same information as the
signs referenced in paragraph (1).
(3) A licensed establishment that fails to post or print
the warning sign or provide the written materials in
accordance with paragraph (1) or (2) shall be assessed a fine
of $1,000 per day for each day the minimum number of signs
are not posted as required in this subsection.
(c) Mandatory training.--The board's Office of Compulsive
and Problem Gambling shall develop mandatory training for
employees and management of a licensed establishment who oversee
20170HB1796PN2440 - 40 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the video gaming terminal to identify and address compulsory
gambling behaviors and provide assistance to problem gamblers.
The board shall establish a fee to cover the cost of the
training.
§ 11A25. Provisional licenses.
(a) General rule.--The General Assembly has determined that
prompt and expedited implementation of video gaming in this
Commonwealth is desirable, to the extent that such expedited
implementation can be accomplished without compromising the
integrity of gaming. The provisional licensing provisions of
this section are found to strike the correct balance between
assuring that licensees meet the licensing criteria without
causing an undue delay in implementation of this chapter.
(b) Provisional licensing of clubs.--
(1) Within 60 days after a municipal referendum is
approved under section 11A14 (relating to local option), the
board shall make applications for a video gaming license as a
club available to applicants.
(2) The board shall issue a provisional license to an
applicant for a video gaming license as a club if the
applicant satisfies, as determined by the board, all of the
following criteria:
(i) The applicant has never been convicted of a
felony.
(ii) The applicant is current on all State taxes.
(iii) The applicant has submitted a completed
application for licensure as a licensed establishment,
which may be submitted concurrently with the applicant's
request for a provisional license.
(iv) The applicant held a valid liquor license under
20170HB1796PN2440 - 41 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Article IV of the act of April 12, 1951 (P.L.90, No.21),
known as the Liquor Code, on the date of application and
has never had the liquor license revoked.
(v) The applicant has never been convicted of any
gambling law violation in any jurisdiction.
(3) The board shall issue a provisional license to an
applicant for a video gaming license as a club, within 60
days after the application has been received by the board,
provided that the board determines that the criteria
contained in paragraph (2) has been satisfied. If the board
has determined that the criteria contained in paragraph (2)
has not been satisfied, the board shall give a written
explanation to the applicant as to why it has determined the
criteria has not been satisfied.
(4) A provisional license shall be valid until:
(i) the board either approves or denies the
applicant's application for licensure;
(ii) the provisional license is terminated for a
violation of this chapter; or
(iii) one calendar year has passed since the
provisional license was issued.
(5) If the board fails to act upon the application for a
video gaming license as a club, within 60 days after the
expiration of a provisional license, the applicant may apply
for a renewal of the provisional license.
(6) Each applicant shall attest by way of affidavit
under penalty of perjury that the applicant is not otherwise
prohibited from licensure according to the requirements of
this section or any other provision of this chapter.
(7) All requests for provisional licensure under this
20170HB1796PN2440 - 42 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
subsection shall include payment of a $100 fee, which is in
addition to the applicable fee required for an application
for licensure as a licensed establishment.
(8) If the board fails to act upon a request for
provisional licensure within 60 days after receipt of the
request, the request shall be deemed approved and the board
shall issue the applicant a provisional video gaming license
as a club.
(c) Provisional licensing of terminal operators.--
(1) Within 90 days after the effective date of this
section, the board shall make applications for licensure as
terminal operator available to applicants.
(2) The board shall accept applications for licensure as
a terminal operator beginning 14 days after applications
become available.
(3) The board shall issue a provisional license to an
applicant for licensure as a terminal operator if the
applicant satisfies, as determined by the board, all of the
following criteria:
(i) The applicant has never been convicted of a
felony.
(ii) The applicant is current on all State taxes.
(iii) The applicant has submitted a completed
application for licensure as a licensed terminal
operator, which may be submitted concurrently with the
applicant's request for a provisional license.
(iv) The applicant has never had its terminal
operator license or similar gaming license revoked in
another jurisdiction.
(v) The applicant has never been convicted of any
20170HB1796PN2440 - 43 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
gambling law violation in any jurisdiction.
(4) The board shall issue a provisional license to an
applicant for licensure as a licensed terminal operator,
within 60 days after such application has been received by
the board, provided that the board determines that the
criteria contained in paragraph (3) has been satisfied. If
the board has determined that the criteria contained in
paragraph (3) has not been satisfied, the board shall give a
written explanation to the applicant as to why it has
determined the criteria has not been satisfied.
(5) A provisional license shall be valid until:
(i) the board either approves or denies the
applicant's application for licensure;
(ii) the provisional license is terminated for a
violation of this chapter; or
(iii) one calendar year has passed since the
provisional license was issued.
(6) If the board fails to act upon the application for
licensure as a terminal operator, within 60 days after the
expiration of a provisional license, the applicant may apply
for a renewal of the provisional license.
(7) Each applicant shall attest by way of affidavit
under penalty of perjury that the applicant is not otherwise
prohibited from licensure according to the requirements of
this subsection or any other provision of this chapter.
(8) All requests for provisional licensure under this
subsection shall include payment of a $5,000 fee, which is in
addition to the applicable fee required for an application
for licensure as a terminal operator.
(9) The board shall initially issue no fewer than 10
20170HB1796PN2440 - 44 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
provisional licenses to terminal operator applicants unless
the board receives less than 10 applications for provisional
licenses.
(10) If the board fails to act upon a request for
provisional licensure within 60 days after receipt of the
request, the request shall be deemed approved and the board
shall issue the applicant a provisional license as a licensed
terminal operator.
(d) Provisional licensing of service technicians.--
(1) Within 90 days after the effective date of this
section, the board shall make applications for licensure as a
service technician available to applicants.
(2) The board shall issue a provisional license to an
applicant for licensure as a service technician if the
applicant satisfies, as determined by the board, all of the
following criteria:
(i) The applicant has never been convicted of a
felony.
(ii) The applicant is current on all State taxes.
(iii) The applicant has submitted a completed
application for licensure as a service technician, which
may be submitted concurrently with the applicant's
request for a provisional license.
(iv) The applicant has never been convicted of any
gambling law violation in any jurisdiction.
An individual who has a valid license issued by the
Commonwealth that allows the individual to serve as a service
technician in a Pennsylvania casino shall be exempt from the
requirements of this section and shall automatically be
eligible for a provisional license as a service technician.
20170HB1796PN2440 - 45 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(3) The board shall issue a provisional license to an
applicant for licensure as a service technician, within 60
days after the application has been received by the board,
provided that the board determines that the criteria
contained in paragraph (2) has been satisfied. If the board
has determined that the criteria contained in paragraph (2)
has not been satisfied, the board shall give a written
explanation to the applicant as to why it has determined the
criteria has not been satisfied.
(4) A provisional license shall be valid until:
(i) the board either approves or denies the
applicant's application for licensure;
(ii) the provisional license is terminated for a
violation of this chapter; or
(iii) one calendar year has passed since the
provisional license was issued.
(5) If the board fails to act upon the application for
licensure as a service technician, within 60 days after the
expiration of a provisional license, the applicant may apply
for a renewal of the provisional license.
(6) Each applicant shall attest by way of affidavit
under penalty of perjury that the applicant is not otherwise
prohibited from licensure according to the requirements of
this subsection or any other provision of this chapter.
(7) All requests for provisional licensure under this
subsection shall include payment of a $100 fee, which is in
addition to the applicable fee required for an application
for licensure as a service technician.
(8) If the board fails to act upon a request for
provisional licensure within 60 days after receipt of the
20170HB1796PN2440 - 46 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
request, the request shall be deemed approved and the board
shall issue the applicant a provisional license as a service
technician.
(e) Provisional licensing of manufacturers and suppliers.--
(1) Within 60 days after the effective date of this
section, the board shall make applications for licensure as
manufacturers and suppliers available to applicants.
(2) The board shall issue a provisional license to an
applicant for licensure as a licensed manufacturer or
supplier if the applicant satisfies, as determined by the
board, all of the following criteria:
(i) The applicant has never been convicted of a
felony.
(ii) The applicant is current on all State taxes.
(iii) The applicant has submitted a completed
application for licensure as a manufacturer or supplier,
which may be submitted concurrently with the applicant's
request for a provisional license.
(iv) The applicant has never been convicted of any
gambling law violation in any jurisdiction.
(3) The board shall issue a provisional license to an
applicant for licensure as a manufacturer or supplier, within
60 days after such application has been received by the
board, provided that the board determines that the criteria
contained in paragraph (2) has been satisfied. If the board
has determined that the criteria contained in paragraph (2)
has not been satisfied, the board shall give a written
explanation to the applicant as to why it has determined the
criteria has not been satisfied.
(4) A provisional license shall be valid until:
20170HB1796PN2440 - 47 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(i) the board either approves or denies the
applicant's application for licensure;
(ii) the provisional license is terminated for a
violation of this chapter; or
(iii) one calendar year has passed since the
provisional license was issued.
(5) If the board fails to act upon the application for
licensure as a manufacturer, within 60 days after the
expiration of a provisional license, the applicant may apply
for a renewal of the provisional license.
(6) Each applicant shall attest by way of affidavit
under penalty of perjury that the applicant is not otherwise
prohibited from licensure according to the requirements of
this subsection or any other provision of this chapter.
(7) All requests for provisional licensure under this
subsection shall include payment of a $1,000 fee, which is in
addition to the applicable fee required for an application
for licensure as a manufacturer or supplier.
(8) If the board has not acted upon a request for
provisional licensure within 60 days after receipt of the
request, the request shall be deemed approved and the board
shall issue the applicant a provisional license as a licensed
manufacturer.
§ 11A26. Temporary video gaming regulations.
(a) General rule.--Regulations promulgated by the board
under this chapter shall be deemed temporary regulations which
shall expire not later than two years following the publication
of the temporary regulation. The board may promulgate temporary
regulations not subject to:
(1) Sections 201, 202, 203, 204 and 205 of the act of
20170HB1796PN2440 - 48 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(2) Sections 204(b) and 301(10) of the act of October
15, 1980 (P.L.950, No.164), known as the Commonwealth
Attorneys Act.
(3) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
(b) Expiration.--The board's authority to adopt temporary
regulations under subsection (a) shall expire two years after
the effective date of this section. Regulations adopted after
this period shall be promulgated as provided by law.
(c) Temporary regulations.--The board shall begin publishing
temporary regulations governing video gaming within 120 days
after the effective date of this section.
§ 11A27. City of the First Class Nuisance Bar Enforcement Task
Force Account.
(a) Establishment.--There is established a restricted
receipt account in the State Treasury to be known as the City of
the First Class Nuisance Bar Enforcement Task Force Account.
(b) Use.--The money deposited in the restricted receipt
account is appropriated on a continuing basis to the
Pennsylvania State Police for the purpose established under
subsection (c).
(c) Purpose.--The Pennsylvania State Police, in consultation
with the Pennsylvania Liquor Control Board, shall form a
nuisance bar enforcement task force to operate in a city of the
first class. The task force shall consist of law enforcement
officers and personnel that are dedicated to liquor code
enforcement in a city of the first class.
§ 11A28. Report.
20170HB1796PN2440 - 49 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
The board shall submit a report to the General Assembly two
years after the effective date of this section on the impact of
video gaming on the casino industry in this Commonwealth.
§ 11A29. Expiration.
This chapter shall expire June 30, 2021.
Section 2. This act shall take effect immediately.
20170HB1796PN2440 - 50 -
1
2
3
4
5
6