PRIOR PRINTER'S NOS. 1811, 1862, 1885, PRINTER'S NO. 1997
1947, 1985
No. 1209 Session of 2004
INTRODUCED BY PIPPY, BRIGHTBILL, JUBELIRER, ARMSTRONG,
TOMLINSON, EARLL, GORDNER, ERICKSON, O'PAKE, M. WHITE, ORIE,
WAGNER, WENGER, SCHWARTZ, FERLO, ROBBINS, RAFFERTY, CORMAN,
DENT, C. WILLIAMS, PICCOLA, WONDERLING, THOMPSON, WAUGH,
D. WHITE, MADIGAN, CONTI, RHOADES, SCARNATI, LEMMOND, MOWERY,
PUNT, KASUNIC, KUKOVICH, PILEGGI AND GREENLEAF,
AUGUST 2, 2004
SENATE AMENDMENTS TO HOUSE AMENDMENTS, NOVEMBER 19, 2004
AN ACT
1 Amending Titles 4 (Amusements) and 18 (Crimes and Offenses) of
2 the Pennsylvania Consolidated Statutes, further providing for
3 definitions and for the Pennsylvania Gaming Control Board
4 established; providing for applicability of other statutes
5 and for review of deeds, leases and contracts; further
6 providing for general and specific powers, for temporary
7 regulations, for board minutes and records, for slot machine
8 licensee financial fitness and for supplier and manufacturer
9 licenses application; providing for manufacturer licenses;
10 further providing for occupation permit application, for
11 establishment of State Gaming Fund and net slot machine
12 revenue distribution, for transfers from State Gaming Fund,
13 for multiple slot machine license prohibition, for local land
14 use preemption, for public official financial interest, for
15 enforcement, for penalties, for background checks, for
16 fingerprints and for corrupt organizations; and making
17 related repeals.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. The definitions of "controlling interest,"
21 "institutional investor," "licensed facility" and "supplier" in
22 section 1103 of Title 4 of the Pennsylvania Consolidated
1 Statutes, added July 5, 2004 (P.L.572, No.71), are amended and
2 the section is amended by adding a definition to read:
3 § 1103. Definitions.
4 The following words and phrases when used in this part shall
5 have the meanings given to them in this section unless the
6 context clearly indicates otherwise:
7 * * *
8 "Controlling interest." A person shall be deemed to have
9 [the ability to control a publicly traded corporation, or to
10 elect] a controlling interest in an entity if the person's sole
11 voting rights, as provided by applicable State law or corporate
12 articles or bylaws, entitle the person to elect or appoint one
13 or more of the members of its board of directors [, if such
14 holder] or other governing body or if the person owns or
15 beneficially holds 5% or more of the securities of [such] a
16 publicly traded domestic or foreign corporation[,] or holds 5%
17 or more ownership or voting interest in a partnership, limited
18 liability company or any other form of legal entity, unless such
19 presumption of control or ability to elect is rebutted by clear
20 and convincing evidence. [A person who is a holder of securities
21 of a privately held domestic or foreign corporation,
22 partnership, limited liability company or any other form of
23 legal entity shall be deemed to possess a controlling interest
24 unless such presumption of control is rebutted by clear and
25 convincing evidence.]
26 * * *
27 "Institutional investor." Any retirement fund administered
28 by a public agency for the exclusive benefit of Federal, State
29 or local public employees, investment company registered under
30 the Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §
20040S1209B1997 - 2 -
1 80a-1 et seq.), collective investment trust organized by banks
2 under Part Nine of the Rules of the Comptroller of the Currency,
3 closed-end investment trust, chartered or licensed life
4 insurance company or property and casualty insurance company,
5 banking and other chartered or licensed lending institution[,
6 investment advisor registered under The Investment Advisors Act
7 of 1940 (54 Stat. 847, 15 U.S.C. § 80b-1 et seq.)] and such
8 other comparable persons as the Pennsylvania Gaming Control
9 Board may [determine] establish by regulation consistent with
10 this part.
11 * * *
12 "Licensed facility." The physical land-based location and
13 associated areas at which a licensed gaming entity is authorized
14 to place and operate slot machines. The term does not include a
15 nonprimary location.
16 * * *
17 "Member." An individual appointed to the Pennsylvania Gaming
18 Control Board pursuant to section 1201(b) (relating to
19 Pennsylvania Gaming Control Board).
20 * * *
21 "Supplier." A person that sells, leases, offers or otherwise
22 provides, distributes or services any slot machine in this
23 Commonwealth. The term does not include a person who sells slot
24 monitoring systems, casino management systems, player tracking
25 systems and wide-area progressive systems.
26 * * *
27 Section 2. Section 1201 heading and (f)(3), (h)(7) and (l)
28 of Title 4, added July 5, 2004 (P.L.572, No.71), are amended and
29 the section is amended by adding paragraphs to read:
30 § 1201. Pennsylvania Gaming Control Board [established].
20040S1209B1997 - 3 -
1 * * *
2 (f) Qualified majority vote.--
3 * * *
4 (3) Notwithstanding any other provision [to the
5 contrary] of this part or 65 Pa.C.S. § 1103(j) (relating to
6 restricted activities), a member shall disclose the nature of
7 his disqualifying interest, disqualify himself and abstain
8 from voting in a proceeding in which his or her impartiality
9 may be reasonably questioned, including, but not limited to,
10 instances where he or she knows that they possess a
11 substantial financial interest in the subject matter of the
12 proceeding or any other interest that could be substantially
13 affected by the outcome of the proceeding. In such
14 circumstances in which it is a legislative appointee member
15 that has disqualified himself or herself, the qualified
16 majority shall consist of the remaining three legislative
17 appointees and at least two gubernatorial appointees.
18 * * *
19 (h) [Qualifications and restrictions] Restrictions.--
20 * * *
21 [(7) At the time of appointment and annually thereafter,
22 each member shall disclose the existence of all ownership
23 interests in licensed facilities and all securities in any
24 licensed entity or applicant, its affiliates or subsidiaries
25 held by the member, the member's spouse and any minor or
26 unemancipated children and must divest such ownership
27 interests in licensed facilities or securities prior to an
28 appointment becoming final. A member may not acquire any
29 security in any licensed entity, its affiliates or
30 subsidiaries during the member's tenure. The disclosure
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1 statement shall be filed with the executive director of the
2 board and with the appointing authority for such member and
3 shall be open to inspection by the public at the office of
4 the board during the normal business hours of the board
5 during the tenure of the member and for two years after the
6 member leaves office.]
7 (7) (i) At the time of appointment, and annually
8 thereafter, each member of the board shall disclose the
9 existence of any financial interests and any property,
10 leasehold or other beneficial interest in any slot
11 machine license applicant, manufacturer license
12 applicant, supplier license applicant, licensed entity or
13 licensed facility and in any holding companies,
14 affiliates, intermediaries or subsidiary businesses
15 thereof, which are held by the member or the immediate
16 family of the member. The disclosure statement shall be
17 filed with the executive director of the board and with
18 the appointing authority of the member. The disclosure
19 statement shall be open to inspection by the public at
20 the office of the board during the normal business hours
21 of the board during the member's term on the board and
22 continuing for two years after the member leaves office.
23 Prior to the member's appointment becoming final, any
24 financial interest and any property, leasehold, ownership
25 or other beneficial interest in any slot machine license
26 applicant, manufacturer license applicant, supplier
27 license applicant, licensed entity or licensed facility
28 and in any holding companies, affiliates, intermediaries
29 or subsidiary businesses thereof, owned or held by the
30 member or the immediate family of the member must be
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1 divested. During the member's term and continuing for one
2 year thereafter, the member and the immediate family of
3 the member may not acquire by purchase, gift, exchange or
4 otherwise, any financial interest nor any property,
5 leasehold, ownership or other beneficial interest in any
6 slot machine license applicant, manufacturer license
7 applicant, supplier license applicant, licensed entity or
8 licensed facility or in any holding companies,
9 affiliates, intermediaries or subsidiary businesses
10 thereof.
11 (ii) As used in this paragraph, the following words
12 and phrases shall have the meanings given to them in this
13 subparagraph:
14 "Financial interest." Owning or holding or being
15 deemed to hold debt or equity securities or other
16 ownership interest or profits interest.
17 "Immediate family." The term shall have the same <--
18 meaning given to it in section 1512 (relating to
19 public official financial interest). A PARENT, <--
20 SPOUSE, CHILD, BROTHER OR SISTER.
21 (7.1) (i) At the time of employment, and annually
22 thereafter, each employee or contract employee of the
23 board shall disclose the existence of any financial
24 interest and any property, leasehold or other beneficial
25 interest in any slot machine license applicant,
26 manufacturer license applicant, supplier license
27 applicant, licensed entity or licensed facility and in
28 any holding companies, affiliates, intermediaries or
29 subsidiary businesses thereof, which are held by the
30 employee or contract employee or the immediate family of
20040S1209B1997 - 6 -
1 the employee or contract employee. The disclosure
2 statement shall be filed with the executive director of
3 the board. The disclosure statement shall be open to
4 inspection by the public at the office of the board
5 during normal business hours of the board during the
6 employee's or contract employee's employment with the
7 board and continuing for two years after the employee or
8 contract employee terminates employment with the board.
9 Prior to commencing employment, any financial interest
10 and any property, leasehold, ownership or other
11 beneficial interest in any slot machine license
12 applicant, manufacturer license applicant, supplier
13 license applicant, licensed entity or licensed facility
14 and in any holding companies, affiliates, intermediaries
15 or subsidiary businesses thereof, owned or held by the
16 employee or contract employee or the immediate family of
17 the employee or contract employee must be divested.
18 During the employee's or contract employee's employment
19 and continuing for one year thereafter, the employee or
20 contract employee and the immediate family of the
21 employee or contract employee may not acquire by
22 purchase, gift, exchange or otherwise, any financial
23 interest nor any property, leasehold, ownership or other
24 beneficial interest in any slot machine license
25 applicant, manufacturer license applicant, supplier
26 license applicant, licensed entity or licensed facility
27 or in any holding companies, affiliates, intermediaries
28 or subsidiary businesses thereof.
29 (ii) As used in this paragraph, the following words
30 and phrases shall have the meanings given to them in this
20040S1209B1997 - 7 -
1 subparagraph:
2 "Financial interest." Owning or holding or being
3 deemed to hold debt or equity securities or other
4 ownership interest or profits interest.
5 "Immediate family." The term shall have the same <--
6 meaning given to it in section 1512 (relating to
7 public official financial interest). A PARENT, <--
8 SPOUSE, CHILD, BROTHER OR SISTER.
9 * * *
10 (13) No person may be employed, whether as an employee
11 or a contract employee, by the board until the board receives
12 a background investigation conducted on the person in
13 accordance with this part.
14 (14) No member shall hold or campaign for any other
15 public office, hold office in any political party or
16 political committee or actively participate in any political
17 campaign.
18 (15) No employee of the board shall hold or campaign for
19 public office, hold office in any political party or
20 political committee or actively participate in or contribute
21 to any political campaign.
22 * * *
23 [(l) Disclosure statements.--Members and employees of the
24 board are subject to the provisions of 65 Pa.C.S. Ch. 11
25 (relating to ethics standards and financial disclosure) and the
26 act of July 19, 1957 (P.L.1017, No.451), known as the State
27 Adverse Interest Act.]
28 Section 3. Title 4 is amended by adding sections to read:
29 § 1201.1. Applicability of other statutes.
30 The following shall apply:
20040S1209B1997 - 8 -
1 (1) The following acts shall apply to the board, its
2 members and employees:
3 (i) Act of June 21, 1957 (P.L.390, No.212), referred
4 to as the Right-to-Know Law.
5 (ii) Act of July 19, 1957 (P.L.1017, No.451), known
6 as the State Adverse Interest Act.
7 (iii) The provisions of 65 Pa.C.S. Chs. 7 (relating
8 to open meetings) and 11 (relating to ethics standards
9 and financial disclosure).
10 (2) The board shall be considered an "independent
11 agency" for the purposes of all of the following:
12 (i) Act of October 15, 1980 (P.L.950, No.164), known
13 as the Commonwealth Attorneys Act.
14 (ii) The provisions of 62 Pa.C.S. Pt. I (relating to
15 Commonwealth Procurement Code).
16 (3) The board shall be considered an "agency" for the
17 purposes of all of the following:
18 (i) Act of July 31, 1968 (P.L.769, No.240), referred
19 to as the Commonwealth Documents Law.
20 (ii) Act of June 25, 1982 (P.L.633, No.181), known
21 as the Regulatory Review Act.
22 § 1201.2. Review of deeds, leases and contracts.
23 (a) Timing.--Review of a deed, lease or contract of the
24 board by the Attorney General under the act of October 15, 1980
25 (P.L.950, No.164), known as the Commonwealth Attorneys Act, must
26 be completed within 30 days of delivery of the deed, lease or
27 contract by the board to the Attorney General.
28 (b) Limitation.--An issue not raised by the Attorney General
29 during the review period required by subsection (a) is deemed
30 waived.
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1 Section 4. Sections 1202 heading and (a), 1203 and 1206(a),
2 (d) and (f) of Title 4, added July 5, 2004 (P.L.572, No.71), are
3 amended to read:
4 § 1202. [General and specific powers] Powers and duties.
5 (a) General powers.--The board shall have general
6 jurisdiction over all gaming activities or related activities as
7 described in this part. The board shall be responsible to ensure
8 the integrity of the acquisition and operation of slot machines
9 and associated equipment and shall have jurisdiction over every
10 aspect of the authorization and operation of slot machines. The
11 board shall employ an executive director, chief counsel,
12 deputies, secretaries, officers, hearing officers and agents as
13 it may deem necessary, who shall serve at the board's pleasure.
14 The board shall also employ other employees as it deems
15 appropriate whose duties shall be determined by the board. The
16 board shall establish and publish in the Pennsylvania Bulletin
17 and on its Internet website a classification of its employees.
18 The classification shall include the scope of the background
19 investigations required by section 1201(h)(13) (relating to
20 Pennsylvania Gaming Control Board) for each class of employees
21 and contract employees of the board. In order to ensure the
22 ability of the board to recruit and retain individuals necessary
23 to execute its responsibilities under this part, the board shall
24 set the classification and compensation of its employees and
25 shall not be subject to the provisions of the act of April 9,
26 1929 (P.L.177, No.175), known as The Administrative Code of
27 1929, as to classification and compensation for its employees
28 and conduct its activities consistent with the practices and
29 procedures of Commonwealth agencies. [For the purposes of the
30 act of October 15, 1980 (P.L.950, No.164), known as the
20040S1209B1997 - 10 -
1 Commonwealth Attorneys Act, the board shall not be considered an
2 executive or independent agency.] The board shall have such
3 other powers and authority necessary to carry out its duties and
4 the objectives of this part.
5 * * *
6 § 1203. Temporary regulations.
7 (a) Promulgation.--[Notwithstanding any other provision of
8 law to the contrary and in] In order to facilitate the prompt
9 implementation of this part, [regulations promulgated by the
10 board during the two years following the effective date of this
11 part shall be deemed temporary regulations which shall expire no
12 later than three years following the effective date of this part
13 or upon promulgation of regulations as generally provided by
14 law. The temporary regulations shall not be] the board may
15 promulgate regulations not subject to:
16 (1) Sections 201 [through 205], 202 and 203 of the act
17 of July 31, 1968 (P.L.769, No.240), referred to as the
18 Commonwealth Documents Law.
19 (2) The act of June 25, 1982 (P.L.633, No.181), known as
20 the Regulatory Review Act.
21 (b) Expiration.--[The authority provided to the board to
22 adopt temporary regulations in] Regulations promulgated in
23 accordance with subsection (a) shall expire [two] three years
24 from the effective date of this section. [Regulations adopted
25 after the two-year period shall be promulgated as provided by
26 law.]
27 § 1206. Board minutes and records.
28 [(a) Open proceedings and records.--The proceedings of the
29 board shall be conducted in accordance with the provisions of 65
30 Pa.C.S. Ch. 7 (relating to open meetings). The board shall be an
20040S1209B1997 - 11 -
1 agency for purposes of the act of June 21, 1957 (P.L.390,
2 No.212), referred to as the Right-to-Know Law. Notwithstanding
3 any provision of law to the contrary, confidential documents
4 relative to personal background information provided to the
5 board pursuant to this part and any closed deliberations of the
6 board, including disciplinary proceedings, shall be confidential
7 and considered in closed executive session pursuant to
8 subsection (f).]
9 * * *
10 (d) Applicant information.--
11 (1) The board shall [keep and] maintain a list of [all]
12 applicants for licenses and [permits under this part together
13 with] permits. The list shall include a record of all actions
14 taken with respect to [the applicants, which file and record]
15 each applicant. The list shall be open to public inspection
16 during normal business hours of the board.
17 (2) Information under paragraph (1) regarding any
18 applicant whose license or permit has been denied, revoked or
19 not renewed shall be removed from such list after seven years
20 from the date of the action.
21 * * *
22 (f) Confidentiality of information.--[All information
23 contained in the application process pursuant to section 1310(a)
24 (relating to slot machine license application character
25 requirements) and the report of an applicant's] An applicant's
26 proprietary information, trade secrets, architecture and
27 engineering plans, security and surveillance systems and
28 background investigation, furnished to or obtained by the board
29 or the bureau from any source shall be considered confidential.
30 [and shall be withheld from public disclosure in whole or in
20040S1209B1997 - 12 -
1 part, except that any information shall be released upon the
2 lawful order of a court of competent jurisdiction or, with the
3 approval of the Attorney General, to a duly authorized law
4 enforcement agency or shall be released to the public, in whole
5 or in part, to the extent that such release is requested by an
6 applicant and does not otherwise contain confidential
7 information about another person. The board may not require any
8 applicant to waive any confidentiality provided for in this
9 subsection as a condition for the approval of a license or any
10 other action of the board. Any person who violates this
11 subsection shall be administratively disciplined by discharge,
12 suspension or other formal disciplinary action as the board
13 deems appropriate.]
14 * * *
15 Section 4.1. Section 1313 of Title 4 is amended by adding a
16 subsection to read:
17 § 1313. Slot machine license application financial fitness
18 requirements.
19 * * *
20 (b.1) Financial backer exclusion.--
21 (1) Except as set forth in paragraph (2), the financial
22 backers of an applicant or licensee may not include a
23 retirement fund established for the benefit of employees and
24 retirees of:
25 (i) the Commonwealth;
26 (ii) any public authority, commission, board or
27 agency, established by the Commonwealth; or
28 (iii) a political subdivision of the Commonwealth or
29 a public authority established by a political subdivision
30 of the Commonwealth.
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1 (2) Paragraph (1) does not apply to the extent that the
2 financial backing from the retirement fund arises from
3 securities which are:
4 (i) registered with the Securities and Exchange
5 Commission; and
6 (ii) purchased by the retirement fund in the
7 secondary market.
8 * * *
9 Section 4.2. Section 1317 of Title 4, added July 5, 2004
10 (P.L.572, No.71), is amended to read:
11 § 1317. Supplier [and manufacturer] licenses [application].
12 (a) Application.--[Any] A person seeking to provide slot
13 machines or associated equipment to a slot machine licensee
14 within this Commonwealth [or to manufacture slot machines for
15 use in this Commonwealth] shall apply to the board for [either]
16 a supplier [or manufacturer] license. [No person, its affiliate, <--
17 intermediary, subsidiary or holding company who has applied for
18 or is a holder of a manufacturer or slot machine license shall
19 be eligible to apply for or hold a supplier license. A supplier
20 licensee shall establish a principle place of business in this
21 Commonwealth within one year of issuance of its supplier license
22 and maintain such during the period in which the license is
23 held. [No slot machine licensee shall enter into any sale, <--
24 lease, contract or any other type of agreement providing slot
25 machines, progressive slot machines, parts or associated
26 equipment for use or play with any person other than a supplier
27 licensed pursuant to this section. Slot monitoring systems,
28 casino management systems, player tracking systems and wide-area
29 progressive systems are excluded from any requirements that they
30 be provided through a licensed supplier as set forth in this
20040S1209B1997 - 14 -
1 part.]
2 (b) Requirements.--[The application for a supplier or
3 manufacturer license shall include, at a minimum:] The
4 application for a supplier license shall be on the form required
5 by the board, accompanied by the application fee and shall
6 include all of the following:
7 (1) The name and business address of the applicant[,]
8 and the applicant's affiliates, intermediaries, subsidiaries
9 and holding companies; the directors and owners of [the
10 applicant] each business; and a list of employees and their
11 positions within [the] each business, as well as any
12 financial information required by the board.
13 (1.1) A statement that the applicant or an affiliate,
14 intermediary, subsidiary or holding company of the applicant
15 is not a slot machine licensee.
16 (2) The consent to a background investigation of the
17 applicant, its officers, directors, owners, key employees or
18 other persons required by the board and a release to obtain
19 any and all information necessary for the completion of the
20 background investigation.
21 (3) The details of any equivalent license granted or
22 denied by other jurisdictions where gaming activities as
23 authorized by this part are permitted and consent for the
24 board to acquire copies of applications submitted or licenses
25 issued in connection therewith.
26 (4) The type of goods and services to be supplied [or
27 manufactured] and whether those goods and services will be
28 provided through purchase, lease, contract or otherwise.
29 (5) Any other information determined by the board to be
30 appropriate.
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1 (c) Review and approval.--Upon being satisfied that the
2 requirements of subsection (b) have been met, the board may
3 approve the application and grant the applicant a supplier
4 license consistent with all of the following:
5 (1) The license shall be for a period of one year. Upon
6 expiration, a license may be renewed in accordance with
7 subsection (d).
8 (2) The license shall be nontransferable
9 (3) Any other condition established by the board.
10 (d) Renewal.--Six months prior to expiration of a supplier
11 license, a supplier licensee seeking renewal of its license
12 shall submit a renewal application accompanied by the renewal
13 fee to the board. If the renewal application satisfies the
14 requirements of subsection (b), the board may renew the
15 licensee's supplier license. If the board receives a complete
16 renewal application but fails to act upon the renewal
17 application prior to the expiration of the supplier license, the
18 supplier license shall continue in effect for an additional six-
19 month period or until acted upon by the board, whichever occurs
20 first.
21 (e) Prohibitions.--
22 (1) No person may provide slot machines or associated
23 equipment to a slot machine licensee within this Commonwealth
24 unless the person has been issued a supplier license under
25 this section OR A MANUFACTURER LICENSE UNDER SECTION 1317.1 <--
26 (RELATING TO MANUFACTURER LICENSES).
27 (2) No slot machine licensee may acquire, purchase or
28 lease slot machines or associated equipment from a person
29 unless the person has been issued a supplier license under
30 this section OR A MANUFACTURER LICENSE UNDER SECTION 1317.1. <--
20040S1209B1997 - 16 -
1 Section 5. Title 4 is amended by adding a section to read:
2 § 1317.1. Manufacturer licenses.
3 (a) Application.--A person seeking to manufacture AND TO <--
4 PROVIDE slot machines AND ASSOCIATED EQUIPMENT for use in this <--
5 Commonwealth shall apply to the board for a manufacturer
6 license.
7 (b) Requirements.--The application for a manufacturer
8 license shall be on the form required by the board, accompanied
9 by the application fee and shall include all of the following:
10 (1) The name and business address of the applicant and
11 the applicant's affiliates, intermediaries, subsidiaries and
12 holding companies; the directors and owners of each business;
13 and a list of employees and their positions within each
14 business, as well as any financial information required by
15 the board.
16 (2) A statement that the applicant or an affiliate,
17 intermediary, subsidiary or holding company of the applicant
18 is not a slot machine licensee.
19 (3) The consent to a background investigation of the
20 applicant, its officers, directors, owners, key employees or
21 other persons required by the board and a release to obtain
22 any and all information necessary for the completion of the
23 background investigation.
24 (4) The details of any equivalent license granted or
25 denied by other jurisdictions where gaming activities as
26 authorized by this part are permitted and consent for the
27 board to acquire copies of applications submitted or licenses
28 issued in connection therewith.
29 (5) The type of slot machines or associated equipment to
30 be manufactured and supplied and whether those slot machines
20040S1209B1997 - 17 -
1 or associated equipment will be provided through purchase,
2 lease, contract or otherwise.
3 (6) Any other information determined by the board to be
4 appropriate.
5 (c) Review and approval.--Upon being satisfied that the
6 requirements of subsection (b) have been met, the board may
7 approve the application and grant the applicant a manufacturer
8 license consistent with all of the following:
9 (1) The license shall be for a period of one year. Upon
10 expiration, a license may be renewed in accordance with
11 subsection (d).
12 (2) The license shall be nontransferable.
13 (3) Any other condition established by the board.
14 (d) Renewal.--Six months prior to expiration of a
15 manufacturer license, a manufacturer licensee seeking renewal of
16 its license shall submit a renewal application accompanied by
17 the renewal fee to the board. If the renewal application
18 satisfies the requirements of subsection (b), the board may
19 renew the licensee's manufacturer license. If the board receives
20 a complete renewal application but fails to act upon the renewal
21 application prior to the expiration of the manufacturer license,
22 the manufacturer license shall continue in effect for an
23 additional six-month period or until acted upon by the board,
24 whichever occurs first.
25 (e) Prohibitions.--No person may manufacture slot machines <--
26 (E) PROHIBITIONS.-- <--
27 (1) NO PERSON MAY MANUFACTURER SLOT MACHINES or
28 associated equipment for use within this Commonwealth by a
29 slot machine licensee unless the person has been issued a
30 manufacturer license under this section. Slot monitoring <--
20040S1209B1997 - 18 -
1 systems, casino management systems, player tracking systems
2 and wide-area progressive systems are excluded from any
3 requirements that they be manufactured by a licensed
4 manufacturer pursuant to this section.
5 (2) NO SLOT MACHINE LICENSEE MAY ACQUIRE, PURCHASE OR <--
6 LEASE SLOT MACHINES OR ASSOCIATED EQUIPMENT TO A SLOT MACHINE
7 LICENSEE WITHIN THIS COMMONWEALTH UNLESS THE PERSON HAS BEEN
8 ISSUED A MANUFACTURER LICENSE UNDER THIS SECTION OR A
9 SUPPLIER LICENSE UNDER SECTION 1317 (RELATING TO SUPPLIER
10 LICENSES).
11 Section 6. Sections 1318, 1330, 1403, 1408(e), 1506 and 1512
12 of Title 4, added July 5, 2004 (P.L.572, No.71), are amended to
13 read:
14 § 1318. Occupation [permit application] permits.
15 (a) Application.-- [Any person] An individual who desires to
16 be a gaming employee and has a bona fide offer of employment
17 from a licensed gaming entity shall apply to the board for an
18 occupation permit. [A person may not be employed as a gaming
19 employee unless and until that person holds an appropriate
20 occupation permit issued under this section. The board may
21 promulgate regulations to reclassify a category of nongaming
22 employees or gaming employees upon a finding that the
23 reclassification is in the public interest and consistent with
24 the objectives of this part.]
25 (b) Requirements.--[The application for an occupation permit
26 shall include, at a minimum:] The application for an occupation
27 permit shall be on the form required by the board, accompanied
28 by the application fee and shall include all of the following:
29 (1) The name and home address of the [person]
30 individual.
20040S1209B1997 - 19 -
1 (2) The previous employment history of the [person]
2 individual.
3 (3) The criminal history record of the [person]
4 individual, as well as the [person's] individual's consent
5 for the Pennsylvania State Police to conduct a background
6 investigation.
7 (4) A photograph and handwriting exemplar of the
8 [person] individual.
9 (5) Evidence of the offer of employment and the nature
10 and scope of the proposed duties of the [person] individual,
11 if known.
12 (6) The details of any occupation permit or similar
13 license granted or denied to the permit applicant in other
14 jurisdictions where gaming activities as authorized by this
15 part are permitted and consent for the board to obtain copies
16 of applications submitted or permits or licenses issued in
17 connection therewith.
18 (7) Any other information determined by the board to be
19 appropriate.
20 [(c) Prohibition.--No slot machine licensee may employ or
21 permit any person under 18 years of age to render any service
22 whatsoever in any area of its licensed facility at which slot
23 machines are physically located.]
24 (c.1) Review and approval.--Upon being satisfied that the
25 requirements of subsection (b) have been met, the board may
26 approve the application and grant the permit applicant an
27 occupation permit consistent with all of the following:
28 (1) The occupation permit shall be for a period of one
29 year. Upon expiration, an occupation permit may be renewed in
30 accordance with subsection (d).
20040S1209B1997 - 20 -
1 (2) The occupation permit shall be nontransferable.
2 (3) Any other condition established by the board.
3 (d) Renewal.--Six months prior to expiration of an
4 occupation permit, an individual holding an occupation permit
5 and seeking renewal of the occupation permit shall submit a
6 renewal application accompanied by the renewal fee to the board.
7 If the renewal application satisfies the requirements of
8 subsection (b), the board may renew the occupation permit. If
9 the board receives a complete renewal application but fails to
10 act upon the renewal application prior to the expiration of the
11 occupation permit, the occupation permit shall continue in
12 effect for an additional six-month period or until acted upon by
13 the board, whichever occurs first.
14 (e) Prohibitions.--
15 (1) No slot machine licensee may employ or permit any
16 person under 18 years of age to render any service in any
17 area of its licensed facility at which slot machines are
18 physically located.
19 (2) No slot machine licensee may employ an individual as
20 a gaming employee unless the individual has been issued an
21 occupation permit under this section.
22 [§ 1330. Multiple slot machine license prohibition.
23 No slot machine licensee, its affiliate, intermediary,
24 subsidiary or holding company may possess an ownership or
25 financial interest that is greater than 33.3% of another slot
26 machine licensee or person eligible to apply for a Category 1
27 license, its affiliate, intermediary, subsidiary or holding
28 company. The board shall approve the terms and conditions of any
29 divestiture under this section. Under no circumstances shall any
30 such divestiture be approved by the board if the compensation
20040S1209B1997 - 21 -
1 for the divested interest in a person eligible to apply for a
2 Category 1 license exceeds the greater of the original cost of
3 the interest, the book value of the interest or an independently
4 assessed value of the interest one month prior to the effective
5 date of this part and, in the case of a person eligible to apply
6 for a Category 1 license, unless the person acquiring the
7 divested interest is required to continue conducting live racing
8 at the location where live racing is currently being conducted
9 in accordance with section 1303 (relating to additional Category
10 1 slot machine license requirements) and be approved for a
11 Category 1 slot machine license. No such slot machine license
12 applicant shall be issued a slot machine license until the
13 applicant has completely divested its ownership or financial
14 interest that is in excess of 33.3% in another slot machine
15 licensee or person eligible to apply for a Category 1 license,
16 its affiliate, intermediary, subsidiary or holding company.]
17 § 1403. Establishment of State Gaming Fund and net slot machine
18 revenue distribution.
19 (a) Fund established.--There is hereby established the State
20 Gaming Fund within the State Treasury.
21 (b) Slot machine tax.--The department shall determine and
22 each slot machine licensee shall pay a daily tax of 34% and a
23 local share assessment of 4% of its daily gross terminal revenue
24 from the slot machines in operation at its facility into the
25 fund.
26 (c) Transfers and distributions.--[The] Subject to the
27 provisions of subsection (d), the department shall:
28 (1) Transfer the slot machine tax and assessment imposed
29 in subsection (b) to the fund.
30 (2) From the local share assessment established in
20040S1209B1997 - 22 -
1 subsection (b) make quarterly distributions among the
2 counties hosting a licensed facility in accordance with the
3 following schedule:
4 (i) If the licensed facility is a Category 1
5 licensed facility that is located at a harness racetrack
6 and the county, including a home rule county, in which
7 the licensed facility is located is:
8 (A) A county of the first class: 4% of the
9 gross terminal revenue to the county hosting the
10 licensed facility from each such licensed facility.
11 Notwithstanding any other provision to the contrary,
12 funds from licensed gaming entities located within a
13 county of the first class shall not be distributed
14 outside of a county of the first class.
15 (B) A county of the second class: 2% of the
16 gross terminal revenue to the county hosting the
17 licensed facility from each such licensed facility.
18 (C) A county of the second class A: 1% of the
19 gross terminal revenue to the county hosting the
20 licensed facility from each such licensed facility.
21 An additional 1% of the gross terminal revenue to the
22 county hosting the licensed facility from each such
23 licensed facility for the purpose of municipal grants
24 within the county in which the licensee is located.
25 (D) A county of the third class: 2% of the
26 gross terminal revenue from each such licensed
27 facility shall be deposited into a restricted account
28 established in the Department of Community and
29 Economic Development to be used exclusively for
30 grants for health, safety and economic development
20040S1209B1997 - 23 -
1 projects to municipalities within the county where
2 the licensed facility is located. Municipalities that
3 are contiguous to the municipality hosting such
4 licensed facility shall be given priority by the
5 Department of Community and Economic Development in
6 the award of such grants.
7 (E) A county of the fourth class: 2% of the
8 gross terminal revenue from each such licensed
9 facility shall be deposited into a restricted account
10 established in the Department of Community and
11 Economic Development to be used exclusively for
12 grants to the county, to economic development
13 authorities or organizations within the county or
14 redevelopment authorities within the county for
15 grants for economic development projects, job
16 training, community improvement projects, other
17 projects in the public interest and reasonable
18 administrative costs. Notwithstanding the provisions
19 of the act of February 9, 1999 (P.L.1, No.1), known
20 as the Capital Facilities Debt Enabling Act, grants
21 made under this clause may be utilized as local
22 matching funds for other grants or loans from the
23 Commonwealth.
24 (F) Counties of the fifth through eighth
25 classes: 2% of the gross terminal revenue from each
26 such licensed facility shall be deposited into a
27 restricted account established in the Department of
28 Community and Economic Development to be used
29 exclusively for grants to the county.
30 (G) Any county not specifically enumerated in
20040S1209B1997 - 24 -
1 clauses (A) through (F), 2% of the gross terminal
2 revenue to the county hosting the licensed facility
3 from each such licensed facility.
4 (ii) If the licensed facility is a Category 1
5 licensed facility and is located at a thoroughbred
6 racetrack and the county in which the licensed facility
7 is located is:
8 (A) A county of the first class: 4% of the
9 gross terminal revenue to the county hosting the
10 licensed facility from each such licensed facility.
11 Notwithstanding any other provision to the contrary,
12 funds from licensed gaming entities located within
13 the county of the first class shall not be
14 distributed outside of a County of the first class.
15 (B) A county of the second class: 2% of the
16 gross terminal revenue to the county hosting the
17 licensed facility from each such licensed facility.
18 (C) A county of the second class A: 1% of the
19 gross terminal revenue to the county hosting the
20 licensed facility from each such licensed facility.
21 An additional 1% of the gross terminal revenue to the
22 county hosting the licensed facility from each such
23 licensed facility for the purpose of municipal grants
24 within the county in which the licensee is located.
25 (D) A county of the third class: 1% of the
26 gross terminal revenue to the county hosting the
27 licensed facility from each such licensed facility.
28 An additional 1% of the gross terminal revenue to the
29 county hosting the licensed facility from each such
30 licensed facility for the purpose of municipal grants
20040S1209B1997 - 25 -
1 within the county in which the licensee is located.
2 (E) A county of the fourth class: 2% of the
3 gross terminal revenue from each such licensed
4 facility shall be deposited into a restricted account
5 established in the Department of Community and
6 Economic Development to be used exclusively for
7 grants to the county, to economic development
8 authorities or organizations within the county or
9 redevelopment authorities within the county for
10 grants for economic development projects, community
11 improvement projects, job training, other projects in
12 the public interest and reasonable administrative
13 costs. Notwithstanding the Capital Facilities Debt
14 Enabling Act, grants made under this clause may be
15 utilized as local matching funds for other grants or
16 loans from the Commonwealth.
17 (F) Counties of the fifth through eighth
18 classes: 2% of the gross terminal revenue from each
19 such licensed facility shall be deposited into a
20 restricted account established in the Department of
21 Community and Economic Development to be used
22 exclusively for grants to the county.
23 (G) Any county not specifically enumerated in
24 clauses (A) through (F), 2% of the gross terminal
25 revenue to the county hosting the licensed facility
26 from each such licensed facility.
27 (iii) If the facility is a Category 2 licensed
28 facility and if the county in which the licensed facility
29 is located is:
30 (A) A county of the first class: 4% of the
20040S1209B1997 - 26 -
1 gross terminal revenue to the county hosting the
2 licensed facility from each such licensed facility.
3 Notwithstanding any other provision to the contrary,
4 funds from licensed gaming entities located within
5 the county of the first class shall not be
6 distributed outside of a County of the first class.
7 (B) A county of the second class: 2% of the
8 gross terminal revenue to the county hosting the
9 licensed facility from each such licensed facility.
10 (C) A county of the second class A: 1% of the
11 gross terminal revenue to the county hosting the
12 licensed facility from each such licensed facility.
13 An additional 1% of the gross terminal revenue to the
14 county hosting the licensed facility from each such
15 licensed facility for the purpose of municipal grants
16 within the county in which the licensee is located.
17 (D) A county of the third class: 1% of the
18 gross terminal revenue to the county hosting the
19 licensed facility from each such licensed facility.
20 An additional 1% of the gross terminal revenue to the
21 county hosting the licensed facility from each such
22 licensed facility for the purpose of municipal grants
23 within the county in which the licensee is located.
24 (E) A county of the fourth class: 2% of the
25 gross terminal revenue from each such licensed
26 facility shall be deposited into a restricted account
27 established in the Department of Community and
28 Economic Development to be used exclusively for
29 grants to the county, to economic development
30 authorities or organizations within the county or
20040S1209B1997 - 27 -
1 redevelopment authorities within the county for
2 grants for economic development projects, community
3 improvement projects, job training, other projects in
4 the public interest and reasonable administrative
5 costs. Notwithstanding the Capital Facilities Debt
6 Enabling Act, grants made under this clause may be
7 utilized as local matching funds for other grants or
8 loans from the Commonwealth.
9 (F) Counties of the fifth through eighth
10 classes: 2% of the gross terminal revenue from each
11 such licensed facility shall be deposited into a
12 restricted account established in the Department of
13 Community and Economic Development to be used
14 exclusively for grants to the county, to contiguous
15 counties, to economic development authorities or
16 organizations within the county or contiguous
17 counties or redevelopment authorities within the
18 county or contiguous counties for grants for economic
19 development projects, community improvement projects,
20 other projects in the public interest and reasonable
21 administrative costs. Notwithstanding the Capital
22 Facilities Debt Enabling Act, grants made under this
23 clause may be utilized as local matching funds for
24 other grants or loans from the Commonwealth.
25 (G) Any county not specifically enumerated in
26 clauses (A) through (F), 2% of the gross terminal
27 revenue to the county hosting the licensed facility
28 from each such licensed facility.
29 (iv) If the facility is a Category 3 licensed
30 facility, 2% of the gross terminal revenue from each such
20040S1209B1997 - 28 -
1 licensed facility shall be deposited into a restricted
2 account established in the Department of Community and
3 Economic Development to be used exclusively for grants to
4 the county, to economic development authorities or
5 organizations within the county or redevelopment
6 authorities within the county for grants for economic
7 development projects and community improvement projects.
8 (v) Unless otherwise specified, for the purposes of
9 this paragraph money designated for municipal grants
10 within a county, other than a county of the first class,
11 in which a licensed facility is located shall be used to
12 fund grants to the municipality in which the licensed
13 facility is located, to the county in which the licensed
14 facility is located and to the municipalities which are
15 contiguous to the municipality in which the licensed
16 facility is located and which are located within the
17 county in which the licensed facility is located. Grants
18 shall be administered by the county through its economic
19 development or redevelopment authority in which the
20 licensed facility is located. Grants shall be used to
21 fund the costs of human services, infrastructure
22 improvements, facilities, emergency services, health and
23 public safety expenses associated with licensed facility
24 operations. If at the end of a fiscal year uncommitted
25 funds exist, the county shall pay to the economic
26 development or redevelopment authority of the county in
27 which the licensed facility is located the uncommitted
28 funds.
29 (vi) If the licensed facility is located in more
30 than one county, the amount available shall be
20040S1209B1997 - 29 -
1 distributed on a pro rata basis determined by the
2 percentage of acreage located in each county to the total
3 acreage of all counties occupied by the licensed
4 facility.
5 (vii) The distributions provided in this paragraph
6 shall be based upon county classifications in effect on
7 the effective date of this section. Any reclassification
8 of counties as a result of a Federal decennial census
9 which shows an increase in population or of a State
10 statute shall [not] apply to this subparagraph[.] for
11 every succeeding State fiscal year. Any reclassification
12 of counties as a result of a Federal decennial census
13 which shows a decrease in population or of a State
14 statute shall not apply to this subparagraph.
15 (viii) If any provision of this paragraph is found
16 to be unenforceable for any reason, the distribution
17 provided for in the unenforceable provision shall be made
18 to the county in which the licensed facility is located
19 for the purposes of grants to municipalities in that
20 county, including municipal grants as specified in
21 subparagraph (v).
22 (ix) Nothing in this paragraph shall prevent any of
23 the above counties from entering into intergovernmental
24 cooperative agreements with other jurisdictions for
25 sharing these money.
26 (3) From the local share assessment established in
27 subsection (b), make quarterly distributions among the
28 municipalities, including home rule municipalities, hosting a
29 licensed facility in accordance with the following schedule:
30 (i) To a city of the second class hosting a licensed
20040S1209B1997 - 30 -
1 facility or facilities, other than a Category 3 licensed
2 facility, 2% of the gross terminal revenue or $10,000,000
3 annually, whichever is greater, of all licensed
4 facilities located in that city. In the event that the
5 revenues generated by the 2% do not meet the $10,000,000
6 minimum specified in this paragraph, the licensed gaming
7 entity operating the licensed facility or facilities in
8 the city shall remit the difference to the municipality.
9 (ii) To a city of the second class A hosting a
10 licensed facility or facilities, other than a Category 3
11 licensed facility, 2% of the gross terminal revenue or
12 $10,000,000 annually, whichever is greater, of all
13 licensed facilities located in that city. [subject,
14 however, to the budgetary limitation in this
15 subparagraph. The amount allocated to the designated
16 municipalities shall not exceed 50% of their total budget
17 for fiscal year 2003-2004, adjusted for inflation in
18 subsequent years by an amount not to exceed an annual
19 cost-of-living adjustment calculated by applying the
20 percentage change in the Consumer Price Index for All
21 Urban Consumers for the Pennsylvania, New Jersey,
22 Delaware and Maryland area, for the most recent 12-month
23 period for which figures have been officially reported by
24 the United States Department of Labor, Bureau of Labor
25 Statistics, immediately prior to the date the adjustment
26 is due to take effect. Any remaining moneys shall be
27 distributed in accordance with paragraph (2) based upon
28 the county where the licensed facility or facilities is
29 located.] In the event that the revenues generated by the
30 2% do not meet the $10,000,000 minimum specified in this
20040S1209B1997 - 31 -
1 subparagraph, the licensed gaming entity operating the
2 licensed facility or facilities in the city shall remit
3 the difference to the municipality.
4 (iii) To a city of the third class hosting a
5 licensed facility or facilities, other than a Category 3
6 licensed facility, 2% of the gross terminal revenue or
7 $10,000,000 annually, whichever is greater, of all
8 licensed facilities located in that city subject,
9 however, to the budgetary limitation in this
10 subparagraph. However, the foregoing limitations shall
11 not apply, notwithstanding any provision to the contrary,
12 if the licensed facility or facilities have executed a
13 written agreement with the city prior to the effective
14 date of this part to provide additional compensation to
15 the city in excess of the difference between 2% of the
16 gross terminal revenue and $10,000,000. [The amount
17 allocated to the designated municipalities shall not
18 exceed 50% of their total budget for fiscal year 2003-
19 2004, adjusted for inflation in subsequent years by an
20 amount not to exceed an annual cost-of-living adjustment
21 calculated by applying the percentage change in the
22 Consumer Price Index for All Urban Consumers for the
23 Pennsylvania, New Jersey, Delaware and Maryland area, for
24 the most recent 12-month period for which figures have
25 been officially reported by the United States Department
26 of Labor, Bureau of Labor Statistics, immediately prior
27 to the date the adjustment is due to take effect. Any
28 remaining moneys shall be distributed in accordance with
29 paragraph (2) based upon the county where the licensed
30 facility or facilities is located.] In the event that the
20040S1209B1997 - 32 -
1 revenues generated by the 2% do not meet the $10,000,000
2 minimum specified in this subparagraph, the licensed
3 gaming entity operating the licensed facility or
4 facilities in the city shall remit the difference to the
5 municipality.
6 (iv) To a township of the first class hosting a
7 licensed facility or facilities, other than a Category 3
8 licensed facility, 2% of the gross terminal revenue or
9 $10,000,000 annually, whichever is greater, of all
10 licensed facilities located in the township. [subject,
11 however, to the budgetary limitation in this
12 subparagraph. The amount allocated to the designated
13 municipalities shall not exceed 50% of their total budget
14 for fiscal year 2003-2004, adjusted for inflation in
15 subsequent years by an amount not to exceed an annual
16 cost-of-living adjustment calculated by applying the
17 percentage change in the Consumer Price Index for All
18 Urban Consumers for the Pennsylvania, New Jersey,
19 Delaware and Maryland area, for the most recent 12-month
20 period for which figures have been officially reported by
21 the United States Department of Labor, Bureau of Labor
22 Statistics, immediately prior to the date the adjustment
23 is due to take effect. Any remaining money shall be
24 distributed in accordance with paragraph (2) based upon
25 the county where the licensed facility or facilities is
26 located.] In the event that the revenues generated by the
27 2% do not meet the $10,000,000 minimum specified in this
28 subparagraph, the licensed gaming entity operating the
29 licensed facility or facilities in the township shall
30 remit the difference to the municipality.
20040S1209B1997 - 33 -
1 (v) To a township of the second class hosting a
2 licensed facility or facilities, other than a Category 3
3 licensed facility, 2% of the gross terminal revenue or
4 $10,000,000 annually, whichever is greater, of all
5 licensed facilities located in the township. [subject,
6 however, to the budgetary limitation in this
7 subparagraph. The amount allocated to the designated
8 municipalities shall not exceed 50% of their total budget
9 for fiscal year 2003-2004, adjusted for inflation in
10 subsequent years by an amount not to exceed an annual
11 cost-of-living adjustment calculated by applying the
12 percentage change in the Consumer Price Index for All
13 Urban Consumers for the Pennsylvania, New Jersey,
14 Delaware and Maryland area, for the most recent 12-month
15 period for which figures have been officially reported by
16 the United States Department of Labor, Bureau of Labor
17 Statistics, immediately prior to the date the adjustment
18 is due to take effect. Any remaining money shall be
19 distributed in accordance with paragraph (2) based upon
20 the county where the licensed facility or facilities is
21 located.] In the event that the revenues generated by the
22 2% do not meet the $10,000,000 minimum specified in this
23 subparagraph, the licensed gaming entity operating the
24 licensed facility or facilities in the township shall
25 remit the difference to the municipality.
26 (vi) To a borough hosting a licensed facility or
27 facilities, other than a Category 3 licensed facility, 2%
28 of the gross terminal revenue or $10,000,000 annually,
29 whichever is greater, of all licensed facilities located
30 in that borough. [subject, however, to the budgetary
20040S1209B1997 - 34 -
1 limitation in this subparagraph. The amount allocated to
2 the designated municipalities shall not exceed 50% of
3 their total budget for fiscal year 2003-2004, adjusted
4 for inflation in subsequent years by an amount not to
5 exceed an annual cost-of-living adjustment calculated by
6 applying the percentage change in the Consumer Price
7 Index for All Urban Consumers for the Pennsylvania, New
8 Jersey, Delaware and Maryland area, for the most recent
9 12-month period for which figures have been officially
10 reported by the United States Department of Labor, Bureau
11 of Labor Statistics, immediately prior to the date the
12 adjustment is due to take effect. Any remaining money
13 shall be distributed in accordance with paragraph (2)
14 based upon the county where the licensed facility or
15 facilities is located.] In the event that the revenues
16 generated by the 2% do not meet the $10,000,000 minimum
17 specified in this subparagraph, the licensed gaming
18 entity operating the licensed facility or facilities in
19 the borough shall remit the difference to the
20 municipality.
21 (vii) To an incorporated town hosting a licensed
22 facility or facilities, other than a Category 3 licensed
23 facility, 2% of the gross terminal revenue or $10,000,000
24 annually, whichever is greater, of all licensed
25 facilities located in the town. [subject, however, to the
26 budgetary limitation in this subparagraph. The amount
27 allocated to the designated municipalities shall not
28 exceed 50% of their total budget for fiscal year 2003-
29 2004, adjusted for inflation in subsequent years by an
30 amount not to exceed an annual cost-of-living adjustment
20040S1209B1997 - 35 -
1 calculated by applying the percentage change in the
2 Consumer Price Index for All Urban Consumers for the
3 Pennsylvania, New Jersey, Delaware and Maryland area, for
4 the most recent 12-month period for which figures have
5 been officially reported by the United States Department
6 of Labor, Bureau of Labor Statistics, immediately prior
7 to the date the adjustment is due to take effect. Any
8 remaining money shall be distributed in accordance with
9 paragraph (2) based upon the county where the licensed
10 facility or facilities is located.] In the event that the
11 revenues generated by the 2% do not meet the $10,000,000
12 minimum specified in this subparagraph, the licensed
13 gaming entity operating the licensed facility or
14 facilities in the town shall remit the difference to the
15 municipality.
16 (viii) To a municipality of any class hosting a
17 Category 3 facility, 2% of the gross terminal revenue
18 from the Category 3 licensed facility located in the
19 municipality. [subject, however, to the budgetary
20 limitation in this subparagraph. The amount allocated to
21 the designated municipalities shall not exceed 50% of
22 their total budget for fiscal year 2003-2004, adjusted
23 for inflation in subsequent years by an amount not to
24 exceed an annual cost-of-living adjustment calculated by
25 applying the percentage change in the Consumer Price
26 Index for All Urban Consumers for the Pennsylvania, New
27 Jersey, Delaware and Maryland area, for the most recent
28 12-month period for which figures have been officially
29 reported by the United States Department of Labor, Bureau
30 of Labor Statistics, immediately prior to the date the
20040S1209B1997 - 36 -
1 adjustment is due to take effect. Any remaining money
2 shall be distributed in accordance with paragraph (2)
3 based upon the county where the licensed facility or
4 facilities is located.]
5 (ix) Any municipality not specifically enumerated in
6 subparagraphs (i) through (viii), 2% of the gross
7 terminal revenue to the municipality hosting the licensed
8 facility from each such licensed facility.
9 (x) If the licensed facility is located in more than
10 one municipality, the amount available shall be
11 distributed on a pro rata basis determined by the
12 percentage of acreage located in each municipality to the
13 total acreage of all municipalities occupied by the
14 licensed facility.
15 (xi) If the licensed facility is located at a resort
16 which is also an incorporated municipality, such
17 municipality shall not be eligible to receive any
18 distribution under this paragraph. The distribution it
19 would have otherwise been entitled to under this
20 paragraph shall instead be distributed in accordance with
21 paragraph (2) based upon the county where the licensed
22 facility is located.
23 (xii) The distributions provided in this paragraph
24 shall be based upon municipal classifications in effect
25 on the effective date of this section. For the purposes
26 of this paragraph, any reclassification of municipalities
27 as a result of a Federal decennial census or of a State
28 statute shall not apply to this paragraph.
29 (xiii) If any provision of this paragraph is found
30 to be unenforceable for any reason, the distribution
20040S1209B1997 - 37 -
1 provided for in such unenforceable provision shall be
2 made to the municipality in which the licensed facility
3 is located.
4 (xiv) Nothing in this paragraph shall prevent any of
5 the above municipalities from entering into
6 intergovernmental cooperative agreements with other
7 jurisdictions for sharing this money.
8 (xv) Notwithstanding any other law, agreement or
9 provision in this part to the contrary, all revenues
10 provided, directed or earmarked under this section to or
11 for the benefit of a city of the second class in which an
12 intergovernmental cooperation authority has been
13 established and is in existence pursuant to the act of
14 February 12, 2004 (P.L.73, No.11), known as the
15 Intergovernmental Cooperation Authority Act for Cities of
16 the Second Class, shall be directed to and under the
17 exclusive control of such intergovernmental cooperation
18 authority to be used:
19 (A) to reduce the debt of the second class city;
20 (B) to increase the level of funding of the
21 municipal pension funds of the second class city; or
22 (C) for any other purposes as determined to be
23 in the best interest of the second class city by such
24 intergovernmental cooperation authority. Such
25 revenues shall not be directed to or under the
26 control of such city of the second class or any
27 coordinator appointed pursuant to the act of July 10,
28 1987 (P.L.246, No.47), known as the Municipalities
29 Financial Recovery Act, for such city of the second
30 class.
20040S1209B1997 - 38 -
1 (d) Priority transfer for preservation of funding level for
2 State Lottery Fund.--
3 (1) Prior to making any transfer or distribution under
4 this section or section 1408 (relating to transfers from
5 State Gaming Fund), the department shall annually determine
6 the balance in the State Lottery Fund after payment, under
7 section 311 of the act of August 26, 1971 (P.L.351, No.91),
8 known as the State Lottery Law, of lottery prizes and
9 operating expenses of the department relating thereto for the
10 prior fiscal year and shall make the transfer under paragraph
11 (2), if applicable.
12 (2) If such balance is less than the balance from the
13 prior fiscal year determined in the same manner, the
14 department shall transfer an amount equal to the difference
15 between the balances from the State Gaming Fund to the State
16 Lottery Fund.
17 § 1408. Transfers from State Gaming Fund.
18 * * *
19 (e) Transfer to Property Tax Relief Fund.--[Monthly]
20 Annually, the State Treasurer shall transfer the remaining
21 balance in the State Gaming Fund which is not otherwise
22 transferred under section 1403(d) (relating to establishment of
23 State Gaming Fund and net slot machine revenue distribution) and
24 allocated in subsections (a), (b), (c) and (d) to the Property
25 Tax Relief Fund established in section 1409 (relating to
26 Property Tax Relief Fund).
27 § 1506. [Local land use preemption] Preemption.
28 [The conduct of gaming as permitted under this part,
29 including the physical location of any licensed facility,] (a)
30 Regulation.--Gaming authorized by this part shall not be
20040S1209B1997 - 39 -
1 prohibited or otherwise regulated by any ordinance, home rule
2 charter provision, resolution, rule or regulation of any
3 [political subdivision or any local or State instrumentality or
4 authority that relates to zoning or land use to the extent that
5 the licensed facility has been approved by the board.]
6 municipality.
7 (b) Land use.--Any zoning and land use ordinances, home rule
8 charter provisions, resolutions, rules or regulations of any
9 municipality shall not apply to property upon which a licensed
10 facility or licensed racetrack is or will be located. The board
11 may [in its discretion consider such] consider local zoning
12 ordinances when considering an application for a slot machine
13 license.
14 (c) Local impact.--
15 (1) The board shall provide the [political subdivision]
16 municipality, within which an applicant for a slot machine
17 license has proposed to locate a licensed [gaming] facility,
18 a 60-day comment period prior to the board's final approval,
19 condition or denial of approval of [its] the application for
20 a slot machine license. The [political subdivision]
21 municipality may make written recommendations to the board
22 for improvements to the applicant's proposed site plans that
23 take into account the impact on the local community.[,
24 including, but not limited to, land use and transportation
25 impact. This section shall also apply to any proposed
26 racetrack or licensed racetrack.]
27 (2) Within 30 days following the expiration of the 60-
28 day comment period provided in paragraph (1), the board shall
29 provide the municipality with a written response to each
30 written recommendation received from the municipality during
20040S1209B1997 - 40 -
1 the comment period.
2 (3) A municipality shall have the right to appeal any
3 response of the board that a majority vote of the governing
4 body of the municipality determines fails to adequately
5 address the impact that the granting of the proposed slot
6 machine license will have on the local community and that the
7 board's failure to do so will result in serious negative
8 impact to the local community. The appeal of the municipality
9 shall be made in accordance with this section. The procedures
10 set forth in this section shall constitute the exclusive mode
11 for securing review of any decision of the board relating to
12 the impact final approval may have on the local community.
13 (4) Within ten days following receipt of the written
14 response of the board required by paragraph (2), the
15 municipality shall notify the board whether the municipality
16 intends to file an appeal should the board grant final
17 approval to the slot machine license applicant. Failure to
18 provide notice as required by this subsection shall be deemed
19 a waiver of any right to seek judicial review of the impact
20 that the final approval of the board will have on the local
21 community. The notice required by this subsection shall
22 include specific objections to the response of the board and
23 shall list the grounds on which the municipality intends to
24 appeal and specific recommendations to minimize any negative
25 impact on the local community. The notice shall be
26 accompanied by the official vote of the governing authority
27 of the municipality authorizing the appeal should final
28 approval be granted.
29 (5) Notwithstanding any other provision of law, an
30 appeal filed by a municipality relating to the impact that
20040S1209B1997 - 41 -
1 the final approval of the board will have on the local
2 community shall be taken to the Commonwealth Court. An appeal
3 to Commonwealth Court by a municipality pursuant to this
4 section shall be filed within ten days of the board's final
5 approval and shall be accompanied by a request for an
6 expedited hearing before the court. The filing in
7 Commonwealth Court shall state specific objections to the
8 response of the board and shall list the grounds on which the
9 governing authority of the municipality believes the final
10 approval of the board will result in serious negative impact
11 to the local community and shall include specific
12 recommendations to minimize any negative impact final
13 approval will have on the local community. The filing shall
14 be accompanied by a certified copy of the official vote of
15 the governing authority of the municipality authorizing that
16 the appeal be taken.
17 (6) Upon filing of an appeal by a municipality pursuant
18 to this section, the Commonwealth Court shall forthwith send
19 to the board, by registered or certified mail, a copy of the
20 appeal, together with a writ of certiorari commanding the
21 board, within 20 days after receipt thereof, to certify to
22 the court items and information in the possession of the
23 board and subject to disclosure, which relate to the grounds
24 on which the governing authority of the municipality believes
25 the final approval of the board will result in serious
26 negative impact to the local community and to the governing
27 authority's specific recommendations to minimize any negative
28 impact final approval will have on the local community.
29 (7) The filing of an appeal by a municipality pursuant
30 to this section shall not stay the board's final approval,
20040S1209B1997 - 42 -
1 but the municipality may petition the court for a stay.
2 Whether or not a stay is sought by the municipality, the
3 board may petition the court to order the municipality to
4 post a bond as a condition to proceeding with the appeal.
5 After the petition for posting a bond is presented, the court
6 shall hold a hearing to determine if the filing of the appeal
7 is frivolous. At the hearing, evidence may be presented on
8 the merits of the case. It shall be the burden of the board
9 to prove the appeal is frivolous. After consideration of all
10 evidence presented, if the court determines that the appeal
11 is frivolous, it shall grant the petition for posting a bond.
12 The right to petition the court to order the municipality to
13 post a bond may be waived by the board, but such waiver may
14 be revoked by the board if an appeal is taken from a final
15 determination of the court. The question of the amount of the
16 bond shall be within the sound discretion of the court. An
17 order denying a petition for a bond shall be interlocutory.
18 An order directing the municipality to post a bond shall be
19 interlocutory.
20 (8) If an appeal is taken by the municipality to the
21 petition for a bond from an order of the court dismissing an
22 appeal for refusal to post a bond, and the Supreme Court
23 sustains the petition for a bond, upon motion of the board
24 and after hearing in the Commonwealth Court, the municipality
25 shall be liable for all reasonable costs, expenses and
26 attorney fees incurred by the board.
27 (9) Within 30 days first following the filing of an
28 appeal by a municipality pursuant to this section, the
29 licensee that was granted final approval by the board may
30 intervene by filing a notice of intervention, accompanied by
20040S1209B1997 - 43 -
1 proof of service of the same, upon the board and the
2 municipality.
3 (10) If, upon motion, it is shown that proper
4 consideration of the appeal requires the presentation of
5 additional evidence, the Commonwealth Court may hold a
6 hearing to receive additional evidence. If the information
7 provided to the court pursuant to paragraph (6) includes
8 findings of fact made by the board, or the appeal is reviewed
9 by the court without taking additional evidence, the findings
10 of the board shall not be disturbed by the court if supported
11 by the evidence. If the information provided to the court
12 pursuant to paragraph (6) does not include findings of fact
13 made by the board or if additional evidence is taken, the
14 court may make its own findings of fact based on the
15 information provided and the additional evidence presented.
16 (11) In an appeal filed by a municipality pursuant to
17 this section, the Commonwealth Court shall have power to
18 recommend that the board alter its final approval to minimize
19 serious negative impact on the local community, but the court
20 shall not have power to prevent the board from granting final
21 approval. Serious negative impact shall be proven by clear
22 and convincing evidence.
23 (12) Upon an order of the Commonwealth Court
24 recommending that the board alter its final approval to
25 minimize serious negative impact on the local community, the
26 board shall consider the recommendations of the court and
27 within 30 days alter the final approval as the board deems
28 appropriate. Final approval by the board following an appeal
29 shall not be subject to appeal.
30 § 1512. [Public official financial interest] Financial
20040S1209B1997 - 44 -
1 interests and complimentary services and discounts.
2 [(a) General rule.--Except as may be provided by rule or
3 order of the Pennsylvania Supreme Court, no executive-level
4 State employee, public official, party officer or immediate
5 family member thereof shall have, at or following the effective
6 date of this part, a financial interest in or be employed,
7 directly or indirectly, by any licensed racing entity or
8 licensed gaming entity, or any holding, affiliate, intermediary
9 or subsidiary company, thereof, or any such applicant, nor
10 solicit or accept, directly or indirectly, any complimentary
11 service or discount from any licensed racing entity or licensed
12 gaming entity which he or she knows or has reason to know is
13 other than a service or discount that is offered to members of
14 the general public in like circumstances during his or her
15 status as an executive-level State employee, public official or
16 party officer and for one year following termination of the
17 person's status as an executive-level State employee, public
18 official or party officer.]
19 (a) Financial interests.--An executive-level State employee,
20 public official or party officer, or an immediate family member
21 thereof, shall not do any of the following:
22 (1) Intentionally or knowingly hold, whether directly or
23 indirectly, a financial interest in any slot machine
24 licensee, manufacturer licensee, supplier licensee, licensed
25 racing entity or in any holding, affiliate, intermediary or
26 subsidiary company thereof while the individual is an
27 executive-level State employee, public official or party
28 officer and for one year following termination of the
29 individual's status as an executive-level State employee,
30 public official or party officer.
20040S1209B1997 - 45 -
1 (2) Intentionally or knowingly hold, whether directly or
2 indirectly, a financial interest in any applicant for a slot
3 machine license, manufacturer license, supplier license or
4 racetrack or in any holding, affiliate, intermediary or
5 subsidiary company of the applicant while the individual is
6 an executive-level State employee, public official or party
7 officer and for one year following termination of the
8 individual's status as an executive-level State employee,
9 public official or party officer.
10 (a.1) Employment.--
11 (1) An executive-level State employee, public official
12 or party officer shall not be employed, whether directly or
13 indirectly, by any slot machine licensee, manufacturer
14 licensee, supplier licensee, licensed racing entity or
15 racetrack, or an applicant therefor, or by any holding,
16 affiliate, intermediary or subsidiary company thereof, while
17 the individual is an executive-level State employee, public
18 official or party officer and for one year following
19 termination of the individual's status as an executive-level
20 State employee, public official or party officer.
21 (2) An immediate family member of an executive-level
22 State employee, public official or party officer shall not be
23 employed to provide services for any slot machine licensee,
24 manufacturer licensee, supplier licensee, licensed racing
25 entity or racetrack, or an applicant therefor, or by any
26 holding, affiliate, intermediary or subsidiary company
27 thereof, while the executive-level State employee, public
28 official or party officer of the immediate family member is
29 an executive-level State employee, public official or party
30 officer.
20040S1209B1997 - 46 -
1 (a.2) Complimentary services and discounts.--No executive-
2 level State employee, public official or party officer, or an
3 immediate family member thereof, shall solicit or accept,
4 whether directly or indirectly, any complimentary service or
5 discount from any slot machine licensee, manufacturer licensee,
6 supplier licensee, licensed racing entity or from an affiliate,
7 intermediary, subsidiary or holding company thereof which the
8 executive-level State employee, public official or party
9 officer, or an immediate family member thereof, knows or has
10 reason to know is other than a service or discount that is
11 offered to members of the general public in like circumstances
12 while the individual is an executive-level State employee,
13 public official or party officer.
14 (a.3) Grading.--An individual who violates this section
15 commits a misdemeanor and shall, upon conviction, be sentenced
16 to pay a fine of not more than $1,000 or to imprisonment for not
17 more than one year, or both.
18 (a.4) Divestiture.--An executive-level State employee,
19 public official or party officer, or an immediate family member
20 thereof, who holds a financial interest prohibited by this
21 section shall divest the financial interest within three months
22 of the effectuation of the restrictions set forth in subsection
23 (a), as applicable.
24 (a.5) List of applicants.--The board shall publish monthly
25 in the Pennsylvania Bulletin and on its Internet website a list
26 of applicants for slot machine licenses, supplier licenses,
27 manufacturer licenses and of the affiliates, intermediaries,
28 subsidiaries and holding companies of the applicants.
29 (b) Definitions.--As used in this section, the following
30 words and phrases shall have the meanings given to them in this
20040S1209B1997 - 47 -
1 subsection:
2 "Executive-level State employee." The Governor, Lieutenant
3 Governor, cabinet members, deputy secretaries, the Governor's
4 office executive staff, any State employee with discretionary
5 powers which may affect the outcome of a State agency's decision
6 in relation to a private corporation or business, with respect
7 to any matter covered by this part or any executive employee who
8 by virtue of his job function could influence the outcome of
9 such a decision.
10 "Financial interest." Owning or holding, or being deemed to
11 hold, debt or equity securities [exceeding 1% of the equity or
12 fair market value of the licensed racing entity or licensed
13 gaming entity, its holding company, affiliate, intermediary or
14 subsidiary business] or other ownership interest or profits
15 interest. A financial interest shall not include any [such stock
16 that is held in a blind trust over which the executive-level
17 State employee, public official, party officer or immediate
18 family member thereof may not exercise any managerial control or
19 receive income during the tenure of office and the period under
20 subsection (a).] debt or equity security, or other ownership
21 interest or profits interest, which is held or deemed to be held
22 in any of the following manners:
23 (1) A blind trust over which the executive-level State
24 employee, public official or party officer, or an immediate
25 family member thereof, does not exercise managerial or
26 investment control during the tenure of office and the period
27 under subsection (a).
28 (2) A defined benefit pension plan, a defined
29 contribution benefit pension plan or another retirement plan,
30 over which the executive-level State employee, public
20040S1209B1997 - 48 -
1 official or party officer, or an immediate family member
2 thereof, does not exercise managerial or investment control
3 during the tenure of office and the period under subsection
4 (a).
5 (3) A tuition account plan organized and operated
6 pursuant to section 529 of the Internal Revenue Code of 1986
7 (Public Law 99-514, 26 U.S.C. § 1 et seq.).
8 (4) A mutual fund where the interest owned by the mutual
9 fund in a licensed entity does not amount to control of the
10 licensed entity as defined by the Investment Company Act of
11 1940 54 Stat. 789, 15 U.S.C. § 80a-1 et seq.).
12 (5) Any other manner over which the executive-level
13 State employee, public official or party officer, or an
14 immediate family member thereof, does not exercise managerial
15 or investment control during the tenure of office and the
16 period under subsection (a).
17 "Immediate family." A [parent,] spouse, minor child or
18 unemancipated child[, brother or sister].
19 "Party officer." A member of a national committee; a
20 chairman, vice chairman, secretary, treasurer or counsel of a
21 State committee or member of the executive committee of a State
22 committee; a county chairman, vice chairman, counsel, secretary
23 or treasurer of a county committee A COUNTY IN WHICH A LICENSED <--
24 FACILITY IS LOCATED; or a city chairman, vice chairman, counsel,
25 secretary or treasurer of a city committee OF A CITY IN WHICH A <--
26 LICENSED FACILITY IS LOCATED.
27 ["Public official." Any person elected by the public or <--
28 elected or appointed by a governmental body directly receiving <--
29 revenue under this part or an appointed official in the
30 executive, legislative or judicial branch of this Commonwealth
20040S1209B1997 - 49 -
1 or any political subdivision thereof directly receiving revenue <--
2 under this part, provided that it shall not include members of
3 school boards or members of advisory boards that have no <--
4 authority to expend public funds other than reimbursement for
5 personal expense or to otherwise exercise the power of the
6 Commonwealth or any political subdivision [or commissioner of <--
7 any authority or joint-state commission]. COMMISSION.] <--
8 "PUBLIC OFFICIAL." ANY OF THE FOLLOWING:
9 (1) AN INDIVIDUAL ELECTED BY THE PUBLIC TO AN OFFICE IN
10 THE EXECUTIVE, LEGISLATIVE OR JUDICIAL DEPARTMENT OF THIS
11 COMMONWEALTH.
12 (2) AN INDIVIDUAL ELECTED BY THE PUBLIC TO AN OFFICE IN
13 A MUNICIPALITY WHICH DIRECTLY RECEIVES A DISTRIBUTION OF
14 GROSS TERMINAL REVENUE UNDER § 1403(C) (RELATING TO
15 ESTABLISHMENT OF STATE GAMING FUND AND NET SLOT MACHINE
16 REVENUE DISTRIBUTION).
17 (3) AN INDIVIDUAL ELECTED OR APPOINTED TO A GOVERNMENTAL
18 BODY WHICH DIRECTLY RECEIVES A DISTRIBUTION OF GROSS TERMINAL
19 REVENUE UNDER § 1403(C).
20 (4) AN INDIVIDUAL APPOINTED AS A PUBLIC OFFICIAL IN AN
21 AGENCY OF THE EXECUTIVE, LEGISLATIVE OR JUDICIAL BRANCHES OF
22 THIS COMMONWEALTH WHICH DIRECTLY RECEIVES A DISTRIBUTION OF
23 GROSS TERMINAL REVENUE UNDER § 1403(C).
24 (5) AN INDIVIDUAL APPOINTED AS A PUBLIC OFFICIAL IN AN
25 AGENCY OF A MUNICIPALITY WHICH DIRECTLY RECEIVES A
26 DISTRIBUTION OF GROSS TERMINAL REVENUE UNDER § 1403(C).
27 THE TERM DOES NOT INCLUDE MEMBERS OF SCHOOL BOARDS OR MEMBERS OF
28 ADVISORY BOARDS WHO HAVE NO AUTHORITY TO EXPEND PUBLIC FUNDS
29 OTHER THAN FOR REIMBURSEMENT OF PERSONAL EXPENSES OR TO
30 OTHERWISE EXERCISE THE POWER OF THE COMMONWEALTH OR A
20040S1209B1997 - 50 -
1 MUNICIPALITY.
2 Section 7. Section 1517(d) of Title 4, added July 5, 2004
3 (P.L.572, No.71), is amended and the section is amended by
4 adding subsections to read:
5 § 1517. Enforcement.
6 * * *
7 (c.1) Powers and duties of Attorney General.--Within the
8 Office of Attorney General, the Attorney General shall establish
9 a gaming division. The division shall investigate and institute
10 criminal proceedings as authorized by subsection (d).
11 (d) Criminal action.--
12 (1) The district attorneys of the several counties shall
13 have authority to investigate and to institute criminal
14 proceedings for [any] a violation of this part.
15 (2) In addition to the authority conferred upon the
16 Attorney General [by] under the act of October 15, 1980
17 (P.L.950, No.164), known as the Commonwealth Attorneys Act,
18 the Attorney General shall have the authority to investigate
19 and, following consultation with the appropriate district
20 attorney, to institute criminal proceedings for [any] a
21 violation of this part. [or any series of such violations
22 involving any county of this Commonwealth and another state.
23 No] A person charged with a violation of this part by the
24 Attorney General shall not have standing to challenge the
25 authority of the Attorney General to investigate or prosecute
26 the case, and, if any such challenge is made, the challenge
27 shall be dismissed and no relief shall be available in the
28 courts of this Commonwealth to the person making the
29 challenge.
30 (d.1) Regulatory action.--Nothing contained in subsection
20040S1209B1997 - 51 -
1 (d) shall be construed to limit the existing regulatory or
2 investigative authority of a department or agency of the
3 Commonwealth whose functions relate to persons or matters
4 falling within the scope of this part.
5 * * *
6 Section 7.1. Sections 1518(a) and (b), 1801 and 1802 of
7 Title 4, added July 5, 2004 (P.L.572, No.71), are amended to
8 read:
9 § 1518. Prohibited acts; penalties.
10 (a) Criminal offenses.--
11 (1) The provisions of 18 Pa.C.S. § 4902 (relating to
12 perjury), 4903 (relating to false swearing) or 4904 (relating
13 to unsworn falsification to authorities) shall apply to any
14 person providing information or making any statement, whether
15 written or oral, to the board, the bureau, the department,
16 the Pennsylvania State Police or the Office of Attorney
17 General, as required by this part.
18 (2) It [is] shall be unlawful for a person to willfully:
19 (i) fail to report, pay or truthfully account for
20 and pay over any license fee, tax or assessment imposed
21 under this part; or
22 (ii) attempt in any manner to evade or defeat any
23 license fee, tax or assessment imposed under this [party]
24 part.
25 (3) It [is] shall be unlawful for any licensed entity,
26 gaming employee, key employee or any other person to permit a
27 slot machine to be operated, transported, repaired or opened
28 on the premises of a licensed facility by a person other than
29 a person licensed or permitted by the board pursuant to this
30 part.
20040S1209B1997 - 52 -
1 (4) It [is] shall be unlawful for any licensed entity or
2 other person to manufacture, supply or place slot machines
3 into play or display slot machines on the premise of a
4 licensed facility without the authority of the board.
5 (5) Except as provided for in section 1326 (relating to
6 license renewals), it [is] shall be unlawful for a licensed
7 entity or other person to manufacture, supply, operate, carry
8 on or expose for play any slot machine after the person's
9 license has expired and prior to the actual renewal of the
10 license.
11 (6) (i) Except as set forth in subparagraph (ii), it
12 [is] shall be unlawful for an individual while on the
13 premises of a licensed facility to knowingly use currency
14 other than lawful coin or legal tender of the United
15 States or a coin not of the same denomination as the coin
16 intended to be used in the slot machine[.] with the
17 intent to cheat or defraud a licensed gaming entity or
18 the Commonwealth or damage the slot machine.
19 (ii) In the playing of a slot machine, it [is] shall
20 be lawful for an individual to use gaming billets, tokens
21 or similar objects issued by the licensed gaming entity
22 which are approved by the board.
23 (7) (i) Except as set forth in subparagraph (ii), it
24 [is] shall be unlawful for an individual [on the premises
25 of a licensed facility] to use or possess a cheating or
26 thieving device, counterfeit or altered billet, ticket,
27 token or similar objects accepted by a slot machine or
28 counterfeit or altered slot machine-issued tickets or
29 vouchers at a licensed facility.
30 (ii) An authorized employee of a licensee or an
20040S1209B1997 - 53 -
1 employee of the board may possess and use a cheating or
2 thieving device, counterfeit or altered billet, ticket,
3 token or similar objects accepted by a slot machine or
4 counterfeit or altered slot machine-issued tickets or
5 vouchers [only] in performance of the duties of
6 employment.
7 (iii) As used in this paragraph, the term "cheating
8 or thieving device" includes, but is not limited to, a
9 device to facilitate the alignment of any winning
10 combination or to remove from any slot machine money or
11 other contents. The term includes, but is not limited to,
12 a tool, drill, wire, coin or token attached to a string
13 or wire and any electronic or magnetic device.
14 (8) (i) Except as set forth in subparagraph (ii), it
15 [is] shall be unlawful for an individual to knowingly
16 possess or use while on the premises of a licensed
17 facility a key or device designed for the purpose of and
18 suitable for opening or entering any slot machine or coin
19 box which is located on the premises of the licensed
20 facility.
21 (ii) An authorized employee of a licensee or a
22 member of the board may possess and use a device referred
23 to in subparagraph (i) [only] in the performance of the
24 duties of employment.
25 (9) It [is] shall be unlawful for a person or licensed
26 entity to possess any device, equipment or material which the
27 person or licensed entity knows has been manufactured,
28 distributed, sold, tampered with or serviced in violation of
29 the provisions of this part[.] with the intent to use the
30 device, equipment or material as though it had been
20040S1209B1997 - 54 -
1 manufactured, distributed, sold, tampered with or serviced
2 pursuant to this part.
3 (9.1) It shall be unlawful for a person to sell, offer
4 for sale, represent or pass off as lawful any device,
5 equipment or material which the person or licensed entity
6 knows has been manufactured, distributed, sold, tampered with
7 or serviced in violation of this part.
8 (10) It [is] shall be unlawful for an individual to work
9 or be employed in a position the duties of which would
10 require licensing or permitting under the provisions of this
11 part without first obtaining the requisite license or permit
12 [as provided for in] issued under the provisions of this
13 part.
14 (11) It [is] shall be unlawful for a licensed gaming
15 entity that is a licensed racing entity and that has lost the
16 license issued to it by either the State Horse Racing
17 Commission or the State Harness Racing Commission under the
18 Race Horse Industry Reform Act or that has had that license
19 suspended to operate slot machines at the racetrack for which
20 its slot machine license was issued unless the license issued
21 to it by either the State Horse Racing Commission or the
22 State Harness Racing Commission will be subsequently reissued
23 or reinstated within 30 days after the loss or suspension.
24 (12) It [is] shall be unlawful for a licensed entity to
25 employ or continue to employ an individual in a position the
26 duties of which require a license or permit under the
27 provisions of this part if the individual:
28 (i) [An individual] Is not licensed or permitted
29 under the provisions of this part.
30 (ii) [An individual who is] Is prohibited from
20040S1209B1997 - 55 -
1 accepting employment from a licensee.
2 (13) It [is] shall be unlawful for any person under 18
3 years of age to be permitted in the area of a licensed
4 facility where slot machines are operated.
5 (b) Criminal penalties and fines.--
6 (1) (i) A person [that violates subsection (a)(1)
7 commits an offense to be graded in accordance with 18
8 Pa.C.S. § 4902, 4903 or 4904, as applicable, for a first
9 conviction.] who commits a first offense in violation of
10 18 Pa.C.S § 4902, 4903 or 4904 in connection with
11 providing information or making any statement, whether
12 written or oral, to the board, the bureau, the
13 department, the Pennsylvania State Police or the Office
14 of Attorney General as required by this part commits an
15 offense to be graded in accordance with the applicable
16 section violated. A person that is convicted of a second
17 or subsequent violation of [subsection (a)(1)] 18 Pa.C.S.
18 § 4902, 4903 or 4904 in connection with providing
19 information or making any statement, whether written or
20 oral, to the board, the bureau, the department, the
21 Pennsylvania State Police or the Office of Attorney
22 General as required by this part commits a felony of the
23 second degree.
24 (ii) A person that violates subsection (a)(2)
25 through (12) commits a misdemeanor of the first degree. A
26 person that is convicted of a second or subsequent
27 violation of subsection (a)(2) through (12) commits a
28 felony of the second degree.
29 (2) (i) For a first violation of subsection (a)(1)
30 through (12), a person shall be sentenced to pay a fine
20040S1209B1997 - 56 -
1 of:
2 (A) not less than $75,000 nor more than $150,000
3 if the person is an individual;
4 (B) not less than $300,000 nor more than
5 $600,000 if the person is a licensed gaming entity;
6 or
7 (C) not less than $150,000 nor more than
8 $300,000 if the person is a licensed manufacturer or
9 supplier.
10 (ii) For a second or subsequent violation of
11 subsection (a)(1) through (12), a person shall be
12 sentenced to pay a fine of:
13 (A) not less than $150,000 nor more than
14 $300,000 if the person is an individual;
15 (B) not less than $600,000 nor more than
16 $1,200,000 if the person is a licensed gaming entity;
17 or
18 (C) not less than $300,000 nor more than
19 $600,000 if the person is a licensed manufacturer or
20 supplier.
21 * * *
22 § 1801. Duty to provide.
23 Notwithstanding the provisions of the Race Horse Industry
24 Reform Act or this part, the Pennsylvania State Police shall, at
25 the request of the commissions or the board, provide criminal
26 history background investigations, which shall include records
27 of criminal arrests [or] and convictions, no matter where
28 occurring, including Federal criminal history record
29 information, on applicants for licensure and permit applicants
30 by the respective agencies pursuant to the Race Horse Industry
20040S1209B1997 - 57 -
1 Reform Act or this part. Requests for criminal history
2 background investigations may, at the direction of the
3 commissions or the board, include, but not be limited to,
4 officers, directors and stockholders of licensed corporations,
5 key employees, financial backers, gaming employees, horse
6 owners, trainers, jockeys, drivers and other persons
7 participating in thoroughbred or harness horse meetings and
8 other persons and vendors who exercise their occupation or
9 employment at such meetings, licensed facilities or licensed
10 [racetrack] racetracks. For the purposes of this [chapter] part,
11 the board and commissions may receive and retain information
12 otherwise protected by 18 Pa.C.S. Ch. 91 (relating to criminal
13 history record information).
14 § 1802. Submission of fingerprints and photographs.
15 [Applicants] Appointees, employees and prospective employees
16 engaged in the service of the commissions or the board, and
17 applicants under this part shall submit to fingerprinting and
18 photographing by the Pennsylvania State Police[.] or by a local
19 law enforcement agency capable of submitting fingerprints and
20 photographs electronically to the Pennsylvania State Police
21 utilizing the Integrated Automated Fingerprint Identification
22 System and the Commonwealth Photo Imaging Network or in a manner
23 and in such form as may be provided by the Pennsylvania State
24 Police. Fingerprinting pursuant to this part shall require, at a
25 minimum, the submission of a full set of fingerprints.
26 Photographing pursuant to this part shall require submission to
27 photographs of the face and any scars, marks or tattoos for
28 purposes of comparison utilizing an automated biometric imaging
29 system. The Pennsylvania State Police shall submit [the]
30 fingerprints [if necessary] as required by this part or when
20040S1209B1997 - 58 -
1 requested by the commissions or the board to the Federal Bureau
2 of Investigation for purposes of verifying the identity of the
3 applicants and obtaining records of criminal arrests and
4 convictions in order to prepare criminal history background
5 investigations under section 1801 (relating to duty to provide).
6 [The] Fingerprints and photographs obtained pursuant to this
7 part may be maintained by the commissions, the board and the
8 Pennsylvania State Police for use pursuant to this part and for
9 general law enforcement purposes. In addition to any other fee
10 or cost assessed by the commissions or the board, an applicant
11 shall pay for the cost of fingerprinting and photographing.
12 Section 8. Section 911(h)(1) of Title 18 is amended to read:
13 § 911. Corrupt organizations.
14 * * *
15 (h) Definitions.--As used in this section:
16 (1) "Racketeering activity" means all of the following:
17 (i) [any] An act which is indictable under any of
18 the following provisions of this title:
19 Chapter 25 (relating to criminal homicide)
20 Section 2706 (relating to terroristic threats)
21 Chapter 29 (relating to kidnapping)
22 Chapter 33 (relating to arson, etc.)
23 Chapter 37 (relating to robbery)
24 Chapter 39 (relating to theft and related
25 offenses)
26 Section 4108 (relating to commercial bribery and
27 breach of duty to act disinterestedly)
28 Section 4109 (relating to rigging publicly
29 exhibited contest)
30 Section 4117 (relating to insurance fraud)
20040S1209B1997 - 59 -
1 Chapter 47 (relating to bribery and corrupt
2 influence)
3 Chapter 49 (relating to falsification and
4 intimidation)
5 Section 5111 (relating to dealing in proceeds of
6 unlawful activities)
7 Section 5512 through 5514 (relating to gambling)
8 Chapter 59 (relating to public indecency).
9 (ii) [any] An offense indictable under section 13 of
10 the act of April 14, 1972 (P.L.233, No.64), known as The
11 Controlled Substance, Drug, Device and Cosmetic Act
12 (relating to the sale and dispensing of narcotic
13 drugs)[;].
14 (iii) [any] A conspiracy to commit any of the
15 offenses set forth in subparagraphs (i) [and (ii) of this
16 paragraph; or], (ii) or (v).
17 (iv) [the] The collection of any money or other
18 property in full or partial satisfaction of a debt which
19 arose as the result of the lending of money or other
20 property at a rate of interest exceeding 25% per annum or
21 the equivalent rate for a longer or shorter period, where
22 not otherwise authorized by law.
23 (v) An offense indictable under 4 Pa.C.S. Pt. II
24 (relating to gaming).
25 [Any] An act which otherwise would be considered racketeering
26 activity by reason of the application of this paragraph,
27 shall not be excluded from its application solely because the
28 operative acts took place outside the jurisdiction of this
29 Commonwealth, if such acts would have been in violation of
30 the law of the jurisdiction in which they occurred.
20040S1209B1997 - 60 -
1 * * *
2 Section 9. All acts and parts of acts, including 4 Pa.C.S.
3 Pt. II, are repealed insofar as they are inconsistent with this
4 act.
5 Section 10. This act shall take effect as follows:
6 (1) The amendment of 4 Pa.C.S. § 1403(c)(3) shall take
7 effect in 60 days.
8 (2) The remainder of this act shall take effect
9 immediately.
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