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PRINTER'S NO. 487
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
499
Session of
2019
INTRODUCED BY KORTZ, HILL-EVANS, T. DAVIS, READSHAW, BERNSTINE,
SNYDER, A. DAVIS, McNEILL, STURLA, MILLARD, PYLE, IRVIN,
DeLUCA, WARNER, EVERETT AND MULLERY, FEBRUARY 12, 2019
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, FEBRUARY 12, 2019
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, in general provisions relating to video gaming,
further providing for definitions; in application and
licensure relating to video gaming, further providing for
establishment licenses, establishing the City of the First
Class Nuisance Bar Enforcement Task Force Account, further
providing for issuance and renewal and providing for
additional annual fee for terminal operator licensees; and,
in operation, further providing for video gaming limitations
and for terminal placement agreements.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "establishment license,"
"establishment licensee" and "inducement" in section 3102 of
Title 4 of the Pennsylvania Consolidated Statutes are amended
and the section is amended by adding a definition to read:
§ 3102. 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:
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"Club establishment." A club as defined under section 102 of
the act of April 12, 1951 (P.L.90, No.21), known as the Liquor
Code, that:
(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.
* * *
"Establishment license." A license issued by the board
authorizing a truck stop establishment or club establishment to
permit a terminal operator licensee to place and operate video
gaming terminals on the truck stop establishment's or club
establishment's premises under this part and the rules and
regulations promulgated under this part.
"Establishment licensee." A truck stop establishment or club
establishment that holds an establishment license.
* * *
"Inducement."
(1) Any of the following:
(i) Consideration paid directly or indirectly, from
a manufacturer, supplier, terminal operator, procurement
agent, gaming employee, employee or another person on
behalf of an applicant or anyone licensed under this
part, to a truck stop establishment, club establishment,
establishment licensee, establishment licensee owner or
an employee of the establishment licensee, directly or
indirectly as an enticement to solicit or maintain the
establishment licensee or establishment licensee owner's
business.
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(ii) Cash, incentive, marketing and advertising
cost, gift, food, beverage, loan, prepayment of gross
terminal revenue and other contribution or payment that
offsets an establishment licensee's operational costs, or
as otherwise determined by the board.
(2) The term shall not include costs paid by a terminal
operator applicant or terminal operator licensee related to
making video gaming terminals operate at the premises of an
establishment licensee, including wiring and rewiring,
software updates, ongoing video gaming terminal maintenance,
redemption terminals, network connections, site controllers
and costs associated with communicating with the central
control computer system.
* * *
Section 2. Section 3514(a), (d) and (f) of Title 4 are
amended and the section is amended by adding subsections to
read:
§ 3514. Establishment licenses.
(a) General requirements.--A truck stop establishment or
club establishment that submits an application for an
establishment license shall include at a minimum:
(1) The name, address and photograph of the applicant
and additional financial information required by the board.
(2) A description of the proposed surveillance and
security measures to ensure the security of the proposed
video gaming area.
(3) A current tax lien certificate issued by the
department.
(4) The criminal history record of the applicant,
principal and key employees and a consent for the bureau to
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conduct a background investigation on the applicant,
principals and key employees.
(4.1) In the case of a club establishment, evidence that
the provisions of subsections (g) and (h) are satisfied.
(5) Other information determined to be appropriate by
the board.
* * *
(d) Review and approval.--Upon being satisfied that the
requirements of subsection (a) have been met, the board may
approve the application and issue the applicant an establishment
license consistent with all of the following:
(1) (i) The license shall be valid for a period of five
years.
(ii) Nothing in this paragraph shall be construed to
relieve a licensee of the affirmative duty to notify the
board of a change relating to the status of its license
or to information contained in application materials on
file with the board.
(2) The license shall be nontransferable.
(2.1) In the case of a club establishment, not more than
three video gaming terminals may operate on the premises.
(3) Other conditions established by the board.
* * *
(f) Requirement for truck stop establishments.--In order for
a truck stop establishment to be eligible for an establishment
license, [a] the truck stop establishment must be licensed as a
lottery sales agent under section 305 of the act of August 26,
1971 (P.L.351, No.91), known as the State Lottery Law, and
licensed to take any actions authorized by the designation.
(g) Requirement for club establishments.--In order for a
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club establishment to be eligible for an establishment license,
the premises of the club establishment must be located in a
municipality in which a voter referendum has been approved in
accordance with subsection (h).
(h) Voter referendum for club establishments.--
(1) In order for a club establishment to operate as an
establishment licensee in a municipality, the electors of the
municipality must have approved the authorization of club
establishments to operate establishment licensees within the
boundaries of the municipality. The procedure for the
referendum shall be governed by the act of June 3, 1937
(P.L.1333, No.320), known as the Pennsylvania Election Code.
(2) This subsection shall expire June 30, 2023.
(i) Additional annual fee in cities of the first class.--An
establishment licensee that is a club establishment and whose
premises are located in a city of the first class, shall pay an
additional annual fee of $500 per video gaming terminal. The
additional fee shall be deposited in the City of the First Class
Nuisance Bar Enforcement Task Force Account established under
section 3514.1 (relating to City of the First Class Nuisance Bar
Enforcement Task Force Account).
Section 3. Title 4 is amended by adding a section to read:
§ 3514.1. City of the First Class Nuisance Bar Enforcement Task
Force Account.
(a) Establishment.--There is established a restricted
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 account is
appropriated on a continuing basis to the Pennsylvania State
Police for the purpose established under subsection (c).
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(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 who are dedicated to Liquor Code
enforcement in a city of the first class.
Section 4. Section 3516(a)(1) of Title 4 is amended to read:
§ 3516. Issuance and renewal.
(a) Issuance.--
(1) In addition to any other criteria provided under
this part, any terminal operator, truck stop establishment,
club establishment, supplier, manufacturer, gaming employee,
key employee, principal or other person that the board
approves as qualified to receive a license, permit or other
authorization under this part shall be issued a license or
permit upon the payment of a fee required in section 4101
(relating to fees) and upon the fulfillment of conditions
required by the board or provided for in this part.
* * *
Section 5. Title 4 is amended by adding a section to read:
§ 3521. Additional annual fee for terminal operator licensees.
(a) General rule.--A terminal operator licensee that owns,
services or maintains video gaming terminals at the premises of
an establishment licensee that is a club establishment in a city
of the first class shall pay an additional annual fee of $250
per video gaming terminal at the premises of the establishment
licensee. The additional fee shall be deposited in the City of
the First Class Nuisance Bar Enforcement Task Force Account
established under section 3514.1 (relating to City of the First
Class Nuisance Bar Enforcement Task Force Account).
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(b) Nonapplicability.--This section shall not apply to a
terminal operator licensee that is both an establishment
licensee and a club establishment.
Section 6. Sections 3702(b)(6) and 3704(f) of Title 4 are
amended to read:
§ 3702. Video gaming limitations.
* * *
(b) Terminal operator licensee limitations.--A terminal
operator licensee may place and operate video gaming terminals
on the premises of an establishment licensee, subject to the
following:
* * *
(6) No terminal operator licensee may give or offer to
give, directly or indirectly, any type of inducement to a
truck stop establishment or club establishment to secure or
maintain a terminal placement agreement.
* * *
§ 3704. Terminal placement agreements.
* * *
(f) Void agreements.--
(1) An agreement entered into by a truck stop
establishment prior to the effective date of this section
with a person or entity for the placement, operation, service
or maintenance of video gaming terminals, including an
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 shall be void and may not be approved by the
board.
(2) An agreement entered into by a club establishment
prior to the effective date of this paragraph with a person
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or entity for the placement, operation, service or
maintenance of video gaming terminals, including an agreement
granting a person or entity the right to enter into an
agreement or match any offer made after the effective date of
this paragraph shall be void and may not be approved by the
board.
* * *
Section 7. This act shall take effect in 60 days.
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