PRINTER'S NO. 2272
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1682
Session of
2019
INTRODUCED BY KORTZ, BARRAR, HILL-EVANS, MILLARD, READSHAW,
SAINATO, SAYLOR, IRVIN AND MASSER, JUNE 27, 2019
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, JUNE 27, 2019
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, in general provisions relating to video gaming,
further providing for definitions; in application and
licensure, further providing for establishment licenses and
for issuance and renewal; and, in operation, further
providing for video gaming limitations, for hours of
operation and for terminal placement agreements.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "establishment license,"
"establishment licensee" and "inducement" in section 3102 of
Title 4 of the Pennsylvania Consolidated Statutes are amended
and the section is amended by adding definitions to read:
§ 3102. Definitions.
The following words and phrases when used in this part shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Establishment." A liquor establishment or truck stop
establishment.
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"Establishment license." A license issued by the board
authorizing a truck stop establishment or liquor establishment
to permit a terminal operator licensee to place and operate
video gaming terminals on the truck stop establishment's or
liquor establishment's premises under this part and the rules
and regulations promulgated under this part.
"Establishment licensee." A truck stop establishment or
liquor establishment that holds an establishment license.
* * *
"Inducement."
(1) Any of the following:
(i) Consideration paid directly or indirectly, from
a manufacturer, supplier, terminal operator, procurement
agent, gaming employee, employee or another person on
behalf of an applicant or anyone licensed under this
part, to a truck stop establishment, liquor
establishment, establishment licensee, establishment
licensee owner or an employee of the establishment
licensee, directly or indirectly as an enticement to
solicit or maintain the establishment licensee or
establishment licensee owner's business.
(ii) Cash, incentive, marketing and advertising
cost, gift, food, beverage, loan, prepayment of gross
terminal revenue and other contribution or payment that
offsets an establishment licensee's operational costs, or
as otherwise determined by the board.
(2) The term shall not include costs paid by a terminal
operator applicant or terminal operator licensee related to
making video gaming terminals operate at the premises of an
establishment licensee, including wiring and rewiring,
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software updates, ongoing video gaming terminal maintenance,
redemption terminals, network connections, site controllers
and costs associated with communicating with the central
control computer system.
* * *
"Liquor establishment." A person that operates under a valid
club, eating place or restaurant liquor or brewery license under
Article IV of the act of April 12, 1951 (P.L.90, No.21), known
as the Liquor Code. The term does not include a grocery store,
hotel, nonprimary location or restaurant whose place of business
is located in a licensed facility or a liquor establishment
whose liquor sales for off-premises consumption exceeds 50% of
total sales.
* * *
"Nonprimary location." A facility in which pari-mutuel
wagering is conducted by a licensed racing entity under 3
Pa.C.S. Ch. 93 Subch. B (relating to racing oversight) other
than the racetrack where live racing is conducted.
Section 2. Sections 3514(a) and (f) and 3516(a)(1) of Title
4 are amended to read:
§ 3514. Establishment licenses.
(a) General requirements.--A truck stop establishment or
liquor establishment that submits an application for an
establishment license shall include at a minimum:
(1) The name, address and photograph of the applicant
and additional financial information required by the board.
(2) A description of the proposed surveillance and
security measures to ensure the security of the proposed
video gaming area.
(3) A current tax lien certificate issued by the
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department.
(4) The criminal history record of the applicant,
principal and key employees and a consent for the bureau to
conduct a background investigation on the applicant,
principals and key employees.
(5) Other information determined to be appropriate by
the board.
(f) Requirement.--In order to be eligible for an
establishment license, a truck stop establishment or liquor
establishment must be licensed as a lottery sales agent under
section 305 of the act of August 26, 1971 (P.L.351, No.91),
known as the State Lottery Law, and licensed to take any actions
authorized by the designation.
§ 3516. Issuance and renewal.
(a) Issuance.--
(1) In addition to any other criteria provided under
this part, any terminal operator, truck stop establishment,
liquor establishment supplier, manufacturer, gaming employee,
key employee, principal or other person that the board
approves as qualified to receive a license, permit or other
authorization under this part shall be issued a license or
permit upon the payment of a fee required in section 4101
(relating to fees) and upon the fulfillment of conditions
required by the board or provided for in this part.
* * *
Section 3. Sections 3702(a)(1) and (b)(6) of Title 4 are
amended and subsection (a) is amended by adding a paragraph to
read:
§ 3702. Video gaming limitations.
(a) Establishment licensee limitations.--An establishment
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licensee may offer video gaming terminals for play within its
premises, subject to the following:
(1) No more than five video gaming terminals may be
placed on the premises of the [establishment licensee] truck
stop establishment.
(1.1) No more than three video gaming terminals may be
placed on the premises of the liquor establishment.
* * *
(b) Terminal operator licensee limitations.--A terminal
operator licensee may place and operate video gaming terminals
on the premises of an establishment licensee, subject to the
following:
* * *
(6) No terminal operator licensee may give or offer to
give, directly or indirectly, any type of inducement to a
truck stop establishment or liquor establishment to secure or
maintain a terminal placement agreement.
* * *
Section 4. Sections 3703 and 3704(f) of Title 4 are amended
to read:
§ 3703. [(Reserved).] Hours of operation.
An establishment licensee that is also a liquor establishment
may only permit the play of video gaming terminals during the
hours in which the liquor establishment is authorized by the
Pennsylvania Liquor Control Board to sell alcoholic beverages.
§ 3704. Terminal placement agreements.
* * *
(f) Void agreements.--
(1) An agreement entered into by a truck stop
establishment prior to the effective date of this section
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with a person or entity for the placement, operation, service
or maintenance of video gaming terminals, 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.
(2) An agreement entered into by a liquor establishment
prior to the effective date of this paragraph with a person
or entity for the placement, operation, service or
maintenance of video gaming terminals, 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 paragraph shall be void and may not be approved by the
board.
* * *
Section 5. This act shall take effect in 60 days.
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