PRINTER'S NO. 1279
No. 1088 Session of 2003
INTRODUCED BY VEON, DeWEESE, KENNEY, CAWLEY, STABACK, FABRIZIO,
STURLA, TRAVAGLIO, BEBKO-JONES, LaGROTTA, THOMAS, DeLUCA,
WANSACZ, HORSEY, BELFANTI, PALLONE, LAUGHLIN, MELIO, RUFFING,
WOJNAROSKI, WALKO, HARHAI, McGEEHAN, YOUNGBLOOD, FRANKEL,
DERMODY, JAMES, ROONEY, COSTA, MANN, PRESTON, SANTONI,
WHEATLEY, GERGELY, LEACH AND PISTELLA, APRIL 8, 2003
REFERRED TO COMMITTEE ON FINANCE, APRIL 8, 2003
AN ACT
1 Establishing the Gaming Commission; and reorganizing State
2 offices.
3 TABLE OF CONTENTS
4 Section 1. Short title.
5 Section 2. Definitions.
6 Section 3. Commission.
7 Section 4. Composition and governance of commission.
8 Section 5. Meetings.
9 Section 6. Ethics.
10 Section 7. Powers and duties.
11 Section 8. Executive director.
12 Section 9. Criminal history information.
13 Section 10. Exemptions to disclosure rules.
14 Section 11. Administrative procedures.
15 Section 60. Effective date.
16 The General Assembly of the Commonwealth of Pennsylvania
1 hereby enacts as follows:
2 Section 1. Short title.
3 This act shall be known and may be cited as the Video Gaming
4 Act.
5 Section 2. Definitions.
6 The following words and phrases when used in this act shall
7 have the meanings given to them in this section unless the
8 context clearly indicates otherwise:
9 "Chairman." The chairman of the Gaming Commission.
10 "Commission." The Gaming Commission established in section
11 3.
12 "Commissioner." A member of the Gaming Commission.
13 "Executive director." The executive director of the Gaming
14 Commission.
15 "Licensed establishment." A restaurant, bar, tavern, hotel
16 or club, which has a valid liquor, or malt or brewed beverage
17 license under the act of April 12, 1951 (P.L.90, No.21), known
18 as the Liquor Code.
19 "Party officer." The following members or officers of any
20 political party:
21 (1) A member of a national committee.
22 (2) A chairman, vice chairman, secretary, treasurer or
23 counsel of a Commonwealth committee.
24 (3) A member of the executive committee of a
25 Commonwealth committee.
26 (4) A county chairman, vice chairman or counsel.
27 (5) A secretary or treasurer of a county committee.
28 (6) A city chairman, vice chairman or counsel.
29 (7) A secretary or treasurer of a city committee.
30 (8) A borough chairman, vice chairman or counsel.
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1 (9) A secretary or treasurer of a borough committee.
2 (10) A town chairman, vice chairman or counsel.
3 (11) A secretary or treasurer of a town committee.
4 (12) A township chairman, vice chairman or counsel.
5 (13) A secretary or treasurer of a township committee.
6 "State Lottery." The lottery established and operated under
7 the act of August 26, 1971 (P.L.351, No.91), know as the State
8 Lottery Law.
9 Section 3. Commission.
10 An independent commission to be known as the Gaming
11 Commission is established. The commission shall not be
12 considered either an executive agency or an independent agency
13 for the purpose of the act of October 15, 1980 (P.L.950,
14 No.164), known as the Commonwealth Attorneys Act, but shall
15 possess the same status for such purpose as the Auditor General,
16 the State Treasurer and the Pennsylvania Public Utility
17 Commission.
18 Section 4. Composition and governance of commission.
19 (a) Composition.--
20 (1) The commission shall consist of the following
21 members:
22 (i) Three appointed by the Governor. Appointments
23 under this subparagraph, other than initial appointments,
24 shall comply with section 207.1(d) of the act of April 9,
25 1929 (P.L.177, No. 175), known as The Administrative Code
26 of 1929.
27 (ii) One appointed by the President pro tempore of
28 the Senate.
29 (iii) One appointed by the Minority Leader of the
30 Senate.
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1 (iv) One appointed by the Speaker of the House of
2 Representatives.
3 (v) One appointed by the Minority Leader of the
4 House of Representatives.
5 (2) The appointing authorities shall appoint each of the
6 initial members of the commission within 30 days of the
7 effective date of this section.
8 (b) Terms of office.--
9 (1) For members under subsection (a)(1)(i):
10 (i) Except as set forth in subparagraph (ii), terms
11 shall be three years.
12 (ii) Initial appointments shall be for terms of two
13 years.
14 (2) For members under subsection (a)(2), terms shall be
15 for two years.
16 (3) A commissioner may not serve for more than two
17 terms, consecutively or otherwise.
18 (c) Vacancies.--Vacancies in the commission occurring
19 otherwise than by expiration of term shall be filled for the
20 unexpired term in the same manner as original appointments.
21 (d) Qualifications.--Commissioners must meet the following
22 requirements:
23 (1) A commissioner must be a United States citizen and
24 resident of this Commonwealth.
25 (2) A commissioner must not hold elective or appointed
26 office in the executive, legislative or judicial branch of
27 the Commonwealth or a political subdivision.
28 (3) A commissioner must not be a party officer.
29 (4) A commissioner must not, during the period
30 commencing two years prior to the appointment, have held a
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1 direct or indirect interest in a person licensed by or
2 subject to regulation by the commission.
3 (5) A commissioner must not have any direct or indirect
4 financial interest in a gaming activity regulated by the
5 commission or in a person holding a license awarded by the
6 commission. A member of the commissioner's family must not
7 have such an interest.
8 (6) A commissioner must not have been convicted of any
9 crime, excluding summary convictions.
10 (e) Officers.--The Governor shall designate one commissioner
11 to serve as chairman of the commission. The commission shall
12 select from its membership a vice chairman and whatever other
13 officers the commission deems necessary.
14 (f) Oath of office.--
15 (1) Before entering upon the duties of commissioner, a
16 commissioner must swear or affirm all of the following:
17 (i) The commissioner is not financially interested
18 in a person holding a license issued by the commission or
19 subject to regulation by the commission.
20 (ii) The commissioner will abide by:
21 (A) this act;
22 (B) regulations promulgated by the commission;
23 and
24 (C) all statutory and regulatory provisions which
25 apply to the commission.
26 (2) The oath or affirmation shall be filed in the office
27 of the Secretary of the Commonwealth.
28 (g) Removal.--A commissioner may be removed from office by
29 the authority that appointed the commissioner, regardless of an
30 unexpired term of appointment, for incompetency, misconduct,
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1 willful neglect of duty or other conduct evidencing unfitness
2 for the office. This subsection includes violation of the oath
3 of office.
4 (h) Compensation and expenses.--A commissioner shall receive
5 a salary of $95,000 per year and shall receive reimbursement for
6 actual and necessary expenses in performing the business of the
7 commission.
8 Section 5. Meetings.
9 (a) Regular and special meetings.--Regular and special
10 meetings of the commission may be held at the discretion of the
11 commission and at times and places it deems convenient. At least
12 one regular meeting shall be held each month.
13 (b) Open meetings.--Except as set forth in section 10, the
14 provisions of 65 Pa.C.S. Ch. 7 (relating to open meetings) shall
15 apply to the commission. Meetings may be closed.
16 (c) Voting requirements.--
17 (1) Four commissioners constitute a quorum.
18 (2) An action of the commission must be taken by:
19 (i) a majority of the commissioners; and
20 (ii) in no event, fewer than four commissioners.
21 Section 6. Ethics.
22 (a) Code of ethics.--The commission shall adopt a code of
23 ethics for commissioners, employees and agents and shall provide
24 that none of these individuals are permitted to engage in gaming
25 activities in an establishment licensed by the commission,
26 except in the course of an individual's duties. An individual
27 who has served as a commissioner may not accept employment from
28 a person licensed by the commission for a period of two years
29 after termination of duties as a commissioner.
30 (b) Statutes applying to commission.--The commission, its
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1 members and all of its employees are subject to 65 Pa.C.S. Ch.
2 11 (relating to ethics standards and financial disclosure) and
3 the act of July 19, 1957 (P.L.1017, No.451), known as the State
4 Adverse Interest Act. If there is a conflict between a provision
5 of this act and a provision of either 65 Pa.C.S. Ch. 11 or the
6 State Adverse Interest Act, the provision requiring the more
7 restrictive conduct shall control.
8 Section 7. Powers and duties.
9 (a) General rule.--Except as provided in subsection (b), the
10 commission has jurisdiction over and shall supervise, license
11 and regulate gaming activities in this Commonwealth as provided
12 in this and any other statute.
13 (b) Exceptions.--The powers and duties of the commission
14 under this section do not include any of the following:
15 (1) The State Lottery as authorized under the act of
16 August 26, 1971 (P.L.351, No.91), known as the State Lottery
17 Law.
18 (2) Bingo as authorized under the act of July 10, 1981
19 (P.L.214, No.67), known as the Bingo Law.
20 (3) Small games of chance as authorized by the act of
21 December 19, 1988 (P.L.1262, No. 156), known as the Local
22 Option Small Games of Chance Act.
23 (c) Horse racing.--The act of December 17, 1981 (P.L.435,
24 No.135), known as the Race Horse Industry Reform Act shall
25 continue to apply to pari-mutuel betting on the outcome of horse
26 racing. The State Horse Racing Commission and the State Harness
27 Racing Commission are transferred from the Department of
28 Agriculture and established as administrative commissions within
29 the commission. They shall continue to exercise independent
30 jurisdiction over pari-mutuel betting on the outcome of horse
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1 racing in this Commonwealth, but any other form of gaming
2 conducted at facilities subject to their jurisdiction shall be
3 licensed, supervised and regulated by the commission. This
4 transfer does not affect either commission's personnel,
5 appropriations, allocations, documents, records, equipment,
6 materials, powers, duties and obligations.
7 (d) Specific functions.--The commission has the following
8 powers and duties:
9 (1) To investigate and determine the eligibility of
10 applicants for licenses and to select from among competing
11 applicants the applicant or applicants which best serve the
12 interests of the citizens of this Commonwealth.
13 (2) To regulate and adopt standards for all gaming
14 activities in this Commonwealth, including video gaming as
15 authorized in this act.
16 (3) To maintain accurate and complete records of the
17 proceedings of the commission and to certify the records as
18 appropriate. Except as set forth in section 10, the act of
19 June 21, 1957 (P.L.390, No.212), referred to as the Right-to-
20 Know Law, shall apply to the commission.
21 (4) To levy and collect application fees and license
22 fees and to impose fines and penalties for violations of this
23 act or regulations of the commission. Money collected under
24 this paragraph shall be paid to the State Treasury through
25 the commission for the use of the commission as provided in
26 this or any other act.
27 (5) To enforce the civil provisions of this or any other
28 act conferring jurisdiction on the commission.
29 (6) To cooperate with and assist the Pennsylvania State
30 Police, the Attorney General and the various district
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1 attorneys of this Commonwealth, who have primary
2 responsibility for the enforcement of the criminal provisions
3 of this and any other act conferring jurisdiction on the
4 commission.
5 (7) To cooperate with the Department of Revenue in
6 administering the collection of taxes for gaming activities
7 subject to the jurisdiction of the commission, including
8 video gaming.
9 (8) To conduct hearings pertaining to civil violations
10 of this and any other act conferring jurisdiction on the
11 commission or regulations promulgated by the commission.
12 (9) To enhance the representation of minority groups in
13 the operation of gaming activities in this Commonwealth and
14 through ownership and operation of business activities
15 utilized by gaming activities in this Commonwealth.
16 (10) To submit to the Governor and the General Assembly
17 an annual report. The report shall include:
18 (i) A statement of receipts and disbursements by the
19 commission.
20 (ii) A statement of special accounts or funds under
21 its control, an account of the commission's actions.
22 (iii) Any other information which the commission
23 deems significant or which the Governor and the General
24 Assembly may request.
25 (11) To take action it deems appropriate to achieve the
26 purposes of this act and any other act over which it has
27 jurisdiction.
28 (12) To promulgate regulations necessary:
29 (i) to achieve the purposes of this act and any
30 other act conferring jurisdiction on the commission; or
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1 (ii) for the protection of the:
2 (A) health, safety, morals and general welfare
3 of the citizens of this Commonwealth; and
4 (B) reputation of the Commonwealth's gaming
5 industry.
6 (13) To classify licenses and financial reporting
7 requirements for licensees.
8 (14) To approve, where appropriate, internal control
9 procedures for licensees that are within accepted industry
10 standards.
11 (15) To conduct audits of licensees.
12 (16) To prescribe in conjunction with the Department of
13 Revenue the manner of computing and collecting taxes on
14 gaming activities subject to the jurisdiction of the
15 commission.
16 (17) To require an applicant for a license or a finding
17 of suitability under this or any other act conferring
18 jurisdiction on the commission to pay the costs of a
19 background investigation which are not covered by the
20 application fee.
21 (18) To require an applicant for a license or a finding
22 of suitability to provide fingerprints and to bear the costs
23 associated with the search and classification of the
24 fingerprints.
25 (19) To enter offices, facilities and other places of
26 business of a licensee to obtain evidence of compliance or
27 noncompliance with and to enforce the provisions of this act
28 and any other act conferring jurisdiction on the commission.
29 (20) To investigate alleged violations of this act and
30 any other act conferring jurisdiction on the commission or
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1 commission regulations, orders or decisions. In the course of
2 an investigation under this paragraph, the commission has the
3 power and duty to copy, seize and impound books and records
4 of operations, supplies, equipment, cash boxes, counting
5 rooms, games or gaming devices.
6 (21) To take appropriate disciplinary action against a
7 licensee for a violation or refer the matter to the
8 appropriate law enforcement agency.
9 (22) To impose civil fines and penalties for violations
10 of this act and any other act conferring jurisdiction on the
11 commission.
12 (23) To issue subpoenas requiring the attendance of
13 witnesses and the production of documents, to appoint hearing
14 officers and to administer oaths and affirmations to
15 witnesses, as required to administer and enforce this act and
16 any other act conferring jurisdiction on the commission.
17 (24) To prescribe, where necessary, the manner and
18 method of alcohol and drug testing for employees of the
19 commission and for persons employed in connection with gaming
20 activities.
21 (25) To issue orders in accordance with this act and any
22 other act conferring jurisdiction on the commission and
23 regulations promulgated by the commission, granting,
24 revoking, suspending, limiting or making conditional a
25 license or finding of suitability made by the commission.
26 (26) To suspend a license or finding of suitability
27 issued under this act or any other act conferring
28 jurisdiction on the commission upon notice and hearing.
29 (27) To delegate to the executive director and staff of
30 the commission the execution of functions under this act or
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1 any other act conferring jurisdiction on the commission for
2 the purpose of administering and enforcing this or any other
3 act conferring jurisdiction on the commission and its
4 regulations. Delegation under this paragraph shall be in
5 accordance with standards established by the commission and
6 the laws of this Commonwealth.
7 (28) To develop and implement forms to be used for the
8 purposes of this act and any other act conferring
9 jurisdiction on the commission.
10 (29) To adopt and use a seal.
11 (30) To sue and be sued.
12 (31) To enter into contracts and other instruments
13 necessary or convenient for the conduct of its business and
14 the exercise of the powers of the commission.
15 (32) To retain counsel and auditors to render
16 professional services as the commission deems appropriate.
17 The commission, through its legal counsel after consultation
18 with the Attorney General, shall defend actions brought
19 against the commission or its members, officers, officials
20 and employees when acting within the scope of their official
21 duties.
22 (33) To acquire, hold and transfer a franchise, license
23 or property right or interest, as necessary or convenient to
24 implement this act and any other act conferring jurisdiction
25 on the commission.
26 (34) To enter into contracts for individual or group
27 insurance and to contribute to retirement plans for the
28 benefit of its employees and to enroll its employees in an
29 existing retirement system of a government agency.
30 (35) To take any other action reasonable or appropriate
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1 to implement and enforce this act and any other act
2 conferring jurisdiction on the commission and commission
3 regulations, orders and decisions.
4 (36) To employ an executive director, deputies,
5 secretaries, officers and representatives as necessary. These
6 individuals shall serve at the commission's pleasure.
7 (37) To employ other employees as the commission sees
8 fit and to prescribe their duties and compensation.
9 Section 8. Executive director.
10 (a) Appointment.--The commission shall appoint an executive
11 director, who shall serve at the pleasure of the commission.
12 (b) Qualifications.--The executive director must comply with
13 all of the following:
14 (1) Have at least ten years of responsible
15 administrative experience in public or business
16 administration or possess broad and recognized management
17 skills.
18 (2) Meet the qualification criteria and be subject to
19 the disqualification criteria as required of commissioners
20 under section 4(d) and (g).
21 (3) Make the oath or affirmation under section 4(f).
22 (4) Devote full time and attention to the duties
23 assigned under this act and any other act conferring
24 jurisdiction on the commission and not hold any other
25 employment.
26 (c) Background investigation.--The Pennsylvania State Police
27 shall conduct a thorough background investigation of any person
28 under consideration for the position of executive director prior
29 to appointment and provide the results of the investigation to
30 the commission.
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1 (d) Salary.--The annual salary and other compensation of the
2 executive director shall be set by the commission.
3 (e) Functions.--The executive director has the following
4 powers and duties:
5 (1) To maintain commission records and preserve
6 applications, records, books and other documents submitted to
7 the commission or entrusted to its care.
8 (2) To administer the provisions of this act and any
9 other act conferring jurisdiction on the commission and the
10 regulations of the commission relating to the confidentiality
11 and disclosure of documents and information.
12 (3) To hire personnel necessary to implement and
13 accomplish the purposes of this act and any other act
14 conferring jurisdiction on the commission.
15 (4) To develop a commission budget to be approved by the
16 commission.
17 (5) To sign contracts on behalf of the commission which
18 the commission has approved.
19 (6) To make purchases authorized by the commission.
20 (7) To do other things assigned by the commission.
21 Section 9. Criminal history information.
22 When the commission is authorized or required to consider an
23 applicant's criminal history, the commission shall initiate a
24 criminal history record investigation to obtain information in
25 the possession of the Pennsylvania State Police or the Federal
26 Bureau of Investigation or other relevant law enforcement
27 agencies. The Pennsylvania State Police shall be authorized to
28 and shall provide at the commission's request information
29 concerning criminal charges filed against an applicant for or
30 holder of a license issued by the commission. The commission
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1 shall use the information obtained as a result of an
2 investigation under this section in determining the eligibility
3 of a person for a license or a finding of suitability. The
4 applicant shall be responsible for the payment of all costs
5 incurred for the investigation which are not covered by the
6 application fee.
7 Section 10. Exemptions to disclosure rules.
8 (a) General rule.--The commission is not required to
9 disclose information the disclosure of which would:
10 (1) not be required by the act of June 21, 1957
11 (P.L.390, No.212), referred to as the Right-to-Know Law; or
12 (2) be prohibited by the statutes, regulations or
13 intergovernmental agreement.
14 (b) Confidential information.--
15 (1) Except as set forth in subsection (a) or paragraph
16 (2), notwithstanding any provision of the Right-to-Know Law,
17 the commission shall not except subject to a court order or
18 with the prior written consent of a licensee or applicant and
19 after notice disclose information or data required under this
20 act or any other act conferring jurisdiction on the
21 commission or regulations of commission to be designated and
22 maintained as confidential.
23 (2) Paragraph (1) does not apply if there is:
24 (i) a court order; or
25 (ii) written consent of the subject licensee or
26 applicant.
27 (c) Categories of confidential information.--The following
28 types of documents or information concerning an applicant or a
29 licensee shall be designated and maintained as confidential
30 pursuant to this section:
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1 (1) Financial information. This paragraph includes
2 statements, audits and financing applications, offering
3 memoranda, placement documents and purchase agreements.
4 (2) Marketing information, business plans and
5 proprietary information, including trade secrets.
6 (3) Investigatory materials developed by or provided to
7 the commission during an investigation of an applicant for or
8 holder of a license or a finding of suitability.
9 Section 11. Administrative procedures.
10 The provisions of 2 Pa.C.S. Ch. 7 Subch. A (relating to
11 judicial review of Commonwealth agency action) apply to orders
12 of the commission.
13 Section 60. Effective date.
14 This act shall take effect in 60 days.
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