A01263
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1281
Session of
2017
INTRODUCED BY M. QUINN, DUNBAR, MILLARD, BARBIN AND SAYLOR,
APRIL 25, 2017
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, APRIL 25, 2017
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, in Pennsylvania Gaming Control Board, further
providing for slot machine license fee; in table games,
further providing for award of certificate and for table game
authorization fee; and, in miscellaneous provisions, further
providing for appropriations and for repayments to State
Gaming Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 1209(a), 13A16, 13A61, 1901 and 1901.1
of Title 4 of the Pennsylvania Consolidated Statutes are amended
to read:
§ 1209. Slot machine license fee.
(a) Imposition.--
(1) Except as provided for a Category 3 licensed gaming
entity under section 1305 (relating to Category 3 slot
machine license) and subject to the requirements of this
section, at the time of license issuance the board shall
impose a one-time slot machine license fee to be paid by each
successful applicant for a conditional Category 1, a Category
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
1 or a Category 2 license in the amount of $50,000,000 and
deposited in the [State Gaming] General Fund. No fee shall be
imposed by the board for a Category 1 license if the
applicant has paid a $50,000,000 fee for a conditional
Category 1 license.
(2) The fee imposed under paragraph (1) shall be due and
payable not later than 10 days after the effective date of
this paragraph or 10 days after license issuance, whichever
occurs later.
* * *
§ 13A16. Award of certificate.
(a) General rule.--Upon approval of a petition, the board
shall award a table games operation certificate to the
petitioner. Awarding of a table game operation certificate prior
to the payment in full of the authorization fee required by
section 13A61 (relating to table game authorization fee) shall
not relieve the petitioner from complying with the provisions of
section 13A61.
(b) Time period for payment of fee.--The table game
authorization fee imposed in section 13A61 shall be paid no
later than 10 days after the award of the table games operation
certificate in subsection (a).
§ 13A61. Table game authorization fee.
(a) Amount of authorization fee.--
(1) A Category 1 or a Category 2 slot machine licensee
that submits a petition for a table game operation
certificate under section 13A12 (relating to petition
requirements) on or before June 1, 2010, shall pay a one-time
nonrefundable authorization fee in the amount of $16,500,000.
A Category 1 or a Category 2 slot machine licensee that
A01263 - 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
submits a petition for a table game operation certificate
under section 13A12 after June 1, 2010, shall pay a one-time
nonrefundable authorization fee in the amount of $24,750,000.
(2) A Category 3 slot machine licensee that submits a
petition for a table game operation certificate under section
13A12 on or before June 1, 2010, shall pay a one-time
nonrefundable authorization fee in the amount of $7,500,000.
A Category 3 slot machine licensee that submits a petition
for a table game operation certificate under section 13A12
after June 1, 2010, shall pay a one-time nonrefundable
authorization fee in the amount of $11,250,000.
[(3) Notwithstanding paragraphs (1) and (2), the holder
of a Category 1 or Category 3 slot machine license issued
after June 1, 2010, that submits a petition for a table game
operation certificate shall pay a one-time nonrefundable
authorization fee in the amount of $16,500,000 or $7,500,000,
respectively.]
(3.1) Notwithstanding paragraph (1):
(i) The holder of a Category 1 or Category 2 slot
machine license issued after June 30, 2017, that submits
a petition for a table game operation certificate under
section 13A12 within 90 days of the issuance of the slot
machine license under section 1301 (relating to
authorized slot machine licenses), shall pay a one-time
nonrefundable authorization fee in the amount of
$16,500,000.
(ii) A Category 1 or Category 2 slot machine
licensee that submits a petition for a table game
operation certificate under section 13A12 after the time
frame established in subparagraph (i), shall pay a one-
A01263 - 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
time nonrefundable authorization fee in the amount of
$24,750,000.
(3.2) Notwithstanding paragraph (2):
(i) The holder of a Category 3 slot machine license
issued after June 30, 2017, that submits a petition for a
table game operation certificate under section 13A12
within 90 days of the issuance of the slot machine
license under section 1301, shall pay a one-time
nonrefundable authorization fee in the amount of
$7,500,000.
(ii) A Category 3 slot machine licensee that submits
a petition for a table game operation certificate under
section 13A12 after the time frame established in
subparagraph (i), shall pay a one-time nonrefundable
authorization fee in the amount of $11,250,000.
(4) A table game operation certificate shall not be
subject to renewal or payment of an additional authorization
fee.
(b) Payment of fee.--A slot machine licensee that submits a
petition on or before June 1, 2010, shall pay the required
authorization fee on or before June 1, 2010. The board may allow
the fee to be paid in installments, provided all installments
are paid on or before June 1, 2010. In that event, the board and
the slot machine licensee shall enter into a written agreement
setting forth the terms of payment.
(c) Failure to pay by deadline.--If a petitioner or
certificate holder fails to pay the required authorization fee
in full by June 1, 2010, the board shall impose a penalty and
may grant the petitioner or certificate holder up to a six-month
extension to pay the authorization fee or any remaining portion
A01263 - 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
of the authorization fee and the penalty. The board shall
require the petitioner or certificate holder to make weekly
payments until the fee and penalty are paid in full.
(d) Suspension of certificate.--The board shall suspend the
table game operation certificate if the certificate holder fails
to pay the total authorization fee and the penalty prior to the
expiration of an extension period granted under subsection (c).
The suspension shall remain in effect until final payment is
made.
(e) (Reserved).
(f) Deposit of fees.--Notwithstanding section 1208 (relating
to collection of fees and fines), all table game authorization
fees or penalties received by the board under this subchapter,
all table game device and associated equipment manufacturer and
supplier license fees, all table game device or associated
equipment manufacturer and supplier renewal fees and fees for
licenses issued under Chapter 16 (relating to junkets) shall be
deposited in the General Fund.
§ 1901. Appropriations.
(a) Appropriation to board.--
(1) The sum of $7,500,000 is hereby appropriated to the
Pennsylvania Gaming Control Board for the fiscal period July
1, 2004, to June 30, 2006, to implement and administer the
provisions of this part. The money appropriated in this
subsection shall be considered a loan from the General Fund
[and shall be repaid to the General Fund quarterly commencing
with the date slot machine licensees begin operating slot
machines under this part]. This appropriation shall be a two-
year appropriation and shall not lapse until June 30, 2006.
(2) The sum of $2,100,000 is hereby appropriated from
A01263 - 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
the State Gaming Fund to the Pennsylvania Gaming Control
Board for salaries, wages and all necessary expenses for the
proper operation and administration of the Pennsylvania
Gaming Control Board for the expansion of gaming associated
with table games. This appropriation shall be a supplemental
appropriation for fiscal year 2009-2010 and shall be in
addition to the appropriation contained in the act of August
19, 2009 (P.L.777, No.9A), known as the Gaming Control
Appropriation Act of 2009.
(b) Appropriation to department.--The sum of $21,100,000 is
hereby appropriated from the General Fund to the Department of
Revenue for the fiscal period July 1, 2004, to June 30, 2006, to
prepare for, implement and administer the provisions of this
part. The money appropriated under this subsection shall be
considered a loan from the General Fund [and shall be repaid to
the General Fund quarterly commencing with the date slot machine
licensees begin operating slot machines under this part]. This
appropriation shall be a two-year appropriation and shall not
lapse until June 30, 2006.
(c) Appropriation to Pennsylvania State Police.--The sum of
$7,500,000 is hereby appropriated from the General Fund to the
Pennsylvania State Police for the fiscal period July 1, 2004, to
June 30, 2006, to prepare for, implement and administer the
provisions of this part. The money appropriated under this
subsection shall be considered a loan from the General Fund [and
shall be repaid to the General Fund quarterly commencing when
all slot machine licensees begin operating slot machines under
this part]. This appropriation shall be a two-year appropriation
and shall not lapse until June 30, 2006.
§ 1901.1. Repayments to [State Gaming] General Fund.
A01263 - 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 board shall defer assessing slot machine licensees for
payments to the State Gaming Fund for any loans made to the
State Gaming Fund until such time as all slot machine licenses
have been issued and all licensed gaming entities have commenced
the operation of slot machines. The board shall adopt a
repayment schedule that assesses to each slot machine licensee
costs for the repayment of any such loans in an amount that is
proportional to each slot machine licensee's gross terminal
revenue.]
(a) Establishment of repayment schedule.--
(1) No later than September 30, 2017, the Pennsylvania
Gaming Control Board, in consultation with all licensed
gaming entities, shall establish a schedule governing the
repayment by licensed gaming entities of loans provided under
section 1901 (relating to appropriations).
(2) The repayment of loans provided under section 1901
by licensed gaming entities shall begin no later than January
1, 2018.
(3) The repayment schedule shall, at a minimum:
(i) Specify the dates upon which the repayments
shall be due. Payments may be required on a quarterly,
semiannual or annual basis.
(ii) Assess each slot machine licensee costs for
repayment of loans under section 1901 in an amount that
is proportional to each slot machine licensee's gross
terminal revenue.
(iii) Result in full repayment of amounts loaned
under section 1901 not earlier than five years and not
later than 10 years following commencement of the loan
repayments by the slot machine licensee. 50% of the
A01263 - 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
amounts loaned under section 1901 being repaid by June
30, 2018, and 100% of the amounts loaned under section
1901 being repaid by June 30, 2019.
(b) Deposit.--Payments received under subsection (a) shall
be deposited into the General Fund.
Section 2. This act shall take effect immediately.
A01263 - 8 -
1
2
3
4
5
6