PRINTER'S NO. 3143
No. 2328 Session of 1990
INTRODUCED BY JAROLIN, COLAIZZO, STISH, STABACK, TIGUE,
PISTELLA, TRELLO AND KENNEY, MARCH 13, 1990
REFERRED TO COMMITTEE ON FINANCE, MARCH 13, 1990
AN ACT
1 Providing for the licensing, regulation and operation of video
2 poker machines; imposing taxes; distributing revenues; and
3 imposing penalties.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Video Poker
8 Machine Control Act.
9 Section 2. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "Associated equipment." All proprietary devices, machines or
14 parts used in the manufacture or maintenance of a video poker
15 machine, including, but not limited to, integrated circuit
16 chips, printed wired assembly, printed wired boards, printing
17 mechanisms, video display monitors and metering devices.
18 "Department." The Department of Revenue of the Commonwealth.
1 "Licensed establishment." An establishment licensed under
2 the act of April 12, 1951 (P.L.90, No.21), known as the Liquor
3 Code.
4 "Licensee." An individual, partnership, corporation or
5 association that has been issued a license by the Department of
6 Revenue for the placement and operation of video poker machines
7 in the licensed establishment of the individual, partnership,
8 corporation or association.
9 "Manufacturer-distributor." An individual, partnership,
10 corporation or association that assembles, produces and makes or
11 supplies video poker machines or associated equipment for sale,
12 use or distribution in this Commonwealth.
13 "Net machine income." Money put into a video poker machine
14 minus credits paid out in cash.
15 "Video poker machine." An electronic video game machine
16 which, upon insertion of cash, is available to play or simulate
17 the play of the game of poker, as provided in this act,
18 utilizing a video display and microprocessors, and in which, by
19 the skill of the player or by chance, or both, the player may
20 receive free games or credits that can be redeemed for cash. The
21 term does not include a machine that directly dispenses coins,
22 cash, tokens or anything else of value.
23 Section 3. Restrictions on possession and use of video poker
24 machines.
25 (a) License required.--No person may place a video poker
26 machine in his licensed establishment unless he is licensed
27 under this act.
28 (b) Age limit.--A person under 18 years of age may not play
29 a video poker machine.
30 (c) Hours.--Except as provided in subsection (d), an
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1 establishment that receives a license to make a video poker
2 machine available for play must have the machine shut off each
3 day during the hours that a licensed retail alcoholic beverage
4 establishment must be closed.
5 (d) Local ordinance.--A local governing body may establish
6 any hours that it determines proper for the play of video poker
7 machines.
8 Section 4. Powers and duties of department.
9 (a) Administration.--The department shall administer this
10 act.
11 (b) Specifications of machines.--The department shall define
12 the specifications of allowable video poker machines.
13 (c) Reasonable cause.--The department may not suspend,
14 revoke, deny or place a condition on a license except for
15 reasonable cause. Reasonable cause includes, but is not limited
16 to, conviction of a violation of a local government gambling
17 ordinance.
18 (d) Regulations.--The department shall adopt regulations to
19 carry out the provisions of this act.
20 Section 5. Payouts.
21 Each machine shall pay out at least 80% of the amount played.
22 Section 6. Limitation on amount of money played and value of
23 prizes and payment.
24 A video poker machine may not allow more than $2 to be played
25 on a game or award free games or credits in excess of the value
26 of $100 per game.
27 Section 7. Video poker machine tax.
28 (a) Payment.--Each licensee shall pay to the department a
29 video poker machine tax of 15% of net machine income from each
30 video poker machine licensed under this act.
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1 (b) Records.--Each licensee shall keep a record of net
2 machine income in such form as the department may require. The
3 records must at all times during the business hours of the
4 licensee be subject to inspection by the department and its
5 agents or employees.
6 (c) Statements.--Each licensee shall, within 15 days after
7 the end of each quarter, complete and deliver to the department
8 a statement showing the total net machine income from each video
9 poker machine licensed to him, together with the total amount
10 due the Commonwealth as video poker machine tax for the
11 preceding quarter. The statement must contain such other
12 information as the department may require.
13 (d) Allocation.--
14 (1) The department shall deposit one-third of the tax
15 collected under subsection (c) to the General Fund.
16 (2) The department shall forward the remaining two-
17 thirds of the tax collected under subsection (c) to the
18 treasurer of the municipality in which the licensed machine
19 is located, for deposit to the county or municipal treasury.
20 Section 8. License requirements.
21 (a) Qualifications.--A person who has been granted a license
22 to sell alcoholic beverages for consumption on the premises
23 pursuant to the act of April 12, 1951 (P.L.90, No.21), known as
24 the Liquor Code, may be granted a license for the placement of
25 video poker machines in his licensed establishment.
26 (b) Limit of machines.--A licensee may not have on the
27 premises or make available for play on the premises of his
28 licensed establishment more than five machines.
29 (c) Right to hearing.--A person denied a license under this
30 act has the right to a hearing before the department. The
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1 hearing must be conducted in accordance with the provisions of 2
2 Pa.C.S. Ch. 5 Subch. A (relating to practice and procedure of
3 Commonwealth agencies).
4 Section 9. Video poker machine license fees.
5 (a) Issuance.--The department, upon payment of the fee
6 provided in subsection (b), shall issue to the licensee a
7 license for each video poker machine.
8 (b) Annual fee.--The department shall charge an annual
9 license fee of $100 for each video poker machine. The department
10 shall retain $100 of the total license fee collected for
11 purposes of administration of this act.
12 Section 10. Investigations and violations.
13 (a) Suspension or revocation of licenses.--The department or
14 duly authorized department representatives shall make necessary
15 investigations, suspend or revoke licenses for violations of
16 this act and hold hearings on such matters. A license may be
17 suspended prior to a hearing upon a finding of danger to public
18 health and welfare, but may not be revoked until the hearing is
19 completed.
20 (b) Summary offense.--A person who violates this act commits
21 a summary offense and shall be subject to a fine of not more
22 than $10,000 for the first violation and $15,000 for a
23 subsequent violation.
24 (c) Confiscation.--If a video poker machine is operated in
25 violation of this act, it may be confiscated.
26 (d) Enforcement agents.--Employees of the department or duly
27 authorized department representatives designated as enforcement
28 agents may investigate the background of license applicants to
29 the extent judged necessary by the department, but no person may
30 be investigated prior to his submission of an application for a
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1 license.
2 Section 11. Judicial review of agency decision.
3 Any interested party has the right to judicial review of a
4 final decision of the department concerning the grant, denial,
5 renewal, revocation or suspension of a license required under
6 this act, pursuant to 2 Pa.C.S. Ch. 7 Subch. A (relating to
7 judicial review of Commonwealth agency action).
8 Section 12. Manufacturer-distributor licenses.
9 (a) License required.--It is unlawful for any person to
10 manufacture, sell or distribute any video poker machine or
11 associated equipment for use or play in this Commonwealth
12 without having first been issued a manufacturer-distributor
13 license by the department.
14 (b) Annual fee.--The department shall charge an annual
15 license fee of $1,000 for the issuance or renewal of a
16 manufacturer-distributor license.
17 (c) Processing fee.--In addition to other license fees, the
18 department may charge the applicant a one-time manufacturer-
19 distributor license application processing fee. The processing
20 fee may not exceed the department's actual costs for processing
21 an application.
22 (d) Fees retained.--The department shall retain the license
23 and processing fees collected for purposes of administering this
24 act.
25 (e) Qualifications.--An applicant for issuance or renewal of
26 a manufacturer-distributor license shall:
27 (1) Apply to the department on forms prescribed by the
28 department.
29 (2) Establish to the satisfaction of the department that
30 the applicant's past record and present status as a
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1 manufacturer-distributor of video poker machines or
2 associated equipment and as a business person and citizen
3 demonstrate that the applicant is likely to conduct his
4 business in compliance with all laws.
5 (f) Hearing.--A person denied a manufacturer-distributor
6 license has the right to a hearing before the department. The
7 hearing shall be conducted in accordance with 2 Pa.C.S.
8 (relating to administrative law and procedure).
9 Section 13. Effective date.
10 This act shall take effect in 90 days.
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