THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY ORIE, FARNESE, ALLOWAY, RAFFERTY, BROWNE, VANCE, KASUNIC, WAUGH, SMUCKER, PICCOLA, STACK AND EICHELBERGER, APRIL 23, 2009

REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, APRIL 23, 2009  

AN ACT

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

Statutes, further providing for the Pennsylvania Gaming

Control Board and its general and specific powers, for code

of conduct, for licensed gaming entity application appeals

from board, for license or permit application hearing process

and public input hearings, for board minutes and records, for

regulatory authority of board and for slot machine license

fee; providing for commencement of slot operations in cities

of the first class; repealing provisions relating to licensed

facility zoning and land use appeals; providing for

prosecutorial and adjudicatory functions; and further

providing for investigations and enforcement.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1201(h)(4) and (5) and (k) of Title 4 of

the Pennsylvania Consolidated Statutes are amended to read:

§ 1201.  Pennsylvania Gaming Control Board established.

* * *

(h)  Qualifications and restrictions.--

* * *

(4)  No member, employee or independent contractor of the

board or other agency having regulatory authority over the

board or over forms of gaming regulated by this part shall

[be employed,] hold any office or position or be engaged in

any activity which is incompatible with the position,

employment or contract. No member appointed after January 1,

2009, shall engage in any business, employment or vocation

for which the member shall receive any remuneration except as

provided under this part.

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

compensation other than salary and expenses provided by law

for any activity related to the duties or authority of the

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

engaging in any employment or receiving any compensation for

such employment that is not connected to or incompatible with

his service as a member of the board.]

* * *

(k)  Appointments.--The appointing authorities shall make

their [initial] appointments within 60 days of [the effective

date of this part.] a vacancy in an office for which such

appointing authority is responsible for making an appointment. 

No appointment shall be final until receipt by the appointing

authority of the required background investigation of the

appointee by the Pennsylvania State Police which shall be

completed within 30 days[.] and until the advice and consent of

two-thirds of the members elected to the Senate has been given. 

No person who has been convicted in any domestic or foreign

jurisdiction of a felony, infamous crime or gaming offense shall

be appointed to the board.

* * *

Section 2.  Section 1202(a)(4) of Title 4 is amended and

subsection (b) is amended by adding a paragraph to read:

§ 1202.  General and specific powers.

(a)  General powers.--

* * *

(4)  The board shall establish a system of classification

and compensation of its employees and shall [not] be subject

to the provisions of the act of April 9, 1929 (P.L.177,

No.175), known as The Administrative Code of 1929, as to

classification and compensation for its employees and conduct

its activities consistent with the practices and procedures

of Commonwealth agencies.

* * *

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

power and duty:

* * *

(31)  To collect and post information on its Internet

website of sufficient detail to inform the public of the

controlling interests and management structure of the

individual or entity which holds the license, including any

affiliate, intermediary, subsidiary or holding companies, and

all officers, directors and key employees. The posting shall

include the names of all persons who own a financial equity

share which equals or exceeds 1% in the licensee or any of

its affiliates, intermediaries, subsidiaries or holding

companies, unless the entity is a publicly held corporation

or the equity share consists merely of a financial investment

through an entity over which the person has no voting rights

or role in governance. The posting shall also include the

names of all persons who have voting rights, a role in

corporate governance or other managerial power as a director,

shareholder or officer with regard to the actions or

decisions of the licensee and any affiliate, intermediary,

subsidiary or holding company and the extent of that power or

voting rights.

Section 3.  Section 1202.1 of Title 4 is amended by adding

subsections to read:

§ 1202.1.  Code of conduct.

* * *

(c.1)  Employment.--No member or executive level employee of

the board retained or appointed after January 1, 2009, may

accept employment with, nor represent, any person who has any

matter before the board for two years after the member or

officer leaves employment with the board.

* * *

(d.1)  Referral to State Ethics Commission.--The board shall

refer all potential violations of this code of conduct or the

provisions of 65 Pa.C.S. Chs. 7 (relating to open meetings) and

11 (relating to ethics standards and financial disclosure) to

the State Ethics Commission for an advisory opinion under 65

Pa.C.S. § 1107 (relating to powers and duties of commission) or

for investigation under 65 Pa.C.S. § 1108 (relating to

investigations by commission).

* * *

Section 4.  Sections 1204, 1205(a) and 1206(f) of Title 4 are

amended to read:

§ 1204.  Licensed gaming entity application appeals from board.

[The Supreme Court of Pennsylvania shall be vested with

exclusive appellate jurisdiction to] A court of competent

jurisdiction may consider appeals of any final order,

determination or decision of the board involving the approval,

issuance, denial or conditioning of a slot machine license.

Notwithstanding the provisions of 2 Pa.C.S. Ch. 7 Subch. A

(relating to judicial review of Commonwealth agency action) and

42 Pa.C.S. § 763 (relating to direct appeals from government

agencies), [the Supreme Court] a court shall affirm all final

orders, determinations or decisions of the board involving the

approval, issuance, denial or conditioning of a slot machine

license unless it shall find that the board committed an error

of law or that the order, determination or decision of the board

was arbitrary and there was a capricious disregard of the

evidence.

§ 1205.  License or permit application hearing process; public

input hearings.

(a)  General rule.--The board's consideration and resolution

of all license or permit applications shall be conducted in

accordance with 2 Pa.C.S. (relating to administrative law and

procedure) or with procedures adopted by order of the board.

[Notwithstanding the requirements of 2 Pa.C.S. §§ 504 (relating

to hearing and record) and 505 (relating to evidence and cross-

examination) as they relate to the conduct of oral hearings, the

board may adopt procedures to provide parties before it with a

documentary hearing, and the board may resolve disputed material

facts without conducting an oral hearing where constitutionally

permissible.]

* * *

§ 1206.  Board minutes and records.

* * *

(f)  Confidentiality of information.--All information

submitted by an applicant pursuant to section 1310(a) (relating

to slot machine license application character requirements) [or

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

investigation from any source] related to an applicant's

character requirements shall be considered confidential. Except

as provided in section 1517(f) (relating to [investigation] 

investigations and enforcement), the information shall be

withheld from public disclosure in whole or in part, except that

any information shall be released upon the lawful order of a

court of competent jurisdiction or, with the approval of the

Attorney General, to a duly authorized law enforcement agency or

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

extent that such release is requested by an applicant and does

not otherwise contain confidential information about another

person. [The board may not require any applicant to waive any

confidentiality provided for in this subsection as a condition

for the approval of a license or any other action of the board.]

Any person who violates this subsection shall be

administratively disciplined by discharge, suspension or other

formal disciplinary action as the board deems appropriate.

Confidential information may include:

(1)  Nonpublic personal information, including telephone

numbers, Social Security numbers, educational records,

memberships, medical records, tax returns and declarations,

actual or proposed compensation, financial account records,

creditworthiness or financial conditions relating to an

applicant, licensee or permittee or the immediate family

thereof.

(2)  Documents and information relating to proprietary

information, trade secrets, patents or exclusive licenses,

architectural and engineering plans and information relating

to competitive marketing materials and strategies which may

include customer-identifying information or customer

prospects for services subject to competition.

(3)  Security information, including risk prevention

plans, detection and countermeasures, emergency management

plans, security and surveillance plans, equipment and usage

protocols and theft and fraud prevention plans and

countermeasures.

(4)  Information with respect to which there is a

reasonable possibility that public release or inspection of

the information would constitute an unwarranted invasion into

personal privacy as determined by the board.

(5)  Records of an applicant or licensee not required to

be filed with the Securities and Exchange Commission by

issuers that either have securities registered under section

12 of the Securities Exchange Act of 1934 (48 Stat. 881, 15

U.S.C. § 78a et seq.) or are required to file reports under

section 15(d) of the Securities Exchange Act of 1934.

(6)  Records considered nonpublic matters or information

by the Securities and Exchange Commission as provided by 17

CFR 200.80 (relating to commission records and information).

No claim of confidentiality shall be made to any information

that is otherwise publicly available.

* * *

Section 5.  Section 1207 of Title 4 is amended by adding a

paragraph to read:

§ 1207.  Regulatory authority of board.

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

* * *

(18)  Require a surety bond or other form of performance

bond from a licensee whose application contained a proposed

facility to be considered by the board under section 1325(c)

(relating to license or permit issuance) and the facility is

to be developed by the licensee.

Section 6.  Section 1209(a) of Title 4 is amended and the

section is amended by adding a subsection to read:

§ 1209.  Slot machine license fee.

(a)  Imposition.--Except as provided for a Category 3

licensed gaming entity under section 1305 (relating to Category

3 slot machine license) and subject to the requirements of this

section, at the time of license issuance the board shall impose

a one-time slot machine license fee to be paid by each

successful applicant for a conditional Category 1, a Category 1

or a Category 2 license in the amount of $50,000,000 and

deposited in the State Gaming Fund. No fee shall be imposed by

the board for a Category 1 license if the applicant has paid a

$50,000,000 fee for a conditional Category 1 license. The board

may require that no applicant borrow or otherwise encumber the

fee paid by the applicant.

* * *

(g)  Forfeiture of slot machine license fee.--The provisions

of this section shall not be deemed to limit the board's power

to require forfeiture of fees in the event of default or

revocation of an applicant in its authorization to conduct its

approved activities under section 1326(b) (relating to license

renewals).

Section 7.  Title 4 is amended by adding a section to read:

§ 1306.1.  Commencement of slot operations in cities of the

first class.

The board shall not authorize the operation of slot machines

at a licensed facility within a city of the first class that

occupies, in whole or in part, submerged lands of the

Commonwealth, until such time as the licensed gaming entity has

obtained an easement, right-of-way, license or lease under an

act of the General Assembly, enacted following the effective

date of this section, and has made payment to the Commonwealth

for the occupancy of the submerged lands in an amount

established by the General Assembly.

Section 8.  Section 1506 of Title 4 is repealed:

[§ 1506.  Licensed facility zoning and land use appeals.

In order to facilitate timely implementation of casino gaming

as provided in this part, notwithstanding 42 Pa.C.S. § 933(a)(2) 

(relating to appeals from government agencies), the Supreme

Court of Pennsylvania is vested with exclusive appellate

jurisdiction to consider appeals of a final order, determination

or decision of a political subdivision or local instrumentality

involving zoning, usage, layout, construction or occupancy,

including location, size, bulk and use of a licensed facility.

The court, as appropriate, may appoint a master to hear an

appeal under this section.]

Section 9.  Title 4 is amended by adding a section to read:

§ 1516.1.  Prosecutorial and adjudicatory functions.

The board shall adopt administrative regulations necessary to

prevent commingling of the prosecutorial functions of the Bureau

of Investigations and Enforcement as set forth in section 1517

(relating to investigations and enforcement) and the

adjudicatory functions of the board.

Section 10.  Section 1517(c.1) of Title 4 is amended to read:

§ 1517.  Investigations and enforcement.

* * *

(c.1)  Powers and duties of Attorney General.--Within the

Office of Attorney General, the Attorney General shall establish

a gaming unit. The unit shall investigate and institute criminal

proceedings as authorized by subsection (d). The Attorney

General may also investigate and prosecute or assist the board,

the Bureau of Investigations and Enforcement, the State Ethics

Commission or the Pennsylvania State Police in the investigation

and prosecution of violations of the code of conduct established

in section 1202.1 (relating to code of conduct), the provisions

of this section and section 1517.2 (relating to conduct of

public officials and employees) or the provisions of 65 Pa.C.S.

Chs. 7 (relating to open meetings) and 11 (relating to ethics

standards and financial disclosure).

* * *

Section 11.  This act shall take effect in 60 days.