act-2004-0-71•Pennsylvania Act 2004-71 — AMUSEMENTS (4 PA.C.S.) - PENNSYLVANIA RACE HORSE DEVELOPMENT AND GAMING ACT
Pennsylvania Act 2004-71 — AMUSEMENTS (4 PA.C.S.) - PENNSYLVANIA RACE HORSE DEVELOPMENT AND GAMING ACT
act-2004-0-712004 Pa. Act 71Law
Act text part 1
AMUSEMENTS (4 PA.C.S.) - PENNSYLVANIA RACE HORSE DEVELOPMENT AND GAMING
ACT
Act of Jul. 5, 2004, P.L. 572, No. 71 Cl. 04
Session of 2004
No. 2004-71
HB 2330
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, authorizing certain racetrack and other gaming;
providing for regulation of gaming licensees; establishing
and providing for the powers and duties of the Pennsylvania
Gaming Control Board; conferring powers and imposing duties
on the Department of Revenue, the Department of Health, the
Office of Attorney General, the Pennsylvania State Police and
the Pennsylvania Liquor Control Board; establishing the State
Gaming Fund, the Pennsylvania Race Horse Development Fund,
the Pennsylvania Gaming Economic Development and Tourism
Fund, the Compulsive and Problem Gambling Treatment Fund and
the Property Tax Relief Fund; providing for enforcement;
imposing penalties; making appropriations; and making related
repeals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 4 of the Pennsylvania Consolidated Statutes
is amended by adding a part to read:
PART II
GAMING
Chapter
11. General Provisions
12. Pennsylvania Gaming Control Board
13. Licensees
14. Revenues
15. Administration and Enforcement
18. Fingerprinting
19. Miscellaneous Provisions
CHAPTER 11
GENERAL PROVISIONS
Sec.
1101. Short title.
1102. Legislative intent.
1103. Definitions.
CHAPTER 11
GENERAL PROVISIONS
§ 1101. Short title.
This part shall be known and may be cited as the Pennsylvania
Race Horse Development and Gaming Act.
§ 1102. Legislative intent.
The General Assembly recognizes the following public policy
purposes and declares that the following objectives of the
Commonwealth are to be served by this part:
(1) The primary objective of this part to which all
other objectives and purposes are secondary is to protect the
public through the regulation and policing of all activities
involving gaming and practices that continue to be unlawful.
(2) The authorization of limited gaming by the
installation and operation of slot machines as authorized in
this part is intended to enhance live horse racing, breeding
programs, entertainment and employment in this Commonwealth.
(3) The authorization of limited gaming is intended to
provide a significant source of new revenue to the
Commonwealth to support property tax relief, wage tax
reduction, economic development opportunities and other
similar initiatives.
(4) The authorization of limited gaming is intended to
positively assist the Commonwealth's horse racing industry,
support programs intended to foster and promote horse
breeding and improve the living and working conditions of
personnel who work and reside in and around the stable and
backside areas of racetracks.
(5) The authorization of limited gaming is intended to
provide broad economic opportunities to the citizens of this
Commonwealth and shall be implemented in such a manner as to
prevent possible monopolization by establishing reasonable
restrictions on the control of multiple licensed gaming
facilities in this Commonwealth.
(6) The authorization of limited gaming is intended to
enhance the further development of the tourism market
throughout this Commonwealth, including, but not limited to,
year-round recreational and tourism locations in this
Commonwealth.
(7) Participation in limited gaming authorized under
this part by any licensee or permittee shall be deemed a
privilege, conditioned upon the proper and continued
qualification of the licensee or permittee and upon the
discharge of the affirmative responsibility of each licensee
to provide the regulatory and investigatory authorities of
the Commonwealth with assistance and information necessary to
assure that the policies declared by this part are achieved.
(8) Strictly monitored and enforced control over all
limited gaming authorized by this part shall be provided
through regulation, licensing and appropriate enforcement
actions of specified locations, persons, associations,
practices, activities, licensees and permittees.
(9) Strict financial monitoring and controls shall be
established and enforced by all licensees or permittees.
(10) The public interest of the citizens of this
Commonwealth and the social effect of gaming shall be taken
into consideration in any decision or order made pursuant to
this part.
(11) It is necessary to maintain the integrity of the
regulatory control and legislative oversight over the
operation of slot machines in this Commonwealth; to prevent
the actual or appearance of corruption that may result from
large campaign contributions; ensure the bipartisan
administration of this part; and avoid actions that may erode
public confidence in the system of representative government.
§ 1103. 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:
"Affiliate" or "affiliated company." A person that directly
or indirectly, through one or more intermediaries, controls, is
controlled by or is under common control with a specified
person.
"Applicant." Any person, officer, director or key employee,
who on his own behalf or on behalf of another, is applying for
permission to engage in any act or activity which is regulated
under the provisions of this part. In cases in which the
applicant is a corporation, foundation, organization, business
trust, estate, limited liability company, trust, partnership,
limited partnership, association or any other form of legal
business entity, the Pennsylvania Gaming Control Board shall
determine the associated persons whose qualifications are
necessary as a precondition to the licensing of the applicant.
"Approved," "approval" or "approve." When used in reference
to an application submitted to the State Horse Racing Commission
or the State Harness Racing Commission to conduct harness or
thoroughbred race meetings or the Pennsylvania Gaming Control
Board to authorize and regulate the placement and operation of
slot machines, the terms refer to the date that an application
to the State Horse Racing Commission, State Harness Racing
Commission or the board is granted regardless of the pendency of
any administrative or judicial appeals or other legal action
challenging the decision of either commission or the board.
"Associated equipment." Any equipment or mechanical,
electromechanical or electronic contrivance, component or
machine used in connection with gaming, including linking
devices which connect to progressive slot machines or slot
machines, replacement parts, equipment which affects the proper
reporting of gross revenue, computerized systems for controlling
and monitoring slot machines, including, but not limited to, the
central control computer and devices for weighing or counting
money.
"Authority." An authority created by the Commonwealth which
purchases State gaming receipts under section 1202 (relating to
general and specific powers).
"Background investigation." A security, criminal, credit and
suitability investigation of a person as provided for in this
part. The investigation shall include the status of taxes owed
to the United States and to the Commonwealth and its political
subdivisions.
"Backside area." Those areas of the racetrack facility that
are not generally accessible to the public and which include,
but are not limited to, those facilities commonly referred to as
barns, track kitchens, recreation halls, backside employee
quarters and training tracks, and roadways providing access
thereto. The term does not include those areas of the racetrack
facility which are generally accessible to the public, including
the various buildings commonly referred to as the grandstand or
the racing surfaces, paddock enclosures and walking rings.
"Board." The Pennsylvania Gaming Control Board established
under section 1201 (relating to Pennsylvania Gaming Control
Board established).
"Bonds." Bonds, notes, instruments, refunding notes and
bonds and other evidences of indebtedness or obligations, which
an authority issues to fund the purchase of State gaming
receipts.
"Bureau." The Bureau of Investigations and Enforcement of
the Pennsylvania Gaming Control Board.
"Central control computer." A central site computer
controlled by the Department of Revenue and accessible by the
Pennsylvania Gaming Control Board to which all slot machines
communicate for the purpose of auditing capacity, real-time
information retrieval of the details of any financial event that
occurs in the operation of a slot machine, including, but not
limited to, coin in, coin out, ticket in, ticket out, jackpots,
machine door openings and power failure, and remote machine
activation and disabling of slot machines.
"Cheat." To alter without authorization the elements of
chance, method of selection or criteria which determine:
(1) The result of a slot machine game.
(2) The amount or frequency of payment in a slot machine
game.
(3) The value of a wagering instrument.
(4) The value of a wagering credit.
The term does not include altering for required maintenance and
repair.
"Commission" or "commissions." The State Horse Racing
Commission or the State Harness Racing Commission, or both as
the context may require.
"Controlling interest." A person shall be deemed to have the
ability to control a publicly traded corporation, or to elect
one or more of the members of its board of directors, if such
holder owns or beneficially holds 5% or more of the securities
of such publicly traded domestic or foreign corporation,
partnership, limited liability company or any other form of
legal entity, unless such presumption of control or ability to
elect is rebutted by clear and convincing evidence. A person who
is a holder of securities of a privately held domestic or
foreign corporation, partnership, limited liability company or
any other form of legal entity shall be deemed to possess a
controlling interest unless such presumption of control is
rebutted by clear and convincing evidence.
"Conviction." A finding of guilt or a plea of guilty or nolo
contendere, whether or not a judgment of sentence has been
imposed as determined by the law of the jurisdiction in which
the prosecution was held. The term does not include a conviction
that has been expunged or overturned or for which an individual
has been pardoned or an order of Accelerated Rehabilitative
Disposition.
"Department." The Department of Revenue of the Commonwealth.
"Financial backer." An investor, mortgagee, bondholder,
noteholder or other sources of equity or capital provided to an
applicant or licensed entity.
"Fund." The State Gaming Fund established under section 1403
(relating to establishment of State Gaming Fund and net slot
machine revenue distribution).
"Gaming employee." Any employee of a slot machine licensee,
including, but not limited to:
(1) Cashiers.
(2) Change personnel.
(3) Counting room personnel.
(4) Slot attendants.
(5) Hosts or other persons authorized to extend
complimentary services.
(6) Machine mechanics or computer machine technicians.
(7) Security personnel.
(8) Surveillance personnel.
(9) Supervisors and managers.
The term includes employees of a person holding a supplier's
license whose duties are directly involved with the repair or
distribution of slot machines and associated equipment sold or
provided to the licensed facility within this Commonwealth as
determined by the Pennsylvania Gaming Control Board. 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.
"Gross terminal revenue." The total of wagers received by a
slot machine minus the total of:
(1) Cash or cash equivalents paid out to patrons as a
result of playing a slot machine which are paid to patrons
either manually or paid out by the slot machine.
(2) Cash paid to purchase annuities to fund prizes
payable to patrons over a period of time as a result of
playing a slot machine.
(3) Any personal property distributed to a patron as the
result of playing a slot machine. This does not include
travel expenses, food, refreshments, lodging or services.
The term does not include counterfeit money or tokens, coins or
currency of other countries which are received in slot machines,
except to the extent that they are readily convertible to United
States currency, cash taken in fraudulent acts perpetrated
against a slot machine licensee for which the licensee is not
reimbursed or cash received as entry fees for contests or
tournaments in which the patrons compete for prizes.
"Horsemen of this Commonwealth." A thoroughbred or
standardbred horse owner or trainer who enters and runs his or
her horse at a licensed racing entity in the current or prior
calendar year and meets the requirements of the horsemen's
organization of which he or she is a member to participate in
the receipt of benefits therefrom; or an employee of a trainer
who meets the requirements of the horsemen's organization of
which he or she is a member to participate in the receipt of
benefits therefrom.
"Horsemen's organization." A trade association which
represents the majority of owners and trainers who own and race
horses at a licensed racetrack.
"Institutional investor." Any retirement fund administered
by a public agency for the exclusive benefit of Federal, State
or local public employees, investment company registered under
the Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §
80a-1 et seq.), collective investment trust organized by banks
under Part Nine of the Rules of the Comptroller of the Currency,
closed-end investment trust, chartered or licensed life
insurance company or property and casualty insurance company,
banking and other chartered or licensed lending institution,
investment advisor registered under The Investment Advisors Act
of 1940 (54 Stat. 847, 15 U.S.C. § 80b-1 et seq.) and such other
persons as the Pennsylvania Gaming Control Board may determine
consistent with this part.
"Issued," "issuance" or "issue." When used in reference to
an application submitted to the State Horse Racing Commission or
the State Harness Racing Commission to conduct harness or
thoroughbred race meetings or the Pennsylvania Gaming Control
Board to authorize the placement and operation of slot machines,
the terms refer to the date when a determination by the
commissions or the board approving an application brought before
the agencies becomes final, binding and nonappealable and is not
subject to a pending legal challenge.
"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,
including the general manager and assistant manager of the
licensed facility, director of slot operations, director of cage
and/or credit operations, director of surveillance, director of
marketing, director of management information systems, director
of security, comptroller and any employee who supervises the
operations of these departments or to whom these department
directors or department heads report and such other positions
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 board.
All other gaming employees unless otherwise designated by the
board shall be classified as non-key employees.
"Licensed entity." Any slot machine licensee, manufacturer
licensee, supplier licensee or other person licensed by the
Pennsylvania Gaming Control Board under this part.
"Licensed facility." The physical land-based location and
associated areas at which a licensed gaming entity is authorized
to place and operate slot machines.
"Licensed gaming entity" or "slot machine licensee." A
person that holds a slot machine license pursuant to this part.
"Licensed racetrack" or "racetrack." The physical facility
and grounds where a person has obtained a license from either
the State Horse Racing Commission or the State Harness Racing
Commission to conduct live thoroughbred or harness race meetings
respectively with pari-mutuel wagering. The term "racetrack" or
"its racetrack" shall mean the physical land-based location at
which live horse racing is conducted even if not owned by the
person.
"Licensed racing entity." Any legal entity that has obtained
a license to conduct live thoroughbred or harness horse race
meetings respectively with pari-mutuel wagering from either the
State Horse Racing Commission or the State Harness Racing
Commission pursuant to the act of December 17, 1981 (P.L.435,
No.135), known as the Race Horse Industry Reform Act.
"Manufacturer." A person who manufactures, builds, rebuilds,
fabricates, assembles, produces, programs, designs or otherwise
makes modifications to any slot machine or associated equipment
for use or play of slot machines in this Commonwealth for gaming
purposes.
"Manufacturer license." A license issued by the Pennsylvania
Gaming Control Board authorizing a manufacturer to manufacture
or produce slot machines or associated equipment for use in this
Commonwealth for gaming purposes.
"Manufacturer licensee." A manufacturer that obtains a
manufacturer license.
"Municipality." A city, borough, incorporated town or
township.
"Net terminal revenue." The net amount of the gross terminal
revenue less the tax and assessments imposed by sections 1402
(relating to gross terminal revenue deductions), 1403 (relating
to establishment of State Gaming Fund and net slot machine
revenue distribution), 1405 (relating to Pennsylvania Race Horse
Development Fund) and 1407 (relating to Pennsylvania Gaming
Economic Development and Tourism Fund).
"Nonprimary location." Any facility in which pari-mutuel
wagering is conducted by a licensed racing entity other than the
racetrack where live racing is conducted.
"Occupation permit." A permit authorizing an individual to
be employed or work as a gaming employee at a licensed facility.
"Permittee." A holder of a permit issued pursuant to this
part.
"Person." Any natural person, corporation, foundation,
organization, business trust, estate, limited liability company,
licensed corporation, trust, partnership, limited liability
partnership, association or any other form of legal business
entity.
"Progressive payout." A slot machine wager payout that
increases in a monetary amount based on the amounts wagered in a
progressive system.
"Progressive system." A computerized system linking slot
machines in one or more licensed facilities within this
Commonwealth and offering one or more common progressive payouts
based on the amounts wagered.
"Race Horse Industry Reform Act." The act of December 17,
1981 (P.L.435, No.135), known as the Race Horse Industry Reform
Act.
"Revenue- or tourism-enhanced location." Any location within
this Commonwealth determined by the Pennsylvania Gaming Control
Board, in its discretion, which will maximize net revenue to the
Commonwealth or enhance year-round recreational tourism within
this Commonwealth, in comparison to other proposed facilities
and is otherwise consistent with the provisions of this part and
its declared public policy purposes.
"Security." As defined in the act of December 5, 1972
(P.L.1280, No.284), known as the Pennsylvania Securities Act of
1972.
"Slot machine." Any mechanical or electrical contrivance,
terminal, machine or other device approved by the Pennsylvania
Gaming Control Board which, upon insertion of a coin, bill,
ticket, token or similar object therein or upon payment of any
consideration whatsoever, including the use of any electronic
payment system except a credit card or debit card, is available
to play or operate, the play or operation of which, whether by
reason of skill or application of the element of chance or both,
may deliver or entitle the person or persons playing or
operating the contrivance, terminal, machine or other device to
receive cash, billets, tickets, tokens or electronic credits to
be exchanged for cash or to receive merchandise or anything of
value whatsoever, whether the payoff is made automatically from
the machine or manually. A slot machine:
(1) May utilize spinning reels or video displays or
both.
(2) May or may not dispense coins, tickets or tokens to
winning patrons.
(3) May use an electronic credit system for receiving
wagers and making payouts.
The term shall include associated equipment necessary to conduct
the operation of the contrivance, terminal, machine or other
device.
"Slot machine license." A license issued by the Pennsylvania
Gaming Control Board authorizing a person to place and operate
slot machines pursuant to this part and the rules and
regulations under this part.
"Slot machine licensee." A person that holds a slot machine
license.
"State gaming receipts." Revenues and receipts required by
this part to be paid into the State Gaming Fund, the
Pennsylvania Race Horse Development Fund and the Pennsylvania
Gaming Economic Development and Tourism Fund, and all rights,
existing on the effective date of this section or coming into
existence later, to receive any of those revenues and receipts.
"State Treasurer." The State Treasurer of the Commonwealth.
"Supplier." A person that sells, leases, offers or otherwise
provides, distributes or services any slot machine or associated
equipment for use or play of slot machines in this Commonwealth.
"Supplier license." A license issued by the Pennsylvania
Gaming Control Board authorizing a supplier to provide products
or services related to slot machines or associated equipment to
slot machine licensees.
"Supplier licensee." A supplier that holds a supplier
license.
CHAPTER 12
PENNSYLVANIA GAMING CONTROL BOARD
Sec.
1201. Pennsylvania Gaming Control Board established.
1202. General and specific powers.
1203. Temporary regulations.
1204. Licensed entity application appeals from board.
1205. License or permit application hearing process.
1206. Board minutes and records.
1207. Regulatory authority of board.
1208. Collection of fees and fines.
1209. Slot machine license fee.
1210. Number of slot machines.
1211. Reports of board.
1212. Diversity goals of board.
1213. License or permit prohibition.
§ 1201. Pennsylvania Gaming Control Board established.
(a) Board established.--There is established an independent
administrative board to be known as the Pennsylvania Gaming
Control Board, which shall be implemented as set forth in this
section.
(b) Membership.--The board shall consist of the following
members, who shall serve a set term and may not be removed
except for good cause:
(1) Three members appointed by the Governor, each being
referred to as a "gubernatorial appointee."
(2) One member appointed by each of the following
legislative caucus leaders, each being referred to as a
"legislative appointee":
(i) The President pro tempore of the Senate.
(ii) The Minority Leader of the Senate.
(iii) The Speaker of the House of Representatives.
(iv) The Minority Leader of the House of
Representatives.
(c) Initial appointments to board.--
(1) Gubernatorial appointee members initially appointed
under subsection (b)(1) shall serve an initial term of one,
two and three years respectively as designated by the
Governor at the time of appointment and until their
successors are appointed and qualified.
(2) Legislative appointee members initially appointed
under subsection (b)(2) shall serve until the third Tuesday
in January 2007 and until their successors are appointed and
qualified.
(3) Any appointment to fill a vacancy shall be for the
unexpired term. Members so appointed to fill the unexpired
term of an initial appointee shall be subject to the
provisions of subsection (d).
(d) Appointments after expiration of initial term or upon
vacancy.--Upon the expiration of a term of a member appointed
under this subsection or upon the existence of a vacancy of a
member appointed pursuant to subsection (c) or this subsection,
the appointing authority shall appoint a member subject to the
following:
(1) For a gubernatorial appointment under subsection
(b)(1), the term shall be for three years and until a
successor is appointed and qualified.
(2) Terms for legislative appointee members appointed
under subsection (b)(2) shall be for a two-year term and
shall expire on the third Tuesday of January of such year,
but such members shall continue to serve until their
successors are appointed and qualified.
(3) No legislative appointee member shall serve more
than three full successive terms.
(4) No gubernatorial appointee member shall serve more
than two full successive terms.
(5) An appointment to fill a vacancy shall be for the
remainder of the unexpired term.
(e) Ex officio members.--The Secretary of Revenue, the
Secretary of Agriculture and the State Treasurer shall serve on
the board as nonvoting ex officio members of the board.
(f) Qualified majority vote.--
(1) Except as permitted in paragraphs (2) and (3), any
action, including, but not limited to, the approval,
issuance, denial or conditioning of any license by the board
under this part or the making of any order or the
ratification of any permissible act done or order made by one
or more of the members, shall require a qualified majority
vote consisting of at least one gubernatorial appointee and
the four legislative appointees.
(2) Any action to suspend or revoke, not renew, void or
require forfeiture of a license or permit issued under this
part, to impose any administrative fine or penalty under this
part or to issue cease and desist orders or similar
enforcement actions shall require a majority vote of all the
members appointed to the board.
(3) Notwithstanding any other provision to the contrary,
a member shall disclose the nature of his disqualifying
interest, disqualify himself and abstain from voting in a
proceeding in which his or her impartiality may be reasonably
questioned, including, but not limited to, instances where he
or she knows that they possess a substantial financial
interest in the subject matter of the proceeding or any other
interest that could be substantially affected by the outcome
of the proceeding. In such circumstances in which it is a
legislative appointee member that has disqualified himself or
herself, the qualified majority shall consist of the
remaining three legislative appointees and at least two
gubernatorial appointees.
(g) Background investigation.--Appointees shall be subject
to a background investigation conducted by the Pennsylvania
State Police in accordance with this part.
(h) Qualifications and restrictions.--
(1) Each member at the time of appointment shall be at
least 25 years of age and shall have been a resident of this
Commonwealth for a period of at least one year immediately
preceding appointment. Each member shall continue to remain a
resident of this Commonwealth during the term of membership
on the board.
(2) Except for ex officio members, no person shall be
appointed a member of the board or hold any place, position
or office under the board if that person holds any other
elected office or party office as defined in section 1512
(relating to public official financial interest) in this
Commonwealth or any of its political subdivisions.
(3) No member, appointee, employee or official shall
hold any office or employment position, the duties of which
are incompatible with the duties of the office.
(4) No member, employee, appointee or official engaged
in the service of or in any manner connected with the board
shall hold any office or position, or be engaged in any
employment or vocation, the duties of which are incompatible
with employment in the service of or in connection with the
work of the board.
(5) No member shall be paid or accept for any service
connected with the office any fee other than the salary and
expenses provided by law. Nothing in this part shall prohibit
a member from engaging in any employment or vocation or
receiving any compensation for such employment or vocation
that is not otherwise connected to or incompatible with his
or her service as a member of the board.
(6) No member, employee, appointee or official shall
participate in any hearing or proceeding in which that person
has any direct or indirect pecuniary interest.
(7) At the time of appointment and annually thereafter,
each member shall disclose the existence of all ownership
interests in licensed facilities and all securities in any
licensed entity or applicant, its affiliates or subsidiaries
held by the member, the member's spouse and any minor or
unemancipated children and must divest such ownership
interests in licensed facilities or securities prior to an
appointment becoming final. A member may not acquire any
security in any licensed entity, its affiliates or
subsidiaries during the member's tenure. The disclosure
statement shall be filed with the executive director of the
board and with the appointing authority for such member and
shall be open to inspection by the public at the office of
the board during the normal business hours of the board
during the tenure of the member and for two years after the
member leaves office.
(8) Every member, employee, appointee or official of the
board, in the service of or in connection with the work of
the board, is forbidden, directly or indirectly, to solicit
or request from or to suggest or recommend to any applicant,
licensed entity, its affiliate, intermediary, subsidiary,
holding company or to any officer, attorney, agent or
employee thereof the appointment of any individual to any
office, place or position in or the employment of any
individual in any capacity by the applicant, licensed entity,
its affiliate, intermediary, subsidiary or holding company.
(9) Every member, executive-level employee, appointee or
official appointed to office in the service of or in
connection with the work of the board is prohibited from
accepting employment with any applicant, licensed gaming
entity, its affiliate, intermediary, subsidiary or holding
company for a period of one year from the termination of
employment or service with the board. Every member,
executive-level employee, appointee or official appointed to
office in the service of or in connection with the work of
the board is prohibited from appearing before the board on
behalf of any applicant, licensed gaming entity, its
affiliate, intermediary, subsidiary or holding company or
other licensee or permittee of the board for a period of two
years after terminating employment or service with the board.
(10) If any person employed or appointed in the service
of the board violates any provision of this section, the
appointing authority or the board shall forthwith remove the
person from the office or employment, and the person shall be
ineligible for future employment or service with the board
and shall be ineligible to be approved for any license or
permit under this part for a period of two years thereafter.
(11) No member or employee of the board shall wager or
be paid any prize from any wager at any licensed facility
within this Commonwealth or at any other facility outside
this Commonwealth which is owned or operated by a licensed
gaming entity or any of its affiliates or subsidiaries.
(12) A member of the board who has been convicted during
his term in any domestic or foreign jurisdiction of a felony,
crime of moral turpitude or gambling offense shall be
automatically removed from the board and shall be ineligible
to become a board member in the future.
(i) Compensation.--The Executive Board as established in the
act of April 9, 1929 (P.L.177, No.175), known as The
Administrative Code of 1929, shall establish the compensation of
the members appointed pursuant to this section. Members shall be
reimbursed for all necessary and actual expenses.
(j) Chairman.--The chairman of the board shall be selected
by the Governor.
(k) Appointments.--The appointing authorities shall make
their initial appointments within 60 days of the effective date
of this part. 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. No person who has been convicted in
any domestic or foreign jurisdiction of a felony or gambling
offense shall be appointed to the board.
(l) Disclosure statements.--Members and employees of the
board are subject to the provisions of 65 Pa.C.S. Ch. 11
(relating to ethics standards and financial disclosure) and the
act of July 19, 1957 (P.L.1017, No.451), known as the State
Adverse Interest Act.
§ 1202. General and specific powers.
(a) General powers.--The board shall have general
jurisdiction over all gaming activities or related activities as
described in this part. The board shall be responsible to ensure
the integrity of the acquisition and operation of slot machines
and associated equipment and shall have jurisdiction over every
aspect of the authorization and operation of slot machines. The
board shall employ an executive director, chief counsel,
deputies, secretaries, officers, hearing officers and agents as
it may deem necessary, who shall serve at the board's pleasure.
The board shall also employ other employees as it deems
appropriate whose duties shall be determined by the board. In
order to ensure the ability of the board to recruit and retain
individuals necessary to execute its responsibilities under this
part, the board shall set the 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. For the purposes of the act of October 15, 1980
(P.L.950, No.164), known as the Commonwealth Attorneys Act, the
board shall not be considered an executive or independent
agency. The board shall have such other powers and authority
necessary to carry out its duties and the objectives of this
part.
(b) Specific powers.--The board shall have the specific
power and duty:
(1) To require background investigations on prospective
or existing licensees, permittees or persons holding a
controlling interest in any prospective or existing licensee
or permittee under the jurisdiction of the board.
(2) To enter into an agreement with the Pennsylvania
State Police for the reimbursement of actual costs as
approved by the board to the Pennsylvania State Police for
the investigations. Investigations shall include information
in the possession of the Attorney General.
(3) For purposes of the background investigation, the
board may receive information otherwise protected by 18
Pa.C.S. Ch. 91 (relating to criminal history record
information).
(4) At its discretion, to issue, approve, renew, revoke,
suspend, condition or deny issuance or renewal of slot
machine licenses.
(5) At its discretion, to issue, approve, renew, revoke,
suspend, condition or deny issuance or renewal of supplier
and manufacturer licenses.
(6) At its discretion, to issue, approve, renew, revoke,
suspend, condition or deny issuance or renewal of occupation
permits.
(7) At its discretion, to issue, approve, renew, revoke,
suspend, condition or deny issuance or renewal of any
additional licenses or permits which may be required by the
board under this part or by regulation, including, but not
limited to, violations of sections 1328 (relating to change
in ownership or control of slot machine licensee) and 1330
(relating to multiple slot machine license prohibition).
(8) At its discretion, to suspend, condition or deny the
issuance or renewal of any license or permit or levy fines or
other sanctions for any violation of this part.
(9) To require applicants for licenses and permits to
submit to fingerprinting by the Pennsylvania State Police.
The Pennsylvania State Police shall submit the fingerprints
to the Federal Bureau of Investigation for purposes of
verifying the identity of the applicants and obtaining
records of criminal arrests and convictions.
(10) In addition to the power of the board regarding
license and permit applicants, to determine at its discretion
the suitability of any person who furnishes or seeks to
furnish to a slot machine licensee directly or indirectly any
services or property related to slot machines or associated
equipment or through any arrangements under which that person
receives payment based directly or indirectly on earnings,
profits or receipts from the slot machines and associated
equipment. The board may require any such person to comply
with the requirements of this part and the regulations of the
board and may prohibit the person from furnishing the
services or property.
(11) As a board and through its designated officers,
employees or agents, to administer oaths, examine witnesses
and issue subpoenas to compel attendance of witnesses and
production of all relevant and material reports, books,
papers, documents and other evidence.
(12) Within six months after the effective date of this
part, in a manner that does not impede the immediate
implementation of the duties and responsibilities of the
board under this part during the immediate two years after
the effective date of this part, to develop and implement an
affirmative action plan to assure that all persons are
accorded equality of opportunity in employment and
contracting by the board, its contractors, subcontractors,
assignees, lessees, agents, vendors and suppliers.
(13) Except for contracts related to the central control
computer and such other contracts as the board, in
consultation with the Secretary of General Services,
determines would result in substantial savings to the board
if entered into for a longer period than provided in this
paragraph, all contracts entered into by the board during the
two-year period following the effective date of this part
shall not exceed a term of two years.
(14) To promulgate rules and regulations the board deems
necessary to carry out the policy and purposes of this part
and to enhance the credibility and the integrity of the
licensed operation of slot machines and associated equipment
in this Commonwealth.
(15) The board shall not issue or renew a license or
permit unless it is satisfied that the applicant is a person
of good character, honesty and integrity and is a person
whose prior activities, criminal record, if any, reputation,
habits and associations do not pose a threat to the public
interest or the effective regulation and control of slot
machine operations or create or enhance the danger of
unsuitable, unfair or illegal practices, methods and
activities in the conduct of slot machine operations or the
carrying on of the business and financial arrangements
incidental thereto.
(16) Notwithstanding any other provision of law, the
board is authorized to sell, in whole or in part, the
Commonwealth's right, title and interest in State gaming
receipts to an authority created by the Commonwealth. The
sale shall be subject to the terms and conditions contained
in agreements between the board and the authority. Proceeds
from the sale of State gaming receipts shall be allocated and
used in the manner otherwise provided by this part for the
distribution of State gaming receipts. The authority created
by the Commonwealth is authorized to purchase State gaming
receipts upon terms and conditions agreed to by the board and
to issue bonds to fund the purchase of State gaming receipts
in the manner provided for the issuance of authority
indebtedness in the law establishing the authority. The State
Treasurer is authorized and directed to enter into any
agreements with the board and the authority and establish
accounts and funds, that shall not be in the State Treasury,
as the authority may direct as being necessary or appropriate
to effect the sale of State gaming receipts to the authority
and the collection and transfer of the State gaming receipts
sold to the authority. State gaming receipts sold to the
authority shall be the property of the authority and shall
not be the property of the Commonwealth.
(17) To create a Bureau of Investigations and
Enforcement within the board. The board shall promulgate
regulations pertaining to the operation of the bureau which
shall insure separation of functions between the bureau and
the board. The board shall provide the employees necessary to
the bureau for enforcement of this part.
(18) To enter into an agreement with the district
attorneys of the counties wherein licensed facilities are
located and the Office of Attorney General for the
reimbursement of actual costs for prosecutions of criminal
violations of this part.
§ 1203. Temporary regulations.
(a) Promulgation.--Notwithstanding any other provision of
law to the contrary and in order to facilitate the prompt
implementation of this part, regulations promulgated by the
board during the two years following the effective date of this
part shall be deemed temporary regulations which shall expire no
later than three years following the effective date of this part
or upon promulgation of regulations as generally provided by
law. The temporary regulations shall not be subject to:
(1) Sections 201 through 205 of the act of July 31, 1968
(P.L.769, No.240), referred to as the Commonwealth Documents
Law.
(2) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
(b) Expiration.--The authority provided to the board to
adopt temporary regulations in subsection (a) shall expire two
years from the effective date of this section. Regulations
adopted after the two-year period shall be promulgated as
provided by law.
§ 1204. Licensed entity application appeals from board.
The Supreme Court of Pennsylvania shall be vested with
exclusive appellate jurisdiction to consider appeals of any
final order, determination or decision of the board involving
the approval, issuance, denial or conditioning of all licensed
entity applications. 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 shall affirm all
final orders, determinations or decisions of the board involving
the approval, issuance, denial or conditioning of all licensed
entity applications 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.
The board's consideration and resolution of all license or
permit applications shall be conducted in accordance with
procedures adopted by order of the board. Notwithstanding the
mandates of 2 Pa.C.S. §§ 504 (relating to hearing and record)
and 505 (relating to evidence and cross-examination), said
procedures adopted by order of the board shall provide parties
before it with a documentary hearing, but the board may, at its
discretion, resolve disputed material facts without conducting
an oral hearing where constitutionally permissible.
§ 1206. Board minutes and records.
(a) Open proceedings and records.--The proceedings of the
board shall be conducted in accordance with the provisions of 65
Pa.C.S. Ch. 7 (relating to open meetings). The board shall be an
agency for purposes of the act of June 21, 1957 (P.L.390,
No.212), referred to as the Right-to-Know Law. Notwithstanding
any provision of law to the contrary, confidential documents
relative to personal background information provided to the
board pursuant to this part and any closed deliberations of the
board, including disciplinary proceedings, shall be confidential
and considered in closed executive session pursuant to
subsection (f).
(b) Record of proceedings.--The board shall cause to be made
and kept a record of all proceedings held at public meetings of
the board. A verbatim transcript of those proceedings shall be
prepared by the board upon the request of any board member or
upon the request of any other person and the payment by that
person of the costs of preparation.
(c) Information delivered to Governor and General
Assembly.--A true copy of the minutes of every meeting of the
board and of any regulations finally adopted by the board may be
forthwith delivered, by and under the certification of the
executive director, to the Governor, the Secretary of the Senate
and the Chief Clerk of the House of Representatives.
(d) Applicant information.--
(1) The board shall keep and maintain a list of all
applicants for licenses and permits under this part together
with a record of all actions taken with respect to the
applicants, which file and record shall be open to public
inspection.
(2) Information under paragraph (1) regarding any
applicant whose license or permit has been denied, revoked or
not renewed shall be removed from such list after seven years
from the date of the action.
(e) Other files and records.--The board shall maintain such
other files and records as it may deem appropriate.
(f) Confidentiality of information.--All information
contained in the application process pursuant to section 1310(a)
(relating to slot machine license application character
requirements) and the report of an applicant's background
investigation furnished to or obtained by the board or the
bureau from any source shall be considered confidential and
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.
(g) Notice.--Notice of the contents of any information,
except to a duly authorized law enforcement agency pursuant to
this section, shall be given to any applicant or licensee in a
manner prescribed by the rules and regulations adopted by the
board.
(h) Information held by department.--Files, records, reports
and other information in the possession of the department
pertaining to licensees shall be made available to the board as
may be necessary to the effective administration of this part.
§ 1207. Regulatory authority of board.
The board shall have the power and its duties shall be to:
(1) Deny, deny the renewal, revoke, condition or suspend
any license or permit provided for in this part if the board
finds in its sole discretion that a licensee or permittee
under this part, or its officers, employees or agents, have
furnished false or misleading information to the board or
failed to comply with the provisions of this part or the
rules and regulations of the board and that it would be in
the public interest to deny, deny the renewal, revoke,
condition or suspend the license or permit.
(2) Restrict access to confidential information in the
possession of the board which has been obtained under this
part and ensure that the confidentiality of information is
maintained and protected. Records shall be retained by the
board for seven years.
(3) Prescribe and require periodic financial reporting
and internal control requirements for all licensed entities.
(4) Require that each licensed entity provide to the
board its audited annual financial statements, with such
additional detail as the board from time to time shall
require, which information shall be submitted not later than
60 days after the end of the licensee's fiscal year.
(5) Prescribe the procedures to be followed by slot
machine licensees for any financial event that occurs in the
operation of slot machines.
(6) Prescribe criteria and conditions for the operation
of slot machine progressive systems.
(7) Enforce prescribed hours for the operation of slot
machines so that slot machine licensees may operate slot
machines on any day during the year in order to meet the
needs of patrons or to meet competition.
(8) Require that each licensed gaming entity prohibit
persons under 21 years of age from operating or using slot
machines.
(9) Establish procedures for the inspection and
certification of compliance of each slot machine and
associated equipment prior to being placed into use by a slot
machine licensee.
(10) Require that no slot machine may be set to pay out
less than the theoretical payout percentage, which shall be
no less than 85%, as specifically approved by the board. The
board shall adopt regulations that define the theoretical
payout percentage of a slot machine game based on the total
value of the jackpots expected to be paid by a play or a slot
machine game divided by the total value of slot machine
wagers expected to be made on that play or slot machine game
during the same portion of the game cycle. In so doing, the
board shall decide whether the calculation shall include the
entire cycle of a slot machine game or any portion thereof.
(11) Require each slot machine license applicant to
provide detailed site plans of its proposed licensed facility
which shall be reviewed and approved by the board for the
purpose of determining the adequacy of the proposed security
and surveillance measures inside and outside the facility.
Applicants will cooperate with the board in making changes to
the plans suggested by the board and will ensure that the
plans as modified and approved are implemented.
(12) Upon request, provide background investigation
reports of applicants for licenses and permits for use at
racetracks to the State Horse Racing Commission and the State
Harness Racing Commission.
(13) Require slot machine licensees to provide onsite
facilities for use by the board and other appropriate persons
for the purpose of carrying out their respective
responsibilities under this part.
(14) Consult with members of the Pennsylvania State
Police, the Office of Attorney General, the department and
such other persons it deems necessary for advice regarding
the various aspects of the powers and duties imposed on it
under this part and its jurisdiction over the authorization
and operation of slot machines and licensed facilities.
(15) Enter into contracts with any person for the
purposes of carrying out the powers and duties of the board
under this part.
(16) Require each slot machine licensee to sell
Pennsylvania State Lottery tickets at its licensed facility
at a location as near as practicable to the pay windows.
(17) Permit, in its discretion and upon application, the
use of a temporary facility within which slot machines may be
available for play or operation at a licensed gaming
facility, for a period not to exceed 24 months, provided
that, upon good cause shown, the board may extend permission
to operate a temporary facility for an additional 12-month
period.
§ 1208. Collection of fees and fines.
The board has the following powers and duties:
(1) To levy and collect fees from the various
applicants, licensees and permittees to fund the operations
of the board. The fees shall be deposited into the State
Gaming Fund as established in section 1403 (relating to
establishment of State Gaming Fund and net slot machine
revenue distribution). In addition to the fees set forth in
sections 1209 (relating to slot machine license fee) and 1305
(relating to Category 3 slot machine license), the board
shall assess and collect fees as follows:
(i) Supplier licensees shall pay a fee of $25,000
upon the issuance of a license and $10,000 for the annual
renewal of a supplier license.
(ii) Manufacturer licensees shall pay a fee of
$50,000 upon the issuance of a license and $25,000 for
the annual renewal of a manufacturer license.
(iii) Each application for a slot machine license,
supplier license or manufacturer license must be
accompanied by a nonrefundable fee set by the board for
the cost of each individual requiring a background
investigation. The reasonable and necessary costs and
expenses incurred in any background investigation or
other investigation or proceeding concerning any
applicant, licensee or permittee shall be reimbursed to
the board by those persons.
(2) To provide for the assessment and collection of
fines and penalties for violations of this part. All fines
and penalties shall be credited for deposit to the General
Fund. Two years following enactment of this part, the board
shall have the authority to increase each year any fee,
charge, cost or administrative penalty, but not any criminal
fine or penalty, provided in this part by an amount not to
exceed an annual cost-of-living adjustment calculated by
applying the percentage change in the Consumer Price Index
for All Urban Consumers (CPI-U) for the Pennsylvania, New
Jersey, Delaware and Maryland area for the most recent 12-
month period for which figures have been officially reported
by the United States Department of Labor, Bureau of Labor
Statistics, immediately prior to the date the adjustment is
due to take effect.
§ 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 in the amount of $50,000,000 for each
category of slot machine license.
(b) Term.--A slot machine license, after payment of the fee,
shall be in effect unless suspended, revoked or not renewed by
the board upon good cause consistent with the license
requirements as provided for in this part. Slot machine
licensees shall be required to update the information in their
initial applications annually, and the license of a licensee in
good standing shall be updated and renewed annually. As to the
renewal of a license, no additional license fee pursuant to
subsection (a) shall be required.
(c) Credit against tax for slot machine licensees.--If the
rate of the tax imposed by section 1403 (relating to
establishment of State Gaming Fund and net slot machine revenue
distribution) is increased at any time during the term of ten
years following the initial issuance of the slot machine
license, the slot machine licensee shall be entitled to a credit
against subsequent payment of the tax equal to the difference
between the tax calculated at the rate when the license was
issued and the tax calculated at the increased rate. This credit
shall be applied on a dollar-for-dollar basis as and when the
tax is payable as set forth in section 1403 but shall not extend
beyond the ten-year period following the initial issuance of the
license. The aggregate amount of all credits provided shall not
exceed the amount of the licensing fee paid by the licensee. The
department shall enter into a contract with each slot machine
licensee explicitly setting forth the terms and conditions of
this credit and which also specifically incorporates the
requirements of subsection (f).
(d) Deposit of license fee.--The total amount of all license
fees imposed and collected by the board under this section shall
be deposited in the State Gaming Fund.
(e) Change of ownership or control of a license.--In the
event that the ownership or control of a slot machine licensee
or its affiliate, intermediary, subsidiary or holding company is
changed as described in section 1328 (relating to change in
ownership or control of slot machine licensee), the new owner
shall be entitled to the full remaining amount of the credit set
forth in subsection (c) or the return of the license fee in
accordance with subsection (f) as if the new owner or
controlling interest was the original licensee.
(f) Return of slot machine license fee.--
(1) The entire one-time slot machine license fee of
$50,000,000 for each Category 1 and Category 2 slot machine
license shall be returned to each licensee in the event
section 1201 (relating to Pennsylvania Gaming Control Board
established), 1202 (relating to general and specific powers)
or 1307 (relating to number of slot machine licenses) is
amended or otherwise altered by an act of the General
Assembly within five years following the initial issuance of
any slot machine licenses pursuant to section 1301 (relating
to authorized slot machine licenses) to change:
(i) the composition of the board;
(ii) the number or voting powers of members of the
board;
(iii) the manner in which members are nominated or
appointed to the board;
(iv) the length of term for which each member
serves;
(v) the general jurisdiction of the board in a
manner that impairs or otherwise reduces the board's
licensing authority; or
(vi) section 1307 to increase the statutory maximum
number of permissible licensed facilities.
(2) In the event that this part is amended or otherwise
altered by an act of the General Assembly as described
pursuant to paragraph (1):
(i) In the sixth year following the initial issuance
of any slot machine licenses pursuant to section 1301, a
Category 1 and 2 slot machine licensee shall be entitled
to a partial return of the one-time slot machine license
fee in the amount of $41,666,667.
(ii) In the seventh year, the licensee shall be
entitled to a partial return of the one-time slot machine
license fee in the amount of $33,333,334.
(iii) In the eighth year, the licensee shall be
entitled to a partial return of the one-time slot machine
license fee in the amount of $25,000,000.
(iv) In the ninth year, the licensee shall be
entitled to a partial return of the one-time slot machine
license fee in the amount of $16,666,668.
(v) In the tenth year, the licensee shall be
entitled to a partial return of the one-time machine
license fee in the amount of $8,333,334.
In the event that the action described in paragraph (1) occurs
after the expiration of ten years, the licensee shall not be
entitled to a return of any portion of the one-time slot machine
license fee. Notwithstanding the foregoing, no slot machine
licensee shall be entitled to the return of any portion of the
fee as a result of any act of the General Assembly insofar as it
implements a recommendation made by the board pursuant to a
qualified majority vote. In the event a full or partial return
of the slot machine license fee imposed pursuant to subsection
(a) becomes due pursuant to this subsection, the amount to be
returned to any slot machine licensee shall be reduced on a
dollar-for-dollar basis by the total accumulated tax credits
granted to such licensee pursuant to subsection (c). In no event
shall the total amount of the slot machine license fee returned,
combined with the total tax credits granted, exceed the amounts
set forth in this subsection for any licensee. The total or
partial return of the slot machine license fee shall extinguish
a licensee's right to claim any further tax credits pursuant to
subsection (c).
§ 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), all slot machine licensees shall be
permitted to operate up to 3,000 slot machines at any one
licensed facility and shall be required to operate and make
available to play a minimum of 1,500 machines at any one
licensed facility within one year of the issuance by the board
of a slot machine license unless otherwise extended by the
board, upon application and for good cause shown, for an
additional period not to exceed 24 months.
(b) Additional slot machines.--Except as provided for
Category 3 slot machine licensees under section 1305, six months
following the date of commencement of slot machine operations,
the board may permit a slot machine licensee to install and
operate up to 2,000 additional slot machines at its licensed
facility, beyond those machines authorized under subsection (a),
upon application by the slot machine licensee. The board, in
considering such an application, shall take into account the
appropriateness of the physical space where the additional slot
machines will be located and the convenience of the public
attending the facility. The board may also take into account the
potential benefit to economic development, employment and
tourism, enhanced revenues to the Commonwealth and other
economic indicators it deems applicable in making its decision.
§ 1211. Reports of board.
(a) Report of board.--Eighteen months after the effective
date of this part and every year on that date thereafter, the
board shall issue a report to the Governor and each member of
the General Assembly on the general operation of the board and
each slot machine licensee's performance, including, but not
limited to, number and win per slot machine at licensed
facilities during the previous year, all taxes, fees, fines and
other revenues collected and, where appropriate, disbursed, the
costs of operation of the board, all hearings conducted and the
results of the hearings and other information that the board
deems necessary and appropriate.
(b) Report of the Legislative Budget and Finance
Committee.--No later than March 15 of the year following the
effective date of this part and each March 15 thereafter, the
Legislative Budget and Finance Committee shall issue a report to
the General Assembly analyzing the impact, if any, of this part
on the State Lottery.
(c) Interception of gaming winnings.--The board shall
conduct a study to determine the feasibility of implementing
methods for the interception of the gaming winnings of
individuals who are delinquent support obligors or tax
delinquent. The study shall be completed by December 31, 2006,
and shall contain recommendations which the board determines
appropriate.
§ 1212. Diversity goals of board.
(a) Intent.--It is the intent and goal of the General
Assembly that the board promote and ensure diversity in all
aspects of the gaming activities authorized under this part. The
board shall work to enhance the representation of diverse groups
in the ownership, participation and operation of licensed
entities and licensed facilities in this Commonwealth and
through the ownership, participation and operation of business
enterprises associated with or utilized by licensed entities and
licensed facilities and through the provision of goods and
services utilized by slot machine licensees under this part.
(b) Investigations.--The board is authorized to investigate
and conduct an annual study to ascertain whether effective and
meaningful action has been taken or will be taken to enhance the
representation of diverse groups in the ownership, participation
and operation of licensed facilities in this Commonwealth,
through the ownership and operation of business enterprises
associated with or utilized by slot machine licensees, through
the provision of goods and services utilized by slot machine
licensees and through employment opportunities.
(c) Completion of investigation.--The first study shall be
completed six months following the effective date of this part,
if practically possible, and annually thereafter and shall
contain recommendations which the board determines appropriate.
§ 1213. License or permit prohibition.
No applicant for a license or permit under this part,
including directors, owners and key employees, that has been
convicted in any jurisdiction of a felony or gambling offense
within the past 15 years shall be issued a license or permit
under this part or be found qualified to serve in a position as
a director, owner or key employee of or associated with any
licensee or permittee.
CHAPTER 13
LICENSEES
Sec.
1301. Authorized slot machine licenses.
1302. Category 1 slot machine license.
1303. Additional Category 1 slot machine license requirements.
1304. Category 2 slot machine license.
1305. Category 3 slot machine license.
1306. Order of initial license issuance.
1307. Number of slot machine licenses.
1308. Applications for license or permit.
1309. Slot machine license application.
1310. Slot machine license application character requirements.
1311. Slot machine license application business entity
requirements.
1312. Divestiture of disqualifying applicant.
1313. Slot machine license application financial fitness
requirements.
1314. Alternative Category 1 licensing standards.
1315. Conditional Category 1 licenses.
1316. Bond for issuance of slot machine license.
1317. Supplier and manufacturer licenses application.
1318. Occupation permit application.
1319. Alternative manufacturer licensing standards.
1320. Slot machine testing and certification standards.
1321. Additional licenses and permits and approval of
agreements.
1322. Slot machine accounting controls and audits.
1323. Central control computer system.
1324. Protocol information.
1325. License or permit issuance.
1326. License renewals.
1327. Nontransferability of licenses.
1328. Change in ownership or control of slot machine licensee.
1329. Nonportability of slot machine license.
1330. Multiple slot machine license prohibition.
1331. Duty of licensees, key employees and gaming employees.
§ 1301. Authorized slot machine licenses.
There shall be three distinct classifications of slot machine
licenses, designated by category, each permitting a licensed
racing entity or person to apply for a qualifying license
category and, upon issuance by the board in its discretion, to
place and operate slot machines at a licensed facility. Except
for conditional Category 1 license applications pursuant to
section 1315 (relating to conditional Category 1 licenses), it
is mandatory that the board shall consider, approve, condition
or deny the approval of all initial applications for each and
every category of slot machine licenses collectively and
together, in a comprehensive Statewide manner, within 12 months
following the time set by the board at which all applications
are to be filed and deemed complete by the board. The board
shall approve, condition or deny the issuance of a slot machine
license of any category within the time period provided for
herein. Following approval of an application for a slot machine
license, the applicant shall provide formal notification to the
board as soon as:
(1) it fulfills all required conditions for issuance of
the license; and
(2) the board's decision approving the application is a
final, binding, nonappealable determination which is not
subject to a pending legal challenge.
Upon receipt of such formal notification and upon conducting any
necessary verification, the board shall issue a slot machine
license to the applicant.
§ 1302. Category 1 slot machine license.
(a) Eligibility.--A person may be eligible to apply for a
Category 1 license to place and operate slot machines at a
licensed racetrack facility if the person:
(1) has been issued a license from either the State
Horse Racing Commission or the State Harness Racing
Commission to conduct thoroughbred or harness race meetings
respectively with pari-mutuel wagering and has conducted live
horse races for not less than two years immediately preceding
the effective date of this part;
(2) has been approved or issued a license from either
the State Horse Racing Commission or the State Harness Racing
Commission to conduct thoroughbred or harness race meetings
respectively with pari-mutuel wagering within 18 months
immediately preceding the effective date of this part and
will successfully conduct live racing pursuant to the
requirements of section 1303 (relating to additional Category
1 slot machine license requirements);
(3) has been approved by the State Harness Racing
Commission, after the effective date of this part, to conduct
harness race meetings with pari-mutuel wagering and will
conduct live racing pursuant to the requirements of section
1303; or
(4) is a successor in interest to persons eligible under
paragraph (1), (2) or (3) who comply with the requirements of
section 1328 (relating to change in ownership or control of
slot machine licensee) or is a successor in interest to
persons otherwise eligible under paragraph (1), (2) or (3)
but precluded from eligibility under the provisions of
section 1330.
Nothing in this part shall be construed to permit the approval
or issuance of more than one slot machine license at a licensed
racetrack facility.
(b) Location.--A Category 1 license may only be issued to an
eligible person authorizing slot machine operations at the
particular licensed racetrack facility identified in the
application. No Category 1 licensed facility shall be located
within 20 linear miles of another Category 1 licensed facility.
§ 1303. Additional Category 1 slot machine license
requirements.
(a) Eligibility.--In addition to the criteria prescribed in
section 1302 (relating to Category 1 slot machine license) an
applicant for a Category 1 slot machine license shall be
eligible for a license to place and operate slot machines at a
licensed facility only if the applicant meets one of the
following criteria:
(1) the licensed racing entity or its predecessor owner
of the licensed racetrack has conducted live horse races for
not less than two years immediately preceding the effective
date of this part; or
(2) the licensed racing entity has not previously
conducted live racing at a racetrack but will conduct live
racing for a minimum of 150 days to begin in the year which
begins two years following the issuance of its slot machine
license for the racetrack unless the appropriate commission
determines, upon application, that it is not practically
feasible for the licensed racing entity to conduct live
racing for a minimum of 150 days due to projected or actual
weather conditions. Failure to meet the required minimum
number of days will result in immediate suspension of the
slot machine license.
(b) Required racing days.--Except as provided in subsection
(a)(2), a Category 1 slot machine licensee must conduct live
racing at the racetrack for at least 100 days per calendar year
for each license held by the licensed racing entity pursuant to
the Race Horse Industry Reform Act, and the aggregate number of
live racing days at the racetrack where the Category 1 slot
machine licensee conducts live racing shall not be less than 95%
of the total number of horse or harness racing days that were
scheduled in 1986 at that racetrack. If a racing day is canceled
for reasons beyond the control of the licensed racing entity,
the appropriate commission shall grant the licensee the right to
conduct that racing day in the same or next ensuing calendar
year. The purse for that racing day shall not be used for the
purse of other scheduled racing days of that calendar year and
must be used for the purse of such rescheduled day.
(c) Limitations.--The issuance of a Category 1 slot machine
license shall entitle the licensee to operate slot machines only
within the grounds of a licensed racetrack.
(d) Authorization.--Authorization for a Category 1 slot
machine licensee to continue the operation of slot machines
shall be limited to those licensees that:
(1) Have a written live racing agreement with a
horsemen's organization representing a majority of owners and
trainers at the racetrack where the licensed racing entity
conducts live racing.
(2) Have 95% of the total number of horse or harness
racing days that were scheduled in 1986 by it or its
predecessor at the racetrack where the Category 1 slot
machine licensee conducts live racing, and the aggregate
number of live racing days at the racetrack where the
Category 1 slot machine licensee conducts live racing shall
not be less than 95% of the total number of horse or harness
racing days that were scheduled in 1986 at that racetrack. A
new licensee which opens a new racetrack and which will
successfully conduct live racing for a minimum of 150 days to
begin no later than in the year which begins two years
following the issuance of its slot machine license for the
racetrack, unless the appropriate commission determines upon
application that it is not practically feasible for the
licensed racing entity to conduct live racing for a minimum
of 150 days due to projected or actual weather conditions,
shall be allowed to operate slot machines, from the date its
slot machine license is issued and intrastate and interstate
simulcast in accordance with the Race Horse Industry Reform
Act, from the first day of the calendar year in which it
conducts live racing days.
(3) Unless the horsemen's organization representing a
majority of the owners and trainers consents to a lower
number of required racing days at the racetrack, subject to
actions or activities beyond the control of the licensee,
conduct not fewer than eight live races per race date during
each meet at the racetrack where the licensed racing entity
conducts live racing, except for thoroughbred tracks on the
day designated as a Breeder's Cup event day when the licensed
racing entity shall hold a minimum of five live races. The
Category 1 slot machine licensee shall not waive or modify
the provisions pertaining to the required number of racing
days under paragraph (2) and races per day scheduled in this
paragraph without the consent of the horsemen's organization
representing a majority of owners and trainers at the
racetrack.
(4) Notwithstanding the provisions of paragraph (1), in
the event that a written live racing agreement has not been
entered into, permission for any licensee to operate slot
machines at racetracks shall be granted provided that the
Category 1 slot machine licensee has continued to conduct
live racing in accordance with paragraphs (2) and (3) and
keeps its racetrack open to the general population of owners,
trainers and horses stabled there for training and stabling
on a regular basis, when it is normally open for live racing
and during such periods, and continues to comply with all
provisions of the most recently expired live racing
agreement, including recognition of the then existing
horsemen's organization at each such racetrack as the sole
representative of the horsemen at that time, and pays purses
as defined in the most recently expired live racing agreement
plus the applicable purse revenue distributed to licensed
racing entities from the operation of slot machines under
this part. Nothing in this part shall exempt an existing or
future licensed racetrack from the requirements of the Race
Horse Industry Reform Act requiring a licensed corporation to
have a written and unexpired live racing agreement with the
horsemen's organization representing a majority of owners and
trainers at the racetrack where the licensed corporation
conducts or will conduct live racing dates in order to
continue or commence any form of simulcasting.
(5) Notwithstanding any other provision of the law to
the contrary, account wagers authorized pursuant to section
218(b) of the Race Horse Industry Reform Act shall only be
accepted by a licensed corporation in accordance with the
provisions of the Race Horse Industry Reform Act, and no
entity that is not a licensed corporation under that act
shall accept an account wager from any person within this
Commonwealth.
§ 1304. Category 2 slot machine license.
(a) Eligibility.--A person may be eligible to apply for a
Category 2 license if the applicant, its affiliate,
intermediary, subsidiary or holding company is not otherwise
eligible to apply for a Category 1 license and the person is
seeking to locate a licensed facility in a city of the first
class, a city of the second class or a revenue- or tourism-
enhanced location. It shall not be a condition of eligibility to
apply for a Category 2 license to obtain a license from either
the State Horse Racing Commission or the State Harness Racing
Commission to conduct thoroughbred or harness race meetings
respectively with pari-mutuel wagering.
(b) Location.--Two Category 2 licensed facilities and no
more shall be located by the board within a city of the first
class, and one Category 2 licensed facility and no more shall be
located by the board within a city of the second class. No
Category 2 licensed facility located by the board within a city
of the first class shall be within ten linear miles of a
Category 1 licensed facility regardless of the municipality
where the Category 1 licensed facility is located. Except for
any Category 2 licensed facility located by the board within a
city of the first class or a city of the second class, no
Category 2 licensed facility shall be located within 30 linear
miles of any Category 1 licensed facility that has conducted
over 200 racing days per year for the two calendar years
immediately preceding the effective date of this part and not
within 20 linear miles of any other Category 1 licensed
facility. Except for any Category 2 licensed facility located by
the board within a city of the first class, no Category 2
licensed facility shall be located within 20 linear miles of
another Category 2 licensed facility.
§ 1305. Category 3 slot machine license.
(a) Eligibility.--A person may be eligible to apply for a
Category 3 license if the applicant, its affiliate,
intermediary, subsidiary or holding company has not applied for
or been approved or issued a Category 1 or 2 license and the
person is seeking to locate a Category 3 licensed facility in a
well-established resort hotel having no fewer than 275 guest
rooms under common ownership and having substantial year-round
recreational guest amenities. The applicant for a Category 3
license shall be the owner or be a wholly owned subsidiary of
the owner of the established resort hotel. A Category 3 license
may only be granted upon the express condition that an
individual may not enter a gaming area of the licensee if the
individual is not a registered overnight guest of the
established resort hotel or if the individual is not a patron of
one or more of the amenities provided by the established resort
hotel.
(b) Location.--No Category 3 license shall be located by the
board within 15 linear miles of another licensed facility.
(c) Number of slot machines.--Notwithstanding the number of
permissible slot machines as set forth in section 1210 (relating
to number of slot machines), a Category 3 license granted under
the provisions of this section shall entitle the licensed entity
to operate no more than 500 slot machines at the licensed
facility.
(d) Category 3 license fee.--Notwithstanding the one-time
slot machine license fee as set forth in section 1209 (relating
to slot machine license fee), the board shall impose a one-time
Category 3 license fee to be paid by each successful applicant
in an amount of $5,000,000. The provisions of section 1209
relating to term, credit against tax for slot machine licensees,
deposit of license fee and change of ownership or control of a
license shall be applicable to a Category 3 license fee.
(e) Definitions.--For the purpose of subsection (a), the
following words and phrases shall have the meaning given to them
in this subsection:
"Amenities." Any ancillary activities, services or
facilities in which a registered guest or the transient public,
in return for non-de minimis consideration as defined by board
regulation, may participate at a resort hotel, including, but
not limited to, sports and recreational activities and
facilities such as a golf course or golf driving range, tennis
courts or swimming pool; health spa; convention, meeting and
banquet facilities; entertainment facilities; and restaurant
facilities.
"Patron of the amenities." Any individual who is a
registered attendee of a convention, meeting or banquet event or
a participant in a sport or recreational event or any other
social, cultural or business event held at a resort hotel or who
participates in one or more of the amenities provided to
registered guests of the resort hotel.
§ 1306. Order of initial license issuance.
In order to facilitate the timely and orderly deployment of
licensed gaming operations in this Commonwealth, the board shall
adopt a schedule by which applicants for slot machine,
manufacturer and supplier licenses shall be filed, considered
and resolved in accordance with the provisions of this part. In
so doing, the board shall consider, approve, condition or deny
the approval of all filed applications for manufacturer and
supplier licenses as soon as administratively possible and at
least three months prior to the board's approval, conditioning
or denial of the approval of any Category 1 license application
pursuant to section 1315 (relating to conditional Category 1
licenses) or any other category of slot machine license pursuant
to section 1301 (relating to authorized slot machine licenses).
The board shall ensure that an adequate number of suppliers have
been licensed pursuant to section 1301 to meet market demand.
§ 1307. Number of slot machine licenses.
The board may license no more than seven Category 1 licensed
facilities and no more than five Category 2 licensed facilities,
as it may deem appropriate, as long as two, and not more,
Category 2 licenses are located by the board within the city of
the first class and that one, and not more, Category 2 licensed
facility is located by the board within the city of the second
class. The board may at its discretion increase the total number
of Category 2 licensed facilities permitted to be licensed by
the board by an amount not to exceed the total number of
Category 1 licenses not applied for within five years following
the effective date of this part. Except as permitted by section
1328 (relating to change in ownership or control of slot machine
licensee), any Category 1 license may be reissued by the board
at its discretion as a Category 2 license if an application for
issuance of such license has not been made to the board. The
board may license no more than two Category 3 licensed
facilities.
§ 1308. Applications for license or permit.
(a) Applications.--An application for a license or permit to
be issued by the board shall be submitted on a form and in a
manner as shall be required by the board. In reviewing
applications, the board shall confirm that all the applicable
license or permit fees have been paid in accordance with this
part.
(b) Completeness of applications.--The board shall not
consider an incomplete application and shall notify the
applicant in writing if an application is incomplete. An
application shall be considered incomplete if it does not
include all applicable fees and all information and accompanying
documentation required by the board, including, but not limited
to, a current tax lien certificate issued by the department at
the time of filing the application. Any unpaid taxes identified
on the tax lien certificate shall be paid before the application
is considered complete. A notification of incompleteness shall
state the deficiencies in the application that must be corrected
prior to consideration of the merits of the application.
(c) Adverse litigation.--Notwithstanding any law to the
contrary, the board and the commissions shall not consider any
application for a license if the applicant or any person
affiliated with or directly related to the applicant is a party
in any ongoing civil proceeding in which the party is seeking to
overturn or otherwise challenge a decision or order of the board
or commissions pertaining to the approval, denial or
conditioning of a license to conduct thoroughbred or harness
horse race meetings respectively with pari-mutuel wagering or to
operate slot machines. This subsection shall not be interpreted
to affect the rights of applicants to seek judicial enforcement
of mandatory obligations of the board as may be required by this
part.
§ 1309. Slot machine license application.
(a) General requirements.--In addition to any other
information required under this part or as may be required by
the board, the application for any category of slot machine
license shall include at a minimum:
(1) The name, address, photograph and handwriting
exemplar of the applicant and of all directors and owners and
key employees and their positions within the corporation or
organization, as well as any additional financial information
required by the board.
(2) The proposed location of the slot machine areas, if
known.
(3) The number of slot machines requested.
(4) A current tax lien certificate issued by the
department.
(5) In those instances where additional slot machines
are being requested, the justification and explanation for
the number and proposed location of the slot machine areas
within the confines of the licensed facility.
(6) The current status of the horse or harness racing
license issued pursuant to the Race Horse Industry Reform
Act, if any.
(7) The details of any gaming, slot machine or casino
license applied for, granted to or denied to the applicant by
other jurisdictions where such form of gaming is legal, and
the consent for the board to acquire copies of applications
submitted or licenses issued in connection therewith.
(8) The details of any loans obtained from a financial
institution or not obtained from a financial institution.
(9) The consent to conduct a background investigation by
the board, the scope of which shall be determined by the
board in its discretion consistent with the provisions of
this part, and a release signed by all persons subject to the
investigation of all information required to complete the
investigation.
(10) Any other information determined to be appropriate
by the board.
(b) Refusal to cooperate.--Any refusal to provide the
information required under this section or to consent to a
background investigation shall result in the immediate denial of
a license or permit.
§ 1310. Slot machine license application character
requirements.
(a) Application.--Every application for a slot machine
license shall include such information, documentation and
assurances as may be required to establish by clear and
convincing evidence the applicant's good character, honesty and
integrity. Information shall include, without limitation,
information pertaining to family, habits, character, reputation,
criminal history background, business activities, financial
affairs and business, professional and personal associates,
covering at least the ten-year period immediately preceding the
filing date of the application.
(b) Civil judgments and law enforcement agency
information.--Each applicant shall notify the board of any civil
judgments obtained against the applicant pertaining to antitrust
or security regulation laws of the Federal Government, this
Commonwealth or any other state, jurisdiction, province or
country. In addition, each applicant shall produce a letter of
reference from law enforcement agencies having jurisdiction in
the applicant's place of residence and principal place of
business, which letter of reference shall indicate that the law
enforcement agencies do not have any pertinent information
concerning the applicant or, if the law enforcement agency does
Act text part 2
have information pertaining to the applicant, shall specify the
nature and content of that information. If no letters are
received within 30 days of the request, the applicant may submit
a statement under oath which is subject to the penalty for false
swearing under 18 Pa.C.S. § 4903 (relating to false swearing)
that the applicant is or was during the period the activities
were conducted in good standing with the gaming or casino
enforcement or control agency.
(c) Gaming or casino enforcement agency information.--If the
applicant has held a gaming license in a jurisdiction where
gaming activities are permitted, the applicant shall produce a
letter of reference from the gaming or casino enforcement or
control agency which shall specify the experiences of that
agency with the applicant, the applicant's associates and the
applicant's gaming operation. If no letters are received within
30 days of the request, the applicant may submit a statement
under oath which is subject to the penalty for false swearing
under 18 Pa.C.S. § 4903 that the applicant is or was during the
period the activities were conducted in good standing with the
gaming or casino enforcement or control agency.
§ 1311. Slot machine license application business entity
requirements.
(a) Key employee requirement qualification.--No corporation
or any other legal business entity shall be eligible to hold a
slot machine license unless the following would individually be
qualified for licensure as a key employee: each officer; each
director; each person who directly or indirectly holds any
beneficial interest or ownership of the securities in the
entity; each person who in the opinion of the board has the
ability to control the entity, has a controlling interest or
elects a majority of the board of directors of that corporation
or business entity, other than a banking or other licensed
lending institution which makes a loan or holds a mortgage or
other lien acquired in the ordinary course of business; each key
employee; each lender, other than a banking or other licensed
lending institution which makes a loan or holds a mortgage or
other lien acquired in the ordinary course of business; each
underwriter; each agent; each employee of the corporation or
entity and each other person whom the board may consider
appropriate for approval or qualification. The board may waive
compliance with the provisions of this subsection on the part of
a publicly traded corporation as to a person directly or
indirectly holding ownership of securities of such corporation
where the board is satisfied that the security holder is not
significantly involved in the activities of the corporation and
does not have the ability to control the corporation or elect
one or more directors thereof.
(b) Slot machine license qualification requirement.--No
corporation or any other legal business entity or other form of
business organization which is a subsidiary shall be eligible to
receive or hold a slot machine license unless each holding and
intermediary company with respect thereto:
(1) if it is a corporation or other legal business
entity, shall comply with the provisions of subsection (a) as
if said holding or intermediary company were itself applying
for a slot machine license. The board may waive compliance
with the provisions of subsection (a) on the part of a
publicly traded corporation which is a holding company as to
any officer, director, lender, underwriter, agent or employee
thereof, or person directly or indirectly holding a
beneficial interest or ownership of the securities of such
corporation, where the board is satisfied that such officer,
director, lender, underwriter, agent or employee is not
significantly involved in the activities of the corporate
licensee and in the case of the security holder does not have
the ability to control or possess a controlling interest in
the holding company or elect one or more directors thereof;
or
(2) if it is not a corporation, shall comply with the
provisions of subsection (c) as if said company were itself
applying for a slot machine license. The board may waive
compliance with the provisions of subsection (c) on the part
of a noncorporate business organization which is a holding
company as to any person who directly or indirectly holds any
beneficial interest or ownership in such company when the
board is satisfied that such person does not have the ability
to control the company.
(c) Noncorporate applicant requirement.--Any noncorporate
applicant for a slot machine license shall provide the
information required in this section in such form as may be
required by the board. No such applicant shall be eligible to
hold a slot machine license unless each person who directly or
indirectly holds any beneficial interest or ownership in the
applicant, or has the ability to control the applicant or whom
the board may consider appropriate for approval or
qualification, would individually be qualified for approval as a
key employee pursuant to the provisions of this part.
§ 1312. Divestiture of disqualifying applicant.
In the event that any slot machine license application is not
approved by the board based on a finding that an individual who
is a principal or has an interest in the person applying for the
license does not meet the character requirements of section 1310
(relating to slot machine license application character
requirements) or any of the eligibility requirements under this
part, or a person who purchases a controlling interest in a
licensed gaming entity in violation of section 1328 (relating to
change in ownership or control of slot machine licensee), the
board may afford the individual the opportunity to completely
divest his interest in the person, its affiliate, intermediary,
subsidiary or holding company seeking the license and, after
such divestiture, reconsider the person's or applicant's
suitability for licensure in an expedited proceeding and may,
after such proceeding, issue the person or applicant a slot
machine license. The board shall approve the terms and
conditions of any divestiture under this section. Under no
circumstances shall any divestiture be approved by the board if
the compensation for the divested interest exceeds the cost of
the interest.
§ 1313. Slot machine license application financial fitness
requirements.
(a) Applicant financial information.--The board shall
require each applicant for a slot machine license to produce the
information, documentation and assurances concerning financial
background and resources as the board deems necessary to
establish by clear and convincing evidence the financial
stability, integrity and responsibility of the applicant, its
affiliate, intermediary, subsidiary or holding company,
including, but not limited to, bank references, business and
personal income and disbursement schedules, tax returns and
other reports filed with governmental agencies, and business and
personal accounting and check records and ledgers. In addition,
each applicant shall in writing authorize the examination of all
bank accounts and records as may be deemed necessary by the
board.
(b) Financial backer information.--The board shall require
each applicant for a slot machine license to produce the
information, documentation and assurances as may be necessary to
establish by clear and convincing evidence the integrity of all
financial backers, investors, mortgagees, bondholders and
holders of indentures, notes or other evidences of indebtedness,
either in effect or proposed. Any such banking or lending
institution and institutional investors may be waived from the
qualification requirements. A banking or lending institution or
institutional investor shall, however, produce for the board
upon request any document or information which bears any
relation to the proposal submitted by the applicant or
applicants. The integrity of the financial sources shall be
judged upon the same standards as the applicant. Any such person
or entity shall produce for the board upon request any document
or information which bears any relation to the application. In
addition, the applicant shall produce whatever information,
documentation or assurances the board requires to establish by
clear and convincing evidence the adequacy of financial
resources.
(c) Applicant's ability to pay license fee.--The board shall
require each applicant for a Category 1 or 2 slot machine
license at the time of application to post a letter of credit or
bond in the amount of $50,000,000 to demonstrate the financial
ability to pay the slot machine license fee as required in
section 1209 (relating to slot machine license fee) if issued a
slot machine license by the board. Each applicant for a Category
3 slot machine license at the time of application shall be
required to post a letter of credit or bond in the amount of
$5,000,000 to demonstrate the financial ability to pay the
Category 3 slot machine license fee as required in section 1305
(relating to Category 3 slot machine license) if issued a slot
machine license by the board.
(d) Applicant's business experience.--The board shall
require each applicant for a slot machine license to produce the
information, documentation and assurances as the board may
require to establish by clear and convincing evidence that the
applicant has sufficient business ability and experience to
create and maintain a successful, efficient operation.
Applicants shall produce the names of all proposed key employees
and a description of their respective or proposed
responsibilities as they become known.
(e) Applicant's operational viability.--In assessing the
financial viability of the proposed licensed facility, the board
shall make a finding, after review of the application, that the
applicant is likely to maintain a financially successful, viable
and efficient business operation and will likely be able to
maintain steady level and growth of revenue to the Commonwealth
pursuant to section 1403 (relating to establishment of State
Gaming Fund and net slot machine revenue distribution).
Notwithstanding any provision of this part to the contrary, an
applicant that includes a commitment or promise to pay a slot
machine license fee in excess of the amount provided in section
1209 or a distribution of terminal revenue in excess of the
amounts provided in sections 1403, 1405 (relating to
Pennsylvania Race Horse Development Fund) and 1407 (relating to
Pennsylvania Gaming Economic Development Tourism Fund) shall not
be deemed a financially successful, viable or efficient business
operation and shall not be approved for a slot machine license.
(f) Additional information.--In addition to other
information required by this part, a person applying for a slot
machine license shall provide the following information:
(1) The organization, financial structure and nature of
all businesses operated by the person, including any
affiliate, intermediary, subsidiary or holding companies, the
names and personal employment and criminal histories of all
officers, directors and key employees of the corporation; the
names of all holding, intermediary, affiliate and subsidiary
companies of the corporation; and the organization, financial
structure and nature of all businesses operated by such
holding, intermediary and subsidiary companies as the board
may require, including names and personal employment and
criminal histories of such officers, directors and principal
employees of such corporations and companies as the board may
require.
(2) The extent of securities held in the corporation by
all officers, directors and underwriters and their
remuneration in the form of salary, wages, fees or otherwise.
(3) Copies of all management and service contracts.
§ 1314. Alternative Category 1 licensing standards.
(a) Determination.--The board may determine whether the
licensing standards of another jurisdiction within the United
States or Canada in which an applicant, its affiliate,
intermediary, subsidiary or holding company for a Category 1
slot machine license is similarly licensed are comprehensive and
thorough and provide similar adequate safeguards as those
required by this part. If the board makes that determination, it
may issue a slot machine license to an applicant who holds a
slot machine license in such other jurisdiction after conducting
an evaluation of the information relating to the applicant from
such other jurisdictions, as updated by the board, and
evaluating other information related to the applicant received
from that jurisdiction and other jurisdictions where the
applicant may be licensed, the board may incorporate such
information in whole or in part into its evaluation of the
applicant.
(b) Abbreviated process.--In the event an applicant for a
slot machine license is licensed in another jurisdiction, the
board may determine to use an alternate process requiring only
that information determined by the board to be necessary to
consider the issuance of a license, including financial
viability of the licensee, to such an applicant. Nothing in this
section shall be construed to waive any fees associated with
obtaining a license through the normal application process.
§ 1315. Conditional Category 1 licenses.
(a) Issuance.--Notwithstanding any provisions of this part
to the contrary, upon a finding that it is in the public
interest, the board may issue a conditional slot machine license
to a person who qualifies as a Category 1 license applicant upon
payment of the fee pursuant to section 1209 (relating to slot
machine license fee). This license may be issued after the
completion of a background investigation of the applicant and
each key employee and prior to full compliance by the applicant
with section 1325 (relating to license or permit issuance).
(b) Suitability; financial capability.--An applicant shall
provide the board with satisfactory evidence of suitability and
financial capability of the applicant to be a slot machine
licensee prior to the board granting the conditional license.
(c) Complete application.--No later than upon issuance of a
conditional license, the applicant shall submit a complete
application for a Category 1 license pursuant to section 1302
(relating to Category 1 slot machine license) as set forth by
this part.
(d) Expiration.--If the holder of a conditional license does
not receive board approval for the issuance of a Category 1 slot
machine license under the standards set forth in this part
within 18 months from the time set by the board pursuant to
section 1301 (relating to authorized slot machine licenses) at
which all applications are to be filed and deemed complete, the
conditional license shall expire. Failure to meet the
requirements of this part for licensure shall cause immediate
forfeiture of the conditional slot machine license and
revocation of authorization to operate slot machines at the
licensed facility.
(e) Return of fee.--In the event of the expiration of a
conditional license or the denial of an application for a slot
machine license pursuant to section 1302, the applicant shall be
entitled to a return of 85% of the conditional slot machine
license fee it submitted with its application.
§ 1316. Bond for issuance of slot machine license.
Before any category of slot machine license is issued, the
licensee shall post a bond in an amount not less than the sum of
$1,000,000, as set by the board, payable to the Commonwealth.
The bond shall be used to guarantee that the slot machine
licensee faithfully makes the payments, keeps books and records,
makes reports and conducts operations in conformity with this
part and rules, regulations and orders promulgated by the board.
The bond shall not be canceled by a surety on less than 30 days'
notice in writing to the board. If a bond is canceled and the
slot machine licensee fails to file a new bond with the board in
the required amount on or before the effective date of
cancellation, the licensee's license shall be revoked or
suspended. The total and aggregate liability of the surety on
the bond is limited to the amount specified in the bond.
§ 1317. Supplier and manufacturer licenses application.
(a) Application.--Any person seeking to provide slot
machines or associated equipment to a slot machine licensee
within this Commonwealth or to manufacture slot machines for use
in this Commonwealth shall apply to the board for either a
supplier or manufacturer license. No person, its affiliate,
intermediary, subsidiary or holding company who has applied for
or is a holder of a manufacturer or slot machine license shall
be eligible to apply for or hold a supplier license. A supplier
licensee shall establish a principle place of business in this
Commonwealth within one year of issuance of its supplier license
and maintain such during the period in which the license is
held. No slot machine licensee shall enter into any sale, lease,
contract or any other type of agreement providing slot machines,
progressive slot machines, parts or associated equipment for use
or play with any person other than a supplier licensed pursuant
to this section. Slot monitoring systems, casino management
systems, player tracking systems and wide-area progressive
systems are excluded from any requirements that they be provided
through a licensed supplier as set forth in this part.
(b) Requirements.--The application for a supplier or
manufacturer license shall include, at a minimum:
(1) The name and business address of the applicant, the
directors and owners of the applicant and a list of employees
and their positions within the business, as well as any
financial information required by the board.
(2) The consent to a background investigation of the
applicant, its officers, directors, owners, key employees or
other persons required by the board and a release to obtain
any and all information necessary for the completion of the
background investigation.
(3) The details of any equivalent license granted or
denied by other jurisdictions where gaming activities are
permitted and consent for the board to acquire copies of
applications submitted or licenses issued in connection
therewith.
(4) The type of goods and services to be supplied or
manufactured and whether those goods and services will be
provided through purchase, lease, contract or otherwise.
(5) Any other information determined by the board to be
appropriate.
§ 1318. Occupation permit application.
(a) Application.--Any person who desires to be a gaming
employee and has a bona fide offer of employment from a licensed
gaming entity shall apply to the board for an occupation permit.
A person may not be employed as a gaming employee unless and
until that person holds an appropriate occupation permit issued
under this section. The board may promulgate regulations to
reclassify a category of nongaming employees or gaming employees
upon a finding that the reclassification is in the public
interest and consistent with the objectives of this part.
(b) Requirements.--The application for an occupation permit
shall include, at a minimum:
(1) The name and home address of the person.
(2) The previous employment history of the person.
(3) The criminal history record of the person, as well
as the person's consent for the Pennsylvania State Police to
conduct a background investigation.
(4) A photograph and handwriting exemplar of the person.
(5) Evidence of the offer of employment and the nature
and scope of the proposed duties of the person, if known.
(6) The details of any occupation permit or similar
license granted or denied to the applicant in other
jurisdictions and consent for the board to obtain copies of
applications submitted or permits or licenses issued in
connection therewith.
(7) Any other information determined by the board to be
appropriate.
(c) Prohibition.--No slot machine licensee may employ or
permit any person under 18 years of age to render any service
whatsoever in any area of its licensed facility at which slot
machines are physically located.
§ 1319. Alternative manufacturer licensing standards.
(a) General rule.--The board may determine whether the
licensing standards of another jurisdiction within the United
States in which an applicant for a manufacturer license is
similarly licensed are comprehensive and thorough and provide
similar adequate safeguards as those required by this part. If
the board makes that determination, it may issue a manufacturer
license to an applicant who holds a similar manufacturer license
in such other jurisdiction after conducting an evaluation of the
information relating to the applicant from such other
jurisdictions, as updated by the board, and evaluating other
information related to the applicant received from that
jurisdiction and other jurisdictions where the applicant may be
licensed, the board may incorporate such information in whole or
in part into its evaluation of the applicant.
(b) Abbreviated process.--In the event an applicant for a
slot machine manufacturer license is licensed in another
jurisdiction, the board may determine to use an alternate
process requiring only that information determined by the board
to be necessary to consider the issuance of a license, including
financial viability of the licensee, to such an applicant.
Nothing in this section shall be construed to waive any fees
associated with obtaining a license through the normal
application process.
§ 1320. Slot machine testing and certification standards.
(a) Use of other state standards.--Until such time as the
board establishes an independent testing and certification
facility pursuant to subsection (b), the board may determine, at
its discretion, whether the slot machine testing and
certification standards of another jurisdiction within the
United States in which an applicant for a manufacturer license
is licensed are comprehensive and thorough and provide similar
adequate safeguards as those required by this part. If the board
makes that determination, it may permit a manufacturer through a
licensed supplier as provided in section 1317 (relating to
supplier and manufacturer licenses application) to deploy those
slot machines which have met the slot machine testing and
certification standards in such other jurisdictions without
undergoing the full testing and certification process by a
board-established independent facility. In the event slot
machines of an applicant for a manufacturer license are licensed
in such other jurisdiction, the board may determine to use an
abbreviated process requiring only that information determined
by the board to be necessary to consider the issuance of a slot
machine certification to such an applicant. Alternatively, the
board in its discretion may also rely upon the certification of
a slot machine that has met the testing and certification
standards of a board-approved private testing and certification
facility until such time as the board establishes an independent
testing and certification facility pursuant to subsection (b).
Nothing in this section shall be construed to waive any fees
associated with obtaining a license through the normal
application process.
(b) Facility in Commonwealth.--Within three years
immediately following the effective date of this part, the board
shall establish and maintain an independent slot machine testing
and certification facility. The cost for the establishment and
operation of an independent slot machine testing and
certification facility shall be paid by each licensed
manufacturer in accordance with a schedule adopted by the board.
The facility shall be made available to each slot machine
manufacturer and supplier as determined by the board.
(c) Central control computer compatibility.--The board shall
ensure that all slot machines certified and approved for use in
this Commonwealth are compatible and comply with the central
control computer and protocol specifications approved by the
department.
§ 1321. Additional licenses and permits and approval of
agreements.
(a) Requirements.--In addition to the requirements for a
license or permit specifically set forth in this part, the board
may require a license or permit, and set a fee for the same, for
any key or gaming employee or any person who satisfies any of
the following criteria:
(1) The person transacts business within this
Commonwealth with a slot machine licensee as a ticket
purveyor, tour operator, operator of a bus trip program or
operator of any other type of travel program or promotional
business related to slot machines. The board may also review,
deny, order modification or approve, at its discretion,
proposed tours, bus routes and travel programs.
(2) The person is presently not otherwise required to be
licensed under this part and provides any goods, property or
services, including, but not limited to, management contracts
for compensation to a slot machine licensee at the licensed
facility.
(b) Agreement.--Any agreement to conduct business within
this Commonwealth between a person and a slot machine licensee
relating to slot machines or associated equipment is subject to
the approval of the board in accordance with rules and
regulations promulgated by the board. Every agreement shall be
in writing and shall include a provision for its termination
without liability on the part of the slot machine licensee upon
a finding by the board that the agreement is not approved or
that it is terminated. Failure to expressly include this
condition in the agreement is not a defense in any action
brought under this section relating to the termination of the
agreement.
§ 1322. Slot machine accounting controls and audits.
(a) Approval.--Except as otherwise provided by this part,
each slot machine license applicant shall, in addition to
obtaining a slot machine license, obtain approval from the board
in consultation with the department of its proposed site plans
and internal control systems and audit protocols prior to the
installation and operation of slot machines at the licensed
facility.
(b) Minimum requirements.--At a minimum, the applicant's or
person's proposed internal controls and audit protocols shall:
(1) Safeguard its assets and revenues, including, but
not limited to, the recording of cash and evidences of
indebtedness related to the slot machines.
(2) Provide for reliable records, accounts and reports
of any financial event that occurs in the operation of a slot
machine, including reports to the board related to the slot
machines.
(3) Ensure as provided in section 1323 (relating to
central control computer system) that each slot machine
directly provides or communicates all required activities and
financial details to the central control computer as set by
the board.
(4) Provide for accurate and reliable financial records.
(5) Ensure any financial event that occurs in the
operation of a slot machine is performed only in accordance
with the management's general or specific authorization, as
approved by the board.
(6) Ensure that any financial event that occurs in the
operation of a slot machine is recorded adequately to permit
proper and timely reporting of gross revenue and the
calculation thereof and of fees and taxes and to maintain
accountability for assets.
(7) Ensure that access to assets is permitted only in
accordance with management's specific authorization, as
approved by the board.
(8) Ensure that recorded accountability for assets is
compared with actual assets at reasonable intervals and
appropriate action is taken with respect to any
discrepancies.
(9) Ensure that all functions, duties and
responsibilities are appropriately segregated and performed
in accordance with sound financial practices by competent,
qualified personnel.
(c) Internal control.--Each slot machine license applicant
shall submit to the board and department, in such manner as the
board shall require, a description of its administrative and
accounting procedures in detail, including its written system of
internal control. Each written system of internal control shall
include:
(1) Records of direct and indirect ownership in the
proposed slot machine licensee, its affiliate, intermediary,
subsidiary or holding company.
(2) An organizational chart depicting appropriate
segregation of functions and responsibilities.
(3) A description of the duties and responsibilities of
each position shown on the organizational chart.
(4) A detailed narrative description of the
administrative and accounting procedures designed to satisfy
the requirements of this section.
(5) Record retention policy.
(6) Procedure to ensure that assets are safeguarded,
including mandatory count procedures.
(7) A statement signed by the chief financial officer of
the proposed licensed gaming entity or other competent person
and the chief executive officer of the proposed licensed
gaming entity or other competent person attesting that the
officer believes, in good faith, that the system satisfies
the requirements of this section.
(8) Any other item that the board may require in its
discretion.
§ 1323. Central control computer system.
(a) General rule.--To facilitate the auditing and security
programs critical to the integrity of slot machine gaming in
this Commonwealth, the department shall have overall control of
slot machines, and all slot machine terminals shall be linked,
at an appropriate time to be determined by the department, to a
central control computer under the control of the department and
accessible by the board to provide auditing program capacity and
individual terminal information as approved by the department
and shall include real-time information retrieval and terminal
activation and disabling programs. The central control computer
selected and employed by the department shall not unduly limit
or favor the participation of a vendor or manufacturer of a slot
machine as a result of the cost or difficulty of implementing
the necessary program modifications to communicate with and link
to the central control computer. The central control computer
employed by the department shall provide:
(1) A fully operational Statewide slot machine control
system that has the capability of supporting up to the
maximum number of slot machines that could be permitted to be
in operation under this part.
(2) The employment of a widely accepted gaming industry
protocol to facilitate slot machine manufacturers' ability to
communicate with the Statewide system.
(3) The delivery of a system that has the capability to
support in-house and wide-area progressive slot machines as
approved by the board.
(4) The delivery of a system that allows the slot
machine licensee to install independent player tracking
systems and cashless technology as approved by the board.
(5) The delivery of a system that does not alter the
statistical awards of slot machine games as designed by the
slot machine manufacturer and approved by the board.
(6) The delivery of a system that provides redundancy so
that each component of the network will be capable of
operating independently by the department if any component of
the network, including the central control computer, fails or
cannot be operated for any reason as determined by the
department, and to assure that all transactional data is
captured and secured. Costs associated with any computer
system required by the department to operate at a licensed
facility, whether independent or as part of the central
control computer, shall be paid by the slot machine licensee.
The computer system will be controlled by the department and
accessible to the board.
(7) The ability to meet all reporting and control
requirements as prescribed by the board and department.
(8) Any other capabilities as determined by the
department in consultation with the board.
(b) Personal information.--Except as provided for in
subsection (a)(4), the central control computer shall not
provide for the monitoring or reading of personal or financial
information concerning a patron of a slot machine licensee.
(c) Initial acquisition of central control computer.--
Notwithstanding any other provision of law to the contrary and
in order to facilitate the prompt implementation of this part,
initial contracts entered into by the department for a central
control computer, including any necessary computer hardware,
software, licenses or related services shall not be subject to
the provisions of 62 Pa.C.S. (relating to procurement).
Contracts made pursuant to the provisions of this section shall
not exceed five years.
(d) Resolution of contract disputes.--The process specified
in 62 Pa.C.S. Ch. 17 Subch. B (relating to prelitigation
resolution of controversies) shall be the sole means of
resolution for controversies arising with respect to contracts
executed under this section.
§ 1324. Protocol information.
The department shall provide, upon request and in advance of
the operation of a central control computer, to a licensed slot
machine supplier or manufacturer the comprehensive protocol
specifications necessary to enable the respective slot machine
suppliers or manufacturers of slot machine terminals to
communicate with the department's central control computer for
the purpose of transmitting auditing program information and for
activating and disabling of slot machine terminals.
Manufacturers and suppliers shall be afforded a reasonable
period of time to comment upon the protocol in advance of the
operation of the central control computer. Once adopted, the
department shall provide suppliers and manufacturers a
reasonable period of time to review and comment on any changes
and on documentation data for all proposed changes to the
original protocol specifications of the central control
computer. Manufacturers and suppliers shall be afforded a
reasonable period of time to comment upon and employ all
proposed changes to the protocol in advance of its
implementation and operation with the central control computer.
Notwithstanding the foregoing, the department may expedite
changes in the protocol as may be needed to ensure the integrity
and stability of the entire system.
§ 1325. License or permit issuance.
(a) Issuance.--In addition to any other criteria provided
under this part, any licensed gaming entity, supplier,
manufacturer, gaming employee or other person that the board
approves as qualified to receive a license or a permit under
this part shall be issued a license or permit upon the payment
of any fee required and upon the fulfillment of any conditions
required by the board or provided for in this part. Nothing
contained in this part is intended or shall be construed to
create an entitlement to a license or permit by any person. The
board shall in its sole discretion issue, renew, condition or
deny a slot machine license based upon the requirements of this
part and whether the issuance of a license will enhance tourism,
economic development or job creation is in the best interests of
the Commonwealth and advances the purposes of this part.
(b) Eligibility.--A license or permit shall not be granted
or renewed unless the board finds that the applicant satisfies
all of the following criteria:
(1) The applicant has developed and implemented or
agreed to develop and implement a diversity plan to assure
that all persons are accorded equality of opportunity in
employment and contracting by the applicant, its contractors,
subcontractors, assignees, lessees, agents, vendors and
suppliers.
(2) The applicant in all other respects is found
suitable consistent with the laws of this Commonwealth and is
otherwise qualified to be issued a license or permit.
(c) Additional requirements.--In addition to the eligibility
requirements otherwise provided in this part, the board may also
take into account the following factors when considering an
application for a slot machine license:
(1) The location and quality of the proposed facility,
including, but not limited to, road and transit access,
parking and centrality to market service area.
(2) The potential for new job creation and economic
development which will result from granting a license to an
applicant.
(3) The applicant's good faith plan to recruit, train
and upgrade diversity in all employment classifications in
the facility.
(4) The applicant's good faith plan for enhancing the
representation of diverse groups in the operation of its
facility through the ownership and operation of business
enterprises associated with or utilized by its facility or
through the provision of goods or services utilized by its
facility and through the participation in the ownership of
the applicant.
(5) The applicant's good faith effort to assure that all
persons are accorded equality of opportunity in employment
and contracting by it and any contractors, subcontractors,
assignees, lessees, agents, vendors and suppliers it may
employ directly or indirectly.
(6) The history and success of the applicant in
developing tourism facilities ancillary to gaming development
if applicable to the applicant.
(7) The degree to which the applicant presents a plan
for the project which will likely lead to the creation of
quality, living-wage jobs and full-time permanent jobs for
residents of this Commonwealth generally and for residents of
the host political subdivision in particular.
(8) The record of the applicant and its developer in
meeting commitments to local agencies, community-based
organizations and employees in other locations.
(9) The degree to which potential adverse effects which
might result from the project, including costs of meeting the
increased demand for public health care, child care, public
transportation, affordable housing and social services, will
be mitigated.
(10) The record of the applicant and its developer
regarding compliance with:
(i) Federal, State and local discrimination, wage
and hour, disability and occupational and environmental
health and safety laws; and
(ii) State and local labor relations and employment
laws.
(11) The applicant's record in dealing with its
employees and their representatives at other locations.
§ 1326. License renewals.
(a) Renewal.--All permits and licenses issued under this
part unless otherwise provided shall be subject to renewal on an
annual basis upon the application of the holder of the permit or
license submitted to the board at least 60 days prior to the
expiration of the permit or license. The application for renewal
shall include an update of the information contained in the
initial and any prior renewal applications and the payment of
any renewal fee required by this part. A permit or license for
which a completed renewal application and fee, if required, has
been received by the board will continue in effect unless and
until the board sends written notification to the holder of the
permit or license that the board has denied the renewal of such
permit or license.
(b) Revocation or failure to renew.--In addition to any
other sanctions the board may impose under this part, the board
may at its discretion suspend, revoke or deny renewal of any
permit or license issued under this part if it receives any
information from any source that the applicant or any of its
officers, directors, owners or key employees is in violation of
any provision of this part, that the applicant has furnished the
board with false or misleading information or that the
information contained in the applicant's initial application or
any renewal application is no longer true and correct. In the
event of a revocation or failure to renew, the applicant's
authorization to conduct the previously approved activity shall
immediately cease, and all fees paid in connection therewith
shall be deemed to be forfeited. In the event of a suspension,
the applicant's authorization to conduct the previously approved
activity shall immediately cease until the board has notified
the applicant that the suspension is no longer in effect.
§ 1327. Nontransferability of licenses.
A license or permit issued by the board is a grant of the
privilege to conduct a business in this Commonwealth. Except as
permitted by section 1328 (relating to change in ownership or
control of slot machine licensee), a license or permit granted
or renewed pursuant to this part shall not be sold, transferred
or assigned to any other person, nor shall a licensee or
permittee pledge or otherwise grant a security interest in or
lien on the license or permit. Nothing contained in this part is
intended or shall be construed to create in any person an
entitlement to a license. The board has the sole discretion to
issue, renew, condition or deny the issuance of a slot machine
license based upon the purposes and requirements of this part.
§ 1328. Change in ownership or control of slot machine
licensee.
(a) Notification and approval.--
(1) A slot machine licensee shall notify the board prior
to or immediately upon becoming aware of any proposed or
contemplated change of ownership of the slot machine licensee
by a person or group of persons acting in concert which
involves any of the following:
(i) More than 5% of a slot machine licensee's
securities or other ownership interests.
(ii) More than 5% of the securities or other
ownership interests of a corporation or other form of
business entity that owns directly or indirectly at least
20% of the voting or other securities or other ownership
interests of the licensee.
(iii) The sale other than in the ordinary course of
business of a licensee's assets.
(iv) Any other transaction or occurrence deemed by
the board to be relevant to license qualifications.
(2) Notwithstanding the provisions of paragraph (1), a
slot machine licensee shall not be required to notify the
board of any acquisition by an institutional investor
pursuant to paragraph (1)(i) or (ii) if the institutional
investor holds less than 10% of the securities or other
ownership interests referred to in paragraph (1)(i) or (ii),
the securities or interests are publicly traded securities
and its holdings of such securities were purchased for
investment purposes only and the institutional investor files
with the board a certified statement to the effect that it
has no intention of influencing or affecting, directly or
indirectly, the affairs of the licensee, provided, however,
that it shall be permitted to vote on matters put to the vote
of the outstanding security holders. Notice to the board and
board approval shall be required prior to completion of any
proposed or contemplated change of ownership of a slot
machine licensee that meets the criteria of this section.
(b) Qualification of purchaser of slot machine licensee;
change of control.--The purchaser of the assets, other than in
the ordinary course of business, of any slot machine licensee
shall independently qualify for a license in accordance with
this part and shall pay the license fee as required by section
1209 (relating to slot machine license fee). A change in control
of any slot machine licensee shall require that the slot machine
licensee independently qualify for a license in accordance with
this part, and the slot machine licensee shall pay a new license
fee as required by section 1209, except as otherwise required by
the board pursuant to this section.
(c) Change in control defined.--For purposes of this
section, a change in control of a slot machine licensee shall
mean the acquisition by a person or group of persons acting in
concert of more than 20% of a slot machine licensee's securities
or other ownership interests, with the exception of any
ownership interest of the person that existed at the time of
initial licensing and payment of the initial slot machine
license fee, or more than 20% of the securities or other
ownership interests of a corporation or other form of business
entity which owns directly or indirectly at least 20% of the
voting or other securities or other ownership interests of the
licensee.
(d) Fee reduction.--The board may in its discretion
eliminate the need for qualification and/or proportionately
reduce, but not eliminate, the new license fee otherwise
required pursuant to this section in connection with a change of
control of a licensee, depending upon the type of transaction,
the relevant ownership interests and changes thereto resulting
from the transaction and other considerations deemed relevant by
the board.
(e) License revocation.--Failure to comply with this section
may cause the license issued under this part to be revoked or
suspended by the board unless the purchase of the assets or the
change in control that meets the criteria of this section has
been independently qualified in advance by the board and any
required license fee has been paid.
§ 1329. Nonportability of slot machine license.
Each slot machine license shall only be valid for the
specific physical location within the municipality and county
for which it was originally granted. No slot machine licensee
shall be permitted to move or relocate the physical location of
the licensed facility without board approval for good cause
shown.
§ 1330. Multiple slot machine license prohibition.
No slot machine licensee, its affiliate, intermediary,
subsidiary or holding company may possess an ownership or
financial interest that is greater than 33.3% of another slot
machine licensee or person eligible to apply for a Category 1
license, its affiliate, intermediary, subsidiary or holding
company. The board shall approve the terms and conditions of any
divestiture under this section. Under no circumstances shall any
such divestiture be approved by the board if the compensation
for the divested interest in a person eligible to apply for a
Category 1 license exceeds the greater of the original cost of
the interest, the book value of the interest or an independently
assessed value of the interest one month prior to the effective
date of this part and, in the case of a person eligible to apply
for a Category 1 license, unless the person acquiring the
divested interest is required to continue conducting live racing
at the location where live racing is currently being conducted
in accordance with section 1303 (relating to additional Category
1 slot machine license requirements) and be approved for a
Category 1 slot machine license. No such slot machine license
applicant shall be issued a slot machine license until the
applicant has completely divested its ownership or financial
interest that is in excess of 33.3% in another slot machine
licensee or person eligible to apply for a Category 1 license,
its affiliate, intermediary, subsidiary or holding company.
§ 1331. Duty of licensees, key employees and gaming employees.
Any licensee, key employee or gaming employee shall have the
duty to:
(1) provide any assistance or information required by
the board or the Pennsylvania State Police and to cooperate
in any inquiry, investigation or hearing;
(2) consent to inspections, searches and seizures;
(3) inform the board of any actions which they believe
would constitute a violation of this part; and
(4) inform the board of any arrests for any violations
of offenses enumerated under 18 Pa.C.S. (relating to crimes
and offenses).
CHAPTER 14
REVENUES
Sec.
1401. Slot machine licensee deposits.
1402. Gross terminal revenue deductions.
1403. Establishment of State Gaming Fund and net slot machine
revenue distribution.
1404. Distributions from licensee's revenue receipts.
1405. Pennsylvania Race Horse Development Fund.
1406. Distributions from Pennsylvania Race Horse Development
Fund.
1407. Pennsylvania Gaming Economic Development and Tourism
Fund.
1408. Transfers from State Gaming Fund.
1409. Property Tax Relief Fund.
§ 1401. Slot machine licensee deposits.
(a) Account established.--There is established within the
State Treasury an account for each slot machine licensee for the
deposit of sums under this section.
(b) Initial deposit of funds.--Not later than two business
days prior to the commencement of slot machine operations by a
slot machine licensee, the slot machine licensee shall deposit
and maintain the sum of $5,000,000 in its account to guarantee
the payment of funds to the Commonwealth under this part and as
security for its obligations under section 1405 (relating to
Pennsylvania Race Horse Development Fund).
(c) Weekly deposits.--Each slot machine licensee shall
deposit funds into its account on a weekly basis equal to the
amounts deducted by the department under section 1402 (relating
to gross terminal revenue deductions) and for reimbursement of
any funds expended due to the slot machine licensee's failure to
comply with its obligations under section 1405. The department
shall notify each licensee of the amounts deducted. If at any
time the amount held in the account attributable to a slot
machine licensee is not sufficient to make the payments required
of the licensee under section 1402 and for reimbursement of any
funds expended due to the slot machine licensee's failure to
comply with its obligations under section 1405, the department
shall notify the slot machine licensee, and the slot machine
licensee shall immediately deposit necessary funds into the
account as directed by the department.
(d) Return of funds.--The funds deposited into its account
shall not be returned to a slot machine licensee unless the slot
machine licensee ceases conducting business under its license
and relinquishes all rights to do so in the future. In that
case, the balance of funds in the account attributable to such
licensee, minus any unpaid amounts due and payable to the
Commonwealth under this part or due and payable under section
1405, shall be returned to the licensee.
§ 1402. Gross terminal revenue deductions.
(a) Deductions.--After determining the appropriate
assessments for each slot machine licensee, the department shall
deduct the following costs, expenses or payments from each
account established under section 1401 (relating to slot machine
licensee deposits):
(1) The costs and expenses to be incurred by the
department in administering this part at each slot machine
licensee's licensed facility based upon a budget submitted by
the department to and approved by the board.
(2) The other costs and expenses to be incurred by the
department in administering this part based upon a budget
submitted by the department to and approved by the board.
(3) Sums necessary to repay any loans made by the
General Fund to the department in connection with carrying
out its responsibilities under this part, including the costs
of the initial acquisition of the central control computer
and any accessories or associated equipment.
(4) The costs and expenses to be incurred by the
Pennsylvania State Police and the Office of Attorney General
and not otherwise reimbursed under this part in carrying out
their respective responsibilities under this part based upon
a budget submitted by the Pennsylvania State Police and the
Attorney General to and approved by the board.
(5) Sums necessary to repay any loans made by the
General Fund to the Pennsylvania State Police in connection
with carrying out its responsibilities under this part.
(6) The costs and expenses to be incurred by the board
in carrying out its responsibilities under this part based
upon a budget approved by the board.
(7) Sums necessary to repay any loans made by the
General Fund to the board in connection with carrying out its
responsibilities under this part.
(b) Deferral of assessment.--Notwithstanding any other
provision of law to the contrary, the board may defer assessing
slot machine licensees for repayment of loans from the General
Fund under this section until all slot machine licenses have
been issued and all licensed gaming entities have commenced the
operation of slot machines.
§ 1403. Establishment of State Gaming Fund and net slot
machine revenue distribution.
(a) Fund established.--There is hereby established the State
Gaming Fund within the State Treasury.
(b) Slot machine tax.--The department shall determine and
each slot machine licensee shall pay a daily tax of 34% and a
local share assessment of 4% of its daily gross terminal revenue
from the slot machines in operation at its facility into the
fund.
(c) Transfers and distributions.--The department shall:
(1) Transfer the slot machine tax and assessment imposed
in subsection (b) to the fund.
(2) From the local share assessment established in
subsection (b), make quarterly distributions among the
counties hosting a licensed facility in accordance with the
following schedule:
(i) If the licensed facility is a Category 1
licensed facility that is located at a harness racetrack
and the county, including a home rule county, in which
the licensed facility is located is:
(A) A county of the first class: 4% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
Notwithstanding any other provision to the contrary,
funds from licensed gaming entities located within a
county of the first class shall not be distributed
outside of a county of the first class.
(B) A county of the second class: 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
(C) A county of the second class A: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(D) A county of the third class: 2% of the
gross terminal revenue from each such licensed
facility shall be deposited into a restricted account
established in the Department of Community and
Economic Development to be used exclusively for
grants for health, safety and economic development
projects to municipalities within the county where
the licensed facility is located. Municipalities that
are contiguous to the municipality hosting such
licensed facility shall be given priority by the
Department of Community and Economic Development in
the award of such grants.
(E) A county of the fourth class: 2% of the
gross terminal revenue from each such licensed
facility shall be deposited into a restricted account
established in the Department of Community and
Economic Development to be used exclusively for
grants to the county, to economic development
authorities or organizations within the county or
redevelopment authorities within the county for
grants for economic development projects, job
training, community improvement projects, other
projects in the public interest and reasonable
administrative costs. Notwithstanding the provisions
of the act of February 9, 1999 (P.L.1, No.1), known
as the Capital Facilities Debt Enabling Act, grants
made under this clause may be utilized as local
matching funds for other grants or loans from the
Commonwealth.
(F) Counties of the fifth through eighth
classes: 2% of the gross terminal revenue from each
such licensed facility shall be deposited into a
restricted account established in the Department of
Community and Economic Development to be used
exclusively for grants to the county.
(G) Any county not specifically enumerated in
clauses (A) through (F), 2% of the gross terminal
revenue to the county hosting the licensed facility
from each such licensed facility.
(ii) If the licensed facility is a Category 1
licensed facility and is located at a thoroughbred
racetrack and the county in which the licensed facility
is located is:
(A) A county of the first class: 4% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
Notwithstanding any other provision to the contrary,
funds from licensed gaming entities located within
the county of the first class shall not be
distributed outside of a county of the first class.
(B) A county of the second class: 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
(C) A county of the second class A: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(D) A county of the third class: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(E) A county of the fourth class: 2% of the
gross terminal revenue from each such licensed
facility shall be deposited into a restricted account
established in the Department of Community and
Economic Development to be used exclusively for
grants to the county, to economic development
authorities or organizations within the county or
redevelopment authorities within the county for
grants for economic development projects, community
improvement projects, job training, other projects in
the public interest and reasonable administrative
costs. Notwithstanding the Capital Facilities Debt
Enabling Act, grants made under this clause may be
utilized as local matching funds for other grants or
loans from the Commonwealth.
(F) Counties of the fifth through eighth
classes: 2% of the gross terminal revenue from each
such licensed facility shall be deposited into a
restricted account established in the Department of
Community and Economic Development to be used
exclusively for grants to the county.
(G) Any county not specifically enumerated in
clauses (A) through (F), 2% of the gross terminal
revenue to the county hosting the licensed facility
from each such licensed facility.
(iii) If the facility is a Category 2 licensed
facility and if the county in which the licensed facility
is located is:
(A) A county of the first class: 4% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
Notwithstanding any other provision to the contrary,
funds from licensed gaming entities located within
the county of the first class shall not be
distributed outside of a county of the first class.
(B) A county of the second class: 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
(C) A county of the second class A: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(D) A county of the third class: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(E) A county of the fourth class: 2% of the
gross terminal revenue from each such licensed
facility shall be deposited into a restricted account
established in the Department of Community and
Economic Development to be used exclusively for
grants to the county, to economic development
authorities or organizations within the county or
redevelopment authorities within the county for
grants for economic development projects, community
improvement projects, job training, other projects in
the public interest and reasonable administrative
costs. Notwithstanding the Capital Facilities Debt
Enabling Act, grants made under this clause may be
utilized as local matching funds for other grants or
loans from the Commonwealth.
(F) Counties of the fifth through eighth
classes: 2% of the gross terminal revenue from each
such licensed facility shall be deposited into a
restricted account established in the Department of
Community and Economic Development to be used
exclusively for grants to the county, to contiguous
counties, to economic development authorities or
organizations within the county or contiguous
counties or redevelopment authorities within the
county or contiguous counties for grants for economic
development projects, community improvement projects,
other projects in the public interest and reasonable
administrative costs. Notwithstanding the Capital
Facilities Debt Enabling Act, grants made under this
clause may be utilized as local matching funds for
other grants or loans from the Commonwealth.
(G) Any county not specifically enumerated in
clauses (A) through (F), 2% of the gross terminal
revenue to the county hosting the licensed facility
from each such licensed facility.
(iv) If the facility is a Category 3 licensed
facility, 2% of the gross terminal revenue from each such
licensed facility shall be deposited into a restricted
account established in the Department of Community and
Economic Development to be used exclusively for grants to
the county, to economic development authorities or
organizations within the county or redevelopment
authorities within the county for grants for economic
development projects and community improvement projects.
(v) Unless otherwise specified, for the purposes of
this paragraph money designated for municipal grants
within a county, other than a county of the first class,
in which a licensed facility is located shall be used to
fund grants to the municipality in which the licensed
facility is located, to the county in which the licensed
facility is located and to the municipalities which are
contiguous to the municipality in which the licensed
facility is located and which are located within the
county in which the licensed facility is located. Grants
shall be administered by the county through its economic
development or redevelopment authority in which the
licensed facility is located. Grants shall be used to
fund the costs of human services, infrastructure
improvements, facilities, emergency services, health and
public safety expenses associated with licensed facility
operations. If at the end of a fiscal year uncommitted
funds exist, the county shall pay to the economic
development or redevelopment authority of the county in
which the licensed facility is located the uncommitted
funds.
(vi) If the licensed facility is located in more
than one county, the amount available shall be
distributed on a pro rata basis determined by the
percentage of acreage located in each county to the total
acreage of all counties occupied by the licensed
facility.
(vii) The distributions provided in this paragraph
shall be based upon county classifications in effect on
the effective date of this section. Any reclassification
of counties as a result of a Federal decennial census or
of a State statute shall not apply to this subparagraph.
(viii) If any provision of this paragraph is found
to be unenforceable for any reason, the distribution
provided for in the unenforceable provision shall be made
to the county in which the licensed facility is located
for the purposes of grants to municipalities in that
county, including municipal grants as specified in
subparagraph (v).
(ix) Nothing in this paragraph shall prevent any of
the above counties from entering into intergovernmental
cooperative agreements with other jurisdictions for
sharing this money.
(3) From the local share assessment established in
subsection (b), make quarterly distributions among the
municipalities, including home rule municipalities, hosting a
licensed facility in accordance with the following schedule:
(i) To a city of the second class hosting a licensed
facility or facilities, other than a Category 3 licensed
facility, 2% of the gross terminal revenue or $10,000,000
annually, whichever is greater, of all licensed
facilities located in that city. In the event that the
revenues generated by the 2% do not meet the $10,000,000
minimum specified in this paragraph, the licensed gaming
entity operating the licensed facility or facilities in
the city shall remit the difference to the municipality.
(ii) To a city of the second class A hosting a
licensed facility or facilities, other than a Category 3
licensed facility, 2% of the gross terminal revenue or
$10,000,000 annually, whichever is greater, of all
licensed facilities located in that city subject,
however, to the budgetary limitation in this
subparagraph. The amount allocated to the designated
municipalities shall not exceed 50% of their total budget
for fiscal year 2003-2004, adjusted for inflation in
subsequent years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying the
percentage change in the Consumer Price Index for All
Urban Consumers for the Pennsylvania, New Jersey,
Delaware and Maryland area, for the most recent 12-month
period for which figures have been officially reported by
the United States Department of Labor, Bureau of Labor
Statistics, immediately prior to the date the adjustment
is due to take effect. Any remaining moneys shall be
distributed in accordance with paragraph (2) based upon
the county where the licensed facility or facilities is
located. In the event that the revenues generated by the
2% do not meet the $10,000,000 minimum specified in this
subparagraph, the licensed gaming entity operating the
licensed facility or facilities in the city shall remit
the difference to the municipality.
(iii) To a city of the third class hosting a
licensed facility or facilities, other than a Category 3
licensed facility, 2% of the gross terminal revenue or
$10,000,000 annually, whichever is greater, of all
licensed facilities located in that city subject,
however, to the budgetary limitation in this
subparagraph. However, the foregoing limitations shall
not apply, notwithstanding any provision to the contrary,
if the licensed facility or facilities have executed a
written agreement with the city prior to the effective
date of this part to provide additional compensation to
the city in excess of the difference between 2% of the
gross terminal revenue and $10,000,000. The amount
allocated to the designated municipalities shall not
exceed 50% of their total budget for fiscal year 2003-
2004, adjusted for inflation in subsequent years by an
amount not to exceed an annual cost-of-living adjustment
calculated by applying the percentage change in the
Consumer Price Index for All Urban Consumers for the
Pennsylvania, New Jersey, Delaware and Maryland area, for
the most recent 12-month period for which figures have
been officially reported by the United States Department
of Labor, Bureau of Labor Statistics, immediately prior
to the date the adjustment is due to take effect. Any
remaining moneys shall be distributed in accordance with
paragraph (2) based upon the county where the licensed
facility or facilities is located. In the event that the
revenues generated by the 2% do not meet the $10,000,000
minimum specified in this subparagraph, the licensed
gaming entity operating the licensed facility or
facilities in the city shall remit the difference to the
municipality.
(iv) To a township of the first class hosting a
licensed facility or facilities, other than a Category 3
licensed facility, 2% of the gross terminal revenue or
$10,000,000 annually, whichever is greater, of all
licensed facilities located in the township subject,
however, to the budgetary limitation in this
subparagraph. The amount allocated to the designated
municipalities shall not exceed 50% of their total budget
for fiscal year 2003-2004, adjusted for inflation in
subsequent years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying the
percentage change in the Consumer Price Index for All
Urban Consumers for the Pennsylvania, New Jersey,
Delaware and Maryland area, for the most recent 12-month
period for which figures have been officially reported by
the United States Department of Labor, Bureau of Labor
Statistics, immediately prior to the date the adjustment
is due to take effect. Any remaining money shall be
distributed in accordance with paragraph (2) based upon
the county where the licensed facility or facilities is
located. In the event that the revenues generated by the
2% do not meet the $10,000,000 minimum specified in this
subparagraph, the licensed gaming entity operating the
licensed facility or facilities in the township shall
remit the difference to the municipality.
(v) To a township of the second class hosting a
licensed facility or facilities, other than a Category 3
licensed facility, 2% of the gross terminal revenue or
$10,000,000 annually, whichever is greater, of all
licensed facilities located in the township subject,
however, to the budgetary limitation in this
subparagraph. The amount allocated to the designated
municipalities shall not exceed 50% of their total budget
for fiscal year 2003-2004, adjusted for inflation in
subsequent years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying the
percentage change in the Consumer Price Index for All
Urban Consumers for the Pennsylvania, New Jersey,
Delaware and Maryland area, for the most recent 12-month
period for which figures have been officially reported by
the United States Department of Labor, Bureau of Labor
Statistics, immediately prior to the date the adjustment
is due to take effect. Any remaining money shall be
distributed in accordance with paragraph (2) based upon
the county where the licensed facility or facilities is
located. In the event that the revenues generated by the
2% do not meet the $10,000,000 minimum specified in this
subparagraph, the licensed gaming entity operating the
licensed facility or facilities in the township shall
remit the difference to the municipality.
(vi) To a borough hosting a licensed facility or
facilities, other than a Category 3 licensed facility, 2%
of the gross terminal revenue or $10,000,000 annually,
whichever is greater, of all licensed facilities located
in that borough subject, however, to the budgetary
limitation in this subparagraph. The amount allocated to
the designated municipalities shall not exceed 50% of
their total budget for fiscal year 2003-2004, adjusted
for inflation in subsequent years by an amount not to
exceed an annual cost-of-living adjustment calculated by
applying the percentage change in the Consumer Price
Index for All Urban Consumers for the Pennsylvania, New
Jersey, Delaware and Maryland area, for the most recent
12-month period for which figures have been officially
reported by the United States Department of Labor, Bureau
of Labor Statistics, immediately prior to the date the
adjustment is due to take effect. Any remaining money
shall be distributed in accordance with paragraph (2)
based upon the county where the licensed facility or
facilities is located. In the event that the revenues
generated by the 2% do not meet the $10,000,000 minimum
specified in this subparagraph, the licensed gaming
entity operating the licensed facility or facilities in
the borough shall remit the difference to the
municipality.
(vii) To an incorporated town hosting a licensed
facility or facilities, other than a Category 3 licensed
facility, 2% of the gross terminal revenue or $10,000,000
annually, whichever is greater, of all licensed
facilities located in the town subject, however, to the
budgetary limitation in this subparagraph. The amount
allocated to the designated municipalities shall not
exceed 50% of their total budget for fiscal year 2003-
2004, adjusted for inflation in subsequent years by an
amount not to exceed an annual cost-of-living adjustment
calculated by applying the percentage change in the
Consumer Price Index for All Urban Consumers for the
Pennsylvania, New Jersey, Delaware and Maryland area, for
the most recent 12-month period for which figures have
been officially reported by the United States Department
of Labor, Bureau of Labor Statistics, immediately prior
to the date the adjustment is due to take effect. Any
remaining money shall be distributed in accordance with
paragraph (2) based upon the county where the licensed
facility or facilities is located. In the event that the
revenues generated by the 2% do not meet the $10,000,000
minimum specified in this subparagraph, the licensed
gaming entity operating the licensed facility or
facilities in the town shall remit the difference to the
municipality.
(viii) To a municipality of any class hosting a
Category 3 facility, 2% of the gross terminal revenue
from the Category 3 licensed facility located in the
municipality, subject, however, to the budgetary
limitation in this subparagraph. The amount allocated to
the designated municipalities shall not exceed 50% of
their total budget for fiscal year 2003-2004, adjusted
for inflation in subsequent years by an amount not to
exceed an annual cost-of-living adjustment calculated by
applying the percentage change in the Consumer Price
Index for All Urban Consumers for the Pennsylvania, New
Jersey, Delaware and Maryland area, for the most recent
12-month period for which figures have been officially
reported by the United States Department of Labor, Bureau
of Labor Statistics, immediately prior to the date the
adjustment is due to take effect. Any remaining money
shall be distributed in accordance with paragraph (2)
based upon the county where the licensed facility or
facilities is located.
(ix) Any municipality not specifically enumerated
in subparagraphs (i) through (viii), 2% of the gross
terminal revenue to the municipality hosting the licensed
facility from each such licensed facility.
(x) If the licensed facility is located in more than
one municipality, the amount available shall be
distributed on a pro rata basis determined by the
percentage of acreage located in each municipality to the
total acreage of all municipalities occupied by the
licensed facility.
(xi) If the licensed facility is located at a resort
which is also an incorporated municipality, such
municipality shall not be eligible to receive any
distribution under this paragraph. The distribution it
would have otherwise been entitled to under this
paragraph shall instead be distributed in accordance with
paragraph (2) based upon the county where the licensed
facility is located.
(xii) The distributions provided in this paragraph
shall be based upon municipal classifications in effect
on the effective date of this section. For the purposes
of this paragraph, any reclassification of municipalities
as a result of a Federal decennial census or of a State
statute shall not apply to this paragraph.
(xiii) If any provision of this paragraph is found
to be unenforceable for any reason, the distribution
provided for in such unenforceable provision shall be
made to the municipality in which the licensed facility
is located.
(xiv) Nothing in this paragraph shall prevent any of
the above municipalities from entering into
intergovernmental cooperative agreements with other
jurisdictions for sharing this money.
(xv) Notwithstanding any other law, agreement or
provision in this part to the contrary, all revenues
provided, directed or earmarked under this section to or
for the benefit of a city of the second class in which an
intergovernmental cooperation authority has been
established and is in existence pursuant to the act of
February 12, 2004 (P.L.73, No.11), known as the
Intergovernmental Cooperation Authority Act for Cities of
the Second Class, shall be directed to and under the
exclusive control of such intergovernmental cooperation
authority to be used:
(A) to reduce the debt of the second class city;
(B) to increase the level of funding of the
municipal pension funds of the second class city; or
(C) for any other purposes as determined to be
in the best interest of the second class city by such
intergovernmental cooperation authority. Such
revenues shall not be directed to or under the
control of such city of the second class or any
coordinator appointed pursuant to the act of July 10,
1987 (P.L.246, No.47), known as the Municipalities
Financial Recovery Act, for such city of the second
class.
§ 1404. Distributions from licensee's revenue receipts.
For holders of Category 1 licenses, an amount not less than
$5,000,000 over the initial five-year period following the
initial issuance of a Category 1 slot machine license and an
amount not less than $250,000 nor more than $1,000,000 per year
for five years thereafter shall be deposited by each licensee
into a segregated account and used for improvement and
maintenance of the backside area and related buildings and
structures at the racetrack at which the licensee operates. The
licensed racing entity designee and the designee of the
recognized horsemen's organization at each racetrack shall
jointly consider the appropriate amount of the funds and how the
money shall be spent at the racetrack. Disputes involving the
amount and expenditure of funds under this section shall be
resolved by the State Horse Racing Commission or the State
Harness Racing Commission, whichever is appropriate, which shall
oversee the use of these funds. Notwithstanding other provisions
of this section, a licensed racing entity that has not
previously conducted live racing and is constructing a new
racetrack, backside area and related buildings and structures
that can establish to the satisfaction of the board that the
licensed racing entity has spent no less than $5,000,000 in the
construction of the new racetrack's backside area, related
buildings and structures shall not be subject to the
expenditures required by this section until the tenth year after
the completion of such construction at the new racetrack. The
board may extend the time frame for distributions under this
section for a newly constructed racetrack for up to an
additional two years if, upon inspection, either the State Horse
Racing Commission or the State Harness Racing Commission,
whichever is applicable, determines that the physical condition
of the backside area and related buildings and structures of the
racetrack is sufficient to protect the health and safety of
backside employees.
§ 1405. Pennsylvania Race Horse Development Fund.
(a) Fund established.--There is hereby established a
Pennsylvania Race Horse Development Fund within the State
Treasury.
(b) Pennsylvania race horse improvement assessment.--Each
active and operating licensed gaming entity shall pay a daily
assessment to the Pennsylvania Race Horse Development Fund as
determined by the department. Subject to the daily assessment
cap established under subsection (c), the licensed gaming
entity's assessment shall be a percentage of each licensed
gaming entity's gross terminal revenue, equal to an amount
calculated as "A" multiplied by "B", with "A" being equal to
each licensed gaming entity's gross terminal revenue for that
day divided by the total gross terminal revenue for that day
from all licensed gaming entities, and "B" being equal to 18% of
that day's gross terminal revenue for all active and operating
Category 1 licensees conducting live racing.
(c) Daily assessment cap.--If the resulting daily assessment
for a licensed gaming entity exceeds 12% of that licensed gaming
entity's gross terminal revenue for the day, the licensed gaming
entity shall pay a daily assessment of 12% of its gross terminal
revenue for that day.
(d) Distributions.--In accordance with section 1406
(relating to distributions from Pennsylvania Race Horse
Development Fund), the department shall make distributions from
the Pennsylvania Race Horse Development Fund to each of the
active and operating Category 1 licensees conducting live
racing.
§ 1406. Distributions from Pennsylvania Race Horse Development
Fund.
(a) Distributions.--Funds from the Pennsylvania Race Horse
Development Fund shall be distributed to each active and
operating Category 1 licensee conducting live racing in the
following manner:
(1) An amount equal to 18% of the daily gross terminal
revenue of each Category 1 licensee shall be distributed to
each active and operating Category 1 licensee conducting live
racing unless the daily assessments are affected by the daily
assessment cap provided for in section 1405(c) (relating to
Pennsylvania Race Horse Development Fund). In cases in which
the daily assessment cap affects daily assessments, the
distribution to each active and operating Category 1 licensee
conducting live racing for that day shall be a percentage of
the total daily assessments paid into the Pennsylvania Race
Horse Development Fund for that day equal to the gross
terminal revenue of each active and operating Category 1
licensee conducting live racing for that day divided by the
total gross terminal revenue of all active and operating
Category 1 licensees conducting live racing for that day. The
distributions to licensed racing entities from the
Pennsylvania Race Horse Development Fund shall be allocated
as follows:
(i) Eighty percent to be deposited weekly into a
separate, interest-bearing purse account to be
established by and for the benefit of the horsemen. The
earned interest on the account shall be credited to the
purse account. Licensees shall combine these funds with
revenues from existing purse agreements to fund purses
for live races consistent with those agreements with the
advice and consent of the horsemen.
(ii) From licensees that operate at thoroughbred
tracks, 16% to be deposited on a monthly basis into the
Pennsylvania Breeding Fund as defined in section 223 of
the Race Horse Industry Reform Act. From licensees that
operate at standardbred tracks, 8% to be deposited on a
monthly basis in the Pennsylvania Sire Stakes Fund as
defined in section 224 of the Race Horse Industry Reform
Act and 8% to be deposited on a monthly basis into a
restricted account in the State Racing Fund to be known
as the Pennsylvania Standardbred Breeders Development
Fund. The State Harness Racing Commission shall, in
consultation with the Secretary of Agriculture by rule or
by regulation, adopt a standardbred breeders program that
will include the administration of Pennsylvania Stallion
Award, Pennsylvania Bred Award and a Pennsylvania Sired
and Bred Award.
(iii) Four percent to be used to fund health and
pension benefits for the members of the horsemen's
organizations representing the owners and trainers at the
racetrack at which the licensed racing entity operates
for the benefit of the organization's members, their
families, employees and others in accordance with the
rules and eligibility requirements of the organization,
as approved by the State Horse Racing Commission or the
State Harness Racing Commission. This amount shall be
deposited within five business days of the end of each
month into a separate account to be established by each
respective horsemen's organization at a banking
institution of its choice. Of this amount, $250,000 shall
be paid annually by the horsemen's organization to the
thoroughbred jockeys or standardbred drivers organization
at the racetrack at which the licensed racing entity
operates for health insurance, life insurance or other
benefits to active and disabled thoroughbred jockeys or
standardbred drivers in accordance with the rules and
eligibility requirements of that organization.
(b) Guidelines.--The board shall establish guidelines that
ensure that funds allocated to the horsemen's organization are
used to finance the programs to benefit all horsemen of this
Commonwealth and that administrative and overhead costs are
reasonably related to such programs.
(c) Eligible recipients.--Funds allocated to the horsemen's
organization under this part must be used to benefit all
horsemen. Funds acquired from other sources shall be kept
separate and apart from funds obtained under this part.
(d) Reasonableness.--Funding for benevolent programs,
including, but not limited to, pension, health and insurance
plans, will be considered reasonable if such program funding on
an annual basis is at least 85% of the total statutory
allocation.
(e) Filing of audit.--All horsemen's organizations that
receive funds under this section shall file annually with the
appropriate commission and the board an audit prepared by a
certified public accountant of all funds received. Such filings
shall be open to public review. The horsemen's organizations
shall maintain adequate records concerning receipt and
distribution of funds allocated to them.
(f) Contracts.--All health and pension benefits contracts
shall be reviewed and approved by the board.
(g) Penalty.--Any violation of the provisions of this
section may subject the horsemen's organization to a fine not to
exceed $10,000 per violation.
§ 1407. Pennsylvania Gaming Economic Development and Tourism
Fund.
(a) Fund established.--There is hereby established a
Pennsylvania Gaming Economic Development and Tourism Fund within
the State Treasury.
(b) Fund administration and distribution.--The Pennsylvania
Gaming Economic Development and Tourism Fund shall be
administered by the Department of Community and Economic
Development. All moneys in the Pennsylvania Gaming Economic
Development and Tourism Fund shall be distributed pursuant to a
subsequently enacted Economic Development Capital Budget that
Act text part 3
appropriates money from the fund pursuant to this section. The
procedures for enactment, authorization and release of economic
development and tourism funds authorized under this section for
both capital projects and operational expenditures shall be the
same as those provided for in sections 303(a), (b) and (c) and
318(a) of the act of February 9, 1999 (P.L.1, No.1), known as
the Capital Facilities Debt Enabling Act, without reference to
the nature or purpose of the project, and any other statutory
provision, if any, necessary to effectuate the release of funds
appropriated in such economic development capital budget.
(c) Pennsylvania Gaming Economic Development and Tourism
Fund Assessment.--Each licensed gaming entity shall pay a daily
assessment of 5% of its gross terminal revenue to the
Pennsylvania Gaming Economic Development and Tourism Fund.
(d) Restrictions on projects for certain counties and
cities.--For a ten-year period beginning with the first fiscal
year during which deposits are made into this fund, no moneys
from the Pennsylvania Gaming Economic Development and Tourism
Fund shall be distributed for any project located in a city or
county of the first or second class except as authorized by this
subsection. Moneys not used for the authorized projects in
cities and counties of the first and second classes may be used
throughout this Commonwealth. Moneys from the fund for projects
within cities and counties of the first and second classes may
only be used for the following projects during this ten-year
period:
(1) for reimbursement to a city of the first class for
debt service made by such city to the extent that such
payments have been made for the expansion of the Pennsylvania
Convention Center;
(2) for distribution to the General Fund to the extent
that the Commonwealth has made debt service payments for the
expansion of the Pennsylvania Convention Center;
(3) for reimbursement to a city of the first class for
payments made by such city for the operation expenses of the
Pennsylvania Convention Center during the prior calendar
year;
(4) for debt service and for development and economic
development projects for an international airport located in
a county of the second class;
(5) for distribution to a community infrastructure
development fund of a county of the second class to fund
construction, development, improvement and maintenance of
infrastructure projects;
(6) for the retirement of the indebtedness of an urban
redevelopment authority created pursuant to the act of May
24, 1945 (P.L.991, No.385), known as the Urban Redevelopment
Law, in a city of the second class which is financed in part
with the utilization of funds transferred to the regional
asset district pursuant to Article XXXI-B of the act of July
28, 1953 (P.L.723, No.230), known as the Second Class County
Code;
(7) for retirement of indebtedness and for financing of
a hotel or convention center in a city of the second class
established pursuant to the authority of the act of July 29,
1953 (P.L.1034, No.270), known as the Public Auditorium
Authorities Law;
(8) for retirement of indebtedness of a county of the
second class development fund created pursuant to the
authority of Article XXXI-B of the Second Class County Code
and the Urban Redevelopment Law;
(9) for retirement of indebtedness of a convention
center in a city of the second class established pursuant to
the authority of the Public Auditorium Authorities Law;
(10) for payment of the operating deficit for the
operation of a convention center in a city of the second
class established pursuant to the Public Auditorium
Authorities Law.
§ 1408. Transfers from State Gaming Fund.
(a) Transfer for compulsive problem gambling treatment.--
Each year, the sum of $1,500,000 or an amount equal to .001
multiplied by the total gross terminal revenue of all active and
operating licensed gaming entities, whichever is greater, shall
be transferred into the Compulsive Problem Gambling Treatment
Fund established in section 1509 (relating to compulsive and
problem gambling program).
(b) Transfer for Volunteer Fire Company Grant Program.--
Annually, the sum of $25,000,000 shall be transferred from the
State Gaming Fund to the Volunteer Fire Company Grant Program
established under the act of July 31, 2003 (P.L.73, No.17),
known as the Volunteer Fire Company and Volunteer Ambulance
Service Grant Act.
(c) Local law enforcement grants.--Annually, the sum of
$5,000,000 shall be transferred to the board for the purpose of
issuing grants to local law enforcement agencies to enforce and
prevent the unlawful operation of slot machines in this
Commonwealth.
(d) Annual transfers.--Annually, the following sums shall be
transferred from the State Gaming Fund as follows:
(1) To each county, 80¢ per acre for each acre of land
in the county for which a payment is made under the act of
May 17, 1929 (P.L.1798, No.591), referred to as the Forest
Reserves Municipal Financial Relief Law, or under 34 Pa.C.S.
§ 708 (relating to payments in lieu of taxes).
(2) To each school district, 80¢ per acre for each acre
of land in the school district for which a payment is made
under the Forest Reserves Municipal Financial Relief Law or
under 34 Pa.C.S. § 708.
(3) To each township, 80¢ per acre for each acre of land
in the township for which a payment is made under the Forest
Reserves Municipal Financial Relief Law or under 34 Pa.C.S. §
708.
(e) Transfer to Property Tax Relief Fund.--Monthly, the
State Treasurer shall transfer the remaining balance in the
State Gaming Fund which is not allocated in subsections (a),
(b), (c) and (d) to the Property Tax Relief Fund established in
section 1409 (relating to Property Tax Relief Fund).
§ 1409. Property Tax Relief Fund.
(a) Establishment.--There is hereby established in the State
Treasury a special fund to be known as the Property Tax Relief
Fund, which shall receive money from the State Gaming Fund and
any other money from any source designated for deposit in the
Property Tax Relief Fund.
(b) Use of money.--Money in the Property Tax Relief Fund
shall be used for local property and wage tax relief as
specified by law and is hereby appropriated.
CHAPTER 15
ADMINISTRATION AND ENFORCEMENT
1501. Responsibility and authority of department.
1502. Liens and suits for taxes.
1503. Applicants to provide tax information.
1504. Wagering on credit.
1505. No eminent domain authority.
1506. Local land use preemption.
1507. Inapplicability of Keystone Opportunity Zone, Keystone
Opportunity Expansion Zone and Keystone Opportunity
Improvement Zone Act.
1508. Athletic event gaming.
1509. Compulsive and problem gambling program.
1510. Labor hiring preferences.
1511. Declaration of exemption from Federal laws prohibiting
slot machines.
1512. Public official financial interest.
1513. Political influence.
1514. Regulation requiring exclusion of certain persons.
1515. Repeat offenders excludable from licensed gaming
facility.
1516. List of persons self excluded from gaming activities.
1517. Enforcement.
1518. Prohibited acts and penalties.
1519. (Reserved).
1520. Automated teller machines.
1521. Liquor licenses at licensed facilities.
§ 1501. Responsibility and authority of department.
(a) General rule.--The department is authorized to
administer and collect taxes imposed under this part and
interest imposed under section 806 of the act of April 9, 1929
(P.L.343, No.176), known as The Fiscal Code, and promulgate and
enforce rules and regulations to carry out its prescribed duties
in accordance with this part, including the collection of taxes,
penalties and interest imposed by this part.
(b) Application of rules and regulations.--The department
may prescribe the extent, if any, to which any rules and
regulations shall be applied without retroactive effect. The
department shall have authority to prescribe the forms and the
system of accounting and recordkeeping to be employed and
through its representative shall at all times have power of
access to and examination and audit of any equipment and records
relating to all aspects of the operation of slot machines under
this part.
(c) Procedure.--For purposes of implementing this part, the
department may promulgate regulations in the same manner in
which the board is authorized as provided in section 1203
(relating to temporary regulations).
(d) Additional penalty.--Any person who fails to timely
remit to the department or the State Treasurer amounts required
under this part shall be liable, in addition to any liability
imposed elsewhere in this part, to a penalty of 5% per month up
to a maximum of 25% of the amounts ultimately found to be due,
to be recovered by the department.
§ 1502. Liens and suits for taxes.
The provisions of this part shall be subject to the
provisions of sections 242 and 243 of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971.
§ 1503. Applicants to provide tax information.
The provisions of section 477 of the act of April 12, 1951
(P.L.90, No.21), known as the Liquor Code, shall apply to all
applicants for the grant, renewal or transfer of any license or
permit issued by the Pennsylvania Liquor Control Board under the
Liquor Code consistent with this part.
§ 1504. Wagering on credit.
Slot machine licensees may not extend credit. Slot machine
licensees may not accept credit cards, charge cards or debit
cards from a player for the exchange or purchase of slot machine
credits or for an advance of coins or currency to be utilized by
a player to play slot machine games or extend credit in any
manner to a player so as to enable the player to play slot
machines.
§ 1505. No eminent domain authority.
Neither the Commonwealth nor any political subdivision
thereof shall have the right to acquire, with or without
compensation, through the power of eminent domain any property,
easement or land use right for the siting or construction of a
facility for the operation of slot machines by a slot machine
licensee.
§ 1506. Local land use preemption.
The conduct of gaming as permitted under this part, including
the physical location of any licensed facility, shall not be
prohibited or otherwise regulated by any ordinance, home rule
charter provision, resolution, rule or regulation of any
political subdivision or any local or State instrumentality or
authority that relates to zoning or land use to the extent that
the licensed facility has been approved by the board. The board
may in its discretion consider such local zoning ordinances when
considering an application for a slot machine license. The board
shall provide the political subdivision, within which an
applicant for a slot machine license has proposed to locate a
licensed gaming facility, a 60-day comment period prior to the
board's final approval, condition or denial of approval of its
application for a slot machine license. The political
subdivision may make recommendations to the board for
improvements to the applicant's proposed site plans that take
into account the impact on the local community, including, but
not limited to, land use and transportation impact. This section
shall also apply to any proposed racetrack or licensed
racetrack.
§ 1507. Inapplicability of Keystone Opportunity Zone, Keystone
Opportunity Expansion Zone and Keystone Opportunity
Improvement Zone Act.
The act of October 6, 1998 (P.L.705, No.92), known as the
Keystone Opportunity Zone, Keystone Opportunity Expansion Zone
and Keystone Opportunity Improvement Zone Act, shall not apply
to taxes or fees payable under this part.
§ 1508. Athletic event gaming.
Nothing in this part shall be construed to permit the
receiving, recording or the registering of bets or wagers or
selling pools which may involve any professional or amateur
athletic event. Nothing in this part shall be construed to
prohibit staging or conducting athletic events at licensed
facilities.
§ 1509. Compulsive and problem gambling program.
(a) Establishment of program.--The Department of Health, in
consultation with organizations similar to the Mid-Atlantic
Addiction Training Institute, shall develop program guidelines
for public education, awareness and training regarding
compulsive and problem gambling and the treatment and prevention
of compulsive and problem gambling. The program shall include:
(1) Maintenance of a compulsive gamblers assistance
organization's toll-free problem gambling telephone number to
provide crisis counseling and referral services to families
experiencing difficulty as a result of problem or compulsive
gambling.
(2) The promotion of public awareness regarding the
recognition and prevention of problem or compulsive gambling.
(3) Facilitation, through in-service training and other
means, of the availability of effective assistance programs
for problem and compulsive gamblers and family members
affected by problem and compulsive gambling.
(4) Conducting studies to identify adults and juveniles
in this Commonwealth who are or are at risk of becoming
problem or compulsive gamblers.
(5) Providing grants to and contracting with
organizations which provide services as set forth in this
section.
(6) Providing reimbursement for organizations for
reasonable expenses in assisting the Department of Health in
carrying out the purposes of this section.
(b) Compulsive and Problem Gambling Treatment Fund.--There
is hereby established in the State Treasury a special fund to be
known as the Compulsive and Problem Gambling Treatment Fund. All
moneys in the fund shall be expended for programs for the
prevention and treatment of gambling addiction and other
emotional and behavioral problems associated with or related to
gambling and for the administration of the compulsive and
problem gambling program. The fund shall consist of money
annually allocated to it from the annual payment established
under section 1408 (relating to transfers from State Gaming
Fund), money which may be allocated by the board, interest
earnings on moneys in the fund and any other contributions,
payments or deposits which may be made to the fund.
(c) Notice of availability of assistance.--
(1) Each slot machine licensee shall obtain a toll-free
telephone number to be used to provide persons with
information on assistance for compulsive or problem gambling.
Each licensee shall conspicuously post signs similar to the
following statement:
If you or someone you know has a gambling problem,
help is available. Call (Toll-Free Telephone Number).
The signs must be posted within 50 feet of each entrance and
exit and within 50 feet of each automated teller machine
location within the licensed facility.
(2) Each racetrack where slot machines are operated
shall print a statement on daily racing programs provided to
the general public that is similar to the following:
If you or someone you know has a gambling problem,
help is available. Call (Toll-free telephone number).
(3) A licensed facility which fails to post or print the
warning sign in accordance with paragraph (1) or (2) shall be
assessed a fine of $1,000 a day for each day the sign is not
posted or printed as provided in this subsection.
(d) Single county authorities.--The Department of Health may
make grants from the fund established under subsection (b) to a
single county authority created pursuant to the act of April 14,
1972 (P.L.221, No.63), known as the Pennsylvania Drug and
Alcohol Abuse Control Act, for the purpose of providing
compulsive gambling and gambling addition prevention, treatment
and education programs. It is the intention of the General
Assembly that any grants that the Department of Health may make
to any single county authority in accordance with the provisions
of this subsection be used exclusively for the development and
implementation of compulsive and problem gambling programs
authorized under subsection (a).
(e) Definition.--As used in subsection (d), the term "single
county authority" means the agency designated by the Department
of Health pursuant to the act of April 14, 1972 (P.L.221,
No.63), known as the Pennsylvania Drug and Alcohol Abuse Control
Act, to plan and coordinate drug and alcohol prevention,
intervention and treatment services for a geographic area, which
may consist of one or more counties.
§ 1510. Labor hiring preferences.
(a) Category 1, 2, and 3 licensed facilities, generally.--
Each licensed gaming entity shall prepare a hiring plan for
employees of its respective licensed facility which promotes a
diverse work force, minority participation and personnel from
within the surrounding geographical area.
(b) Category 1 licensed facilities.--All current employees
of a racetrack who meet the employment qualifications, if
applicable, within this part and all those covered by a
collective bargaining agreement as defined in the National Labor
Relations Act (49 Stat. 449, 29 U.S.C. § 151 et seq.) where the
licensed racing entity conducts racing shall be given a one-time
preference of an offer of employment for a similar position at
the licensed facility in a manner consistent with Federal law.
If a similar position does not exist at the licensed facility,
the employee or person covered by a collective bargaining
agreement shall have a one-time preference of an offer of a
position at comparable level at the licensed facility. All
current employees and all those covered by a collective
bargaining agreement shall have a period of 30 days from the
issuance of a slot machine license to request employment at the
licensed facility under this section. No current employee
covered by this section shall suffer a reduction of salary,
benefits or status as a result of an acceptance of new
employment in the new facility.
§ 1511. Declaration of exemption from Federal laws prohibiting
slot machines.
(a) Declaration.--Pursuant to the Gambling Devices
Transportation Act (64 Stat. 1134, 15 U.S.C. § 1171 et seq.),
the Commonwealth declares that it is exempt from section 2 of
that act.
(b) Legal shipments.--All shipments of slot machines into
this Commonwealth, the registering, recording and labeling of
which has been effected by the manufacturer and supplier of
those devices, in accordance with sections 5 and 7 of the
Gambling Devices Transportation Act (64 Stat. 1134, 15 U.S.C. §§
1175 and 1177), shall be deemed legal shipments of slot machines
into this Commonwealth.
§ 1512. Public official financial interest.
(a) General rule.--Except as may be provided by rule or
order of the Pennsylvania Supreme Court, no executive-level
State employee, public official, party officer or immediate
family member thereof shall have, at or following the effective
date of this part, a financial interest in or be employed,
directly or indirectly, by any licensed racing entity or
licensed gaming entity, or any holding, affiliate, intermediary
or subsidiary company, thereof, or any such applicant, nor
solicit or accept, directly or indirectly, any complimentary
service or discount from any licensed racing entity or licensed
gaming entity which he or she knows or has reason to know is
other than a service or discount that is offered to members of
the general public in like circumstances during his or her
status as an executive-level State employee, public official or
party officer and for one year following termination of the
person's status as an executive-level State employee, public
official or party officer.
(b) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection:
"Executive-level State employee." The Governor, Lieutenant
Governor, cabinet members, deputy secretaries, the Governor's
office executive staff, any State employee with discretionary
powers which may affect the outcome of a State agency's decision
in relation to a private corporation or business, with respect
to any matter covered by this part or any executive employee who
by virtue of his job function could influence the outcome of
such a decision.
"Financial interest." Owning or holding securities exceeding
1% of the equity or fair market value of the licensed racing
entity or licensed gaming entity, its holding company,
affiliate, intermediary or subsidiary business. A financial
interest shall not include any such stock that is held in a
blind trust over which the executive-level State employee,
public official, party officer or immediate family member
thereof may not exercise any managerial control or receive
income during the tenure of office and the period under
subsection (a).
"Immediate family." A parent, spouse, minor or unemancipated
child, brother or sister.
"Party officer." A member of a national committee; a
chairman, vice chairman, secretary, treasurer or counsel of a
State committee or member of the executive committee of a State
committee; a county chairman, vice chairman, counsel, secretary
or treasurer of a county committee; or a city chairman, vice
chairman, counsel, secretary or treasurer of a city committee.
"Public official." Any person elected by the public or
elected or appointed by a governmental body or an appointed
official in the executive, legislative or judicial branch of
this Commonwealth or any political subdivision thereof, provided
that it shall not include members of advisory boards that have
no authority to expend public funds other than reimbursement for
personal expense or to otherwise exercise the power of the
Commonwealth or any political subdivision or commissioner of any
authority or joint-state commission.
§ 1513. Political influence.
(a) Contribution restriction.--An applicant for a slot
machine license, manufacturer license or supplier license,
licensed racing entity, licensed manufacturer, licensed supplier
or licensed gaming entity, or a person that holds a similar
gaming license or permit or a controlling interest in a gaming
license or permit in another jurisdiction, or any holding,
affiliate, intermediary or subsidiary company thereof, or any
officer, director or key employee of such applicant, licensed
manufacturer or licensed supplier, licensed racing entity or
licensed gaming entity or any holding, affiliate, intermediary
or subsidiary company thereof, shall be prohibited from
contributing any money or in-kind contribution to a candidate
for nomination or election to any public office in this
Commonwealth, or to any political committee or State party in
this Commonwealth or to any group, committee or association
organized in support of any such candidate, political committee
or State party.
(b) Annual certification.--The chief executive officer, or
other appropriate individual, of each applicant for a slot
machine license, manufacturer license or supplier license,
licensed racing entity, licensed supplier, licensed manufacturer
or licensed gaming entity shall annually certify under oath to
the board and the Department of State that such applicant or
licensed racing entity, licensed supplier, licensed manufacturer
or licensed gaming entity has developed and implemented internal
safeguards and policies intended to prevent a violation of this
provision and that such applicant or licensed racing entity or
licensed gaming entity has conducted a good faith investigation
that has not revealed any violation of this provision during the
past year.
(c) Penalties.--The first violation of this section by a
licensed gaming entity or any person that holds a controlling
interest in such gaming entity, or a subsidiary company thereof,
and any officer, director or management-level employee of such
licensee shall be punishable by a fine of not less than an
average single day's gross terminal revenue of the licensed
gaming entity derived from the operation of slot machines in
this Commonwealth; a second violation of this section, within
five years of the first violation, shall be punishable by at
least a one-day suspension of the license held by the licensed
gaming entity and a fine not less than an average two days'
gross revenue of the licensed gaming entity; a third violation
of this section within five years of the second violation shall
be punishable by the immediate revocation of the license held by
the licensed gaming entity. The first violation of this section
by a manufacturer or supplier licensed pursuant to this part or
by any person that holds a controlling interest in such
manufacturer or supplier, or a subsidiary company thereof, and
any officer, director or management-level employee of such a
licensee shall be punishable by a fine of not less than one
day's average of the gross profit from sales made by the
manufacturer or supplier in Pennsylvania during the preceding
12-month period or portion thereof in the event the manufacturer
or supplier has not operated in Pennsylvania for 12 months; a
second violation of this section within five years of the first
violation shall be punishable by a one-month suspension of the
license held by the manufacturer or supplier and a fine of not
less than two times one day's average of the gross profit from
sales made by the manufacturer or supplier in Pennsylvania
during the preceding 12-month period or portion thereof in the
event the manufacturer or supplier has not operated in
Pennsylvania for 12 months. In no event shall the fine imposed
under this section be in an amount less than $50,000 for each
violation. In addition to any fine or sanction that may be
imposed by the board, any person who makes a contribution in
violation of this section commits a misdemeanor of the third
degree.
§ 1514. Regulation requiring exclusion of certain persons.
(a) General rule.--The board shall by regulation provide for
the establishment of a list of persons who are to be excluded or
ejected from any licensed facility. The provisions shall define
the standards for exclusion and shall include standards relating
to persons who are career or professional offenders as defined
by regulations of the board or whose presence in a licensed
facility would, in the opinion of the board, be inimical to the
interest of the Commonwealth or of licensed gaming therein, or
both.
(b) Categories to be defined.--The board shall promulgate
definitions establishing those categories of persons who shall
be excluded pursuant to this section, including cheats and
persons whose privileges for licensure or registration have been
revoked.
(c) Discrimination prohibited.--Race, color, creed, national
origin or ancestry or sex shall not be a reason for placing the
name of any person upon a list under this section.
(d) Sanctions.--The board may impose sanctions upon a
licensed gaming entity in accordance with this part if the
licensed gaming entity knowingly fails to exclude or eject from
the premises of any licensed facility any person placed by the
board on the list of persons to be excluded or ejected.
(e) List not all-inclusive.--Any list compiled by the board
of persons to be excluded or ejected shall not be deemed an all-
inclusive list, and a licensed gaming entity shall have a duty
to keep from the licensed facility persons known to it to be
within the classifications declared in this section and the
regulations promulgated under this section whose presence in a
licensed facility would be inimical to the interest of the
Commonwealth or of licensed gaming therein, or both, as defined
in standards established by the board.
(f) Notice.--Whenever the board places the name of any
person on a list pursuant to this section, the board shall serve
notice of this fact to such person by personal service or
certified mail at the last known address of the person.
(g) Hearing.--Within 30 days after notice in accordance with
subsection (f), the person named for exclusion or ejection may
demand a hearing before the board, at which hearing the board
shall have the affirmative obligation to demonstrate that the
person named for exclusion or ejection satisfies the criteria
for exclusion established by this section and the board's
regulations. Failure to demand a hearing within 30 days after
service shall be deemed an admission of all matters and facts
alleged in the board's notice and shall preclude a person from
having an administrative hearing, but shall in no way affect the
right to judicial review as provided in this section.
(h) Review.--If, upon completion of a hearing on the notice
of exclusion or ejection, the board determines that placement of
the name of the person on the exclusion list is appropriate, the
board shall make and enter an order to that effect, which order
shall be served on all slot machine licensees. The order shall
be subject to review by the Commonwealth Court in accordance
with the rules of court.
§ 1515. Repeat offenders excludable from licensed gaming
facility.
A licensed gaming entity may exclude or eject from its
licensed facility any person who is known to it to have been
convicted of a misdemeanor or felony committed in or on the
premises of any licensed facility. Nothing in this section or in
any other law of this Commonwealth shall limit the right of a
licensed gaming entity to exercise its common law right to
exclude or eject permanently from its licensed facility any
person who disrupts the operations of its premises, threatens
the security of its premises or its occupants or is disorderly
or intoxicated.
§ 1516. List of persons self excluded from gaming activities.
(a) General rule.--The board shall provide by regulation for
the establishment of a list of persons self excluded from gaming
activities at all licensed facilities. Any person may request
placement on the list of self-excluded persons by acknowledging
in a manner to be established by the board that the person is a
problem gambler and by agreeing that, during any period of
voluntary exclusion, the person may not collect any winnings or
recover any losses resulting from any gaming activity at
licensed facilities.
(b) Regulations.--The regulations of the board shall
establish procedures for placements on and removals from the
list of self-excluded persons. The regulations shall establish
procedures for the transmittal to licensed gaming entities of
identifying information concerning self-excluded persons and
shall require licensed gaming entities to establish procedures
designed at a minimum to remove self-excluded persons from
targeted mailings or other forms of advertising or promotions
and deny self-excluded persons access to complimentaries, check
cashing privileges, club programs and other similar benefits.
(c) Liability.--A licensed gaming entity or employee thereof
shall not be liable to any self-excluded person or to any other
party in any judicial proceeding for any harm, monetary or
otherwise, which may arise as a result of:
(1) the failure of a licensed gaming entity to withhold
gaming privileges from or restore gaming privileges to a
self-excluded person; or
(2) otherwise permitting or not permitting a self-
excluded person to engage in gaming activity in the facility
while on the list of self-excluded persons.
(d) Disclosure.--Notwithstanding any other law to the
contrary, the board's list of self-excluded persons shall not be
open to public inspection. Nothing in this section, however,
shall be construed to prohibit a licensed gaming entity from
disclosing the identity of persons self excluded pursuant to
this section to affiliated gaming entities in this Commonwealth
or other jurisdictions for the limited purpose of assisting in
the proper administration of responsible gaming programs
operated by affiliated licensed gaming entities.
§ 1517. Enforcement.
(a) Powers and duties.--The Bureau of Investigations and
Enforcement shall have the following powers and duties:
(1) Promptly investigate all licensees, permittees and
applicants as directed by the board in accordance with the
provisions of section 1202 (relating to general and specific
powers).
(2) Enforce the rules and regulations promulgated under
this part.
(3) Initiate proceedings for administrative violations
of this part or regulations promulgated under this part.
(4) Provide the board with all information necessary for
all action under this part and for all proceedings involving
enforcement of this part or regulations promulgated under
this part.
(5) Investigate the circumstances surrounding any act or
transaction for which board approval is required.
(6) Conduct administrative inspections on the premises
of a licensed racetrack or nonprimary location or licensed
facility to ensure compliance with this part and the
regulations of the board and, in the course of inspections,
review and make copies of all documents and records that may
be required through onsite observation and other reasonable
means to assure compliance with this part and regulations
promulgated under this part.
(7) Receive and take appropriate action on any referral
from the board relating to any evidence of a violation.
(8) Conduct audits of slot machine operations at such
times, under such circumstances and to such extent as the
bureau determines. This paragraph includes reviews of
accounting, administrative and financial records and
management control systems, procedures and records utilized
by a slot machine licensee.
(9) Request and receive information, materials and other
data from any licensee, permittee or applicant.
(10) Refer for investigation all possible criminal
violations to the Pennsylvania State Police and cooperate
fully in the investigation and prosecution of a criminal
violation arising under this part.
(b) Powers and duties of department.--
(1) The department shall at all times have the power of
access to examination and audit of any equipment and records
relating to all aspects of the operation of slot machines
under this part.
(2) Notwithstanding the provisions of section 353(f) of
the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971, the department shall supply the board,
the bureau, the Pennsylvania State Police and the Office of
Attorney General with information concerning the status of
delinquent taxes owned by the applicant, licensee or
permittee.
(c) Powers and duties of the Pennsylvania State Police.--The
Pennsylvania State Police shall have the following powers and
duties:
(1) Promptly investigate all licensees, permittees and
applicants as directed by the board in accordance with the
provisions of section 1202.
(2) Enforce the rules and regulations promulgated under
this part.
(3) Initiate proceedings for any violations of this part
or regulations promulgated under this part.
(4) Provide the board with all information necessary for
all actions under this part for all proceedings involving
enforcement of this part or regulations promulgated under
this part.
(5) Inspect a licensee's or permittee's person and
personal effects present in a licensed facility under this
part while that licensee or permittee is present at a
licensed facility.
(6) Enforce the criminal provisions of this part and all
other criminal laws of the Commonwealth.
(7) Fingerprint applicants for licenses and permits.
(8) Exchange fingerprint data with and receive national
criminal history record information from the FBI for use in
investigating applications for any license or permit under
this part.
(9) Receive and take appropriate action on any referral
from the board relating to criminal conduct.
(10) Require the production of any information, material
and other data from any licensee, permittee or applicant.
(11) Conduct administrative inspections on the premises
of licensed racetrack or nonprimary location or licensed
facility to ensure compliance with this part and the
regulations of the board and, in the course of inspections,
review and make copies of all documents and records required
by the inspection through onsite observation and other
reasonable means to assure compliance with this act and
regulations promulgated under this part.
(12) Conduct audits or verification of information of
slot machine operations at such times, under such
circumstances and to such extent as the bureau determines.
This paragraph includes reviews of accounting, administrative
and financial records and management control systems,
procedures and records utilized by a slot machine licensee.
(13) A member of the Pennsylvania State Police assigned
to duties of enforcement under this part shall not be counted
toward the complement as defined in the act of December 13,
2001 (P.L.903, No.100), entitled "An act repealing in part a
limitation on the complement of the Pennsylvania State
Police."
(d) Criminal action.--
(1) The district attorneys of the several counties shall
have authority to investigate and to institute criminal
proceedings for any violation of this part.
(2) In addition to the authority conferred upon the
Attorney General by the act of October 15, 1980 (P.L.950,
No.164), known as the Commonwealth Attorneys Act, the
Attorney General shall have the authority to investigate and
to institute criminal proceedings for any violation of this
part or any series of such violations involving any county of
this Commonwealth and another state. No person charged with a
violation of this part by the Attorney General shall have
standing to challenge the authority of the Attorney General
to investigate or prosecute the case, and, if any such
challenge is made, the challenge shall be dismissed and no
relief shall be available in the courts of this Commonwealth
to the person making the challenge.
(e) Inspection, seizure and warrants.--
(1) The bureau, the department and the Pennsylvania
State Police shall have the authority without notice and
without warrant to do all of the following in the performance
of their duties:
(i) Inspect and examine all premises where slot
machine operations are conducted, gaming devices or
equipment are manufactured, sold, distributed or serviced
or where records of these activities are prepared or
maintained.
(ii) Inspect all equipment and supplies in, about,
upon or around premises referred to in subparagraph (i).
(iii) Seize, summarily remove and impound equipment
and supplies from premises referred to in subparagraph
(i) for the purposes of examination and inspection.
(iv) Inspect, examine and audit all books, records
and documents pertaining to a slot machine licensee's
operation.
(v) Seize, impound or assume physical control of any
book, record, ledger, game, device, cash box and its
contents, counting room or its equipment or slot machine
operations.
(2) The provisions of paragraph (1) shall not be deemed
to limit warrantless inspections except in accordance with
constitutional requirements.
(3) To further effectuate the purposes of this part, the
bureau and the Pennsylvania State Police may obtain
administrative warrants for the inspection and seizure of
property possessed, controlled, bailed or otherwise held by
an applicant, licensee, permittee, intermediary, subsidiary,
affiliate or holding company.
(f) Information sharing and enforcement referral.--With
respect to the administration, supervision and enforcement of
this part, the bureau, the department, the Pennsylvania State
Police or the Office of Attorney General may obtain or provide
pertinent information regarding applicants, licensees or
permittees from or to law enforcement entities or gaming
authorities of the Commonwealth and other domestic, foreign or
federally approved jurisdictions, including the Federal Bureau
of Investigation, and may transmit such information to each
other electronically.
§ 1518. Prohibited acts; penalties.
(a) Criminal offenses.--
(1) The provisions of 18 Pa.C.S. § 4902 (relating to
perjury), 4903 (relating to false swearing) or 4904 (relating
to unsworn falsification to authorities) shall apply to any
person providing information or making any statement, whether
written or oral, to the board, the bureau, the department,
the Pennsylvania State Police or the Office of Attorney
General, as required by this part.
(2) It is unlawful for a person to willfully:
(i) fail to report, pay or truthfully account for
and pay over any license fee, tax or assessment imposed
under this part; or
(ii) attempt in any manner to evade or defeat any
license fee, tax or assessment imposed under this party.
(3) It is unlawful for any licensed entity, gaming
employee, key employee or any other person to permit a slot
machine to be operated, transported, repaired or opened on
the premises of a licensed facility by a person other than a
person licensed or permitted by the board pursuant to this
part.
(4) It is unlawful for any licensed entity or other
person to manufacture, supply or place slot machines into
play or display slot machines on the premise of a licensed
facility without the authority of the board.
(5) Except as provided for in section 1326 (relating to
license renewals), it is unlawful for a licensed entity or
other person to manufacture, supply, operate, carry on or
expose for play any slot machine after the person's license
has expired and prior to the actual renewal of the license.
(6) (i) Except as set forth in subparagraph (ii), it is
unlawful for an individual on the premises of a licensed
facility to knowingly use currency other than lawful coin
or legal tender of the United States or a coin not of the
same denomination as the coin intended to be used in the
slot machine.
(ii) In the playing of a slot machine, it is lawful
for an individual to use gaming billets, tokens or
similar objects issued by the licensed gaming entity
which are approved by the board.
(7) (i) Except as set forth in subparagraph (ii), it is
unlawful for an individual on the premises of a licensed
facility to use or possess a cheating or thieving device,
counterfeit or altered billet, ticket, token or similar
objects accepted by a slot machine or counterfeit or
altered slot machine-issued tickets or vouchers.
(ii) An authorized employee of a licensee or an
employee of the board may possess and use a cheating or
thieving device, counterfeit or altered billet, ticket,
token or similar objects accepted by a slot machine or
counterfeit or altered slot machine-issued tickets or
vouchers only in performance of the duties of employment.
(iii) As used in this paragraph, the term "cheating
or thieving device" includes, but is not limited to, a
device to facilitate the alignment of any winning
combination or to remove from any slot machine money or
other contents. The term includes, but is not limited to,
a tool, drill, wire, coin or token attached to a string
or wire and any electronic or magnetic device.
(8) (i) Except as set forth in subparagraph (ii), it is
unlawful for an individual to knowingly possess or use
while on the premises of a licensed facility a key or
device designed for the purpose of and suitable for
opening or entering any slot machine or coin box.
(ii) An authorized employee of licensee or a member
of the board may possess and use a device referred to in
subparagraph (i) only in the performance of the duties of
employment.
(9) It is unlawful for a person or licensed entity to
possess any device, equipment or material which the person or
licensed entity knows has been manufactured, distributed,
sold, tampered with or serviced in violation of this part.
(10) It is unlawful for an individual to work or be
employed in a position the duties of which would require
licensing or permitting under the provisions of this part
without first obtaining the requisite license or permit as
provided for in this part.
(11) It is unlawful for a licensed gaming entity that is
a licensed racing entity and that has lost the license issued
to it by either the State Horse Racing Commission or the
State Harness Racing Commission under the Race Horse Industry
Reform Act or that has had that license suspended to operate
slot machines at the racetrack for which its license was
issued unless the license will be subsequently reissued or
reinstated within 30 days after the loss or suspension.
(12) It is unlawful for a licensed entity to employ or
continue to employ in a position the duties of which require
a license or permit under the provisions of this part:
(i) An individual not licensed or permitted under
the provisions of this part.
(ii) An individual who is prohibited from accepting
employment from a licensee.
(13) It is unlawful for any person under 18 years of age
to be permitted in the area where slot machines are operated.
(b) Criminal penalties and fines.--
(1) (i) A person that violates subsection (a)(1)
commits an offense to be graded in accordance with 18
Pa.C.S. § 4902, 4903 or 4904, as applicable, for a first
conviction. A person that is convicted of a second or
subsequent violation of subsection (a)(1) commits a
felony of the second degree.
(ii) A person that violates subsection (a)(2)
through (12) commits a misdemeanor of the first degree. A
person that is convicted of a second or subsequent
violation of subsection (a)(2) through (12) commits a
felony of the second degree.
(2) (i) For a first violation of subsection (a)(1)
through (12), a person shall be sentenced to pay a fine
of:
(A) not less than $75,000 nor more than $150,000
if the person is an individual;
(B) not less than $300,000 nor more than
$600,000 if the person is a licensed gaming entity;
or
(C) not less than $150,000 nor more than
$300,000 if the person is a licensed manufacturer or
supplier.
(ii) For a second or subsequent violation of
subsection (a)(1) through (12), a person shall be
sentenced to pay a fine of:
(A) not less than $150,000 nor more than
$300,000 if the person is an individual;
(B) not less than $600,000 nor more than
$1,200,000 if the person is a licensed gaming entity;
or
(C) not less than $300,000 nor more than
$600,000 if the person is a licensed manufacturer or
supplier.
(c) Board-imposed administrative sanctions.--
(1) In addition to any other penalty authorized by law,
the board may impose without limitation the following
sanctions upon any licensee or permittee:
(i) Revoke the license or permit of any person
convicted of a criminal offense under this part or
regulations promulgated under this part or committing any
other offense or violation of this part or applicable law
which would otherwise disqualify such person from holding
the license or permit.
(ii) Revoke the license or permit of any person
determined to have violated a provision of this part or
regulations promulgated under this part which would
otherwise disqualify such person from holding the license
or permit.
(iii) Revoke the license or permit of any person for
willfully and knowingly violating or attempting to
violate an order of the board directed to such person.
(iv) Suspend the license or permit of any person
pending the outcome of a hearing in any case in which
license or permit revocation could result.
(v) Suspend the license of any licensed gaming
entity for violation of or attempting to violate any
provisions of this part or regulations promulgated under
this part relating to its slot machine operations.
(vi) Assess administrative penalties as necessary to
punish misconduct and to deter future violations.
(vii) Order restitution of any moneys or property
unlawfully obtained or retained by a licensee or
permittee.
(viii) Enter cease and desist orders which specify
the conduct which is to be discontinued, altered or
implemented by the licensee or permittee.
(ix) Issue letters of reprimand or censure, which
letters shall be made a permanent part of the file of
each licensee or permittee so sanctioned.
(2) If the board refuses to issue or renew a license or
permit, suspends or revokes a license or permit, assesses
civil penalties, orders restitution, enters a cease and
desist order or issues a letter of reprimand or censure, it
shall provide the applicant or licensee or permittee with
written notification of its decision, including a statement
of the reasons for its decision by certified mail within five
business days of the decision. Any applicant or licensee or
permittee who has received notice of a refusal, suspension or
revocation of a license or permit, the assessment of civil
penalties, an order of restitution, the entrance of a cease
and desist order or the issuance of a letter of reprimand or
censure from the board shall have the right to an
administrative hearing before the board in accordance with 2
Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure
of Commonwealth agencies) and 7 Subch. A (relating to
judicial review of Commonwealth agency action).
(3) In addition to any other fines or penalties that the
board may impose under this part or regulation, if a person
violates subsection (a)(2), the board shall impose an
administrative penalty of three times the amount of the
license fee, tax or other assessment evaded and not paid,
collected or paid over. This subsection is subject to 2
Pa.C.S. Chs. 5 Subch. A and 7 Subch. A.
§ 1519. (Reserved).
§ 1520. Automated teller machines.
The board shall promulgate rules and regulations governing
the placement of automated teller machines (ATMs).
§ 1521. Liquor licenses at licensed facilities.
(a) Reapplication.--Nothing in this part shall require a
person already licensed to sell liquor or malt or brewed
beverages to reapply for the license except in the manner set
forth in the act of April 12, 1951 (P.L.90, No.21), known as the
Liquor Code.
(b) License authority.--Notwithstanding any other provision
of law, a person holding a slot machine license which is also
licensed to sell liquor or malt or brewed beverages pursuant to
the Liquor Code shall be permitted to sell, furnish or give
liquor or malt or brewed beverages on the unlicensed portion of
the licensed gaming facility so long as the liquor or malt or
brewed beverages remain on the facility.
(c) Nonlicensees.--Notwithstanding any other provision of
law, a slot machine licensee which is not licensed to sell
liquor or malt or brewed beverages shall be entitled to apply to
the Pennsylvania Liquor Control Board for a restaurant liquor or
eating place retail dispenser license as permitted by section
472 of the Liquor Code. The following shall apply:
(1) Licenses issued under this section shall not be
subject to:
(i) The proximity provisions of sections 402 and 404
of the Liquor Code.
(ii) The quota restrictions of section 461 of the
Liquor Code.
(iii) The provisions of section 493(10) of the
Liquor Code except as they relate to lewd, immoral or
improper entertainment.
(iv) The prohibition against minors frequenting as
described in section 493(14) of the Liquor Code.
(v) The cost and total display area limitations of
section 493(20)(i) of the Liquor Code.
In addition, licenses issued under this section shall not be
subject to the provisions defining "restaurant" or "eating
place" in section 102 of the Liquor Code.
(2) Absent good cause shown consistent with the purposes
of this part, the Pennsylvania Liquor Control Board shall
approve an application for the license filed by a licensed
gaming entity within 60 days.
CHAPTER 18
FINGERPRINTING
Sec.
1801. Duty to provide.
1802. Submission of fingerprints.
1803. Commission exemption.
1804. Board exemption.
1805. Reimbursement.
§ 1801. Duty to provide.
Notwithstanding the provisions of the Race Horse Industry
Reform Act or this part, the Pennsylvania State Police shall at
the request of the commissions or the board provide criminal
history background investigations, which shall include records
of criminal arrests or convictions, on applicants for licensure
by the respective agencies pursuant to the Race Horse Industry
Reform Act or this part. Requests for criminal history
background investigations may, at the direction of the
commissions or the board, include, but not be limited to,
officers, directors and stockholders of licensed corporations,
key employees, gaming employees, horse owners, trainers,
jockeys, drivers and other persons participating in thoroughbred
or harness horse meetings and other persons and vendors who
exercise their occupation or employment at such meetings,
licensed facilities or licensed racetrack. For the purposes of
this chapter, the board and commissions may receive information
otherwise protected by 18 Pa.C.S. Ch. 91 (relating to criminal
history record information).
§ 1802. Submission of fingerprints.
Applicants under this part shall submit to fingerprinting by
the Pennsylvania State Police. The Pennsylvania State Police
shall submit the fingerprints if necessary to the Federal Bureau
of Investigation for purposes of verifying the identity of the
applicants and obtaining records of criminal arrests and
convictions in order to prepare criminal history background
investigations under section 1801 (relating to duty to provide).
The applicant shall pay for the cost of fingerprinting.
§ 1803. Commission exemption.
A commission may exempt applicants for positions not related
to the care or training of horses, racing, wagering, security or
the management of licensed corporations from the provisions of
this chapter.
§ 1804. Board exemption.
The board may exempt applicants who are not gaming employees
or key employees from the provisions of this chapter.
§ 1805. Reimbursement.
The commissions and board shall reimburse the Pennsylvania
State Police for actual costs incurred as approved by the board
for the conducting of investigations under this part.
CHAPTER 19
MISCELLANEOUS PROVISIONS
Sec.
1901. Appropriations.
1902. Severability.
1903. Repeals.
1904. Exclusive jurisdiction of Supreme Court.
§ 1901. Appropriations.
(a) Appropriation to board.--The sum of $7,500,000 is hereby
appropriated to the Pennsylvania Gaming Control Board for the
fiscal period July 1, 2004, to June 30, 2006, to implement and
administer the provisions of this part. The money appropriated
in this subsection shall be considered a loan from the General
Fund and shall be repaid to the General Fund quarterly
commencing with the date slot machine licensees begin operating
slot machines under this part. This appropriation shall be a
two-year appropriation and shall not lapse until June 30, 2006.
(b) Appropriation to department.--The sum of $21,100,000 is
hereby appropriated from the General Fund to the Department of
Revenue for the fiscal period July 1, 2004, to June 30, 2006, to
prepare for, implement and administer the provisions of this
part. The money appropriated under this subsection shall be
considered a loan from the General Fund and shall be repaid to
the General Fund quarterly commencing with the date slot machine
licensees begin operating slot machines under this part. This
appropriation shall be a two-year appropriation and shall not
lapse until June 30, 2006.
(c) Appropriation to Pennsylvania State Police.--The sum of
$7,500,000 is hereby appropriated from the General Fund to the
Pennsylvania State Police for the fiscal period July 1, 2004, to
June 30, 2006, to prepare for, implement and administer the
provisions of this part. The money appropriated under this
subsection shall be considered a loan from the General Fund and
shall be repaid to the General Fund quarterly commencing when
all slot machine licensees begin operating slot machines under
this part. This appropriation shall be a two-year appropriation
and shall not lapse until June 30, 2006.
§ 1902. Severability.
(a) General rule.--Except as provided in subsection (b), the
provisions of this part are severable. If any provision of this
part or its application to any person or circumstances is held
invalid, the invalidity shall not affect other provisions or
applications of this part which can be given effect without the
invalid provision or application.
(b) Limitation.--If any of the provisions of section 1201
(relating to Pennsylvania Gaming Control Board established) or
1209 (relating to slot machine license fee) or their application
to any person or circumstance are held to be invalid by any
court, the remaining provisions of this part and its application
shall be void.
§ 1903. Repeals.
(a) Inconsistent.--The following acts and parts of acts are
repealed as follows:
(1) Section 493(29) of the act of April 12, 1951
(P.L.90, No.21), known as the Liquor Code, is repealed
absolutely.
(2) The provisions of 18 Pa.C.S. § 5513(a) are repealed
insofar as they are inconsistent with this part.
(b) General.--All other acts and parts of acts are repealed
insofar as they are inconsistent with this part.
§ 1904. Exclusive jurisdiction of Supreme Court.
The Pennsylvania Supreme Court shall have exclusive
jurisdiction to hear any challenge to or to render a declaratory
judgment concerning the constitutionality of this part. The
Supreme Court is authorized to take such action as it deems
appropriate, consistent with the Supreme Court retaining
jurisdiction over such a matter, to find facts or to expedite a
final judgment in connection with such a challenge or request
for declaratory relief.
Section 2. This act shall take effect immediately.
APPROVED--The 5th day of July, A. D. 2004.
EDWARD G. RENDELL
Compiler's Note: The act of June 21, 1957 (P.L.390, No.212),
referred to as the Right-to-Know Law, referred to in
subsec. (a), was repealed by the act of Feb. 14, 2008
(P.L.6, No.3), known as the Right-to-Know Law.
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