CORRECTIVE REPRINTHOUSE AMENDED

 

PRIOR PRINTER'S NOS. 1196, 1247, 1460, 1464, 1468, 1544

PRINTER'S NO.  1545

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

711

Session of

2009

  

  

INTRODUCED BY EARLL, MELLOW, FONTANA, WOZNIAK, M. WHITE, WARD, TOMLINSON, TARTAGLIONE, ERICKSON, MUSTO, WASHINGTON, PIPPY, YAW, DINNIMAN, KASUNIC, LEACH, FARNESE, PILEGGI, ARGALL, ORIE, RAFFERTY, STACK AND COSTA, JUNE 22, 2009

  

  

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, DECEMBER 14, 2009   

  

  

  

AN ACT

  

1

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

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2

Statutes, further providing for legislative intent and for

3

the definitions of "conviction," "licensed entity" and "slot

4

machine licensee"; providing for the definitions of

5

"executive-level public employee," "licensed entity

6

representative" and "trustee"; further providing for the

7

Pennsylvania Gaming Control Board, for powers of the board

8

and for code of conduct; providing for expenses of

9

Pennsylvania Gaming Control Board; further providing for

10

license or permit application hearing process and public

11

hearings, for board minutes and records, for regulatory

12

authority of board, for collection of fees and fines, for

13

slot machine license fee, for reports of board, for license

14

or permit prohibition, for slot machine license application

15

character requirements, for applications for license or

16

permit, for supplier licenses, for manufacturer licenses, for

17

additional licenses and permits and approval of agreements,

18

for license renewals, for change in ownership or control of

19

slot machine licensees and for nonportability of slot machine

20

license; providing for appointment of trustee; further

21

providing for Pennsylvania Gaming Economic Development and

22

Tourism Fund, for transfers from State Gaming Fund and for

23

financial and employment interests; providing for

24

prosecutorial and adjudicative functions; and further

25

providing for investigations and enforcement and for conduct

26

of public officials and employees.

27

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

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28

Statutes, further providing for legislative intent, for

 


1

definitions, for the Pennsylvania Gaming Control Board

2

established, for applicability of other statutes, for powers

3

of the board and for code of conduct; providing for expenses

4

of regulatory agencies; further providing for licensed gaming

5

entity application appeals from board, for license or permit

6

application hearing process and public hearings, for board

7

minutes and records, for regulatory authority of board, for

8

collection of fees and fines, for slot machine license fee,

9

for number of slot machines and for reports of board;

10

providing for report by slot machine licensee; further

11

providing for diversity goals of board and for license or

12

permit prohibition; providing for specific authority to

13

suspend slot machine license and for Auditor General's

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14

reports; further providing for Category 3 slot machine

15

license, for applications for license or permit, for slot

16

machine license application character requirements, for slot

17

machine license application financial fitness requirements,

18

for supplier licenses and for manufacturer licenses;

19

providing for gaming service provider and for alternative

20

supplier licensing standards; further providing for

21

occupation permit application, for additional licenses and

22

permits and approval of agreements, for license renewals, for

23

change in ownership or control of slot machine licensee and

24

for nonportability of slot machine license; providing for

25

appointment of trustee and for additional table game

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26

assessment; authorizing table games; further providing for

27

slot machine license deposits; providing for limitation on

28

recovery of costs; further providing for gross terminal

29

revenue deductions, for itemized budget reporting, for

30

establishment of State Gaming Fund and net slot machine

31

revenue distribution, for distributions from Pennsylvania

32

Race Horse Development Fund, for Pennsylvania Gaming Economic

33

Development and Tourism Fund, for transfers from State Gaming

34

Fund, for responsibility and authority of Department of

35

Revenue, for wagering on credit, and for no eminent domain

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36

authority,; providing for deteriorated designations; further

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37

providing for compulsive and problem gambling program, for

38

labor hiring preferences, for declaration of exemption from

39

Federal laws prohibiting slot machines and for financial and

40

employment interests; providing for additional restrictions;

41

further providing for political influence, for regulation

42

requiring exclusion of certain persons; providing for

43

prosecutorial and adjudicative functions; further providing

44

for investigations and enforcement, for conduct of public

45

officials and employees and for prohibited acts and

46

penalties; providing for additional authority and for report

47

of suspicious transactions; further providing for

48

interception of oral communications; providing for electronic

49

funds transfer terminals; regulating junkets; and providing

50

for gaming schools.

51

Amending Titles 4 (Amusements) and 64 (Public Authorities and

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1

Quasi-Public Corporations) of the Pennsylvania Consolidated

2

Statutes, making extensive revisions to provisions on gaming,

3

in the areas of legislative intent, definitions, the

4

Pennsylvania Gaming Control Board, applicability of other

5

statutes, powers of the board, code of conduct, expenses of

6

regulatory agencies, licensed gaming entity application

7

appeals from board, license or permit application hearing

8

process and public hearings, board minutes and records,

9

regulatory authority, collection of fees and fines, slot

10

machine license fee, number of slot machines, reports of

11

board, diversity goals of board, license or permit

12

prohibition, specific authority to suspend slot machine

13

license, Category 2 slot machine license, Category 3 slot

14

machine license, number of slot machine licenses,

15

applications for license or permit, slot machine license

16

application, slot machine license application character

17

requirements, supplier licenses, manufacturer licenses,

18

gaming service provider, occupation permit application,

19

alternative manufacturer licensing standards, alternative

20

supplier licensing standards, additional licenses and permits

21

and approval of agreements, license renewals, change in

22

ownership or control of slot machine licensee, nonportability

23

of slot machine license, appointment of trustee, table games,

24

slot machine licensee deposits, gross terminal revenue

25

deductions, itemized budget reporting, establishment of State

26

Gaming Fund and net slot machine revenue distribution,

27

distributions from Pennsylvania Race Horse Development Fund,

28

Pennsylvania Gaming Economic Development and Tourism Fund,

29

transfers from State Gaming Fund, responsibility and

30

authority of Department of Revenue, wagering on credit,

31

eminent domain authority, compulsive and problem gambling

32

program, drug and alcohol treatment, labor hiring

33

preferences, declaration of exemption from Federal laws

34

prohibiting slot machines, financial and employment

35

interests, additional restrictions, political influence,

36

regulation requiring exclusion of certain persons,

37

prosecutorial and adjudicative functions, investigations and

38

enforcement, conduct of public officials and employees,

39

prohibited acts and penalties, report of suspicious

40

transactions, additional authority, applicability of Clean

41

Indoor Air Act, liquor licenses at licensed facilities,

42

interception of oral communications, electronic funds

43

transfer terminals, junkets, gaming schools and

44

appropriations; further providing for powers and duties of

45

the Commonwealth Financing Authority; and making related

46

repeals.

47

The General Assembly of the Commonwealth of Pennsylvania

48

hereby enacts as follows:

49

Section 1.  Section 1102(11) of Title 4 of the Pennsylvania

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1

Consolidated Statutes is amended and the section is amended by

2

adding paragraphs to read:

3

§ 1102.  Legislative intent.

4

The General Assembly recognizes the following public policy

5

purposes and declares that the following objectives of the

6

Commonwealth are to be served by this part:

7

* * *

8

(10.1)  The General Assembly has a compelling interest in

9

protecting the integrity of both the electoral process and

10

the legislative process by preventing corruption and the

11

appearance of corruption which may arise through permitting

12

campaign contributions by the gaming industry.

13

(11)  It is necessary to maintain the integrity of the

14

regulatory control and legislative oversight over the

15

operation of slot machines in this Commonwealth; to prevent

16

the actual or appearance of corruption that may result from

17

[large] campaign contributions; ensure the bipartisan

18

administration of this part; and avoid actions that may erode

19

public confidence in the system of representative government.

20

(11.1)  Completely banning political CAMPAIGN

21

contributions by certain individuals and entities subject to

22

this act is necessary to prevent corruption, or the

23

appearance of corruption, that may arise when politics and

24

gaming are intermingled.

25

Section 2.  The definitions of "conviction," licensed entity"

26

and "slot machine licensee" in section 1103 of Title 4 are

27

amended and the section is amended by adding definitions to

28

read:

29

§ 1103.  Definitions.

30

The following words and phrases when used in this part shall

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1

have the meanings given to them in this section unless the

2

context clearly indicates otherwise:

3

* * *

4

"Conviction."  A finding of guilt or a plea of guilty or nolo

5

contendere, whether or not a judgment of sentence has been

6

imposed as determined by the law of the jurisdiction in which

7

the prosecution was held. The term does not include a conviction

8

that has been expunged or overturned or for which an individual

9

has been pardoned or an order of Accelerated Rehabilitative

10

Disposition which has been issued.

11

* * *

12

"Executive-level public employee."  The term shall include

13

the following:

14

(1)  Deputy Secretaries of the Commonwealth and the

15

Governor's Office executive staff.

16

(2)  An employee of the executive branch with

17

discretionary power which may affect or influence the outcome

18

of a State agency's action or decision and who is involved in

19

the development of regulations or policies relating to a

20

licensed entity or who is involved in other matters under

21

this part. The term shall include an employee with law

22

enforcement authority.

23

(3)  An employee of a county or municipality with

24

discretionary powers which may affect or influence the

25

outcome of the county's or municipality's action or decision

26

and who is involved in the development of law, regulation or

27

policy relating to a licensed entity or who is involved in

28

other matters under this part. The term shall include an

29

employee with law enforcement authority.

30

(4)  An employee of a department, agency, board,

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1

commission, authority or other governmental body not included

2

in paragraph (1), (2) or (3) with discretionary power which

3

may affect or influence the outcome of the governmental

4

body's action or decision and who is involved in the

5

development of regulation or policy relating to a licensed

6

entity or who is involved in other matters under this part.

7

The term shall include an employee with law enforcement

8

authority.

9

* * *

10

"Licensed entity[.]" or "licensee."  Any slot machine

11

licensee, manufacturer licensee, supplier licensee or other

12

person licensed by the Pennsylvania Gaming Control Board under

13

this part.

14

"Licensed entity representative."  A person acting on behalf

15

of or representing the interest of any applicant, licensee,

16

permittee or registrant, including an attorney, agent or

17

lobbyist, regarding any matter which may reasonably be expected

18

to come before the board.

19

* * *

20

["Slot machine licensee."  A person that holds a slot machine

21

license.]

22

* * *

23

"Trustee."  A fiduciary appointed by the Pennsylvania Gaming

24

Control Board to preserve the viability of a licensed facility

25

and the integrity of gaming in this Commonwealth.

26

* * *

27

Section 3.  Section 1201(b), (b.1), (f)(3), (h)(5), (7.1),

28

(10), (11), (13), (14) and (15) and (k) of Title 4 are amended,

29

subsection (h) is amended by adding paragraphs and the section

30

is amended by adding a subsection to read:

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1

§ 1201.  Pennsylvania Gaming Control Board established.

2

* * *

3

(b)  Membership.--

4

(1)  The board shall consist of the following members:

5

[(1)] (i)  Three members appointed by the Governor.

6

[(2)] (ii)  One member appointed by each of the

7

following:

8

[(i)] (A)  The President pro tempore of the

9

Senate.

10

[(ii)] (B)  The Minority Leader of the Senate.

11

[(iii)] (C)  The Speaker of the House of

12

Representatives.

13

[(iv)] (D)  The Minority Leader of the House of

14

Representatives.

15

(2)  The chairman of the Community, Economic and

16

Recreational Development Committee of the Senate may hold a

17

public hearing on an appointee under paragraph (1).

18

(b.1)  Removal.--A member of the board shall serve at the

19

pleasure of the appointing authority and shall be removed from

20

office by the appointing authority:

21

(1)  for misconduct in office, willful neglect of duty or

22

conduct evidencing unfitness for office or incompetence; or

23

(2)  upon conviction of an offense graded as a felony, an

24

infamous crime, an offense under this part or an equivalent

25

offense under Federal law or the law of another jurisdiction.

26

* * *

27

(f)  Qualified majority vote.--

28

* * *

29

(3)  Notwithstanding any other provision of this part or

30

65 Pa.C.S. § 1103(j) (relating to restricted activities), a

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1

member shall disclose the nature of his disqualifying

2

interest, disqualify himself and abstain from voting in a

3

proceeding under this part in which his objectivity,

4

impartiality, integrity or independence of judgment may be

5

reasonably questioned, as provided in subsection (h)(6) or

6

section 1202.1(c)(3) (relating to code of conduct). If a

7

legislative appointee has disqualified himself, the qualified

8

majority shall consist of all of the remaining legislative

9

appointees and at least two gubernatorial appointees.

10

* * *

11

(h)  Qualifications and restrictions.--

12

* * *

13

(4.1)  No member appointed after the effective date of

14

this paragraph shall engage in any business, employment or

15

vocation for which the member shall receive any COMPENSATION

16

OR remuneration except for an individual who is reappointed

17

and who is a member of the board on the effective date of

18

this paragraph.

19

(5)  No member shall be paid or receive any fee or other

20

compensation other than salary and expenses provided by law

21

for any activity related to the duties or authority of the

22

board. [Nothing in this part shall prohibit a member from

23

engaging in any employment or receiving any compensation for

24

such employment that is not connected to or incompatible with

25

his service as a member of the board.]

26

* * *

27

(7.1)  Prior to being sworn as a member, an appointee and

28

his immediate family shall divest any financial interest in

29

any applicant, licensed facility or licensed entity and in an

30

affiliate, intermediary, subsidiary or holding company

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1

thereof owned or held by the appointee or known to be held by

2

the appointee's immediate family. For the duration of the

3

member's term and for [one year] two years thereafter, the

4

member and the member's immediate family may not acquire a

5

financial interest in any applicant, licensed facility or

6

licensed entity or in an affiliate, intermediary, subsidiary

7

or holding company thereof. For purposes of this paragraph,

8

the term "immediate family" shall mean spouse and any minor

9

or unemancipated child.

10

* * *

11

(10)  No former member may appear before the board in any

12

hearing or proceeding or participate in any other activity on

13

behalf of any applicant, licensed entity, or an affiliate,

14

intermediary, subsidiary or holding company thereof, or any

15

other licensee or permittee for a period of two years from

16

the termination of term of office.

17

(11)  No member, employee or independent contractor of

18

the board shall accept a complimentary service, wager or be

19

paid any prize from any wager at any licensed facility within

20

this Commonwealth or at any other facility outside this

21

Commonwealth which is owned or operated by a licensed gaming

22

entity or any of its affiliates, intermediaries, subsidiaries

23

or holding companies thereof for the duration of their term

24

of office, employment or contract with the board and for a

25

period of [one year] two years from the termination of term

26

of office, employment or contract with the board. The

27

provisions of this paragraph prohibiting wagering during the

28

term of employment shall not apply to employees [who] when

29

the employees utilize slot machines for testing purposes or

30

to verify the performance of a machine as part of an

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1

enforcement investigation.

2

* * *

3

(13)  No employee of the board [or individual employed by

4

an independent contractor of the board] whose duties

5

substantially involve licensing[,] or enforcement [or], the

6

development or adoption of laws, regulations or policy or who

7

has other discretionary authority which may affect the

8

outcome of an action or decision under this part, including

9

the executive director, bureau directors and attorneys, shall

10

do any of the following:

11

(i)  [accept] Accept employment with or be retained

12

by an applicant or licensed entity, or an affiliate,

13

intermediary, subsidiary or holding company thereof, for

14

a period of [one year] two years after the termination of

15

the employment relating to the conduct of gaming [or

16

contract with the board; or].

17

(ii)  [appear] Appear before the board in any hearing

18

or proceeding or participate in any other activity on

19

behalf of any applicant, licensee, permittee or licensed

20

entity, or an affiliate, intermediary, subsidiary or

21

holding company thereof, for a period of two years after

22

termination of the employment [or contract with the

23

board].

24

(iii)  As a condition of employment, an employee

25

under this paragraph shall sign an affidavit that the

26

employee will not accept employment with or be retained

27

by any applicant, licensed entity or an affiliate,

28

intermediary, subsidiary or holding company thereof for a

29

period of two years from the termination of employment.

30

An applicant or licensed entity or an affiliate,

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1

intermediary, subsidiary or holding company thereof shall

2

not employ or retain an individual who signed an

3

affidavit signed under this subparagraph. An applicant or

4

licensed entity or an affiliate, intermediary, subsidiary

5

or holding company that knowingly employs or retains an

6

individual in violation of this subparagraph shall be

7

subject to a penalty under section 1518(c) (relating to

8

prohibited acts; penalties).

9

(13.1)  No independent contractor or individual employed

10

by an independent contractor of the board whose duties

11

substantially involve consultation relating to licensing,

12

enforcement or the development or adoption of regulations or

13

policy under this part shall:

14

(i)  Accept employment with or be retained by an

15

applicant or a licensed entity or an affiliate,

16

intermediary, subsidiary or holding company thereof for a

17

period of one year after the termination of the contract

18

with the board.

19

(ii)  Appear before the board in any hearing or

20

proceeding or participate in any other activity on behalf

21

of an applicant, licensee, permittee or licensed entity

22

or an affiliate, intermediary, subsidiary or holding

23

company of an applicant, licensee, permittee or licensed

24

entity for a period of two years after termination of the

25

contract with the board.

26

(iii)  As a condition of a contract, an independent

27

contractor or individual employed by an independent

28

contractor of the board under this paragraph shall sign

29

an affidavit to not accept employment with or be retained

30

by any applicant, licensed entity or an affiliate,

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1

intermediary, subsidiary or holding company of an

2

applicant, licensed entity or affiliate for a period of

3

one year from the termination of employment. A licensed

4

entity or an affiliate, intermediary, subsidiary or

5

holding company of an applicant, licensed entity or

6

affiliate shall not employ or retain an individual who

7

signed an affidavit signed under this subparagraph. A

8

licensed entity or an affiliate, intermediary, subsidiary

9

or holding company thereof that knowingly employs or

10

retains an individual in violation of this subparagraph

11

shall be subject to a penalty under section 1518(c).

12

(14)  Upon the written request of an employee of the

13

board, the executive branch of the Commonwealth or a

14

political subdivision or of the agency or political

15

subdivision employing an employee, the State Ethics

16

Commission shall determine whether the individual's duties

17

substantially involve the development or adoption of laws, 

18

regulations or policy, licensing or enforcement under this

19

part or other discretionary authority which may affect the

20

outcome of an action or decision under this part and shall

21

provide a written determination to the employee to include

22

any prohibition under this paragraph. An individual who

23

relies in good faith on a determination under this paragraph

24

shall not be subject to any penalty for an action taken,

25

provided that all material facts set forth in the request for

26

a determination are correct.

27

(15)  If a member[, employee or independent contractor] 

28

of the board violates any provision of this section, the

29

appointing authority [or the board may, upon notice and

30

hearing,] may remove the person from the board[, withdraw the

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1

appointment or]. A member removed under this paragraph shall

2

be prohibited from future appointment to the board and shall

3

be prohibited from applying for a license or permit, from

4

becoming an independent contractor of the board, or

5

registering as a licensed entity representative for a period

6

of five years from the date of removal from the board. If an

7

employee or independent contractor of the board violates any

8

provision of this section, the board may, upon notice and

9

hearing, terminate the employment or contract, and the person

10

shall be ineligible for future [appointment,] employment or

11

contract with the board and [for approval of a license or

12

permit under this part for a period of two years thereafter] 

13

shall be prohibited from applying for a license or permit,

14

becoming an independent contractor or registering as a

15

licensed entity representative for a period of five years

16

from the date of termination of the employment or contract.

17

* * *

18

(k)  Appointments.--[The appointing authorities] Following

19

the initial appointment of members under subsection (b), the

20

appointing authority shall make [their initial] appointments

21

within 60 days of [the effective date of this part] a vacancy in

22

an office. No appointment shall be final until receipt by the

23

appointing authority of the required background investigation of

24

the appointee by the Pennsylvania State Police which shall be

25

completed within 30 days. No person who has been convicted in

26

any domestic or foreign jurisdiction of a felony, infamous crime

27

or gaming offense shall be appointed to the board.

28

* * *

29

(m.1)  Budgetary impasse.--If, in the event of a budgetary or

30

other fiscal crisis, the Governor implements a system in order

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1

to ORDERS THE furlough OF employees or close THE CLOSING OF any

2

Commonwealth agency, the board and its employees and all

3

employees of the Department of Revenue, the Pennsylvania State

4

Police and the Office of Attorney General whose duties involve

5

the regulation and oversight of gaming under this part shall not

6

be subject to furlough but shall continue to perform their

7

duties.

8

* * *

9

Section 4.  Section 1202(a)(4) and (b)(7), (23) and (30) of

10

Title 4 are amended and subsections (a) and (b) are amended by

11

adding paragraphs to read:

12

§ 1202.  General and specific powers.

13

(a)  General powers.--

14

* * *

15

[(4)  The board shall establish a system of

16

classification and compensation of its employees and shall

17

not be subject to the provisions of the act of April 9, 1929

18

(P.L.177, No.175), known as The Administrative Code of 1929,

19

as to classification and compensation for its employees and

20

conduct its activities consistent with the practices and

21

procedures of Commonwealth agencies.]

22

(4.1)  Within 90 days of the effective date of this

23

paragraph, the board shall establish a system of

24

classification and compensation of its employees and shall be

25

subject to the provisions of the act of April 9, 1929

26

(P.L.177, No.175), known as The Administrative Code of 1929,

27

as to classification and compensation for its employees and

28

conduct its activities consistent with the practices and

29

procedures of Commonwealth agencies. The provisions of this

30

paragraph shall apply to employees hired after the effective

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1

date of this paragraph. Nothing in this paragraph shall

2

prevent the board from altering a system, or establishing a

3

new system, of classification or compensation for employees

4

hired prior to the effective date of this section.

5

* * *

6

(b)  Specific powers.--The board shall have the specific

7

power and duty:

8

* * *

9

(7)  To administer oaths, examine witnesses and issue

10

subpoenas compelling the attendance of witnesses or the

11

production of documents and records or other evidence[. The

12

provisions of this paragraph shall apply to designated

13

officers and employees.], or to designate officers or

14

employees to perform these duties.

15

(7.1)  To order a person to answer a question or produce

16

evidence of any kind. If, in the course of an investigation

17

or hearing conducted under this part, a person refuses to

18

answer a question or to produce evidence on the grounds that

19

the answer or evidence will expose the person to criminal

20

prosecution, the board may adopt a resolution recommending a

21

grant of immunity that includes the specific question to be

22

posed or information or evidence being sought from the person

23

as follows:

24

(i)  The resolution shall be submitted to the

25

Attorney General for approval or disapproval within 20

26

days of receipt of the resolution. Upon the written

27

approval of the Attorney General, the board may issue an

28

order to compel the person to answer or produce evidence

29

with immunity.

30

(ii)  If the person who is the subject of the

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1

immunity order provides the answer or evidence, the

2

person shall be immune from criminal prosecution based on

3

the answer or evidence that was the subject of the

4

immunity order.

5

(iii)  The person may be prosecuted for perjury

6

committed in the answer or production of evidence or held

7

in contempt for failing to give an answer or produce

8

evidence in accordance with the order. The answer or

9

evidence shall be admissible only against the person in a

10

criminal investigation, or a trial or other proceeding

11

for perjury or contempt.

12

(iv)  Immunity under this paragraph shall not

13

preclude the use of any other remedy or sanction

14

authorized by law.

15

* * *

16

(23)  The board shall not issue or renew a license or

17

permit unless it is satisfied that the applicant has

18

demonstrated by clear and convincing evidence that the

19

applicant is a person of good character, honesty and

20

integrity and is a person whose prior activities, criminal

21

record, if any, reputation, habits and associations do not

22

pose a threat to the public interest or the effective

23

regulation and control of slot machine operations or create

24

or enhance the danger of unsuitable, unfair or illegal

25

practices, methods and activities in the conduct of slot

26

machine operations or the carrying on of the business and

27

financial arrangements incidental thereto.

28

* * *

29

(30)  To promulgate rules and regulations necessary for

30

the administration and enforcement of this part, including

- 16 -

 


1

regulations in cooperation with the Pennsylvania Liquor

2

Control Board and regulations relating to the sale and

3

service of liquor and malt and brewed beverages by licensees.

4

[Except as provided in section 1203 (relating to temporary

5

regulations), regulations] Regulations shall be adopted

6

pursuant to the act of July 31, 1968 (P.L.769, No.240),

7

referred to as the Commonwealth Documents Law, and the act of

8

June 25, 1982 (P.L.633, No.181), known as the Regulatory

9

Review Act.

10

(31)  To collect and post information on its Internet

11

website with sufficient detail to inform the public of the

12

controlling interest or ownership interest of an applicant

13

for a slot machine license or a licensed gaming entity or

14

affiliate, intermediary, subsidiary or holding company

15

thereof. The posting shall include:

16

(i)  The names of all persons with a controlling

17

interest in a publicly traded domestic or foreign

18

corporation, partnership, limited liability company or

19

other legal entity.

20

(ii)  The names of all persons who own a financial

21

equity share or interest with an ownership interest equal

22

to or greater than 1% of a privately held domestic or

23

foreign corporation, partnership, limited liability

24

company or other legal entity.

25

(iii)  The name of a trustee entitled to cast the

26

vote of a person under subparagraph (i) or (ii).

27

(iv)  The names of all officers, directors,

28

principals and key employees of a licensed gaming entity.

29

(32)  To appoint a trustee as prescribed in section 1332

30

(relating to appointment of trustee) to act on behalf of the

- 17 -

 


1

Commonwealth and the board to operate a licensed facility and

2

ensure compliance with this part.

3

Section 5.  Section 1202.1 of Title 4 is amended to read:

4

§ 1202.1.  Code of conduct.

5

(a)  Scope.--The board shall adopt a comprehensive code of

6

conduct prior to the consideration of any license, permit or

7

registration application. The code of conduct shall supplement

8

all other requirements under this part and 65 Pa.C.S. Pt. II

9

(relating to accountability) and shall provide guidelines

10

applicable to members, employees, independent contractors of the

11

board and the immediate families of the members, as defined in

12

subsection (e), employees and independent contractors to enable

13

them to avoid any perceived or actual conflict of interest and

14

to promote public confidence in the integrity and impartiality

15

of the board. At a minimum, the code of conduct adopted under

16

this section shall include registration of licensed entity

17

representatives under subsection (b) and the restrictions under

18

[subsection (c)] subsections (c) and (c.1).

19

(b)  Registration.--

20

(1)  A licensed entity representative shall register with

21

the board in a manner prescribed by the board, which shall

22

include the name, employer or firm, address, telephone number

23

of both the licensed entity representative and the [licensed

24

entity] applicant, licensee, permittee or registrant or

25

individual being represented.

26

(2)  A licensed entity representative shall have an

27

[ongoing] affirmative duty to update its registration

28

information on an ongoing basis.

29

(3)  The [registration list] board shall maintain a

30

registration list which shall contain the information

- 18 -

 


1

required under paragraph (1) and which shall be available for

2

public inspection at the offices of the board and on the

3

board's Internet website.

4

(c)  Restrictions.--A member of the board shall:

5

(1)  Not engage in any ex parte communication with any

6

person.

7

(2)  Not accept any discount, gift, gratuity,

8

compensation, travel, lodging or other thing of value,

9

directly or indirectly, from any applicant, [licensee,] 

10

licensed entity, including any affiliate, subsidiary,

11

intermediary or holding company thereof, permittee,

12

registrant or licensed entity representative thereof.

13

(3)  Disclose and [disqualify] recuse himself from any

14

hearing or other proceeding in which the member's

15

objectivity, impartiality, integrity or independence of

16

judgment may be reasonably questioned due to the member's

17

relationship or association with a party connected to any

18

hearing or proceeding or a person appearing before the board.

19

(4)  Refrain from any financial or business dealing which

20

would tend to reflect adversely on the member's objectivity,

21

impartiality or independence of judgment.

22

(5)  Not hold or campaign for public office, hold an

23

office in any political party or political committee as

24

defined in section 1513(d)(relating to political influence),

25

contribute to or solicit contributions to a political

26

campaign, [party,] political party, political committee or

27

candidate, publicly endorse a candidate or actively

28

participate in a political campaign.

29

(6)  Not solicit funds for any charitable, educational,

30

religious, health, fraternal, civic or other nonprofit entity

- 19 -

 


1

from an applicant, licensed entity or affiliate, subsidiary,

2

intermediary or holding company of a licensed entity,

3

interested party, permittee or licensed entity

4

representative. [A] Unless prohibited under § 1201(h)(4.1)

5

(relating to Pennsylvania Gaming Control Board established),

6

a board member may serve as an officer, employee or member of

7

the governing body of a nonprofit entity and may attend, make

8

personal contributions to and plan or preside over the

9

entity's fundraising events. A board member may permit his

10

name to appear on the letterhead used for fundraising events

11

if the letterhead contains only the board member's name and

12

position with the nonprofit entity.

13

(7)  Not meet or engage in discussions with any

14

applicant, [person licensed under this part] licensed entity,

15

permittee, [or a] licensed entity representative or person

16

who provides goods, property or services to a slot machine

17

licensee unless the meeting or discussion occurs on the

18

business premises of the board and is recorded in a log

19

maintained for this purpose. The log shall be available for

20

public inspection during the regular business hours of the

21

board and shall be posted on the board's Internet website.

22

The log shall include the date and time of the meeting or

23

discussion, the names of the participants and the subject

24

matter discussed. The provisions of this paragraph shall not

25

apply to meetings [of the board] to consider matters

26

requiring the physical inspection of the equipment or

27

premises of an applicant or a licensed entity at [their] the 

28

location of the licensed facility.

29

(8)  Avoid impropriety and the appearance of impropriety

30

at all times and observe standards and conduct that promote

- 20 -

 


1

public confidence in the oversight of gaming.

2

(9)  Comply with any other laws, rules or regulations

3

relating to the conduct of a member.

4

(c.1)  Prohibitions.--

5

(1)  No member or attorney of the Office of Chief Counsel

6

advising the board on a particular licensing issue or

7

proceeding or employee whose duties relate to licensing and

8

who is advising the board on a particular licensing issue or

9

proceeding shall engage in any ex parte communication with

10

any person.

11

(2)  No attorney representing the bureau or the Office of

12

Enforcement Counsel or an applicant, licensee or permittee in

13

any proceeding shall engage in an ex parte communication with

14

a member, an attorney of the Office of Chief Counsel advising

15

the board on a proceeding or a hearing officer of the board.

16

(3)  No employee of the bureau or the Office of

17

Enforcement Counsel who is involved in a proceeding shall

18

engage in an ex parte communication with a member, an

19

attorney of the Office of Chief Counsel who is advising the

20

board on the proceeding or a hearing officer of the board.

21

(c.2)  Procedures relating to ex parte communications.--

22

(1)  An ex parte communication received or engaged in by

23

a board member, employee or hearing officer shall be recorded

24

in a log maintained for this purpose. The log shall be

25

available for public inspection during the regular business

26

hours of the board and shall be posted on the board's

27

Internet website. The LOG SHALL INCLUDE:

28

(I) The individual recording the ex parte

29

communication. shall include:

30

(i) (ii)  The date and time of the ex parte

- 21 -

 


1

communication.

2

(ii)  The name of any other individual (iii)  The

3

names of all individuals involved in the ex parte

4

communication.

5

(iii) (iv)  The subject matter and substance of the

6

ex parte communication.

7

(2)  In addition to documenting an ex parte communication

8

under paragraph (1), notification and an opportunity to

9

respond shall be provided to the following as follows:

10

(i)  A board member or employee shall promptly notify

11

the board and all persons directly affected by the

12

anticipated vote or action of the board of the substance

13

of the communication.

14

(ii)  A hearing officer shall promptly notify the

15

board and all parties to the proceeding before the

16

hearing officer of the substance of the communication.

17

(3)  (i)  A board member, employee or hearing officer who

18

received or engaged in an ex parte communication shall

19

recuse himself from any hearing or other proceeding

20

related to the ex parte communication if the context and

21

substance of the ex parte communication creates

22

substantial reasonable doubt as to the individual's

23

ability to act objectively, independently or impartially.

24

(ii)  A board member, employee or hearing officer who

25

elects not to recuse himself based on an ex parte

26

communication shall state his reasons for doing so on the

27

record prior to the commencement of the hearing or

28

proceeding.

29

(iii)  If a legislative appointee recuses himself

30

from any hearing or other proceeding under this section,

- 22 -

 


1

any qualified majority vote required under this part

2

shall consist of all of the remaining legislative

3

appointees and at least two gubernatorial appointees.

4

(iv)  Failure of a hearing officer or employee to

5

recuse himself from a hearing or other proceeding due to

6

receipt of an ex parte communication under this section

7

shall be grounds for appeal to the board of the failure

8

to recuse.

9

(v)  Failure of a board member to recuse himself from

10

a hearing or other proceeding due to receipt of an ex

11

parte communication under this section shall be grounds

12

for appeal of a decision to a court of competent

13

jurisdiction if the board action being appealed would not

14

have occurred without the participation of the board

15

member who received the ex parte communication.

16

(d)  Ex officio members.--The restrictions under subsection

17

(c)(5) shall not apply to ex officio members.

18

(e)  Definitions.--As used in this section, the following

19

words and phrases shall have the meanings given to them in this

20

subsection:

21

"Ex parte communication."  An off-the-record communication

22

engaged in or received by a member [or], employee or hearing

23

officer of the board regarding the merits of or any fact in

24

issue relating to a pending matter before the board or which may

25

reasonably be expected to come before the board in a contested

26

on-the-record proceeding. The term shall not include off-the-

27

record communications by or between a member [or], employee or

28

hearing officer of the board, Department of Revenue,

29

Pennsylvania State Police, Attorney General or other law

30

enforcement official prior to the beginning of the proceeding

- 23 -

 


1

solely for the purpose of seeking clarification or correction to

2

evidentiary materials intended for use in the proceedings.

3

"Immediate family."  The spouse, parents, children and

4

siblings and the spouses of any of those individuals.

5

["Licensed entity representative."  A person acting on behalf

6

of or representing the interest of any applicant, licensee,

7

permittee or registrant, including an attorney, agent or

8

lobbyist, regarding any matter which may reasonably be expected

9

to come before the board.]

10

Section 6.  Title 4 is amended by adding a section to read:

11

§ 1202.2.  Expenses of the Pennsylvania Gaming Control Board.

12

Members and employees of the board shall only be reimbursed

13

for actual and reasonable expenses incurred during the

14

performance of their duties. In order to receive reimbursement

15

for an expense in excess of $10, the member or employee shall

16

submit a receipt validating the expense incurred.

17

Reimbursements, allowances or other payments in an amount

18

greater than the expenses for which receipts are submitted are

19

prohibited. Receipts and requests for reimbursement shall be

20

financial records for purposes of the act of February 14, 2008

21

(P.L.6, No.3), known as the Right-to-Know Law.

22

Section 7.  Section 1205(b)(1) and (2) of Title 4 are amended

23

and the subsection is amended by adding paragraphs to read:

24

§ 1205.  License or permit application hearing process; public

25

input hearings.

26

* * *

27

(b)  Public input hearing requirement.--

28

(1)  [Prior to licensing a facility under this part, the

29

board shall hold at least one public input hearing on the

30

matter.] The board shall hold at least one public input

- 24 -

 


1

hearing prior to:

2

(i)  Licensing a facility.

3

(ii)  Approving the structural redesign of a licensed

4

facility located in a city of the first class.

5

(2)  All public input hearings [relating to an

6

application for a slot machine license] under paragraph (1) 

7

shall be held in the municipality where the licensed facility

8

will be, or is, located and shall be organized in cooperation

9

with the municipality.

10

* * *

11

(4)  In addition to any witnesses scheduled to testify

12

under paragraph (3), the board shall establish a public

13

comment period during which time members of the public may

14

address the board regarding the proposed license or

15

structural redesign under paragraph (1). The board, in its

16

discretion, may place reasonable time limits on an

17

individual's comments.

18

Section 8.  Sections 1206(f), 1207(4), 1208(1)(i) and (ii)

19

and 1209(b) of Title 4 are amended to read:

20

§ 1206.  Board minutes and records.

21

* * *

22

(f)  Confidentiality of information.--[All]

23

(1)  The following information submitted by an applicant

24

or licensee pursuant to section 1310(a) (relating to slot

25

machine license application character requirements) or

26

1308(a.1) (relating to applications for license or permit) or

27

obtained by the board or the bureau as part of a background

28

or other investigation from any source shall be [considered] 

29

confidential[.] and withheld from public disclosure:

30

(i)  All information relating to good character,

- 25 -

 


1

honesty and integrity, including family, habits,

2

reputation, history of criminal activity, business

3

activities, financial affairs and business, professional

4

and personal associations submitted under section 1310(a)

5

or 1308(a.1) or otherwise obtained by the board or the

6

bureau.

7

(ii)  Nonpublic personal information, including

8

telephone numbers, Social Security numbers, educational

9

records, memberships, medical records, tax returns and

10

declarations, actual or proposed compensation, financial

11

account records, creditworthiness or a financial

12

condition relating to an applicant, licensee or permittee

13

or the immediate family thereof.

14

(iii)  Documents and information relating to

15

proprietary information, trade secrets, patents or

16

exclusive licenses, architectural and engineering plans

17

and information relating to competitive marketing

18

materials and strategies, which may include customer-

19

identifying information or customer prospects for

20

services subject to competition.

21

(iv)  Security information, including risk prevention

22

plans, detection and countermeasures, location of count

23

rooms, emergency management plans, security and

24

surveillance plans, equipment and usage protocols and

25

theft and fraud prevention plans and countermeasures.

26

(v)  Information with respect to which there is a

27

reasonable possibility that public release or inspection

28

of the information would constitute an unwarranted

29

invasion into personal privacy of any individual as

30

determined by the board.

- 26 -

 


1

(vi)  Records of an applicant or licensee not

2

required to be filed with the Securities and Exchange

3

Commission by issuers that either have securities

4

registered under section 12 of the Securities Exchange

5

Act of 1934 (48 Stat. 881, 15 U.S.C. § 78a et seq.) or

6

are required to file reports under section 15(d) of the

7

Securities Exchange Act of 1934.

8

(vii)  Records considered nonpublic matters or

9

information by the Securities and Exchange Commission as

10

provided by 17 CFR 200.80 (relating to commission records

11

and information).

12

(viii)  Any financial information deemed confidential

13

by the board upon a showing of good cause by the

14

applicant or licensee.

15

(2)  No claim of confidentiality shall be made regarding

16

any information from a criminal history record check that is

17

available to the public under 18 Pa.C.S. Ch. 91 (relating to

18

criminal history record information) or § 9121(b) (relating

19

to noncriminal justice agencies and individuals).

20

(3)  This subsection shall not apply to any information 

21

that is otherwise publicly available in this Commonwealth or

22

another jurisdiction.

23

(2)  (4)  Except as provided in section 1517(f) (relating

24

to [investigation] investigations and enforcement), the

25

confidential information shall be withheld from public

26

disclosure in whole or in part, except that any confidential 

27

information shall be released upon the lawful order of a

28

court of competent jurisdiction or, with the approval of the

29

Attorney General, to a duly authorized law enforcement agency

30

or shall be released to the public, in whole or in part, to

- 27 -

 


1

the extent that such release is requested by an applicant and

2

does not otherwise contain confidential information about

3

another person.

4

(3)  (5)  The board may seek a voluntary waiver of

5

confidentiality from an applicant or licensed entity but may 

6

not require any applicant or licensed entity to waive any

7

confidentiality provided for in this subsection as a

8

condition for the approval of a license or any other action

9

of the board. Any [person who violates this subsection] 

10

current or former board member employee or contractor who

11

publicly discloses confidential information in violation of

12

this subsection commits a misdemeanor and shall be

13

administratively disciplined by discharge, suspension,

14

termination of contract or other formal disciplinary action

15

as the board deems appropriate.

16

* * *

17

§ 1207.  Regulatory authority of board.

18

The board shall have the power and its duties shall be to:

19

* * *

20

(4)  Require that each licensed entity provide to the

21

board its audited annual financial statements, with such

22

additional detail as the board from time to time shall

23

require, which information shall be submitted not later than

24

[60] 90 days after the end of the licensee's fiscal year.

25

* * *

26

§ 1208.  Collection of fees and fines.

27

The board has the following powers and duties:

28

(1)  To levy and collect fees from the various

29

applicants, licensees and permittees to fund the operations

30

of the board. The fees shall be deposited into the State

- 28 -

 


1

Gaming Fund as established in section 1403 (relating to

2

establishment of State Gaming Fund and net slot machine

3

revenue distribution) and distributed to the board upon

4

appropriation by the General Assembly. In addition to the

5

fees set forth in sections 1209 (relating to slot machine

6

license fee) and 1305 (relating to Category 3 slot machine

7

license), the board shall assess and collect fees as follows:

8

(i)  Supplier licensees shall pay a fee of $25,000

9

upon the issuance of a license and $10,000 for the annual

10

renewal of a supplier license. When the renewal period

11

under section 1317(c)(1) (relating to supplier licenses)

12

is three years, the fee shall be $30,000 for the renewal.

13

(ii)  Manufacturer licensees shall pay a fee of

14

$50,000 upon the issuance of a license and $25,000 for

15

the annual renewal of a manufacturer license. When the

16

renewal period under section 1317.1(c)(1) (relating to

17

manufacturer licenses) is three years, the fee shall be

18

$75,000 for the renewal.

19

* * *

20

§ 1209.  Slot machine license fee.

21

* * *

22

(b)  Term.--A slot machine license, after payment of the fee,

23

shall be in effect unless suspended, revoked or not renewed by

24

the board upon good cause consistent with the license

25

requirements as provided for in this part. Slot machine

26

licensees shall be required to update the information in their

27

initial applications annually, and the license of a licensee in

28

good standing shall be updated and renewed annually for two

29

subsequent years following the initial license issuance.

30

Thereafter, license renewals shall be every three years. As to

- 29 -

 


1

the renewal of a license, no additional license fee pursuant to

2

subsection (a) shall be required.

3

* * *

4

Section 9.  Section 1211 of Title 4 is amended by adding a

5

subsection to read:

6

§ 1211.  Reports of board.

7

* * *

8

(a.1)  Expenses.--Beginning 30 days after the effective date

9

of this subsection, the board shall post by the fifteenth of

10

each month on its Internet website a list of all its itemized

11

expenses of employees and members for the preceding month. The

12

list shall identify the nature of the expense and the employee

13

or board member to which an expense is attributable. The list

14

shall include each expense for which a receipt is submitted to

15

obtain reimbursement. If the expense is directly attributable to

16

or paid by a licensed facility, the list shall identify the

17

facility. By October 1 of each year, a final report of all

18

expenses for the preceding fiscal year shall be posted on the

19

board's Internet website and shall be transmitted to the

20

Appropriations Committee of the Senate, the Community, Economic

21

and Recreational Development Committee of the Senate, the

22

Appropriations Committee of the House of Representatives and the

23

Gaming Oversight Committee of the House of Representatives.

24

* * *

25

Section 10.  Section 1213 of Title 4 is amended to read:

26

§ 1213.  License or permit prohibition.

27

(1)  [No applicant for a license or permit under this

28

part, including principals and key employees,] The board

29

shall be prohibited from granting a principal license or key

30

employee license to a person who has been convicted of a

- 30 -

 


1

felony [or gambling offense] in any jurisdiction [shall be

2

issued a license or permit unless 15 years has elapsed from

3

the date of expiration of the sentence for the offense].

4

(2)  [When determining whether to issue a license or

5

permit to an applicant who has been convicted in any

6

jurisdiction of a felony or gambling offense,] In addition to

7

the prohibition under paragraph (1), the board shall be

8

prohibited from granting the following:

9

(i)  A principal license or key employee license to a

10

person who has been convicted of a gambling offense in

11

any jurisdiction that is not classified as a felony

12

unless 15 years has elapsed from the date of the

13

expiration of the sentence for the offense.

14

(ii)  A gaming employee permit or license other than

15

a principal license or key employee license to a person

16

who has been convicted of a felony or gambling offense in

17

any jurisdiction unless 15 years has elapsed from the

18

date of the expiration of the sentence for the offense.

19

(3)  In determining whether to issue a license or permit

20

under paragraph (2), the board shall consider the following

21

factors:

22

[(1)] (i)  The nature and duties of the applicant's

23

position with the licensed entity.

24

[(2)] (ii)  The nature and seriousness of the offense

25

or conduct.

26

[(3)] (iii)  The circumstances under which the

27

offense or conduct occurred.

28

[(4)] (iv)  The age of the applicant when the offense

29

or conduct was committed.

30

[(5)] (v)  Whether the offense or conduct was an

- 31 -

 


1

isolated or a repeated incident.

2

[(6)] (vi)  Any evidence of rehabilitation, including

3

good conduct in the community, counseling or psychiatric

4

treatment received and the recommendation of persons who

5

have substantial contact with the applicant.

6

Section 10.1.  Section 1308 of Title 4 is amended by adding a

7

subsection to read:

8

§ 1308.  Applications for license or permit.

9

* * *

10

(a.1)  Submission of information.--Notwithstanding the

11

provisions of 18 Pa.C.S. § 9124(b) (relating to use of records

12

by licensing agencies), an application for a license or permit

13

under this part shall include all arrests and convictions of the

14

applicant, including summary offenses. The information shall

15

include:

16

(1)  A brief description of the circumstances surrounding

17

the arrest.

18

(2)  The specific offense charged.

19

(3)  The ultimate disposition of the charges, including

20

the details of any dismissal, plea bargain, conviction or

21

sentence, including any pardon, expungement or order of

22

Accelerated Rehabilitative Disposition.

23

* * *

24

Section 10.2.  Sections 1310, 1317(c)(1), 1317.1(c)(1),

25

1321(a)(2), 1326(a), 1328(b) 1328(A)(1) and (B) and 1329 of

26

Title 4 are amended to read:

27

§ 1310.  Slot machine license application character

28

requirements.

29

(a)  Application.--

30

(1)  Every application for a slot machine license shall

- 32 -

 


1

include such information, documentation and assurances as may

2

be required to establish by clear and convincing evidence the

3

applicant's suitability, including good character, honesty

4

and integrity. Information shall include, without limitation,

5

information pertaining to family, habits, character,

6

reputation, criminal history background, business activities,

7

financial affairs and business, professional and personal

8

associates, covering at least the ten-year period immediately

9

preceding the filing date of the application.

10

(2)  Notwithstanding 18 Pa.C.S. § 9124(b) (relating to

11

use of records by licensing agencies), a conviction that has

12

been expunged or overturned, or for which a person has been

13

pardoned or an order of Accelerated Rehabilitative

14

Disposition has been issued, shall be included with an

15

application and shall be considered by the board as part of

16

the review of the applicant's suitability under paragraph

17

(1).

18

(b)  Civil judgments and law enforcement agency

19

information.--Each applicant shall notify the board of any civil

20

judgments obtained against the applicant pertaining to antitrust

21

or security regulation laws of the Federal Government, this

22

Commonwealth or any other state, jurisdiction, province or

23

country. In addition, each applicant shall produce a letter of

24

reference from law enforcement agencies having jurisdiction in

25

the applicant's place of residence and principal place of

26

business, which letter of reference shall indicate that the law

27

enforcement agencies do not have any pertinent information

28

concerning the applicant or, if the law enforcement agency does

29

have information pertaining to the applicant, shall specify the

30

nature and content of that information. If no letters are

- 33 -

 


1

received within 30 days of the request, the applicant may submit

2

a statement under oath which is subject to the penalty for false

3

swearing under 18 Pa.C.S. § 4903 (relating to false swearing)

4

that the applicant is or was during the period the activities

5

were conducted in good standing with the gaming or casino

6

enforcement or control agency.

7

(c)  Gaming or casino enforcement agency information.--If the

8

applicant has held a gaming license in a jurisdiction where

9

gaming activities are permitted, the applicant shall produce a

10

letter of reference from the gaming or casino enforcement or

11

control agency which shall specify the experiences of that

12

agency with the applicant, the applicant's associates and the

13

applicant's gaming operation. If no letters are received within

14

30 days of the request, the applicant may submit a statement

15

under oath which is subject to the penalty for false swearing

16

under 18 Pa.C.S. § 4903 that the applicant is or was during the

17

period the activities were conducted in good standing with the

18

gaming or casino enforcement or control agency.

19

(d)  Agency records.--Each applicant for a slot machine

20

license, principal license or key employee license shall be

21

required to apply to the Federal Government regarding agency

22

records under the Freedom of Information Act (Public Law 89-554,

23

5 U.S.C. § 522) pertaining to the applicant and provide the

24

board with the complete record received from the Federal

25

Government. The board may issue a conditional license to the

26

applicant prior to the receipt of information under this

27

subsection.

28

§ 1317.  Supplier licenses.

29

* * *

30

(c)  Review and approval.--Upon being satisfied that the

- 34 -

 


1

requirements of subsection (b) have been met, the board may

2

approve the application and issue the applicant a supplier

3

license consistent with all of the following:

4

(1)  [The license shall be for a period of one year. Upon

5

expiration, the license may be renewed in accordance with

6

subsection (d)] The initial license shall be for a period of

7

one year and shall be subject to renewal annually under

8

subsection (d) for two consecutive one-year periods following

9

the initial issuance. Thereafter, a license shall be subject

10

to renewal every three years. Nothing in this paragraph shall

11

relieve the licensee of the affirmative duty to notify the

12

board of changes to any information contained in the original

13

application.

14

* * *

15

§ 1317.1.  Manufacturer licenses.

16

* * *

17

(c)  Review and approval.--Upon being satisfied that the

18

requirements of subsection (b) have been met, the board may

19

approve the application and grant the applicant a manufacturer

20

license consistent with all of the following:

21

(1)  [The license shall be for a period of one year. Upon

22

expiration, a license may be renewed in accordance with

23

subsection (d)] The initial license shall be for a period of

24

one year and shall be subject to renewal annually under

25

subsection (d) for two consecutive one-year periods following

26

the initial issuance. Thereafter, a license shall be subject

27

to renewal every three years. Nothing in this paragraph shall

28

relieve the licensee of the affirmative duty to notify the

29

board of any changes relating to the status of its license or

30

relieve the licensee of its responsibility to notify the

- 35 -

 


1

board of changes to any information contained in the original

2

application.

3

* * *

4

§ 1321.  Additional licenses and permits and approval of

5

agreements.

6

(a)  Requirements.--In addition to the requirements for a

7

license or permit specifically set forth in this part, the board

8

may require a license [or], permit or other authorization, and

9

set a fee for the same, for any key or gaming employee or any

10

person who satisfies any of the following criteria:

11

* * *

12

(2)  The person is presently not [otherwise] required to

13

be licensed or permitted under this part and provides any

14

goods, property or services, including, but not limited to,

15

management contracts for compensation to a slot machine

16

licensee at the licensed facility. The board may by

17

regulation establish a classification system for a person who

18

provides goods, property or services to a slot machine

19

licensee. If the classification system requires the person

20

providing goods, property or services to submit to a criminal

21

history record check under 18 Pa.C.S. Ch. 91 (relating to

22

criminal history record information), the board shall notify

23

the slot machine licensee if the person providing goods,

24

property or services has been convicted of a felony or

25

gambling offense.

26

* * *

27

§ 1326.  License renewals.

28

(a)  Renewal.--All permits and licenses issued under this

29

part unless otherwise provided shall be subject to renewal on an

30

annual basis [upon the application of the holder of the permit

- 36 -

 


1

or license submitted to the board at least 60 days prior to the

2

expiration of the permit or license] for the first two years

3

following the initial issuance. Thereafter, all permits and

4

licenses shall be subject to renewal every three years. The

5

application for renewal shall be submitted at least 60 days

6

prior to the expiration of the permit or license and shall 

7

include an update of the information contained in the initial

8

and any prior renewal applications and the payment of any

9

renewal fee required by this part. A permit or license for which

10

a completed renewal application and fee, if required, has been

11

received by the board will continue in effect unless and until

12

the board sends written notification to the holder of the permit

13

or license that the board has denied the renewal of such permit

14

or license.

15

* * *

16

§ 1328.  Change in ownership or control of slot machine

17

licensee.

18

* * *

19

(a)  Notification and approval.--

20

(1)  A slot machine licensee shall notify the board

21

[prior to or] immediately upon becoming aware of any proposed

22

or contemplated change of ownership of the slot machine

23

licensee by a person or group of persons acting in concert

24

which involves any of the following:

25

(i)  More than 5% of a slot machine licensee's

26

securities or other ownership interests.

27

(ii)  More than 5% of the securities or other

28

ownership interests of a corporation or other form of

29

business entity that owns directly or indirectly at least

30

20% of the voting or other securities or other ownership

- 37 -

 


1

interests of the licensee.

2

(iii)  The sale other than in the ordinary course of

3

business of a licensee's assets.

4

(iv)  Any other transaction or occurrence deemed by

5

the board to be relevant to license qualifications.

6

* * *

7

(b)  Qualification of purchaser of slot machine licensee;

8

change of control.--The purchaser of the slot machine license or 

9

assets, other than in the ordinary course of business, of any

10

slot machine licensee shall independently qualify for a license

11

in accordance with this part and shall pay the license fee as

12

required by section 1209 (relating to slot machine license fee).

13

A change in control of any slot machine licensee shall require

14

that the slot machine licensee independently qualify for a

15

license in accordance with this part, and the slot machine

16

licensee shall pay a new license fee as required by section

17

1209, except as otherwise required by the board pursuant to this

18

section. The new license fee under this section shall be paid

19

upon the assignment and actual change of control or ownership of

20

the slot machine license.

21

* * *

22

§ 1329.  [Nonportability] Portability and relocation of slot

23

machine license.

24

(a)  General rule.--Each slot machine license shall only be

25

valid for the specific physical location within the municipality

26

and county for which it was originally granted.

27

(b)  Petition.--In evaluating a petition to relocate, the

28

board shall consider the following factors:

29

(1)  The reason for the relocation.

30

(2)  A comparative analysis, submitted by the petitioner,

- 38 -

 


1

detailing estimated gross terminal revenues at the new

2

location with estimated gross terminal revenues at the

3

original location.

4

(3)  A comparative analysis, submitted by the petitioner,

5

detailing the economic impact of the licensed facility at the

6

new location with the estimated economic impact at the

7

original location. The comparative analysis shall include the

8

total cost of the project and projected direct and indirect

9

employment figures.

10

(4)  A comprehensive traffic study commissioned by the

11

board.

12

(5)  Community support or opposition.

13

(6)  Any other information requested by the board.

14

(c)  Relocation.--A [No] slot machine licensee [shall] may be

15

permitted to move or relocate the physical location of the

16

licensed facility [without] with board approval [for] upon good

17

cause shown if:

18

(1)  the relocated licensed facility remains within the

19

same county as originally licensed;

20

(2)  the relocation will facilitate the timely operation

21

of slot machines;

22

(3)  the relocated licensed facility complies with all

23

other provisions of this part related to the siting and

24

location of a licensed facility; and

25

(4)  relocation of the licensed facility is in the best

26

interests of the Commonwealth.

27

(d)  Public input hearing.--The board shall hold at least one

28

public input hearing in the municipality where the licensed

29

facility will be located prior to approval of the relocation.

30

(e)  No grant or loan from the Commonwealth may be awarded

- 39 -

 


1

for the purpose of relocating or developing the relocated

2

licensed facility to comply with any conditions of approval of

3

the relocation.

4

Section 11.  Title 4 is amended by adding a section to read:

5

§ 1332.  Appointment of trustee.

6

(a)  Appointment.--Upon petition of the Office of Enforcement

7

Counsel, the board may order the appointment of a trustee from

8

the list required under subsection (j) to act on behalf of the

9

interests of the Commonwealth and the board to assure compliance

10

with this part and any conditions imposed upon the slot machine

11

license in the following circumstances:

12

(1)  Upon the revocation, suspension or nonrenewal of a

13

slot machine license or a principal license of an individual

14

who the board has determined controls a slot machine license

15

if the principal licensee is the only principal who exercises

16

operational control of the licensed facility.

17

(2)  Upon the failure to renew a slot machine license or

18

a principal license of an individual who the board has

19

determined controls a slot machine licensee if the principal

20

licensee is the only principal who exercises operational

21

control of the licensed facility until the slot machine or

22

principal license is renewed or until the discontinuation of

23

the trusteeship pursuant to subsection (i).

24

(3)  If necessary to protect the best interests of the

25

Commonwealth.

26

(b)  Qualifications.--The following shall apply:

27

(1)  A trustee shall be required to obtain a principal

28

license. The board may appoint a trustee and award the

29

trustee a temporary principal license as prescribed in board

30

regulations.

- 40 -

 


1

(2)  Before assuming duties, a trustee shall execute and

2

file a bond for the faithful performance of the trustee's

3

duties. The bond shall be payable to the board with sureties

4

and in the amount and form as required by board order. The

5

cost of the bond shall be paid by the former or suspended

6

licensee.

7

(c)  Powers.--A trustee appointed under this section shall

8

have all of the power and duties granted to exercise only those

9

powers and perform those duties expressly conferred upon the

10

trustee by the board. The board's order appointing the trustee

11

shall set forth the powers, duties and responsibilities of the

12

trustees which may include:

13

(1)  Maintaining and operating the licensed facility in a

14

manner that complies with this part and any conditions

15

imposed by the board.

16

(2)  Maintaining and operating the licensed facility

17

consistent with the measures generally taken in the ordinary

18

course of business including:

19

(i)  Entering into contracts.

20

(ii)  Borrowing money.

21

(iii)  Pledging, mortgaging or otherwise encumbering

22

the licensed facility or property thereof as security for

23

the repayment of the trustee's loans subject to any

24

provisions and restrictions in any existing credit

25

documents.

26

(iv)  Hiring, firing and disciplining employees.

27

(3)  Exercising the rights and obligations of the former

28

or suspended licensee.

29

(4)  Taking possession of all of the property of the slot

30

machine licensee, including its books, records and papers.

- 41 -

 


1

(5)  Establishing accounts with financial institutions.

2

An account may not be established with a financial

3

institution in which an affiliate of the former or suspended

4

licensee, or in which the trustee, has a financial

5

controlling interest.

6

(6)  Meeting with the former or suspended licensee.

7

(7)  Meeting with principals and key employees at the

8

licensed facility.

9

(8)  Meeting with the independent audit committee.

10

(9)  Meeting with the board's executive director and

11

keeping the board's executive director apprised of actions

12

taken and the trustee's plans and goals for the future.

13

(10)  Hiring legal counsel, accountants or other

14

consultants or assistants, with prior approval of the board,

15

as necessary to carry out the trustee's duties and

16

responsibilities.

17

(11)  Settling or compromising with any debtor or

18

creditor of the former or suspended licensee, including any

19

taxing authority.

20

(12)  Reviewing outstanding agreements to which the

21

former or suspended licensee is a party and advising the

22

board as to which, if any, of the agreements should be the

23

subject of scrutiny, examination or investigation by the

24

board.

25

(13)  Obtaining board approval prior to any sale, change

26

of ownership, change of control, change of financial status,

27

restructuring, transfer of assets or execution of a contract

28

or any other action taken outside of the ordinary course of

29

business.

30

(14)  Obtaining board approval for any payments outside

- 42 -

 


1

of those made in the ordinary course of business.

2

Notwithstanding any provision contained in this subsection to

3

the contrary, the trustee shall have the duty to conserve and

4

preserve the assets of the licensed entity.

5

(d)  Compensation.--The board shall establish the

6

compensation of the trustee and shall review and approve actual

7

and reasonable costs and expenses of the trustee, legal counsel,

8

accountants or other consultants or assistants hired by the

9

trustee and other persons the board may appoint in connection

10

with the trusteeship action. The compensation, costs and

11

expenses shall be paid by the former or suspended licensee.

12

Total compensation for the trustee and all individuals hired or

13

retained by the trustee under subsection (c)(10) shall not

14

exceed $600 per hour in the aggregate.

15

(e)  Reports.--A trustee shall file reports with regard to

16

the administration of the trusteeship with the board in the form

17

and at intervals as the board orders. The board may direct that

18

copies or portions of the trustee's reports be mailed to

19

creditors or other parties in interest and make summaries of the

20

reports available to the public and shall post them on the

21

board's Internet website.

22

(f)  Review of actions.--A creditor or party in interest

23

aggrieved by any alleged breach of a delegated power or duty of

24

a trustee in the discharge of the trustee's duties may request a

25

review of the trustee's action or inaction by filing a petition

26

in accordance with board regulations. The petition must set

27

forth in detail the pertinent facts and the reasons why the

28

facts constitute the alleged breach. The board will review any

29

petition filed under this section and take whatever action, if

30

any, it deems appropriate.

- 43 -

 


1

(g)  Effect of the trusteeship.--After issuance of an order

2

to appoint a trustee, the former or suspended principal or slot

3

machine licensee may not exercise any of its privileges, collect

4

or receive any debts and pay out, sell, assign or transfer any

5

of its property to anyone without prior approval of the

6

appointed trustee and the board.

7

(h)  Disposition of net earnings income.--During the period

8

of trusteeship, net earnings income shall be deposited in an

9

escrow account maintained for that purpose. Payment of net

10

earnings income during the period of trusteeship may not be made

11

by the trustee without the prior approval of the board. A

12

suspended or former principal or slot machine licensee may

13

request payment distribution of all or a portion of the net

14

earnings income during the period of trusteeship by filing a

15

petition in accordance with board regulation. The suspended or

16

former principal or slot machine licensee shall have the burden

17

of demonstrating good cause for the payment distribution of the

18

net earnings income requested.

19

(i)  Discontinuation.--The board may issue an order to

20

discontinue a trusteeship when:

21

(1)  The board determines that the cause for which the

22

trustee was appointed no longer exists.

23

(2)  The trustee has, with the prior approval of the

24

board, consummated the sale, assignment, conveyance or other

25

disposition of all the property or interest of the former

26

principal or slot machine licensee relating to the slot

27

machine license.

28

Upon board approval of the discontinuation of the trusteeship,

29

the trustee shall, in an orderly manner, transfer the property

30

of the former or suspended principal or slot machine licensee.

- 44 -

 


1

(j)  List of approved trustees.--The board shall promulgate

2

regulations to establish a list of persons approved by the board

3

qualified to serve as a trustee. At a minimum, the regulations

4

shall provide for the following:

5

(1)  The minimum qualifications an individual must

6

possess to be approved as a trustee, which shall include

7

possession of a principal license.

8

(2)  The procedure for placement on or removal from the

9

list.

10

(3)  Any other information the board deems necessary to

11

carry out the intent of this section.

12

Section 12.  Section 1407 of Title 4 is amended by adding

13

subsections to read:

14

§ 1407.  Pennsylvania Gaming Economic Development and Tourism

15

Fund.

16

* * *

17

(e)  Annual report.--The Office of the Budget in cooperation

18

with the Department of Community and Economic Development shall

19

submit an annual report of all distribution of funds under this

20

section to the chairman and minority chairman of the

21

Appropriations Committee of the Senate, the chairman and

22

minority chairman of the Community, Economic and Recreational

23

Development Committee of the Senate, the chairman and minority

24

chairman of the Appropriations Committee of the House of

25

Representatives and the chairman and minority chairman of the

26

Gaming Oversight Committee of the House of Representatives. The

27

report shall include detailed information relating to transfers

28

made from the Pennsylvania Gaming Economic Development and

29

Tourism Fund and all reimbursements, distributions and payments

30

made under subsection (b) or the act of July 25, 2007 (P.L.342,

- 45 -

 


1

No.53), known as Pennsylvania Gaming Economic Development and

2

Tourism Fund Capital Budget Itemization Act of 2007. The report

3

shall be submitted by January 31, 2010, and by January 31 of

4

each year thereafter.

5

(f)  Local report.--A city of the first class, city of the

6

second class, county of the second class, convention center or

7

convention center authority, professional hockey franchise

8

sports and exhibition authority of a county of the second class, 

9

urban redevelopment authority, airport authority or other entity

10

that receives money from the fund pursuant to an Economic

11

Development Capital Budget under this section subsection (b) or

12

the act of July 25, 2007 (P.L.342, No.53), known as Pennsylvania

13

Gaming Economic Development and Tourism Fund Capital Budget

14

Itemization Act of 2007, shall submit an annual report to the

15

Office of the Budget, the chairman and minority chairman of the

16

Appropriations Committee of the Senate, the chairman and

17

minority chairman of the Community, Economic and Recreational

18

Development Committee of the Senate, the chairman and minority

19

chairman of the Appropriations Committee of the House of

20

Representatives and the chairman and the minority chairman of

21

the Gaming Oversight Committee of the House of Representatives.

22

The report shall include detailed information, including records

23

of expenditures, payments and other distributions made from

24

money received under subsection (b). The initial report shall

25

include information on all funds received prior to January 31,

26

2010. The report shall be submitted by January 31, 2010, and by

27

January 31 of each year thereafter until all funds under this

28

section are distributed or received. An entity that receives

29

funds after the effective date of this section shall submit an

30

initial report by January 31 of the year following receipt of

- 46 -

 


1

the funds.

2

(g)  Distribution to international airport.--Notwithstanding

3

the provisions of section 7(d) of the act of July 25, 2007

4

(P.L.342, No.53), known as the Pennsylvania Gaming Economic

5

Development and Tourism Fund Capital Budget Itemization Act of

6

2007, following the distribution of $42.5 million of funds

7

allocated to the county for debt service and economic

8

development projects for an international airport in a county of

9

the second class under section 3(2)(i)(E) of said act, all

10

remaining funds shall be distributed directly to an authority

11

that operates an international airport in a county of the second

12

class.

13

Section 13.  Sections 1408(c) and 1512(a.5) and (b) of Title

14

4 are amended to read:

15

§ 1408.  Transfers from State Gaming Fund.

16

* * *

17

(c)  Local law enforcement grants.--Annually, the sum of

18

[$5,000,000] $3,000,000 shall be transferred to the board for

19

the purpose of issuing grants to local law enforcement agencies

20

to enforce and prevent [the unlawful operation of slot machines] 

21

all forms of unlawful gambling in this Commonwealth. For

22

purposes of this subsection, the term "local law enforcement

23

agency" shall include Pennsylvania State Police activities in a

24

municipality which does not have a municipal police department

25

for activities in that municipality.

26

* * *

27

§ 1512.  Financial and employment interests.

28

* * *

29

(a.5)  State Ethics Commission.--The State Ethics Commission

30

shall publish a list of all State, county, municipal and other

- 47 -

 


1

government positions that meet the definitions of "public

2

official" as defined under subsection (b) or "executive-level

3

public employee" [under subsection (b)]. The Office of

4

Administration shall assist the [Ethics Commission] commission 

5

in the development of the list, which shall be published in the

6

Pennsylvania Bulletin biennially and on the board's website.

7

Upon request, each public official shall have a duty to provide

8

the [Ethics Commission] commission with adequate information to

9

accurately develop and maintain the list. The [Ethics

10

Commission] commission may impose a civil penalty under 65

11

Pa.C.S. § 1109(f) (relating to penalties) upon any public

12

official or executive-level public employee who fails to

13

cooperate with the [Ethics Commission] commission under this

14

subsection. An individual who relies in good faith on the list

15

published by the commission shall not be subject to any penalty

16

for a violation of this section.

17

(b)  Definitions.--As used in this section, the following

18

words and phrases shall have the meanings given to them in this

19

subsection:

20

["Executive-level public employee."  The term shall include

21

the following:

22

(1)  Deputy Secretaries of the Commonwealth and the

23

Governor's Office executive staff.

24

(2)  An employee of the Executive Branch with

25

discretionary power which may affect or influence the outcome

26

of a State agency's action or decision and who is involved in

27

the development of regulations or policies relating to a

28

licensed entity or who is involved in other matters under

29

this part. The term shall include an employee with law

30

enforcement authority.

- 48 -

 


1

(3)  An employee of a county or municipality with

2

discretionary powers which may affect or influence the

3

outcome of the county's or municipality's action or decision

4

and who is involved in the development of law, regulation or

5

policy relating to a licensed entity or who is involved in

6

other matters under this part. The term shall include an

7

employee with law enforcement authority.

8

(4)  An employee of a department, agency, board,

9

commission, authority or other governmental body not included

10

in paragraph (1), (2) or (3) with discretionary power which

11

may affect or influence the outcome of the governmental

12

body's action or decision and who is involved in the

13

development of regulation or policy relating to a licensed

14

entity or who is involved in other matters under this part.

15

The term shall include an employee with law enforcement

16

authority.]

17

"Financial interest."  Owning or holding, or being deemed to

18

hold, debt or equity securities or other ownership interest or

19

profits interest. A financial interest shall not include any

20

debt or equity security, or other ownership interest or profits

21

interest, which is held or deemed to be held in any of the

22

following:

23

(1)  A blind trust over which the executive-level public

24

employee, public official, party officer or immediate family

25

member thereof may not exercise any managerial control or

26

receive income during the tenure of office and the period

27

under subsection (a). The provisions of this paragraph shall

28

apply only to blind trusts established prior to the effective

29

date of this paragraph.

30

(2)  Securities that are held in a pension plan, profit-

- 49 -

 


1

sharing plan, individual retirement account, tax-sheltered

2

annuity, a plan established pursuant to section 457 of the

3

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

4

1 et seq.) or any successor provision deferred compensation

5

plan whether qualified or not qualified under the Internal

6

Revenue Code of 1986 or any successor provision or other

7

retirement plan that:

8

(i)  is not self-directed by the individual; and

9

(ii)  is advised by an independent investment adviser

10

who has sole authority to make investment decisions with

11

respect to contributions made by the individual to these

12

plans.

13

(3)  A tuition account plan organized and operated

14

pursuant to section 529 of the Internal Revenue Code of 1986

15

(Public Law 99-514, 26 U.S.C. § 529) that is not self-

16

directed by the individual.

17

(4)  A mutual fund where the interest owned by the mutual

18

fund in a licensed entity does not constitute a controlling

19

interest as defined in this part.

20

"Immediate family."  A spouse, minor child or unemancipated

21

child.

22

"Law enforcement authority."  The power to conduct

23

investigations of or to make arrests for criminal offenses.

24

"Party officer."  A member of a national committee; a

25

chairman, vice chairman, secretary, treasurer or counsel of a

26

State committee or member of the executive committee of a State

27

committee; a county chairman, vice chairman, counsel, secretary

28

or treasurer of a county committee in which a licensed facility

29

is located; or a city chairman, vice chairman, counsel,

30

secretary or treasurer of a city committee of a city in which a

- 50 -

 


1

licensed facility is located.

2

"Public official."  The term shall include the following:

3

(1)  The Governor, Lieutenant Governor, a member of the

4

Governor's cabinet, Treasurer, Auditor General and Attorney

5

General of the Commonwealth.

6

(2)  A member of the Senate or House of Representatives

7

of the Commonwealth.

8

(3)  An individual elected or appointed to any office of

9

a county or municipality that directly receives a

10

distribution of revenue under this part.

11

(4)  An individual elected or appointed to a department,

12

agency, board, commission, authority or other governmental

13

body not included in paragraph (1), (2) or (3) that directly

14

receives a distribution of revenue under this part.

15

(5)  An individual elected or appointed to a department,

16

agency, board, commission, authority, county, municipality or

17

other governmental body not included in paragraph (1), (2) or

18

(3) with discretionary power which may influence or affect

19

the outcome of an action or decision and who is involved in

20

the development of regulation or policy relating to a

21

licensed entity or who is involved in other matters under

22

this part.

23

The term does not include a member of a school board or an

24

individual who held an uncompensated office with a governmental

25

body prior to January 1, 2006, and who no longer holds the

26

office as of January 1, 2006. The term includes a member of an

27

advisory board or commission which makes recommendations

28

relating to a licensed facility.

29

Section 14.  Title 4 is amended by adding a section to read:

30

§ 1516.1.  Prosecutorial and adjudicatory functions.

- 51 -

 


1

The board shall adopt regulations and procedures necessary to

2

ensure that the Bureau of Investigations and Enforcement is a

3

distinct administrative entity and to prevent commingling of the

4

investigatory and prosecutorial functions of the Bureau of

5

Investigations and Enforcement under section 1517 (relating to

6

investigations and enforcement) and the adjudicatory functions

7

of the board.

8

Section 15.  Section 1517(a.1)(6) of Title 4 is amended,

9

subsection (a.2)(1) is amended by adding a subparagraph

10

subparagraphs and subsection (c) is amended by adding a

11

paragraph to read:

12

§ 1517.  Investigations and enforcement.

13

* * *

14

(a.1)  Powers and duties of bureau.--The Bureau of

15

Investigations and Enforcement shall have the following powers

16

and duties:

17

* * *

18

(6)  Conduct [audits] reviews of a licensed entity as

19

necessary to ensure compliance with this part. [An audit] A

20

review may include the review of accounting, administrative

21

and financial records, management control systems, procedures

22

and other records utilized by a licensed entity.

23

* * *

24

(a.2)  Office of Enforcement Counsel.--

25

(1)  There is established within the bureau an Office of

26

Enforcement Counsel which shall act as the prosecutor in all

27

noncriminal enforcement actions initiated by the bureau under

28

this part and shall have the following powers and duties:

29

* * *

30

(iv)  Petition the board for the appointment of a

- 52 -

 


1

trustee under section 1332 (relating to appointment of

2

trustee).

3

(v)  Notwithstanding 42 Pa.C.S. § 5947 (relating to

4

immunity of witnesses), the Commonwealth Court may grant

5

an immunity order, in the course of an investigation or

6

hearing conducted under this part, a person refuses to

7

answer a question or to produce evidence on the grounds

8

that the answer or evidence will expose the person to

9

criminal prosecution. The chief enforcement counsel of

10

the bureau may petition the Commonwealth Court for a

11

grant of immunity that includes the specific question to

12

be posed or information or evidence being sought from the

13

person as follows:

14

(A)  A copy of the petition shall be provided to

15

the Attorney General and the district attorney of the

16

person's county of residence who may object to the

17

petition.

18

(B)  The court shall hold an in camera proceeding

19

with the person to hear the evidence that will be

20

offered if the order to produce evidence is granted.

21

(C)  The court may issue an order to compel the

22

person to answer or produce evidence with immunity

23

if:

24

(I)  the testimony or other information from

25

a witness may be necessary to the public

26

interest; and

27

(II)  a witness has refused or is likely to

28

refuse to testify or provide other information on

29

the basis of his privilege against self-

30

incrimination.

- 53 -

 


1

(D)  The court shall grant or deny the request

2

for immunity within 45 days of the filing of the

3

request.

4

(E)  If the person who is the subject of the

5

immunity order provides the answer or evidence, the

6

person shall be immune from criminal prosecution

7

based on the answer or evidence that was the subject

8

of the immunity order.

9

(F)  The person may be prosecuted for perjury

10

committed in the answer or production of evidence or

11

held in contempt for failing to give an answer or

12

produce evidence in accordance with the order. The

13

answer or evidence shall be admissible against the

14

person only in a criminal investigation, or a trial

15

or other proceeding for perjury or contempt.

16

(G)  Immunity under this paragraph shall not

17

preclude the use of any other remedy or sanction

18

authorized by law.

19

* * *

20

(c)  Powers and duties of the Pennsylvania State Police.--The

21

Pennsylvania State Police shall have the following powers and

22

duties:

23

* * *

24

(14)  By March 1 of each year, the Commissioner of the

25

Pennsylvania State Police shall submit a report to the

26

Appropriations Committee of the Senate, the Community,

27

Economic and Recreational Development Committee of the

28

Senate, the Appropriations Committee of the House of

29

Representatives and the Gaming Oversight Committee of the

30

House of Representatives. The report shall summarize law

- 54 -

 


1

enforcement activities at each licensed facility during the

2

previous calendar year and shall include all of the

3

following:

4

(i)  The number of arrests at each licensed facility.

5

(ii)  A list of specific offenses charged for each

6

offense.

7

(iii)  The number of criminal prosecutions resulting

8

from arrests.

9

(iv)  The number of convictions resulting from

10

prosecutions.

11

(v)  The number of Pennsylvania State Police troopers

12

assigned to each licensed facility and to the gaming unit

13

at the Pennsylvania State Police headquarters.

14

(vi)  The number and nature of disciplinary actions

15

taken and complaints made against Pennsylvania State

16

Police troopers in a licensed facility.

17

(vii)  The closest local police station, Pennsylvania

18

State Police station and regional Pennsylvania State

19

Police headquarters to each licensed facility.

20

* * *

21

Section 16.  Section 1517.2 of Title 4 is amended to read:

22

§ 1517.2.  Conduct of [public officials and] board employees.

23

(a)  [Ex parte discussion prohibited.--An attorney

24

representing the bureau or the Office of Enforcement Counsel, or

25

an employee of the bureau or office involved in the hearing

26

process, shall not discuss the case ex parte with a hearing

27

officer, chief counsel or member] (Reserved).

28

(b)  [Other prohibitions.--A hearing officer, the chief

29

counsel or a member shall not discuss or exercise any

30

supervisory responsibility over any employee with respect to an

- 55 -

 


1

enforcement hearing with which the employee is involved] 

2

(Reserved).

3

(c)  Disqualification.--If it becomes necessary for the chief

4

counsel or member to become involved on behalf of the board in

5

any enforcement proceeding, the chief counsel or member shall be

6

prohibited from participating in the adjudication of that matter

7

and shall designate appropriate individuals to exercise

8

adjudicatory functions.

9

Section 17.  The amendment of 4 Pa.C.S. § 1213 shall not

10

apply to any of the following:

11

(1)  An application submitted before the effective date

12

of this section.

13

(2)  Any license or permit issued prior to the effective

14

date of this section.

15

(3)  The renewal of any license or permit issued prior to

16

the effective date of this section.

17

Section 18.  This act shall take effect in 60 days.

18

Section 1.  Section 1102(11) of Title 4 of the Pennsylvania

<--

19

Consolidated Statutes is amended and the section is amended by

20

adding paragraphs to read:

21

§ 1102.  Legislative intent.

22

The General Assembly recognizes the following public policy

23

purposes and declares that the following objectives of the

24

Commonwealth are to be served by this part:

25

* * *

26

(2.1)  The legalization of table games as authorized in

27

this part is intended to supplement slot machine gaming by

28

increasing revenues to the Commonwealth and providing new

29

employment opportunities by creating skilled jobs for

30

individuals related to the conduct of table games at licensed

- 56 -

 


1

facilities in this Commonwealth.

2

* * *

3

(10.1)  The General Assembly has a compelling interest in

4

protecting the integrity of both the electoral process and

5

the legislative process by preventing corruption and the

6

appearance of corruption which may arise through permitting

7

campaign contributions by the gaming industry.

8

(11)  It is necessary to maintain the integrity of the

9

regulatory control and legislative oversight over the

10

operation of slot machines and table games in this

11

Commonwealth; to prevent the actual or appearance of

12

corruption that may result from [large] campaign

13

contributions; ensure the bipartisan administration of this

14

part; and avoid actions that may erode public confidence in

15

the system of representative government.

16

(11.1)  Completely banning campaign contributions by

17

certain individuals and entities subject to this act is

18

necessary to prevent corruption, or the appearance of

19

corruption, that may arise when politics and gaming are

20

intermingled.

21

(12)  It is the intent of the General Assembly to

22

authorize the operation of slot machines and table games

23

under a single slot machine license issued to a slot machine

24

licensee under this part.

25

Section 2.  The definitions of "associated equipment,"

26

"cheat," "conduct of gaming," "conviction," "gaming employee,"

27

"key employee," "licensed facility," "manufacturer,"

28

"manufacturer license," "slot machine," "supplier" and "supplier

29

license" in section 1103 of Title 4 are amended and the section

30

is amended by adding definitions to read:

- 57 -

 


1

§ 1103.  Definitions.

2

The following words and phrases when used in this part shall

3

have the meanings given to them in this section unless the

4

context clearly indicates otherwise:

5

* * *

6

"Associated equipment."  Any equipment or mechanical,

7

electromechanical or electronic contrivance, component or

8

machine used in connection with [gaming] slot machines or table 

9

games, including linking devices which connect to progressive

10

slot machines or slot machines, replacement parts, equipment

11

which affects the proper reporting and counting of gross

12

terminal revenue and gross table game revenue, computerized

13

systems for controlling and monitoring slot machines or table

14

games, including, but not limited to, the central control

15

computer to which all slot machines communicate and devices for

16

weighing or counting money.

17

* * *

18

"Banking game."  Any table game in which players compete

19

against a certificate holder rather than against one another.

20

* * *

21

"Cash."  United States currency and coin.

22

"Cash equivalent."  An asset that is readily convertible to 

23

cash, including, but not limited to, any of the following:

24

(1)  Chips, tokens or other representations of value.

25

(2)  Travelers checks.

26

(3)  Foreign currency and coin.

27

(4)  Certified checks, cashier's checks and money orders.

28

(5)  Personal checks or drafts.

29

(6)  A negotiable instrument applied against credit

30

extended by a certificate holder, a recognized credit card

- 58 -

 


1

company or a financial institution.

2

(7)  Any other instrument that the Pennsylvania Gaming 

3

Control Board deems a cash equivalent. Other than recognized 

4

credit cards or credit extended by a certificate holder, all

5

instruments that constitute a cash equivalent shall be made

6

payable to the slot machine licensee, to the bearer or to

7

cash. An instrument made payable to a third party shall not

8

be considered a cash equivalent and shall be prohibited.

9

* * *

10

"Certificate holder."  A slot machine licensee that holds a

11

table games operation certificate from the Pennsylvania Gaming

12

Control Board in accordance with Chapter 13A (relating to table

13

games).

14

"Cheat."  To [alter without authorization] defraud or steal

15

from any patron, slot machine licensee or the Commonwealth,

16

including causing, aiding, abetting or conspiring with another

17

person to do so. The term shall also mean to unlawfully alter 

18

the elements of chance, skill, method of selection or criteria

19

which determine:

20

(1)  The result of a slot machine game or table game.

21

(2)  The amount or frequency of payment in a slot machine

22

game or table game.

23

(3)  The value of a wagering instrument.

24

(4)  The value of a wagering credit.

25

The term does not include altering a slot machine, table game

26

device or associated equipment for [required] maintenance [and]

27

or repair with the approval of a slot machine licensee.

28

"Cheating or thieving device."  A device used or possessed

29

with the intent to use, on or during the play of any slot

30

machine or table game to cheat or steal. The term shall also

- 59 -

 


1

include any device used to alter slot machines or table game

2

devices without the approval of a slot machine licensee.

3

"Chip."  A representation of value, including plaques, issued

4

by and redeemable with the issuing certificate holder for use in

5

playing a table game at the certificate holder's licensed

6

facility.

7

* * *

8

"Conduct of gaming."  The licensed placement and operation of

9

games of skill or chance under this part, as authorized and

10

approved by the Pennsylvania Gaming Control Board at a licensed

11

facility.

12

"Contest."  A table game competition among players for a

13

prize, whether or not the prize is a specified amount of money

14

or players are required to pay consideration to participate in

15

the competition.

16

* * *

17

"Conviction."  A finding of guilt or a plea of guilty or nolo

18

contendere, whether or not a judgment of sentence has been

19

imposed as determined by the law of the jurisdiction in which

20

the prosecution was held. The term does not include a conviction

21

that has been expunged or overturned or for which an individual

22

has been pardoned or had an order of Accelerated Rehabilitative

23

Disposition entered.

24

* * *

25

"Count room."  The secured room at a licensed facility

26

designated for counting, wrapping and recording a slot machine

27

licensee's slot machine or table game receipts, or both.

28

"Counterfeit chips."  Any chip or similar object not issued

29

by a certificate holder for use in playing a table game at the

30

certificate holder's licensed facility.

- 60 -

 


1

* * *

2

"Electronic table game."  A table game which, as determined

3

by the Pennsylvania Gaming Control Board, is a mechanical,

4

electrical or computerized contrivance, terminal, machine or

5

other device approved by the Pennsylvania Gaming Control Board

6

which, upon insertion of a coin, bill, ticket, token or similar

7

object therein or upon payment of any consideration whatsoever,

8

including the use of any electronic payment system, is playable

9

or operable without either the required assistance of or

10

required interaction with a gaming employee. The term does not

11

include a slot machine.

12

"Executive-level public employee."  The term shall include

13

the following:

14

(1)  Deputy Secretaries of the Commonwealth and the

15

Governor's Office executive staff.

16

(2)  An employee of the executive branch with

17

discretionary power which may affect or influence the outcome

18

of a State agency's action or decision and who is involved in

19

the development of regulations or policies relating to a

20

licensed entity or who is involved in other matters under

21

this part. The term shall include an employee with law

22

enforcement authority.

23

(3)  An employee of a county or municipality with

24

discretionary powers which may affect or influence the

25

outcome of the county's or municipality's action or decision

26

and who is involved in the development of law, regulation or

27

policy relating to a licensed entity or who is involved in

28

other matters under this part. The term shall include an

29

employee with law enforcement authority.

30

(4)  An employee of a department, agency, board,

- 61 -

 


1

commission, authority or other governmental body not included

2

in paragraph (1), (2) or (3) with discretionary power which

3

may affect or influence the outcome of the governmental

4

body's action or decision and who is involved in the

5

development of regulation or policy relating to a licensed

6

entity or who is involved in other matters under this part.

7

The term shall include an employee with law enforcement

8

authority.

9

* * *

10

"Gaming employee."  Any employee of a slot machine licensee,

11

including, but not limited to:

12

(1)  Cashiers.

13

(2)  Change personnel.

14

(3)  [Counting] Count room personnel.

15

(4)  Slot attendants.

16

(5)  Hosts or other persons authorized to extend

17

complimentary services.

18

(6)  Machine mechanics [or], computer machine technicians

19

or table game device technicians.

20

(7)  Security personnel.

21

(8)  Surveillance personnel.

22

(9)  Supervisors and managers.

23

(10)  Boxmen.

24

(11)  Dealers or croupiers.

25

(12)  Floormen.

26

The term includes employees of a person holding a supplier's

27

license whose duties are directly involved with the repair or

28

distribution of slot machines, table game devices and associated

29

equipment sold or provided to [the] a licensed facility within

30

this Commonwealth as determined by the Pennsylvania Gaming

- 62 -

 


1

Control Board. The term does not include bartenders, cocktail

2

servers or other persons engaged solely in preparing or serving

3

food or beverages, clerical or secretarial personnel, parking

4

attendants, janitorial, stage, sound and light technicians and

5

other nongaming personnel as determined by the board.

6

"Gaming junket."  An arrangement made by a gaming junket

7

representative for an individual who is all of the following:

8

(1)  Selected or approved for participation in the

9

arrangement based on the individual's ability to satisfy

10

specific financial qualifications.

11

(2)  Likely to participate in gaming and to patronize a

12

licensed facility for the purpose of gaming.

13

(3)  Receives as consideration for participation in the

14

arrangement part or all of the costs of transportation, food,

15

lodging or entertainment which are directly or indirectly

16

paid by a slot machine licensee or an agent or an employee of

17

a slot machine licensee.

18

"Gaming junket enterprise."  A person, other than a slot

19

machine licensee, who employs or otherwise engages the services

20

of a gaming junket representative to arrange gaming junkets to a

21

license facility, regardless of whether the activities of the

22

gaming junket enterprise occur within this Commonwealth.

23

"Gaming junket representative."  An individual who is not an

24

employee of a slot machine licensee who arranges and negotiates

25

the terms of a gaming junket or selects individuals to

26

participate in a gaming junket to a licensed facility,

27

regardless of whether the activities of the gaming junket

28

enterprise occur within this Commonwealth.

29

"Gaming school."  Any educational institution which is

30

approved by the the Department of Education as an accredited

- 63 -

 


1

college or university, community college, Pennsylvania private

2

licensed school or its equivalent and which is approved by the

3

Pennsylvania Gaming Control Board in consultation with the

4

Department of Education to provide education and training

5

related to employment opportunities associated with slot

6

machines or table games, including slot machine, table game 

7

device and associated equipment maintenance and repair.

8

"Gaming service provider."  A person that:

<--

9

(1)  provides goods or services to a slot machine

10

licensee or an applicant for a slot machine license;

11

(2)  provides goods or services at a licensed facility;

12

and

13

(3)  is not required to be licensed as a manufacturer,

14

manufacturer designee, supplier, management company or gaming

15

junket enterprise.

16

"Gross table game revenue."  The total of:

17

(1)  Cash or cash equivalents received in the playing of

18

a table game minus the total of:

19

(i)  Cash or cash equivalents paid out to patrons as

20

a result of playing a table game.

21

(ii)  Cash paid to purchase annuities to fund prizes

22

payable to patrons over a period of time as a result of

23

playing a table game.

24

(iii)  The actual cost paid by the certificate holder

25

for any personal property distributed to a patron as a

26

result of playing a table game. This does not include

27

travel expenses, food, refreshments, lodging or services.

28

(2)  All table game contest or tournament fees. Table

29

game contest or tournament fees shall be calculated as all

30

fees or payments, including entry fees, buy-ins, re-buys and

- 64 -

 


1

administrative fees, imposed by a certificate holder to

2

participate in a table game contest or tournament less cash

3

or actual cost paid by a certificate holder for prizes

4

awarded to tournament or contest winners.

5

(3)  The total amount of the rake collected by a

6

certificate holder each day.

7

The term does not include counterfeit money or chips; coins or

8

currency of other countries received in the playing of a table

9

game, except to the extent that they are readily convertible to

10

United States currency; cash taken in a fraudulent act

11

perpetrated against a certificate holder for which the

12

certificate holder is not reimbursed.

13

* * *

14

"Hotel."  One or more buildings owned or operated by a

15

certificate holder which is attached to, physically connected to

16

or adjacent to the certificate holder's licensed facility at

17

which the public may obtain sleeping rooms and is located on the

18

same parcel of land as the licensed facility.

19

* * *

20

"Key employee."  Any individual who is employed in a director

21

or department head capacity and who is empowered to make

22

discretionary decisions that regulate slot machine or table game

23

operations, including the general manager and assistant manager

24

of the licensed facility, director of slot operations, director

25

of table games, pit supervisors, shift supervisors, credit

26

supervisors, cashier supervisors, table game managers and

27

assistant managers, director of cage and/or credit operations,

28

director of surveillance, director of marketing, director of

29

management information systems, director of security,

30

comptroller and any employee who supervises the operations of

- 65 -

 


1

these departments or to whom these department directors or

2

department heads report and such other positions which the

3

Pennsylvania Gaming Control Board shall determine based on

4

detailed analyses of job descriptions as provided in the

5

internal controls of the licensee as approved by the

6

Pennsylvania Gaming Control Board. All other gaming employees

7

unless otherwise designated by the Pennsylvania Gaming Control

8

Board shall be classified as non-key employees.

9

* * *

10

"Licensed entity representative."  A person acting on behalf

11

of or authorized to represent the interest of any applicant,

12

licensee or permittee, including an attorney, agent or lobbyist,

13

regarding any matter which may reasonably be expected to come

14

before the board.

15

"Licensed facility."  The physical land-based location at

16

which a licensed gaming entity is authorized to place and

17

operate slot machines and, if authorized by the Pennsylvania

18

Gaming Control Board under Chapter 13A (relating to table

19

games), to conduct table games. The term includes any area of a

20

licensed racetrack previously authorized pursuant to section

21

1207(17) (relating to regulatory authority of board) to operate

22

slot machines and any area of a hotel which the Pennsylvania

23

Gaming Control Board determines is suitable to conduct table

24

games.

25

* * *

26

"Manufacturer."  A person who manufactures, builds, rebuilds,

27

fabricates, assembles, produces, programs, designs or otherwise

28

makes modifications to any slot machine, table game device or

29

associated equipment for use or play of slot machines or table 

30

games in this Commonwealth for gaming purposes.

- 66 -

 


1

"Manufacturer license."  A license issued by the Pennsylvania

2

Gaming Control Board authorizing a manufacturer to manufacture

3

or produce slot machines, table game devices or associated

4

equipment for use in this Commonwealth for gaming purposes.

5

* * *

6

"Municipal authority."  A body politic and corporate created

7

under the former act of June 28, 1935 (P.L.463, No.191), known

8

as the Municipality Authorities Act of 1935, the former act of

9

May 2, 1995 (P.L.382, No.164), known as the Municipality

10

Authorities Act of 1945 or the act of July 29, 1953 (P.L.1034,

11

No.270), known as the Public Auditorium Authorities Law.

12

* * *

13

"Nonbanking game."  Any table game in which players compete

14

against one another and in which the certificate holder collects

15

a rake.

16

"Nonelectronic table game."  Any table game that, as

17

determined by the Pennsylvania Gaming Control Board, is not an

18

electronic table game.

19

* * *

20

"Party."  The Pennsylvania Gaming Control Board, the Bureau

21

of Investigations and Enforcement of the Pennsylvania Gaming

22

Control Board or any applicant, licensee, permittee, registrant

23

or other person appearing of record in any proceeding before the

24

board or in any proceeding for judicial review of any action,

25

decision or order of the board.

26

* * *

27

"Rake."  A set fee or percentage assessed by a certificate

28

holder for providing the services of a dealer, table or location

29

for playing any nonbanking game.

30

* * *

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1

"Slot machine."  Any mechanical [or], electrical or

2

computerized contrivance, terminal, machine or other device

3

approved by the Pennsylvania Gaming Control Board which, upon

4

insertion of a coin, bill, ticket, token or similar object

5

therein or upon payment of any consideration whatsoever,

6

including the use of any electronic payment system except a

7

credit card or debit card, is available to play or operate, the

8

play or operation of which, whether by reason of skill or

9

application of the element of chance or both, may deliver or

10

entitle the person or persons playing or operating the

11

contrivance, terminal, machine or other device to receive cash,

12

billets, tickets, tokens or electronic credits to be exchanged

13

for cash or to receive merchandise or anything of value

14

whatsoever, whether the payoff is made automatically from the

15

machine or manually. A slot machine:

16

(1)  May utilize spinning reels or video displays or

17

both.

18

(2)  May or may not dispense coins, tickets or tokens to

19

winning patrons.

20

(3)  May use an electronic credit system for receiving

21

wagers and making payouts.

22

The term shall include associated equipment necessary to conduct

23

the operation of the contrivance, terminal, machine or other

24

device. The term does not include an electronic table game.

25

* * *

26

"Supplier."  A person that sells, leases, offers or otherwise

27

provides, distributes or services any slot machine, table game

28

device or associated equipment for use or play of slot machines

29

or table games in this Commonwealth.

30

"Supplier license."  A license issued by the Pennsylvania

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1

Gaming Control Board authorizing a supplier to provide products

2

or services related to slot machines, table games devices or

3

associated equipment to slot machine licensees.

4

* * *

5

"Suspicious transaction."  The acceptance or redeeming of

6

cash or a cash equivalent involving or aggregating $5,000 if the

7

slot machine licensee or person knows or has reason to believe

8

the transaction:

9

(1)  involves funds derived from illegal activities or is

10

intended or conducted in order to conceal or disguise funds

11

or assets derived from illegal activities;

12

(2)  is part of a plan to violate or evade any law or

13

regulation or to avoid any transaction reporting requirement

14

under the law or regulations of this Commonwealth or the

15

United States, including a plan to structure a series of

16

transactions to avoid any transaction reporting requirement

17

under the laws or regulations of this Commonwealth or the

18

United States; or

19

(3)  has no lawful business or other apparent lawful

20

purpose or is not the sort of transaction in which a person

21

would normally be expected to engage and the slot machine

22

licensee or person knows of no reasonable explanation for the

23

transaction after examining the available facts, including

24

the background and possible purpose of the transaction.

25

"Table game."  Any banking, nonbanking or percentage game

26

played which utilizes a table game device for cash, a cash

27

equivalent or any representation of value. The term includes

28

roulette, baccarat, blackjack, poker, craps, big six wheel, red

29

dog, pai gow, casino war and sic bo and any other banking,

30

nonbanking or percentage game approved by the Pennsylvania

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1

Gaming Control Board. The term shall also include any game

2

authorized for use in a licensed facility that is used for

3

gaming contests or tournaments in which players compete against

4

one another. The term shall not include:

5

(1)  Lottery games of the Pennsylvania State Lottery as

6

authorized under the act of August 26, 1971 (P.L.351, No.91),

7

known as the State Lottery Law.

8

(2)  Bingo as authorized under the act of July 10, 1981

9

(P.L.214, No.67), known as the Bingo Law.

10

(3)  Pari-mutuel betting on the outcome of thoroughbred

11

or harness horse racing as authorized under the act of

12

December 17, 1981 (P.L.435, No.135), known as the Race Horse

13

Industry Reform Act.

14

(4)  Small games of chance as authorized under the act of

15

December 19, 1988 (P.L.1262, No.156), known as the Local

16

Option Small Games of Chance Act.

17

(5)  Slot machine gaming and progressive slot machine

18

gaming as defined and authorized under this part.

19

(6)  Keno.

20

"Table game device."  Includes gaming tables, cards, dice,

21

chips, shufflers, tiles, dominoes, wheels, drop boxes or any

22

mechanical, electrical or computerized contrivance, terminal,

23

machine or other device, apparatus, equipment or supplies

24

approved by the Pennsylvania Gaming Control Board and used to

25

conduct a table game.

26

"Table game operation certificate."  A certificate from the

27

Pennsylvania Gaming Control Board that authorizes a slot machine

28

licensee to conduct table games in accordance with this part.

29

"Tournament."  An organized series of table game contests

30

approved by the Pennsylvania Gaming Control Board.

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1

"Trustee."  A person appointed by the Pennsylvania Gaming

2

Control Board to manage and control the operations of a licensed

3

facility to ensure compliance with this part and who has the

4

fiduciary responsibility to make decisions for the benefit of

5

the licensed gaming entity and the Commonwealth.

6

* * *

7

Section 3.  Section 1201(f)(3), (h)(7.1), (10), (11), (13),

8

(14) and (15), (i)(1) and (k) of Title 4 are amended, subsection

<--

9

(h) is amended by adding paragraphs and the section is amended

10

by adding a subsection subsections to read:

<--

11

§ 1201.  Pennsylvania Gaming Control Board established.

12

* * *

13

(f)  Qualified majority vote.--

14

* * *

15

(3)  Notwithstanding any other provision of this part or

16

65 Pa.C.S. § 1103(j) (relating to restricted activities), a

17

member shall disclose the nature of his disqualifying

18

interest, disqualify himself and abstain from voting in a

19

proceeding under this part in which his objectivity,

20

impartiality, integrity or independence of judgment may be

21

reasonably questioned, as provided in subsection (h)(6) or

22

section 1202.1(c)(3) (relating to code of conduct). If a

23

legislative appointee has disqualified himself, the qualified

24

majority shall consist of all of the remaining legislative

25

appointees and at least two gubernatorial appointees.

26

* * *

27

(h)  Qualifications and restrictions.--

28

* * *

29

(7.1)  Prior to being sworn as a member, an appointee and

30

his immediate family shall divest any financial interest in

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1

any applicant, licensed facility or licensed entity and in an

2

affiliate, intermediary, subsidiary or holding company

3

thereof owned or held by the appointee or known to be held by

4

the appointee's immediate family. For the duration of the

5

member's term and for [one year] two years thereafter, the

6

member and the member's immediate family may not acquire a

7

financial interest in any applicant, licensed facility or

8

licensed entity or in an affiliate, intermediary, subsidiary

9

or holding company thereof. For purposes of this paragraph,

10

the term "immediate family" shall mean spouse and any minor

11

or unemancipated child.

12

* * *

13

(10)  No former member may appear before the board in any

14

hearing or proceeding or participate in any other activity on

15

behalf of any applicant, licensed entity, or an affiliate,

16

intermediary, subsidiary or holding company thereof, or any

17

other licensee or permittee for a period of two years from

18

the termination of term of office.

19

(11)  No member, employee or independent contractor of

20

the board shall accept a complimentary service, wager or be

21

paid any prize from any wager at any licensed facility within

22

this Commonwealth or at any other facility outside this

23

Commonwealth which is owned or operated by a licensed gaming

24

entity or any of its affiliates, intermediaries, subsidiaries

25

or holding companies thereof for the duration of their term

26

of office, employment or contract with the board and for a

27

period of [one year] two years from the termination of term

28

of office, employment or contract with the board. The

29

provisions of this paragraph prohibiting wagering during the

30

term of employment shall not apply to employees or

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1

independent contractors of the board who utilize slot

2

machines or table game devices for testing purposes or to

3

verify the performance of a machine or table game as part of

4

an enforcement investigation.

5

* * *

6

(13)  No employee of the board [or individual employed by

7

an independent contractor of the board] whose duties

8

substantially involve licensing[,] or enforcement [or], the

9

development [or adoption] of laws, or the development or

10

adoption of regulations or policy or who has other

11

discretionary authority which may affect the outcome of an

12

action or decision under this part, including the executive

13

director, bureau directors and attorneys, shall do any of the

14

following:

15

(i)  [accept] Accept employment with an applicant or

16

licensed entity, or an affiliate, intermediary,

17

subsidiary or holding company thereof, for a period of

18

[one year] two years after the termination of the

19

employment relating to the conduct of gaming [or contract

20

with the board; or].

21

(ii)  [appear] Appear before the board in any hearing

22

or proceeding or participate in any other activity on

23

behalf of any applicant, licensee, permittee or licensed

24

entity, or an affiliate, intermediary, subsidiary or

25

holding company thereof, for a period of two years after

26

termination of the employment [or contract with the

27

board].

28

(iii)  As a condition of employment, an employee

29

subject to this paragraph shall sign an affidavit that

30

the employee will not accept employment with or be

- 73 -

 


1

retained by any applicant, licensed entity or an

2

affiliate, intermediary, subsidiary or holding company

3

thereof for a period of two years from the termination of

4

employment. An applicant or licensed entity or an

5

affiliate, intermediary, subsidiary or holding company

6

thereof shall not employ or retain an individual who

7

signed an affidavit required by this subparagraph. An

8

applicant or licensed entity or an affiliate,

9

intermediary, subsidiary or holding company that

10

knowingly employs or retains an individual in violation

11

of this subparagraph shall be subject to a penalty under

12

section 1518(c) (relating to prohibited acts; penalties).

13

(13.1)  Nothing shall prevent a current or former

14

employee of the board from appearing in any proceeding as a

15

witness where the employee is called to testify concerning

16

any fact or information obtained while employed with the

17

board or related to the performance of duties while so

18

employed.

19

(13.2)  No independent contractor or individual employed

20

by an independent contractor of the board whose duties

21

substantially involve consultation relating to licensing,

22

enforcement or the development or adoption of regulations or

23

policy under this part shall:

24

(i)  Accept employment with or be retained by an

25

applicant or a licensed entity or an affiliate,

26

intermediary, subsidiary or holding company thereof for a

27

period of one year after the termination of the contract

28

with the board.

29

(ii)  Appear before the board in any hearing or

30

proceeding or participate in any other activity on behalf

- 74 -

 


1

of an applicant, licensee, permittee or licensed entity

2

or an affiliate, intermediary, subsidiary or holding

3

company of an applicant, licensee, permittee or licensed

4

entity for a period of two years after termination of the

5

contract with the board. Nothing shall prevent a current

6

or former independent contractor or employee of an

7

independent contractor of the board from appearing in any

8

proceeding as a witness where the independent contractor

9

or employee of the independent contractor is being called

10

to testify concerning any fact or information obtained

11

while contracting with the board or related to the

12

performance of the contract.

13

(iii)  As a condition of a contract, an independent

14

contractor or individual employed by an independent

15

contractor of the board under this paragraph shall sign

16

an affidavit to not accept employment with or be retained

17

by any applicant, licensed entity or an affiliate,

18

intermediary, subsidiary or holding company of an

19

applicant, licensed entity or affiliate for a period of

20

one year from the termination of employment. A licensed

21

entity or an affiliate, intermediary, subsidiary or

22

holding company of an applicant, licensed entity or

23

affiliate shall not employ or retain an individual who

24

signed an affidavit required by this subparagraph. A

25

licensed entity or an affiliate, intermediary, subsidiary

26

or holding company thereof that knowingly employs or

27

retains an individual in violation of this subparagraph

28

shall be subject to a penalty under section 1518(c).

29

(14)  Upon the written request of an employee of the

30

board, the executive branch of the Commonwealth or a

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1

political subdivision or of the agency or political

2

subdivision employing an employee, the State Ethics

3

Commission shall determine whether the individual's duties

4

substantially involve the development [or adoption] of laws,

5

or the development or adoption of regulations or policy,

6

licensing or enforcement under this part or other

7

discretionary authority which may affect the outcome of an

8

action, proceeding or decision under this part and shall

9

provide a written determination to the employee or the agency

10

or political subdivision employing the employee to include

11

any prohibition under this paragraph. An individual who

12

relies in good faith on a determination under this paragraph

13

shall not be subject to any penalty for an action taken,

14

provided that all material facts set forth in the request for

15

a determination are correct.

16

(15)  If a member[, employee or independent contractor]

17

of the board violates any provision of this section, the

18

appointing authority [or the board may, upon notice and

19

hearing,] may remove the person from the board[, withdraw the

20

appointment or]. A member removed under this paragraph shall

21

be prohibited from future appointment to the board and shall

22

be prohibited from applying for a license, permit or other

23

authorization and from becoming an independent contractor of

24

the board, or registering as a licensed entity representative

25

for a period of five years from the date of removal from the

26

board. If an employee or independent contractor of the board

27

violates any provision of this section, the board may, upon

28

notice and hearing, terminate the employment or contract, and

29

the person shall be ineligible for future [appointment,]

30

employment or [contract] contracting with the board and [for

- 76 -

 


1

approval of a license or permit under this part for a period

2

of two years thereafter] shall be prohibited from applying

3

for a license, permit or other authorization and from

4

becoming an independent contractor or registering as a

5

licensed entity representative for a period of five years

6

from the date of termination of the employment or contract.

7

* * *

<--

8

(h.4)  Restrictions on appointment of legislators.--No member

9

of the Senate or House of Representatives shall be eligible for

10

appointment as a member of the board during the term of office

11

for which the person was elected and for a period of 12 months

12

thereafter.

13

(i)  Compensation.--

<--

14

(1)  [The Executive Board as established in the act of

15

April 9, 1929 (P.L.177, No.175), known as The Administrative

16

Code of 1929, shall establish the compensation of the

17

members.]

18

(i)  Members, including members serving on the

19

effective date of this subparagraph, shall receive an

20

annual salary of $68,284, except the chairman, who shall

21

receive an annual salary of $71,084.

22

(ii)  Members shall be eligible to receive a cost-of-

23

living adjustment consistent with the provisions of

24

section 3(e) of the act of September 30, 1983 (P.L.160,

25

No.39), known as the Public Official Compensation Law.

26

* * *

27

(k)  Appointments.--[The appointing authorities] Following

28

the initial appointment of members under subsection (b), the

29

appointing authority shall make [their initial] appointments

30

within 60 days of [the effective date of this part] a vacancy in

- 77 -

 


1

an office. No appointment shall be final until receipt by the

2

appointing authority of the required background investigation of

3

the appointee by the Pennsylvania State Police which shall be

4

completed within 30 days. No person who has been convicted in

5

any domestic or foreign jurisdiction of a felony, infamous crime

6

or gaming offense shall be appointed to the board.

7

* * *

8

(m.1)  Budgetary impasse.--If, in the event of a budgetary or

9

other fiscal crisis, the Governor orders the furlough of

10

Commonwealth employees or the closing of any Commonwealth

11

agency, the board and its employees and all employees of the

12

Department of Revenue, the Pennsylvania State Police and the

13

Office of Attorney General whose duties involve the regulation

14

and oversight of gaming under this part shall not be subject to

15

furlough but shall continue to perform their duties of

16

employment.

17

* * *

18

Section 3.1.  Section 1201.1(a)(1) of Title 4 is amended to

19

read:

20

§ 1201.1.  Applicability of other statutes.

21

(a)  General rule.--The following acts shall apply to the

22

board:

23

(1)  The act of [June 21, 1957 (P.L.390, No.212),

24

referred to] February 14, 2008 (P.L.6, No.3), known as the

25

Right-to-Know Law.

26

* * *

27

Section 4.  Section 1202(a)(1) and (2) and (b)(7), (20), (23)

<--

28

and (30) of Title 4 are amended and subsection (b) is amended by

29

adding paragraphs to read:

30

§ 1202.  General and specific powers.

- 78 -

 


1

(a)  General powers.--

2

(1)  The board shall have general and sole regulatory

3

authority over the conduct of gaming or related activities as

4

described in this part. The board shall ensure the integrity

5

of the acquisition and operation of slot machines, table

6

games, table game devices and associated equipment and shall

7

have sole regulatory authority over every aspect of the

8

authorization and operation of slot machines and table games.

9

(2)  The board shall employ individuals as necessary to

<--

10

carry out the powers and duties of the board, who shall serve

11

at the board's pleasure. An employee of the board shall be

12

considered a State employee for purposes of 71 Pa.C.S. Pt.

13

XXV (relating to retirement for State employees and

14

officers). For the purposes of this paragraph, the board

15

shall not be considered an executive or independent agency

16

under the act of October 15, 1980 (P.L.950, No.164), known as

17

the Commonwealth Attorneys Act. The board shall not take

18

final action in filling the positions of executive director

19

of the board, director of the bureau, chief counsel of the