PRINTER'S NO. 4482
No. 2812 Session of 2008
INTRODUCED BY SCHRODER, HENNESSEY, M. O'BRIEN, KAUFFMAN, CLYMER, VULAKOVICH AND ROCK, OCTOBER 3, 2008
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, OCTOBER 3, 2008
AN ACT 1 Amending Title 4 (Amusements) of the Pennsylvania Consolidated 2 Statutes, further providing for the membership, terms of 3 office, procedure, and qualifications and restrictions of the 4 Pennsylvania Gaming Control Board. 5 The General Assembly of the Commonwealth of Pennsylvania 6 hereby enacts as follows: 7 Section 1. Section 1201(b), (b.1), (d), (f) and (h) of Title 8 4 of the Pennsylvania Consolidated Statutes are amended and the 9 section is amended by adding a subsection to read: 10 § 1201. Pennsylvania Gaming Control Board established. 11 * * * 12 (b) Membership.--The board shall consist of [the following 13 members: 14 (1) Three members appointed by the Governor. 15 (2) One member appointed by each of the following: 16 (i) The President pro tempore of the Senate. 17 (ii) The Minority Leader of the Senate. 18 (iii) The Speaker of the House of Representatives.
1 (iv) The Minority Leader of the House of 2 Representatives.] five members appointed by the Governor 3 with the advice and consent of a majority of the members 4 of the Senate. No more than three members of the board 5 may be of the same political party. 6 (b.1) Removal.--A member of the board shall be removed from 7 office by the [appointing authority] Governor: 8 (1) for misconduct in office, willful neglect of duty or 9 conduct evidencing unfitness for office or incompetence; or 10 (2) upon conviction of an offense graded as a felony, an 11 infamous crime, an offense under this part or an equivalent 12 offense under Federal law or the law of another jurisdiction. 13 * * * 14 (d) Terms of office.--Upon the expiration of a term of a 15 member appointed under subsection (c), the following shall 16 apply: 17 (1) The term of office of [a gubernatorial] an appointee 18 shall be three years and until a successor is appointed and 19 qualified. 20 [(2) The term of office of a legislative appointee shall 21 be two years and until a successor is appointed and 22 qualified. 23 (3) A legislative appointee shall serve no more than 24 three full consecutive terms.] 25 (4) [A gubernatorial] An appointee shall serve no more 26 than [two] three full consecutive terms. 27 (5) An appointment to fill a vacancy shall be for the 28 remainder of the unexpired term. 29 [(6) A member appointed to fill a vacancy under 30 paragraph (3) may serve three full terms following the 20080H2812B4482 - 2 -
1 expiration of the term related to the vacancy.] 2 (7) A member appointed to fill a vacancy [under 3 paragraph (4) may serve two] may serve three full terms 4 following the expiration of the term related to the vacancy. 5 (d.1) Transition of board members.--Upon the effective date 6 of this subsection, current members of the board shall remain in 7 office until the length of their current term expires. 8 * * * 9 (f) [Qualified majority vote.-- 10 (1) Except as permitted in paragraphs (2) and (3), any 11 action, including, but not limited to, the approval, 12 issuance, denial or conditioning of any license by the board 13 under this part or the making of any order or the 14 ratification of any permissible act done or order made by one 15 or more of the members, shall require a qualified majority 16 vote consisting of at least one gubernatorial appointee and 17 the four legislative appointees. 18 (2) Any action to suspend or revoke, not renew, void or 19 require forfeiture of a license or permit issued under this 20 part, to impose any administrative fine or penalty under this 21 part or to issue cease and desist orders or similar 22 enforcement actions shall require a majority vote of all the 23 members appointed to the board. 24 (3) Notwithstanding any other provision of this part or 25 65 Pa.C.S. § 1103(j) (relating to restricted activities), a 26 member shall disclose the nature of his disqualifying 27 interest, disqualify himself and abstain from voting in a 28 proceeding under this part in which his objectivity, 29 impartiality, integrity or independence of judgment may be 30 reasonably questioned, as provided in subsection (h)(6). If a 20080H2812B4482 - 3 -
1 legislative appointee has disqualified himself, the qualified 2 majority shall consist of all of the remaining legislative 3 appointees and at least two gubernatorial appointees.] Quorum 4 and majority vote.--Four members of the board shall 5 constitute a quorum for the conduct of business. Any action 6 of the board shall require an affirmative vote of at least 7 three members of the board. 8 * * * 9 (h) Qualifications and restrictions.-- 10 (1) Each member at the time of appointment shall be at 11 least 25 years of age and shall have been a resident of this 12 Commonwealth for a period of at least one year immediately 13 preceding appointment. Each member shall continue to remain a 14 resident of this Commonwealth during the term of membership 15 on the board. 16 (2) Except for ex officio members, no person shall be 17 appointed a member of the board or be employed by or be an 18 independent contractor of the board if that person is a 19 public official or party officer as defined in section 1512 20 (relating to financial and employment interests) in this 21 Commonwealth or any of its political subdivisions. 22 (3) Each member, employee and independent contractor of 23 the board shall sign an agreement not to disclose 24 confidential information. 25 (4) No member, employee or independent contractor of the 26 board or other agency having regulatory authority over the 27 board or over forms of gaming regulated by this part shall be 28 employed, hold any office or position or be engaged in any 29 activity which is incompatible with the position, employment 30 or contract. 20080H2812B4482 - 4 -
1 (5) No member shall be paid or receive any fee or other 2 compensation other than salary and expenses provided by law 3 for any activity related to the duties or authority of the 4 board. [Nothing in this part shall prohibit a member from 5 engaging in any employment or receiving any compensation for 6 such employment that is not connected to or incompatible with 7 his service as a member of the board.] 8 (5.1) Each member shall devote the member's entire time 9 and attention to the member's duties and shall not hold any 10 other office or position or be engaged in any other 11 employment or receive any other compensation for such 12 employment. 13 (6) No member, employee or independent contractor of the 14 board shall participate in a hearing, proceeding or other 15 matter in which the member, employee or independent 16 contractor, or the immediate family thereof, has a financial 17 interest in the subject matter of the hearing or proceeding 18 or other interest that could be substantially affected by the 19 outcome of the hearing or proceeding without first fully 20 disclosing the nature of the interest to the board and other 21 persons participating in the hearing or proceeding. The board 22 shall determine if the interest is a disqualifying interest 23 that requires the disqualification or nonparticipation of an 24 employee or independent contractor. For purposes of this 25 paragraph, the term "immediate family" shall mean spouse, 26 parent, brother, sister or child. 27 (7) At the time of appointment and annually thereafter, 28 each member shall disclose the existence of any financial 29 interest in any applicant, licensed entity or licensed 30 facility and in an affiliate, intermediary, subsidiary or 20080H2812B4482 - 5 -
1 holding company thereof held by the member or known to be 2 held by the member's immediate family. The disclosure 3 statement shall be filed with the executive director of the 4 board and with the appointing authority for such member and 5 shall be open to inspection by the public at the office of 6 the board during the normal business hours of the board for 7 the duration of the member's term and for two years after the 8 member leaves office. For purposes of this paragraph, the 9 term "immediate family" shall mean spouse, parent, brother, 10 sister or child. 11 (7.1) Prior to being sworn as a member, an appointee and 12 his immediate family shall divest any financial interest in 13 any applicant, licensed facility or licensed entity and in an 14 affiliate, intermediary, subsidiary or holding company 15 thereof owned or held by the appointee or known to be held by 16 the appointee's immediate family. For the duration of the 17 member's term and for one year thereafter, the member and the 18 member's immediate family may not acquire a financial 19 interest in any applicant, licensed facility or licensed 20 entity or in an affiliate, intermediary, subsidiary or 21 holding company thereof. For purposes of this paragraph, the 22 term "immediate family" shall mean spouse and any minor or 23 unemancipated child. 24 (7.2) Prior to entering into employment or a contract 25 with the board and annually thereafter, an employee or 26 independent contractor shall disclose the existence of any 27 financial interest in any applicant, licensed facility or 28 licensed entity and in an affiliate, intermediary, subsidiary 29 or holding company thereof owned or held by the employee or 30 independent contractor or known to be held by the immediate 20080H2812B4482 - 6 -
1 family of the employee or independent contractor. The 2 disclosure statement shall be filed with the board and shall 3 be open to inspection by the public at the office of the 4 board during the normal business hours of the board and for 5 two years after termination of employment or a contract with 6 the board. For purposes of this paragraph, the term 7 "immediate family" shall mean spouse, parent, brother, sister 8 or child. 9 (7.3) Prior to entering into employment or contracting 10 with the board, an employee or independent contractor and the 11 employee's or independent contractor's immediate family shall 12 divest any financial interest in any applicant, licensed 13 facility or licensed entity, and in an affiliate, 14 intermediary, subsidiary or holding company thereof, owned or 15 held by the employee or independent contractor or known to be 16 held by the immediate family of the employee or independent 17 contractor. For the duration of the employee's employment 18 with the board or the independent contractor's contract with 19 the board and for one year thereafter, the employee or 20 independent contractor and the immediate family thereof shall 21 not acquire, by purchase, gift, exchange or otherwise, any 22 financial interest in any applicant, licensed facility or 23 licensed entity and in any affiliate, intermediary, 24 subsidiary or holding company thereof. For purposes of this 25 paragraph, the term "immediate family" shall mean spouse and 26 any minor or unemancipated child. 27 (8) No member, employee or independent contractor of the 28 board may directly or indirectly solicit, request, suggest or 29 recommend to any applicant, licensed entity, or an affiliate, 30 intermediary, subsidiary or holding company thereof or to any 20080H2812B4482 - 7 -
1 principal, employee, independent contractor or agent thereof, 2 the appointment or employment of any person in any capacity 3 by the applicant, licensed entity, or an affiliate, 4 intermediary, subsidiary or holding company thereof for a 5 period of two years from the termination of term of office, 6 employment or contract with the board. 7 (9) No member may accept employment with any applicant, 8 licensed entity, or an affiliate, intermediary, subsidiary or 9 holding company thereof, for a period of two years from the 10 termination of term of office. 11 (10) No member may appear before the board on behalf of 12 any applicant, licensed entity, or an affiliate, 13 intermediary, subsidiary or holding company thereof, or any 14 other licensee or permittee for a period of two years from 15 the termination of term of office. 16 (11) No member, employee or independent contractor of 17 the board shall accept a complimentary service, wager or be 18 paid any prize from any wager at any licensed facility within 19 this Commonwealth or at any other facility outside this 20 Commonwealth which is owned or operated by a licensed gaming 21 entity or any of its affiliates, intermediaries, subsidiaries 22 or holding companies thereof for the duration of their term 23 of office, employment or contract with the board and for a 24 period of one year from the termination of term of office, 25 employment or contract with the board. The provisions of this 26 paragraph shall not apply to employees who utilize slot 27 machines for testing purposes or to verify the performance of 28 a machine as part of an enforcement investigation. 29 (12) A member who has been convicted during his term in 30 any domestic or foreign jurisdiction of a felony, infamous 20080H2812B4482 - 8 -
1 crime or gambling offense shall, upon conviction, be 2 automatically removed from the board and shall be ineligible 3 to become a member in the future. If an ex officio member is 4 convicted during his term in any domestic or foreign 5 jurisdiction of a felony, infamous crime or gambling offense, 6 the ex officio member shall, upon conviction, be 7 automatically removed from the board, and a designee shall be 8 designated pursuant to subsection (e) to serve the remainder 9 of the ex officio member's term. 10 (13) No employee of the board or individual employed by 11 an independent contractor of the board whose duties 12 substantially involve licensing, enforcement or the 13 development or adoption of regulations or policy under this 14 part shall: 15 (i) accept employment with an applicant or licensed 16 entity, or an affiliate, intermediary, subsidiary or 17 holding company thereof, for a period of one year after 18 the termination of the employment relating to the conduct 19 of gaming or contract with the board; or 20 (ii) appear before the board in any hearing or 21 proceeding or participate in any other activity on behalf 22 of any applicant, licensee, permittee or licensed entity, 23 or an affiliate, intermediary, subsidiary or holding 24 company thereof, for a period of two years after 25 termination of the employment or contract with the board. 26 (14) Upon the written request of an employee of the 27 board, the executive branch of the Commonwealth or a 28 political subdivision or of the agency or political 29 subdivision employing an employee, the State Ethics 30 Commission shall determine whether the individual's duties 20080H2812B4482 - 9 -
1 substantially involve the development or adoption of 2 regulations or policy, licensing or enforcement under this 3 part and shall provide a written determination to the 4 employee to include any prohibition under this paragraph. An 5 individual who relies in good faith on a determination under 6 this paragraph shall not be subject to any penalty for an 7 action taken, provided that all material facts set forth in 8 the request for a determination are correct. 9 (15) If a member, employee or independent contractor of 10 the board violates any provision of this section, the 11 appointing authority or the board may, upon notice and 12 hearing, remove the person from the board, withdraw the 13 appointment or terminate the employment or contract, and the 14 person shall be ineligible for future appointment, employment 15 or contract with the board and for approval of a license or 16 permit under this part for a period of two years thereafter. 17 * * * 18 Section 2. This act shall take effect as follows: 19 (1) The amendment of 4 Pa.C.S. § 1201(h) shall take 20 effect immediately. 21 (2) This section shall take effect immediately. 22 (3) The remainder of this act shall take effect January 23 1, 2009. I16L04JAM/20080H2812B4482 - 10 -