PRINTER'S NO. 1172
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1023
Session of
2019
INTRODUCED BY KORTZ, MILLARD, DeLUCA, READSHAW AND HILL-EVANS,
APRIL 2, 2019
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, APRIL 2, 2019
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, in general provisions relating to gaming, further
providing for definitions; in Pennsylvania Gaming Control
Board, further providing for board minutes and records, for
regulatory authority of the board and for number of slot
machines; and in licensees, further providing for gaming
service provider and for nongaming service provider and
providing for slot machines in qualified airports.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "gaming employee," "gaming-
related restricted area," "gaming service provider," "key
employee," "nongaming service provider," "occupation permit,"
and "progressive system" in section 1103 of Title 4 of the
Pennsylvania Consolidated Statues are amended and the section is
amended by adding definitions to read:
Section 1103 of Title 4 of the Pennsylvania Consolidated
Statues is amended and the section is amended by adding
definitions to read:
§ 1103. Definitions.
The following words and phrases when used in this part shall
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have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Airport slot machine area." A location or locations within
a qualified airport approved by the airport authority and the
Pennsylvania Gaming Control Board where an airport slot machine
certificate holder is authorized to install and operate slot
machines for use and play by eligible passengers.
"Airport slot machine certificate." A certificate awarded by
the Pennsylvania Gaming Control Board under Chapter 13D that
authorizes a Category 1 or Category 2 slot machine licensee to
install and operate slot machines within an airport slot machine
area of a qualified airport in accordance with this part.
* * *
"Gaming employee." Any employee of a slot machine licensee,
including, but not limited to:
(1) Cashiers.
(2) Change personnel.
(3) Count room personnel.
(4) Slot attendants.
(5) Hosts or other individuals authorized to extend
complimentary services, including employees performing
functions similar to those performed by a gaming junket
representative.
(6) Machine mechanics, computer machine technicians or
table game device technicians.
(7) Security personnel.
(8) Surveillance personnel.
(9) Promotional play supervisors, credit supervisors,
pit supervisors, cashier supervisors, shift supervisors,
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table game managers and assistant managers and other
supervisors and managers, except for those specifically
identified in this part as key employees.
(10) Boxmen.
(11) Dealers or croupiers.
(12) Floormen.
(13) Personnel authorized to issue promotional play.
(14) Personnel authorized to issue credit.
The term shall include employees of a person holding a
supplier's license whose duties are directly involved with the
repair or distribution of slot machines, table game devices or
associated equipment or interactive gaming devices or associated
equipment sold or provided to an airport slot machine
certificate holder, an airport slot machine area or a licensed
facility within this Commonwealth as determined by the
Pennsylvania Gaming Control Board. The term shall further
include employees of a person authorized by the board to supply
goods and services related to interactive gaming or any
subcontractor or an employee of a subcontractor that supplies
interactive gaming devices, including multi-use computing
devices, or associated equipment to an interactive gaming
certificate holder or interactive gaming operator who are
directly involved in the operations of interactive gaming. The
term does not include bartenders, cocktail servers or other
persons engaged solely in preparing or serving food or
beverages, clerical or secretarial personnel, parking
attendants, janitorial, stage, sound and light technicians and
other nongaming personnel as determined by the board.
* * *
"Gaming-related restricted area." Any room or area of a
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licensed facility or any room or area adjacent to an airport
slot machine area within a qualified airport which is
specifically designated by the Pennsylvania Gaming Control Board
as restricted or by the slot machine licensee as restricted in
its board-approved internal controls.
* * *
"Gaming service provider." A person that is not required to
be licensed as a manufacturer, supplier, management company or
gaming junket enterprise under this part and:
(1) provides goods or services, including, but not
limited to, count room equipment, to a slot machine licensee
or an applicant for a slot machine license for use in the
operation of a licensed facility or an airport slot machine
area; and
(2) provides goods or services to a slot machine
licensee or an applicant for a slot machine license that
requires access to the gaming floor, an airport slot machine
area or a gaming-related restricted area [of a licensed
facility].
* * *
"Key employee." Any individual who is employed in a director
or department head capacity and who is empowered to make
discretionary decisions that regulate slot machine operations,
table game operations, interactive gaming operations or casino
simulcasting, including the general manager and assistant
manager of the licensed facility or airport slot machine area,
director of slot operations, director of table game operations,
director of interactive gaming, director of cage and/or credit
operations, director of surveillance, director of marketing,
director of management information systems, director of
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interactive gaming system programs or other similar job
classifications associated with interactive gaming and casino
simulcasting, persons who manage, control or administer
interactive gaming and casino simulcasting or the bets and
wagers associated with authorized interactive games and casino
simulcasting, director of security, comptroller and any employee
who is not otherwise designated as a gaming employee and who
supervises the operations of these departments or to whom these
department directors or department heads report and such other
positions not otherwise designated or defined under this part
which the Pennsylvania Gaming Control Board shall determine
based on detailed analyses of job descriptions as provided in
the internal controls of the licensee as approved by the
Pennsylvania Gaming Control Board. All other gaming employees
unless otherwise designated by the Pennsylvania Gaming Control
Board shall be classified as non-key employees.
* * *
"Nongaming service provider." A person that is not a gaming
service provider or required to be licensed as a manufacturer,
supplier, management company or gaming junket enterprise under
this part and that provides goods or services:
(1) to a slot machine licensee or applicant for a slot
machine license for use in the operation of a licensed
facility or an airport slot machine area; and
(2) that does not require access to the gaming floor
[or], a gaming-related restricted area or to the slot
machines located in an airport slot machine area.
* * *
"Occupation permit." A permit authorizing an individual to
be employed or work as a gaming employee at a licensed facility
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or an airport slot machine area.
* * *
"Progressive system." A computerized system linking slot
machines in one or more licensed facilities or airport slot
machine areas within this Commonwealth and offering one or more
common progressive payouts based on the amounts wagered. The
term shall include a multistate wide-area progressive system.
* * *
Section 2. Sections 1206(f)(1) introductory paragraph,
1207(20), (21.1), (21.2), and (22), 1210(a) introductory
paragraph, 1317.2(a) and 1317.3(a), (b) and (d) of Title 4 are
amended to read:
§ 1206. Board minutes and records.
* * *
(f) Confidentiality of information.--
(1) The following information submitted by an applicant,
permittee, certificate holder, interactive gaming certificate
holder or licensee pursuant to section 1310(a) (relating to
slot machine license application character requirements),
1308(a.1) (relating to applications for license or permit),
13B12 (relating to interactive gaming certificate required
and content of petition), 13B14 (relating to interactive
gaming operators), 13C12 (relating to petition requirements),
13D12 (relating to petition requirements) or 13F12 (relating
to casino simulcasting permit) or obtained by the board or
the bureau as part of a background or other investigation
from any source shall be confidential and withheld from
public disclosure:
* * *
§ 1207. Regulatory authority of the board.
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The board shall have the power and its duties shall be to:
* * *
(20) Approve or authorize an employee of the board to
approve a temporary reduction in the number of slot machines
in operation at a licensed facility or located in an airport
slot machine area under the following circumstances:
(i) For the duration of any renovation, remodeling
or modification of an airport slot machine area or an
area of a licensed facility where slot machines are
located.
(ii) To enable the licensed facility to respond to
an emergency.
(iii) To enable an airport slot machine certificate
holder to respond to an emergency affecting an airport
slot machine area.
* * *
(21.1) Authorize, at its discretion, a slot machine
licensee to place slot machines that are used in a multistate
wide-area progressive slot machine system, skill slot
machines or hybrid slot machines and make them available for
play at licensed facilities or within airport slot machine
areas.
(21.2) Adopt and promulgate regulations to govern the
operation and placement of skill slot machines and hybrid
slot machines by slot machine licensees at licensed
facilities or within airport slot machine areas in the same
manner as provided in section 13B03 (relating to
regulations).
(22) License, regulate, investigate and take any other
action determined necessary regarding all aspects of
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interactive gaming, casino simulcasting, slot machines in
qualified airports and sports wagering.
* * *
§ 1210. Number of slot machines.
(a) Initial complement.--Except as provided for Category 3
slot machine licensees under section 1305 (relating to Category
3 slot machine license) [or], a Category 4 slot machine licensee
under section 1305.1 (relating to Category 4 slot machine
license) or slot machines in qualified airports under Chapter
13D, the following apply:
* * *
§ 1317.2. Gaming service provider.
(a) Development of classification system.--The board shall
develop a classification system governing the certification,
registration and regulation of gaming service providers and
individuals and entities associated with them. The
classification system shall be based upon the following:
(1) The monetary value or amount of business conducted
or expected to be conducted by the gaming service provider
with an applicant for a slot machine license or a slot
machine licensee in any consecutive 12-month period.
(2) Whether the employees of the gaming service provider
will have access to the gaming floor, an airport slot machine
area or any gaming-related restricted area [of a licensed
facility].
(3) The board's analysis of the goods or services
provided or to be provided by the gaming service provider.
* * *
§ 1317.3. Nongaming service provider.
(a) Notification required.--
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(1) A slot machine licensee or applicant for a slot
machine license that contracts with or otherwise engages in
business with a nongaming service provider shall provide
notification to the board prior to:
(i) the nongaming service provider's provision of
goods or services at the slot machine licensee's licensed
facility or at an airport slot machine area; or
(ii) the provision of goods or services for use in
the operation of the slot machine licensee's licensed
facility or at an airport slot machine area.
(2) Notification under this section shall be on a form
and in a manner as determined by the board. The board may
impose a fee, not to exceed $100, in connection with the
notification.
(b) Contents of notification.--Notification under this
section shall include:
(1) The name and business address of the nongaming
service provider.
(2) A description of the type or nature of the goods or
services to be provided.
(3) An affirmation from the slot machine licensee or
applicant for a slot machine license that the goods or
services to be provided by the nongaming service provider
will not require access to the gaming floor [or], a gaming-
related restricted area or to the slot machines located in an
airport slot machine area.
(4) An affirmation from the slot machine licensee or
applicant for a slot machine license certifying that the
licensee or applicant has performed due diligence regarding
the nongaming service provider and believes that neither the
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nongaming service provider nor its employees will adversely
affect the public interest or integrity of gaming.
(5) Any other information that the board deems
necessary.
* * *
(d) Conditions.--A slot machine licensee or applicant for a
slot machine license that contracts or otherwise engages in
business with a nongaming service provider shall be subject to
the following conditions:
(1) The nongaming service provider and its employees
shall only provide the goods and services described in the
notification under this section.
(2) The slot machine licensee or applicant for a slot
machine license shall notify the board of any material change
in the information provided in the notification under this
section. No fee shall be required for a subsequent change
during the time for which the notification remains valid
under subsection (c).
(3) The slot machine licensee or applicant for a slot
machine license shall ensure that employees of the nongaming
service provider do not enter the gaming floor or a gaming-
related restricted area or have access to the slot machines
located in an airport slot machine area while providing the
goods or services described in subsection (b)(2).
(4) The slot machine licensee or applicant for a slot
machine license shall report to the board an employee of a
nongaming service provider that does any of the following:
(i) Enters the gaming floor or a gaming-related
restricted area [of the licensed facility] or accesses
the sl ot machines located in an airport slot machine
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area.
(ii) Commits an act that adversely affects the
public interest or integrity of gaming.
(5) The board may prohibit a nongaming service provider
or any of its employees from providing goods or services to a
slot machine licensee or applicant for a slot machine license
at a licensed facility or an airport slot machine area upon a
finding by the board that the prohibition is necessary to
protect the public interest or integrity of gaming.
* * *
Section 3. The heading of Chapter 13D of Title 4 is amended
to read:
CHAPTER 13D
[(Reserved)]
SLOT MACHINES IN QUALIFIED AIRPORTS
Section 4. Chapter 13D of Title 4 is amended by adding
subchapters to read:
SUBCHAPTER A
GENERAL PROVISIONS
Sec.
13D01. (Reserved).
13D02. Regulatory authority.
13D03. Temporary regulations.
13D04. Pennsylvania State Police.
§ 13D01. (Reserved).
§ 13D02. Regulatory authority.
(a) General rule.--The board shall have the power and duty:
(1) To establish standards and procedures to govern the
installation and operation of slot machines within a
qualified airport.
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(2) To establish standards and procedures to require
that a slot machine licensee who files a petition for an
airport slot machine certificate provide detailed site plans
of the proposed airport slot machine area for review and
approval by the board for the purpose of determining the
adequacy of the proposed security and surveillance measures.
The petitioner shall cooperate with the board in making
changes to the site plans suggested by the board and shall
ensure that the site plans as modified and approved are
implemented. The board shall require a separate room with
floor-to-ceiling walls to segregate the airport slot machine
area from other areas of the qualified airport and from
individuals under 21 years of age.
(3) To promulgate rules and regulations necessary for
the administration and enforcement of this chapter.
§ 13D03. Temporary regulations.
(a) Promulgation.--In order to facilitate the prompt
implementation of this chapter, regulations promulgated by the
board shall be deemed temporary regulations which shall expire
no later than two years following the publication of the
temporary regulations. The board may promulgate temporary
regulations not subject to:
(1) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(2) Section 204(b) of the act of October 15, 1980
(P.L.950, No.164), known as the Commonwealth Attorneys Act.
(3) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
(b) Expiration.--Except for temporary regulations governing
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the rules of sports wagering approved by the board, the board's
authority to adopt temporary regulations under subsection (a)
shall expire two years after publication of the temporary
regulations. Regulations adopted after this period shall be
promulgated as provided by law.
§ 13D04. Pennsylvania State Police office.
Notwithstanding section 1517 (relating to investigations and
enforcement), the board may not require the Pennsylvania State
Police to have an office located in an airport slot machine
area.
SUBCHAPTER B
SLOT MACHINES IN QUALIFIED AIRPORTS AUTHORIZED
Sec.
13D11. Authorization to install and operate slot machines in
qualified airports.
13D12. Petition requirements.
13D13. Standard for review of petitions.
13D14. Award of airport slot machine certificate.
13D15. Airport slot machine certificate.
§ 13D11. Authorization to install and operate slot machines in
qualified airports.
(a) Persons who may be authorized.--
(1) The board may authorize a Category 1 or Category 2
slot machine licensee to install and operate slot machines
within an airport slot machine area of a qualified airport
for use by eligible passengers.
(2) Authorization shall be contingent upon the Category
1 or Category 2 slot machine licensee's agreement to ensure
that the operation of slot machines located in an airport
gaming area of a qualified airport will be conducted in
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accordance with this chapter.
(3) Nothing in this chapter shall be construed to create
a separate license governing the conduct of slot machine
operations located in an airport gaming area of a qualified
airport.
(4) No individual under 21 years of age may have access
to the airport slot machine area or make a wager in the play
or operation of a slot machine located in an airport slot
machine area.
§ 13D12. Petition requirements.
(a) General rule.--
(1) A Category 1 or Category 2 slot machine licensee may
submit a petition for an airport slot machine certificate if:
(i) The slot machine licensee's license and table
game operation certificate are in good standing with the
board.
(ii) The slot machine licensee has met the
requirements of section 1214(a) (relating to specific
authority to suspend slot machine license).
(iii) The slot machine licensee has entered into a
written agreement with the airport authority or its
designee for the installation and operation of slot
machines by the slot machine licensee within the
qualified airport.
(2) The petition shall be in the form and submitted in
the manner prescribed by the board.
(b) Petition contents.--A petition for an airport slot
machine certificate shall include the following:
(1) The name, business address and contact information
of the petitioner.
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(2) The name and business address, job title and a
photograph of each principal and key employee of the
petitioner who will be involved in the operation of slot
machines located in an airport slot machine area and who is
not currently licensed by the board, if known.
(3) The number of slot machines for which authorization
is being sought.
(4) The details of any financing obtained or that will
be obtained to fund the construction of an airport slot
machine area or modification of the qualified airport to
accommodate an airport slot machine area and to otherwise
fund the cost of commencing operations of slot machines in
qualified airports.
(5) Information and documentation concerning financial
background and resources, as the board may require, to
establish by clear and convincing evidence the financial
stability, integrity and responsibility of the petitioner.
(6) Information and documentation, as the board may
require, to establish by clear and convincing evidence that
the petitioner has sufficient business ability and experience
to create and maintain a successful operation of slot
machines in qualified airports. In making this determination,
the board may consider the results of the petitioner's slot
machine operation at its licensed facility, including
financial information, employment data and capital
investment.
(7) Information and documentation, as the board may
require, to establish by clear and convincing evidence that
the petitioner has or will have the financial ability to pay
the slot machines in qualified airports authorization fee
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under section 13D51 (relating to slot machines in qualified
airports authorization fee).
(8) Detailed site plans identifying the petitioner's
proposed airport slot machine area within the qualified
airport.
(9) A copy of the written agreement entered into between
the slot machine licensee and the airport authority or its
designee for the installation and operation of slot machines
by the slot machine licensee within the qualified airport.
(10) Other information as the board may require.
(c) Confidentiality.--Information submitted to the board
under subsection (b)(4), (5), (6), (7), (8) and (9) may be
considered confidential by the board if the information would be
confidential under section 1206(f) (relating to board minutes
and records).
§ 13D13. Standard for review of petitions.
(a) General rule.--The board shall approve a petition under
section 13D12 (relating to petition requirements) if the
petitioner establishes, by clear and convincing evidence, all of
the following:
(1) The petitioner's slot machine license and table game
operation certificate are in good standing with the board.
(2) The petitioner has entered into a written agreement
with the airport authority or its designee for the
installation and operation of slot machines by the petitioner
within the qualified airport and the written agreement has
been subject to the review and approval of the board.
(3) The petitioner possesses adequate funds or has
secured adequate financing to:
(i) Fund the construction of an airport slot machine
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area or modification of the qualified airport to
accommodate an airport slot machine area and to otherwise
fund the cost of commencing operations of slot machines
in qualified airports.
(ii) Pay the slot machines in qualified airports
authorization fee in accordance with section 13D51
(relating to slot machines in qualified airports
authorization fee).
(4) The petitioner has the financial stability,
integrity and responsibility to install and operate slot
machines in a qualified airport.
(5) The petitioner has sufficient business ability and
experience to create and maintain a successful operation of
slot machines in a qualified airport.
(6) The petitioner's proposed internal and external
security and proposed surveillance measures within the
airport slot machine area are adequate.
(7) The petitioner has satisfied the petition
requirements and provided any other information required by
section 13D12 (relating to petition requirements).
(b) Timing of approval.--The board shall approve or deny a
petition for an airport slot machine certificate within 90 days
following receipt of the completed petition.
§ 13D14. Award of airport slot machine certificate.
(a) General rule.--Upon approval of a petition, the board
shall award an airport slot machine certificate to the
petitioner. The award of an airport slot machine certificate
prior to the payment in full of the authorization fee required
by section 13D51 (relating to slot machines in qualified
airports authorization fee) shall not relieve the petitioner
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from complying with the provisions of section 13D51.
(b) Statement of conditions.--Upon awarding an airport slot
machine certificate, the board shall amend the slot machine
licensee's statement of conditions pertaining to the
requirements of this chapter.
(c) Term of airport slot machine certificate.--Subject to
the power of the board to deny, revoke or suspend an airport
slot machine certificate issued in accordance with the
requirements of this section, an airport slot machine
certificate shall be renewed every five years and shall be
subject to the requirements of section 1326 (relating to
renewals).
§ 13D15. Airport slot machine certificate.
The following shall apply:
(1) An airport slot machine certificate shall be in
effect unless:
(i) suspended or revoked by the board consistent
with the requirements of this part;
(ii) the slot machine license held by the airport
slot machine certificate holder is suspended, revoked or
not renewed by the board consistent with the requirements
of this part; or
(iii) the airport slot machine certificate holder
relinquishes or does not seek renewal of its slot machine
license.
(2) An airport slot machine certificate holder that
fails to abide by this chapter or any condition contained in
the slot machine licensee's statement of conditions governing
the conduct of slot machines in qualified airports shall be
subject to board-imposed administrative sanctions or other
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penalties authorized under this part.
SUBCHAPTER C
CONDUCT OF SLOT MACHINES IN QUALIFIED AIRPORTS
Sec.
13D31. Authorized locations for operation.
13D32. Commencement of slot machines in qualified airports
operations.
13D33. Condition of continued operation.
13D34. Table games prohibited.
13D35. Number of slot machines.
13D36. Airport slot machine placement agreements.
§ 13D31. Authorized locations for operation.
(a) Restriction.--An airport slot machine certificate holder
shall only be permitted to install and operate slot machines in
an airport slot machine area within a qualified airport.
(b) Temporary locations prohibited.--The board may not
permit an airport slot machine certificate holder to install and
operate slot machines in a temporary location of a qualified
airport.
§ 13D32. Commencement of slot machines in qualified airport
operations.
No airport slot machine certificate holder may operate or
offer slot machines located in an airport slot machine area of a
qualified airport for play until the board determines that:
(1) The airport slot machine certificate holder is in
compliance with the requirements of this part.
(2) The airport slot machine certificate holder is
prepared in all respects to operate and offer slot machines
for play to eligible passengers within the airport slot
machine area of the qualified airport.
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(3) The airport slot machine certificate holder has
implemented necessary internal and management controls and
security arrangements and surveillance systems for the
operation of slot machines within the airport slot machine
area of the qualified airport.
(4) The airport slot machine certificate holder is in
compliance with or has complied with section 13D51 (relating
to slot machines in qualified airports authorization fee).
(5) Other conditions as the board may require to
implement the operation of slot machines in qualified
airports.
§ 13D33. Condition of continued operation.
As a condition of continued operation, an airport slot
machine certificate holder shall maintain all books, records and
documents pertaining to slot machines in qualified airports in a
manner and location within this Commonwealth as approved by the
board. All books, records and documents related to slot machines
in qualified airports shall be:
(1) Segregated by separate accounts within the airport
slot machine certificate holder's books, records and
documents, except for any books, records or documents that
are common to slot machine, table game and sports wagering
operations and approved by the board.
(2) Immediately available for inspection upon request of
the board, the bureau, the department, the Pennsylvania State
Police or the Attorney General, or agents thereof, during all
hours of operation of the airport slot machine certificate
holder in accordance with regulations promulgated by the
board.
(3) Maintained for a period as the board, by regulation,
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may require.
§ 13D34. Table games prohibited.
An airport slot machine certificate holder may not be
authorized to conduct table games at a qualified airport.
§ 13D35. Number of slot machines.
(a) International qualified airports.--The following apply:
(1) If the qualified airport is an international airport
located partially in a county of the first class and
partially in a county contiguous to a county of the first
class, no more than 125 slot machines may be installed on the
premises of the airport.
(2) If the qualified airport is an international airport
located in a county of the second class, no more than 100
slot machines may be installed on the premises of the
airport.
(3) If the qualified airport is an international airport
located in a county other than a county of the first class or
second class, no more than 25 slot machines may be installed
on the premises of the airport.
(b) Other qualified airports.--If the airport is a qualified
airport that has not been designated as an international
airport, slot machines may not be installed or operated on the
premises.
§ 13D36. Airport slot machine placement agreements.
(a) General rule.--An airport slot machine certificate
holder may not install and operate slot machines on the premises
of a qualified airport unless pursuant to an airport slot
machine placement agreement approved by the board.
(b) Form of agreement.--The board shall establish through
regulation the minimum standards for airport slot machine
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placement agreements.
(c) Length of agreement.--Airport slot machine placement
agreements shall be valid for a minimum 60-month term but shall
not exceed a 120-month term.
(d) Provisions required.--An airport slot machine placement
agreement shall include a provision that renders the agreement
invalid if airport slot machine certificate holder's slot
machine license is denied, revoked, not renewed, withdrawn or
surrendered.
(e) Void agreements.--An agreement entered into by a
qualified airport prior to the effective date of this section
with a person or entity for the installation, operation, service
or maintenance of slot machines within a qualified airport,
including an agreement granting a person or entity the right to
enter into an agreement or match any offer made after the
effective date of this section, shall be void and may not be
approved by the board.
(f) Transferability of agreements.--No airport slot machine
placement agreement may be transferred or assigned unless the
individual or entity receiving the assignment of the airport
slot machine placement agreement is a Category 1 or Category 2
slot machine licensee under this part.
(g) Number of agreements.--A qualified airport may not enter
into an airport slot machine placement agreement with more than
one airport slot machine certificate holder at a time.
SUBCHAPTER D
SLOT MACHINES IN QUALIFIED AIRPORTS TAXES AND FEES
Sec.
13D51. Slot machines in qualified airports authorization fee.
13D52. Slot machines in qualified airports tax.
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13D53. Local share assessment.
13D54. Regulatory assessment.
13D55. Application of assessments.
§ 13D51. Slot machines in qualified airports authorization fee.
(a) Required fee.--Each slot machine licensee that is issued
an airport slot machine certificate to install and operate slot
machines within an airport slot machine area of a qualified
airport shall pay a one-time, nonrefundable authorization fee as
follows:
(1) If the qualified airport is an international airport
located partially in a county of the first class and
partially in a county contiguous to a county of the first
class, the amount of the fee shall be $10,000 per slot
machine.
(2) If the qualified airport is an international airport
located in a county of the second class, the amount of the
fee shall be $7,500 per slot machine.
(3) If the qualified airport is an international airport
located in a county other than a county of the first class or
second class, the amount of the fee shall be $5,000 per slot
machine.
(b) Payment of fee.--A slot machine licensee shall remit the
authorization fee under subsection (a) to the board within 30
days of the approval of a petition for an airport slot machine
certificate. A slot machine licensee may not make slot machines
located in an airport slot machine area available for play until
the fee under subsection (a) is paid in full.
(c) Renewal fee.--Notwithstanding any other provision of
this chapter, a slot machine licensee that applies for the
renewal of its airport slot machine certificate shall pay a
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renewal fee in the amount of $25,000 when submitting an
application for the renewal in accordance with sections 1326
(relating to renewals) and 13D14(c) (relating to award of
airport slot machine certificate).
(d) Failure to pay by deadline.--If an airport slot machine
certificate holder fails to pay the required authorization fee
under subsection (a) in full within the 30-day time period, the
board shall impose a penalty and suspend the airport slot
machine certificate for a period of 60 days. The suspension
shall remain in effect until full payment of the authorization
fee and the penalty is made or for a period of 60 days,
whichever is sooner.
(e) Revocation of airport slot machine certificate.--Failure
of the airport slot machine certificate holder to pay the total
authorization fee and the penalty prior to the expiration of the
suspension period under subsection (d) shall result in
forfeiture of the airport slot machine certificate, the slot
machine licensee's right to submit a petition for an airport
slot machine certificate and all fees and penalties paid under
this chapter.
(f) Deposit of fees.--Notwithstanding section 1208 (relating
to collection of fees and fines), all slot machines in qualified
airports authorization fees, renewal fees and money collected by
the board for violations of this subchapter shall be deposited
into the General Fund.
§ 13D52. Slot machines in qualified airports tax.
(a) Imposition.--
(1) Notwithstanding sections 1401, 1402 or 1403, each
airport slot machine certificate holder authorized to install
and operate slot machines at a qualified airport in
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accordance with the provisions of this chapter shall report
to the department and pay from its gross terminal revenue
generated from all slot machines in operation at qualified
airports within this Commonwealth, on a weekly basis and on a
form and in the manner prescribed by the department:
(i) A tax of 50%.
(ii) A local share assessment of 4% as established
under section 13D53 (relating to local share assessment).
(iii) A regulatory assessment established under
section 13D54 (relating to regulatory assessment).
(2) All money owed to the Commonwealth under this
section shall be held in trust for the Commonwealth by the
airport slot machine certificate holder until the money is
paid to the department.
(3) An airport slot machine certificate holder shall
establish a separate bank account into which gross terminal
revenue generated from the slot machines in operation at a
qualified airport shall be deposited and maintained until the
money is paid to the department under this section or paid
into the account under section 13D53.
(4) The tax imposed under subsection (a)(1)(i) shall be
deposited into the General Fund.
(b) Credit against tax imposed.--A credit against the tax
imposed under subsection (a)(1)(i) shall be granted in an amount
determined by the department with respect to an amount which is:
(1) Paid by an airport authority on the daily gross
terminal revenue generated from the slot machines in
operation at the qualified airport.
(2) Required to remain at the qualified airport pursuant
to Federal requirements relating to Federal Aviation
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Administration funds.
§ 13D53. Local share assessment.
(a) Required payment.--Notwithstanding sections 1401
(relating to slot machine licensee deposits), 1402 (relating to
gross terminal revenue deductions) and 1403 (relating to
establishment of State Gaming Fund and net slot machine revenue
distribution), in addition to the tax imposed under section
13D52 (relating to slot machines in qualified airports tax),
each airport slot machine certificate holder shall pay on a
weekly basis, on a form and in the manner prescribed by the
department, a local share assessment of 4% into a restricted
receipts account established within the State Treasury. All
money owed under this section shall be held in trust by the
airport slot machine certificate holder until the money is paid
into the restricted account. The money in the restricted account
shall be appropriated to the department on a continuing basis
for the purposes provided under this section.
(b) Distributions.--The department shall, on a quarterly
basis, make distributions from the local share assessments
deposited into the restricted account under subsection (a) into
a restricted receipt account to be established in the
Commonwealth Financing Authority to be used exclusively for
grants for projects in the public interest in this Commonwealth.
§ 13D54. Regulatory assessment.
(a) Accounts established.--Notwithstanding sections 1401
(relating to slot machine licensee deposits) and 1402 (relating
to gross terminal revenue deductions), the State Treasurer shall
establish within the State Treasury an account for each terminal
operator for the deposit of a regulatory assessment amount
required under subsection (b) to recover costs or expenses
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incurred by the board, the department, the Pennsylvania State
Police and the Office of Attorney General in carrying out their
powers and duties under this chapter based upon a budget
submitted by the department under subsection (c).
(b) Weekly deposits.--
(1) The department shall determine the appropriate
assessment amount for each airport slot machine certificate
holder, which shall be a percentage assessed on the airport
slot machine certificate holder's weekly gross terminal
revenue generated from all slot machines in operation at
qualified airports within this Commonwealth.
(2) The percentage assessed shall not exceed an amount
equal to the costs or expenses incurred by the board, the
department, the Pennsylvania State Police or the Office of
Attorney General in carrying out their powers and duties
under this chapter based upon a budget submitted by the
department under subsection (c).
(c) Itemized budget reporting.--
(1) The department shall prepare and annually submit to
the chairperson and minority chairperson of the
Appropriations Committee of the Senate and the chairperson
and minority chairperson of the Appropriations Committee of
the House of Representatives an itemized budget consisting of
amounts to be appropriated out of the accounts established
under this section necessary to administer this section.
(2) As soon as practicable after submitting copies of
the itemized budget, the department shall submit to the
chairperson and minority chairperson of the Appropriations
Committee of the Senate and the chairperson and minority
chairperson of the Appropriations Committee of the House of
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Representatives analyses of and recommendations regarding the
itemized budget.
(3) The itemized budget required under paragraph (1)
shall be submitted in conjunction with the budget required to
be submitted under section 1202(b)(28) (relating to general
and specific powers).
(d) Appropriation.--Costs and expenses may be paid from the
accounts established under subsection (a) only upon
appropriation by the General Assembly.
§ 13D55. Application of assessments.
Notwithstanding sections 1405 (relating to Pennsylvania Race
Horse Development Trust Fund) and 1407 (relating Pennsylvania
Gaming Economic Development and Tourism Fund), the daily gross
terminal revenue generated from the slot machines in operation
at a qualified airport by an airport slot machine certificate
holder may not be subject to the daily assessments established
under sections 1405(b) or 1407(c) or (c.1).
Section 5. This act shall take effect in 60 days.
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