PRINTER'S NO. 1870
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1256
Session of
2020
INTRODUCED BY CORMAN, REGAN, TARTAGLIONE, YUDICHAK, SCAVELLO,
MENSCH, BREWSTER AND LAUGHLIN, JULY 30, 2020
REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
JULY 30, 2020
AN ACT
Amending Titles 4 (Amusements) and 18 (Crimes and Offenses) of
the Pennsylvania Consolidated Statutes, in table games,
further providing for table game taxes; in administration and
enforcement, further providing for prohibited acts and
penalties; in general provisions, further providing for
definitions; in administration, further providing for records
and confidentiality of information; in application and
licensure, further providing for occupation permit, for
establishment licenses, for license or permit prohibition,
for issuance and renewal, for video gaming accounting
controls and audits and for conditional licenses; in
operation, further providing for testing and certification of
terminals and for video gaming limitations, providing for
hours of operation and further providing for terminal
placement agreements; in enforcement, further providing for
repeat offenders and for investigations and enforcement; in
revenues, further providing for fees, for taxes and
assessments and for transfers from Video Gaming Fund; in
miscellaneous provisions, further providing for host county
option and providing for municipal option; and, in riot,
disorderly conduct and related offenses, further providing
for gambling devices, gambling, etc.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 13A62(a) and 1518(a) of Title 4 of the
Pennsylvania Consolidated Statutes are amended by adding
paragraphs to read:
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§ 13A62. Table game taxes.
(a) Imposition.--
* * *
(1.1) Each certificate holder and a Category 4 slot
machine licensee who is a holder of a table game operation
certificate at a Category 4 licensed facility shall receive a
credit against the tax owed under paragraph (1) in an amount
equal to the additional tax paid under section 2502 of the
act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
Code of 1971. This paragraph shall expire August 1, 2021.
* * *
§ 1518. Prohibited acts; penalties.
(a) Criminal offenses.--
* * *
(4.3) It shall be a violation of 18 Pa.C.S. § 5513
(relating to gambling devices, gambling, etc.) for any person
to manufacture, supply or place slot machines, hybrid slot
machines or skill slot machines into play or display without
the authorization of the board.
* * *
Section 2. The definitions of "coin-operated amusement
game," "establishment license," "establishment licensee,"
"gaming employee," "inducement," "key employee," "licensee,"
"principal," "truck stop establishment" and "video gaming
terminal" in section 3102 of Title 4 are amended and the section
is amended by adding definitions to read:
§ 3102. Definitions.
The following words and phrases when used in this part shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
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* * *
"Amusement game." A mechanical, electrical or computerized
contrivance, terminal, machine or other device that requires the
insertion of a coin, currency, token or similar object to play
or activate a game and meets each of the following criteria:
(1) The outcome of the game is predominantly and
primarily determined by the skill of the player.
(2) Winning the game entitles the player to noncash
merchandise prizes or a gift card that may be redeemable for
a noncash merchandise prize, food or drink or additional
credits to play the game. The value of the noncash prize may
not exceed the cost of playing the game or the total
aggregate cost of playing multiple games.
* * *
"Club liquor license establishment." The following apply:
(1) An organization that:
(i) Is licensed to sell liquor under section 404 of
the act of April 12, 1951 (P.L.90, No.21), known as the
Liquor Code.
(ii) Qualifies as an exempt organization under
section 501(c) or 527 of the Internal Revenue Code of
1986 (Public Law 99-514, 26 U.S.C. § 501(c) or 527).
(iii) Holds one of the following licenses issued by
the Pennsylvania Liquor Control Board:
(A) catering club;
(B) club liquor; or
(C) club retail dispenser.
(iv) Holds a valid small games of chance license in
accordance with section 307 (a)(1)(i) of the act of
December 19, 1988 (P.L.1262, No.156), known as the Local
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Option Small Games of Chance Act.
(2) The term shall not include an affiliated nonprofit
organization or auxiliary group licensed in accordance with
section 307 of the Local Option Small Games of Chance Act.
["Coin-operated amusement game." A machine that requires the
insertion of a coin, currency or token to play or activate a
game the outcome of which is predominantly and primarily
determined by the skill of the player.]
* * *
"Establishment." A club liquor license establishment, liquor
license establishment or truck stop establishment.
"Establishment license." A license issued by the board
authorizing [a truck stop] an establishment to permit a terminal
operator licensee to place and operate video gaming terminals on
the [truck stop] establishment's premises under this part and
the rules and regulations promulgated under this part.
"Establishment licensee." [A truck stop] An establishment
that holds an establishment license.
* * *
"Gaming employee."
(1) Any of the following:
(i) An employee of a terminal operator licensee[,
establishment licensee] or supplier licensee [that] who
is not a key employee and is involved in the conduct of
video gaming.
(ii) An employee of a supplier licensee whose duties
are directly involved with the repair or distribution of
video gaming terminals or associated equipment sold or
provided to a terminal operator licensee within this
Commonwealth as determined by the board.
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(iii) An employee of an establishment licensee who
is responsible for the management, supervision or
training of establishment employees regarding the conduct
of video gaming or for the coordination of video gaming
operations with a terminal operator licensee.
(2) The term does not include nongaming personnel as
determined by the board [or an employee of an establishment
licensee].
* * *
"Hybrid video gaming terminal." A video gaming terminal in
which the outcome of the game is determined by a combination of
chance and the skill of the player. The term shall not include
an amusement game.
* * *
"Inducement."
(1) Any of the following:
(i) Consideration paid directly or indirectly, from
a manufacturer, supplier, terminal operator, procurement
agent, gaming employee, employee or another person on
behalf of an applicant or anyone licensed under this
part, to [a truck stop] an establishment, establishment
licensee, establishment licensee owner or an employee of
the establishment licensee, directly or indirectly as an
enticement to solicit or maintain the establishment
licensee or establishment licensee owner's business.
(ii) Cash, incentive, marketing and advertising
cost, gift, food, beverage, loan, prepayment of gross
terminal revenue and other contribution or payment that
offsets an establishment licensee's operational costs, or
as otherwise determined by the board.
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(2) The term shall not include costs paid by a terminal
operator applicant or terminal operator licensee related to
[making video gaming terminals operate at the premises of an
establishment licensee, including wiring and rewiring,
software updates, ongoing video gaming terminal maintenance,
redemption terminals, network connections, site controllers
and costs associated with communicating with the central
control computer system.]:
(i) Changes necessary to create a separate video
gaming area or maintain the security of video gaming
terminals and redemption terminals as required by the
board that do not exceed $15,000.
(ii) Surveillance technology to monitor only the
video gaming area.
(iii) Operation of video gaming terminals at the
premises of an establishment licensee, including wiring
and rewiring, software updates, ongoing video gaming
terminal maintenance, redemption terminals, network
connections, site controllers and costs associated with
communicating with the central control computer system.
(iv) Installation of a security and alarm system at
the premises of an establishment licensee that are
reasonably necessary to protect video gaming terminals
and redemption terminals outside normal business hours,
provided that the cost does not exceed $2,500.
(v) A requirement established by the board regarding
a minimum standard for a video gaming area.
(vi) A cosmetic renovation or improvement within a
video gaming area that is reasonably necessary, as
determined by the board.
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(vii) A fee established by the board to cover costs
associated with the mandatory employee training program
established under section 3706 (relating to compulsive
and problem gambling).
* * *
"Key employee." An individual employed by a manufacturer
licensee, supplier licensee, terminal operator licensee or
establishment licensee that is determined by the board to be a
director or department head or otherwise empowered to make
discretionary decisions that regulate the conduct of video
gaming. For a club liquor license establishment licensee, the
term shall include a person who will be responsible for the
conduct of video gaming, including organizational members, as
determined by the board, or who may coordinate the conduct of
video gaming at the premises of the club liquor license
establishment licensee.
* * *
"Licensee." A person [listed] licensed under this part.
"Liquor license establishment." Any of the following
licenses issued by the Pennsylvania Liquor Control Board under
Article IV of the act of April 12, 1951 (P.L.90, No.21), known
as the Liquor Code:
(1) Eating place retail dispenser.
(2) Hotel liquor.
(3) Hotel retail dispenser.
(4) Municipal golf course liquor.
(5) Municipal golf course retail dispenser.
(6) Privately owned private golf course club liquor.
(7) Privately owned private golf course catering club
liquor .
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(8) Privately owned public golf course retail dispenser.
(9) Privately owned public golf course restaurant
liquor.
(10) Restaurant liquor.
* * *
"Principal." An officer, director, person who directly holds
a beneficial interest in or ownership of the securities of an
applicant or anyone licensed under this part, person who has a
controlling interest in an applicant or anyone licensed under
this part or has the ability to elect a majority of the board of
directors of a licensee or to otherwise control anyone licensed
under this part, procurement agent, lender or other licensed
financial institution of an applicant or anyone licensed under
this part, other than a bank or lending institution which makes
a loan or holds a mortgage or other lien acquired in the
ordinary course of business, underwriter of an applicant or
anyone licensed under this part or other person or employee of
an applicant, terminal operator licensee, manufacturer licensee
or supplier licensee deemed to be a principal by the board,
including a procurement agent. For an applicant that is a club
liquor license establishment , the term means:
(1) Each officer and director.
(2) The treasurer, an organizational member or any other
person who is responsible for the finances of the club liquor
license establishment licensee.
* * *
"Skill." The knowledge, dexterity, adroitness, acumen or
mental skill of an individual.
* * *
"Video gaming terminal."
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(1) A mechanical or electrical contrivance, terminal,
machine or other device approved by the board that, upon
insertion of cash or cash equivalents, is available to play
or operate one or more gambling games, the play of which
utilizes a random number generator and:
(i) May award a winning player either a free game or
credit that shall only be redeemable for cash or cash
equivalents at a redemption terminal.
(ii) May utilize video displays.
(iii) May use an electronic credit system for
receiving wagers and making payouts that are only
redeemable at a redemption terminal.
(2) Associated equipment necessary to conduct the
operation of the contrivance, terminal, machine or other
device.
(3) The term does not include a slot machine operated at
a licensed facility in accordance with Part II (relating to
gaming) or [a coin-operated] an amusement game.
(4) The term does not include "lottery" as defined under
the act of August 26, 1971 (P.L.351, No.91), known as the
State Lottery Law.
(5) The term includes a hybrid video gaming terminal.
Section 3. Sections 3305(d) and 3510 of Title 4 are amended
to read:
§ 3305. Records and confidentiality of information.
* * *
(d) Information held by other agencies.--Files, records,
reports and other information in the possession of the
department or the Pennsylvania Liquor Control Board pertaining
to an applicant, licensee or permittee shall be made available
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to the board as may be necessary to the effective administration
of this part.
§ 3510. Occupation permit.
(a) Application.--
(1) A person who desires to be a gaming employee and has
a bona fide offer of employment from a terminal operator
licensee, establishment licensee or supplier licensee shall
apply to the board for an occupation permit.
(2) A person may not be employed as a gaming employee
unless and until that person holds an appropriate occupation
permit issued under this section.
(3) The board may promulgate regulations to reclassify a
category of nongaming employees or gaming employees upon a
finding that the reclassification is in the public interest
and consistent with the objectives of this part.
(b) Requirements.--[The] Except as provided for under (b.1),
the application for an occupation permit shall include, at a
minimum:
(1) The name and home address of the person.
(2) The previous employment history of the person.
(3) The criminal history record of the person, as well
as the person's consent for the bureau to conduct a
background investigation.
(4) A photograph of the person.
(5) Evidence of the offer of employment and the nature
and scope of the proposed duties of the person, if known.
(6) The details of an occupation permit or similar
license granted or denied to the applicant in other
jurisdictions.
(7) Other information determined by the board to be
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appropriate.
(b.1) Notwithstanding section 3515(2)(ii) (relating to
license or permit prohibition), the suitability review for an
occupation permit for an employee of an establishment licensee
whose duties primarily involve the monitoring of the video
gaming area shall be based solely upon the following
information:
(1) The name and home address of the person.
(2) The previous employment history of the person.
(3) A criminal history record information report issued
under 18 Pa.C.S. Ch. 91 (relating to criminal history record
information) obtained from the Pennsylvania State Police.
(4) A photograph of the person.
(5) Has not been convicted of a misdemeanor or felony
gambling offense in the Commonwealth, unless 15 years have
elapsed from the date of conviction for the offense.
(6) Evidence of the offer of employment.
(c) Prohibition.--No terminal operator licensee may employ
or permit a person under 18 years of age to render service in a
video gaming area.
Section 4. Section 3514(a) introductory paragraph of Title 4
is amended, subsection (a) is amended by adding a paragraph and
the section is amended by adding a subsection to read:
§ 3514. Establishment licenses.
(a) General requirements.--[A truck stop] An establishment
that submits an application for an establishment license shall
include at a minimum:
* * *
(4.1) An applicant shall attest by way of affidavit
under penalty of perjury that the applicant does not operate
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on its premises any video gaming terminals, hybrid video
gaming terminals, redemption terminals or other associated
equipment that has not been tested and certified by the board
in accordance with section 3701 (relating to testing and
certification of terminals) or otherwise approved by the
board under this part.
* * *
(a.1) Additional requirements for a club liquor license
establishment .--An establishment that is a club liquor license
establishment and submits an application for an establishment
license shall include, at a minimum:
(1) A copy of the club liquor license establishment's
small games of chance license.
(2) The municipality where the club liquor license
establishment's licensed premises is physically located,
including the address of the physical location where normal
business is conducted in the municipality.
(3) If the club liquor license establishment applicant
leases a premises in which normal business or operations are
conducted, a copy of the lease shall accompany the
application.
(4) If a club liquor license establishment applicant has
a normal business or operating site with multiple structures
or has multiple business or operating sites, the location
that will be used as its premises for conducting video
gaming.
(5) The full name, current photograph and complete
mailing address of the applicant and each officer and
director of the club liquor license establishment, including
the full name and complete mailing address of the executive
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officer, secretary and any other entity or financially
responsible person.
(6) Any financial information, which may be required by
the board.
(7) The full name, photograph and complete mailing
address of each individual who will be responsible for the
conduct and operation of video gaming at the premises of the
club liquor license establishment, including gaming or key
employees, bar personnel and organizational members who will
be involved with the conduct and operation of video gaming at
the premises of the club liquor license establishment.
(8) The club liquor license establishment's hours of
operation.
(9) Documentation showing the club liquor license
establishment liquor license is valid and in good standing
with the Pennsylvania Liquor Control Board.
(10) Disclosure of conditional license agreements, if
any, entered under the act of April 12, 1951 (P.L.90, No.21),
known as the Liquor Code.
(11) The criminal history record information of the
applicant, principals and key employees and a consent for the
bureau to conduct a background investigation of the
applicant, principals and key employees.
(12) Any additional information as required by the
board.
* * *
Section 5. Section 3515(2) of Title 4 is amended by adding
subparagraphs to read:
§ 3515. License or permit prohibition.
The following apply:
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* * *
(2) In addition to the prohibition under paragraph (1),
the board shall be prohibited from granting the following:
* * *
(iv) An establishment license to an applicant whose
liquor license is not in good standing with the
Pennsylvania Liquor Control Board.
(v) An establishment license to an applicant whose
establishment has been declared a nuisance within the
past five years under section 611 of the act of April 12,
1951 (P.L.90, No.21), known as the Liquor Code.
(vi) An establishment license to an applicant with a
conditional license agreement entered into under the
Liquor Code unless the agreement has been amended to
allow for video gaming.
(vii) An establishment license to an applicant
whose liquor license has been suspended, unless five
years have elapsed from the date of suspension.
(viii) An establishment license to an applicant
whose license has been suspended under section 1799.6-E
of the act of April 9, 1929 (P.L.343, No.176), known as
The Fiscal Code.
* * *
Section 6. Sections 3516(a)(1) and 3518(a) of Title 4 are
amended to read:
§ 3516. Issuance and renewal.
(a) Issuance.--
(1) In addition to any other criteria provided under
this part, any terminal operator, [truck stop] establishment,
supplier, manufacturer, gaming employee, key employee,
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principal or other person that the board approves as
qualified to receive a license, permit or other authorization
under this part shall be issued a license or permit upon the
payment of a fee required in section 4101 (relating to fees)
and upon the fulfillment of conditions required by the board
or provided for in this part.
* * *
§ 3518. Video gaming accounting controls and audits.
(a) Approval.--Except as otherwise provided by this part, a
terminal operator license applicant shall, in addition to
obtaining a terminal operator license, obtain approval from the
board in consultation with the department of its internal
control systems and audit protocols prior to the installation
and operation of video gaming terminals [at licensed
establishments] on the premises of an establishment licensee.
* * *
Section 7. Sections 3520(a)(3)(i) and (ii) and 3701(b)(9) of
Title 4 are amended and the subsections are amended by adding
paragraphs to read:
§ 3520. Conditional licenses.
(a) Conditional establishment licenses.--
* * *
(2.1) The board shall issue a conditional license to an
applicant for an establishment license if the applicant is a
club liquor license establishment or liquor license
establishment and satisfies each of the criteria under
paragraph (2), and the following criteria:
(i) The applicant held a valid liquor license on the
date of application and the license is in good standing,
or the applicant has a conditional license agreement
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which allows for video gaming entered into under the act
of April 12, 1951 (P.L.90, No.21), known as the Liquor
Code.
(ii) The applicant has not been declared a nuisance
under section 611 of the Liquor Code, or a period of at
least three years has elapsed from the date of
declaration.
(iii) The applicant's liquor license has not been
suspended, or five years have elapsed from the date of
suspension.
* * *
(3) (i) The board shall issue a conditional license to
an applicant for an establishment license within 60 days
after the completed application has been received by the
board, provided that the board determines that the
criteria contained in [paragraph] paragraphs (2) and
(2.1) has been satisfied.
(ii) If the board determines that the criteria
contained in [paragraph] paragraphs (2) and (2.1) has not
been satisfied, the board shall give a written
explanation to the applicant as to why it has determined
the criteria has not been satisfied.
* * *
(8) The board shall permit an establishment holding a
valid conditional license to operate video gaming terminals
on its premises.
* * *
§ 3701. Testing and certification of terminals.
* * *
(b) Video gaming terminal specifications.--Video gaming
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terminals shall be tested and certified to meet the following
specifications:
* * *
(9) [The] Except as provided for in paragraph (9.1), the
video gaming terminal shall pay out a minimum of 85% of the
amount wagered.
(9.1) The board shall adopt alternative minimum payout
requirements for hybrid video gaming terminals that define a
minimum win percentage based on the combination of skill and
the elements of chance of the game.
* * *
Section 8. Section 3702(a)(6) and (b)(6) and (7) of Title 4
are amended and subsection (a) is amended by adding a paragraph
to read:
§ 3702. Video gaming limitations.
(a) Establishment licensee limitations.--An establishment
licensee may offer video gaming terminals for play within its
premises, subject to the following:
* * *
(6) The video gaming area shall at all times be
monitored by an employee holding an occupation permit under
section 3510 (relating to occupation permit) who is an
employee of the establishment licensee or person affiliated
with a club liquor license establishment licensee, either
directly or through live monitoring of video surveillance.
The gaming employee [must] shall be required to:
(i) be at least 18 years of age [and have
completed];
(ii) have completed a criminal history background
check from the Pennsylvania State Police; and
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(iii) have completed or is scheduled to complete
the mandatory training program required in section 3706
(relating to compulsive and problem gambling).
* * *
(13) One or more gaming employees holding a valid
occupation permit shall be located on the premises of the
establishment licensee during any time in which video gaming
terminals are operating and available for play.
(b) Terminal operator licensee limitations.--A terminal
operator licensee may place and operate video gaming terminals
on the premises of an establishment licensee, subject to the
following:
* * *
(6) No terminal operator licensee or employee of a
terminal operator licensee may give or offer to give,
directly or indirectly, any type of inducement to [a truck
stop] an establishment licensee to secure or maintain a
terminal placement agreement.
(7) No terminal operator licensee may give an
establishment licensee a percentage of gross terminal revenue
other than [15%] 25% of the gross terminal revenue of the
video gaming terminals operating in the establishment
licensee's premises.
* * *
Section 9. Title 4 is amended by adding a section to read:
§ 3703.1. Hours of operation.
(a) Liquor license establishments.--An establishment
licensee that is a club liquor license establishment or liquor
license establishment may only permit the operation and play of
a video gaming terminal during the hours that the club liquor
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license establishment or liquor license establishment is
authorized by the Pennsylvania Liquor Control Board.
(b) Truck stop establishments.--An establishment licensee
that is a truck stop establishment may permit play of a video
gaming terminal during normal business hours.
Section 10. Section 3704(d)(2) and (f) of Title 4 are
amended to read:
§ 3704. Terminal placement agreements.
* * *
(d) Provisions required.--A terminal placement agreement
shall include a provision that:
* * *
(2) Provides the establishment licensee no more or less
than [15%] 25% of gross terminal revenue from each video
gaming terminal located on the premises of the establishment
licensee.
* * *
(f) Void agreements.--
(1) An agreement entered into by a truck stop
establishment prior to the effective date of this section
with a person or entity for the placement, operation, service
or maintenance of video gaming terminals, including an
agreement granting a person or entity the right to enter into
an agreement or match any offer made after the effective date
of this section shall be void and may not be approved by the
board.
(2) An agreement entered into by an establishment other
than a truck stop establishment prior to the effective date
of this paragraph with a person or entity for the placement,
operation, service or maintenance of video gaming terminals,
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including an agreement granting a person or entity the right
to enter into an agreement or match any offer made after the
effective date of this paragraph shall be void and may not be
approved by the board.
* * *
Section 11. Section 3902(a) of Title 4 is amended to read:
§ 3902. Repeat offenders.
(a) Discretion to exclude or eject.--
(1) An establishment licensee may exclude or eject from
the establishment licensee's video gaming area or premises a
person who is known to it to have been convicted of a
misdemeanor or felony committed in or on the premises of [a
licensed establishment.] the establishment.
(2) Nothing in this section or in any other law or
regulation shall limit the right of an establishment licensee
to exercise the common law right to exclude or eject
permanently from the premises of the establishment or
permanently deny access to the video gaming area a person who
disrupts the operations of the premises or video gaming area,
threatens the security of the premises or employees or
patrons or is disorderly or intoxicated.
* * *
Section 12. Section 3904(d) of Title 4 is amended by adding
a paragraph and the section is amended by adding a subsection to
read:
§ 3904. Investigations and enforcement.
* * *
(d) Powers and duties of the Pennsylvania State Police.--The
Pennsylvania State Police shall have the following powers and
duties:
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* * *
(14) Require the Bureau of Liquor Control Enforcement to
report to the board any violations of this part that are
found during the normal course of duties required under the
laws of this Commonwealth.
* * *
(j) Pennsylvania Liquor Control Board.--Nothing in this part
shall be construed as conferring on the Pennsylvania Liquor
Control Board the authority to assess penalties under the act of
April 12, 1951 (P.L.90, No.21), known as the Liquor Code,
against a club liquor license establishment or liquor license
establishment that holds an establishment license for violations
of this part.
Section 13. Sections 4101(d) and 4102(b)(1)(ii) of Title 4
are amended to read:
§ 4101. Fees.
* * *
(d) Deposit of fees.--Fees collected under this section
shall be deposited into [the General Fund.] a restricted revenue
account to be used by the board to implement this part.
§ 4102. Taxes and assessments.
* * *
(b) Video gaming terminal tax and assessments.--
(1) The department shall determine and each terminal
operator licensee shall pay on a bimonthly basis:
* * *
[(ii) A 10% local share assessment from its gross
terminal revenue.]
* * *
Section 14. Sections 4105(b) and 4506(b) of Title 4 are
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amended and the sections are amended by adding subsections to
read:
§ 4105. Transfers from Video Gaming Fund.
* * *
(b) General Fund transfer.--On June 30, 2018, and on the
last day of each fiscal year [thereafter] through June 30, 2020,
the State Treasurer shall transfer the remaining balance in the
Video Gaming Fund that is not transferred under subsection (a)
to the General Fund.
(c) Initial transfer.--On June 30, 2021, and on June 30,
2022, the State Treasurer shall transfer the remaining balance
in the Video Gaming Fund that is not transferred under
subsection (a) as follows:
(1) An amount equal to two percent of the total gross
terminal revenue of all terminal operator licensees to the
Department of Aging for purposes of making grants to agencies
designated under section 305(a)(2)(A) of the Older Americans
Act of 1965 (Public Law 89-73, 42 U.S.C. § 3025(a)(2)(A)) to
provide services to older adults.
(2) Following the distribution under paragraph (1), the
remaining balance to the General Fund.
(d) Subsequent transfer.--On June 30, 2023, and on June 30,
2024, the State Treasurer shall transfer the remaining balance
in the Video Gaming Fund that is not transferred under
subsection (a) as follows:
(1) An amount equal to two percent of the total gross
terminal revenue of all terminal operator licensees to the
Department of Aging for purposes of making grants to agencies
designated under section 305(a)(2)(A) of the Older Americans
Act of 1965 to provide services to older adults.
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(2) Following the distribution under paragraph (1), the
remaining balance as follows:
(i) Fifty percent to the General Fund.
(ii) Fifty percent to the Property Tax Relief Fund,
to be used exclusively for property tax relief for
individuals who are 65 years of age or older, as
specified by law.
(e) Additional subsequent transfer.--On June 30, 2025, and
on the last day of each fiscal year thereafter, the State
Treasurer shall transfer the remaining balance in the Video
Gaming Fund that is not transferred under subsection (a) as
follows:
(1) An amount equal to 2% of the total gross terminal
revenue of all terminal operator licensees to the Department
of Aging for purposes of making grants to agencies designated
under section 305(a)(2)(A) of the Older Americans Act of 1965
to provide services to older adults.
(2) Following the distribution under paragraph (1), the
remaining balance to the Property Tax Relief Fund to be used
exclusively for property tax relief for individuals who are
65 years of age or older as specified by law.
§ 4506. Host county option.
* * *
(a.1) Option.--A county that hosts a Category 4 licensed
facility, or a proposed Category 4 licensed facility, on the
effective date of this subsection shall have the option to
prohibit the placement of video gaming terminals within the host
county by delivering a resolution of the county governing body
to the board within 60 days of the effective date of this
subsection. A video gaming terminal may not be operated in a
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host county that has exercised the option to prohibit video
gaming terminals under this section. The prohibition under this
subsection shall not apply to an existing establishment
licensee, nor to a location for which an application for an
establishment license was filed with the board prior to the
effective date of this section.
(b) Rescission of prohibition.--
(1) Subject to paragraph (2), a host county that
prohibits video gaming terminals within the host county under
subsection (a) or (a.1) may rescind that prohibition at any
time by delivering a new resolution of the county governing
body to the board.
(2) A host county that rescinds its prior prohibition
according to paragraph (1) may not subsequently prohibit
video gaming terminals in the host county under this section.
(c) Prior prohibition.--Nothing in this section shall be
construed to negate any prohibition on the location of an
establishment licensee within a municipality which has exercised
its option under 53 Pa.C.S. § 502 (relating to municipal option
for gaming).
Section 15. Title 4 is amended by adding a section to read:
§ 4507. Municipal option.
(a) Prohibition.--Each municipality shall have the option to
prohibit the placement of video gaming terminals within the
municipality by delivering a resolution of the municipality's
governing body to the board within 60 days of the effective date
of this section. A video gaming terminal may not be operated in
a municipality that has exercised the option to prohibit video
gaming terminals under this section. The prohibition under this
section shall not apply to video gaming terminals at an existing
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establishment licensee, nor to a location for which an
application for an establishment license was filed with the
board prior to the effective date of this section.
(b) Rescission of prohibition.--
(1) Subject to paragraph (2), a municipality that
prohibits video gaming terminals within the municipality
under subsection (a) may rescind the prohibition by
delivering a new resolution of the municipality's governing
body to the board.
(2) A municipality that rescinds its prior prohibition
according to paragraph (1) may not subsequently prohibit
video gaming terminals in the municipality under this
section.
(c) Construction.--Nothing in this section shall be
construed to negate any prohibition on the location of an
establishment licensee within a municipality which has exercised
its option under 53 Pa.C.S. § 502 (relating to municipal option
for gaming).
Section 16. Section 5513(b) and (f) of Title 18 are amended
and the section is amended by adding subsections to read:
§ 5513. Gambling devices, gambling, etc.
* * *
(a.2) Video gaming terminals.--A person commits an offense
if the person:
(1) intentionally or knowingly makes, assembles, sets
up, maintains, sells, lends, leases, gives away, supplies or
offers for sale, loan, lease or gift, video gaming terminals
without a manufacturer license, supplier license or terminal
operator license from the Pennsylvania Gaming Control Board
under 4 Pa.C.S. Pt. III (relating to video gaming);
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(2) allows a person to collect and assemble for the
purpose of playing a video gaming terminal at any place under
the person's control without an establishment license from
the Pennsylvania Gaming Control Board under 4 Pa.C.S. Pt.
III;
(3) solicits or invites a person to visit a place for
the purpose of playing a video gaming terminal; or
(4) is the owner, tenant, lessee or occupant of any
premises and knowingly permits the premises, or any part
thereof, to be used for the play of a video gaming terminal.
(a.3) Video gaming terminal penalties.--A person who
violates subsection (a.2):
(1) For a first offense, commits a misdemeanor of the
first degree and shall, upon conviction, be sentenced to a
fine of not less than $5,000.
(2) For a second offense, commits a misdemeanor of the
first degree and shall, upon conviction, be sentenced to a
fine of not less than $10,000.
(3) For a third or subsequent offense, commits a felony
of the third degree and shall, upon conviction, be sentenced
to a fine of not less than $15,000 and, at the discretion of
the court, an additional fine of not more than $1,000 per day
for each video gaming terminal.
(a.4) Separate offenses.--For purposes of the criminal
penalties and fines established under subsection (a.3), the
prohibited activity specified in subsection (a.2)(2), (3) and
(4) as it applies to each video gaming terminal shall not be
deemed a separate offense unless the prohibited activity occurs
on more than one day or in more than one location.
(b) Confiscation of gambling devices and video gaming
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terminals.--Any gambling device or video gaming terminal
possessed or used in violation of the provisions of subsection
(a) or (a.2) shall be seized and forfeited to the Commonwealth.
The forfeiture shall be conducted in accordance with 42 Pa.C.S.
§§ 5803 (relating to asset forfeiture), 5805 (relating to
forfeiture procedure), 5806 (relating to motion for return of
property), 5807 (relating to restrictions on use), 5807.1
(relating to prohibition on adoptive seizures) and 5808
(relating to exceptions).
* * *
(f) Definitions.--The following words and phrases when used
in this section shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Amusement game." A mechanical, electrical or computerized
contrivance, terminal, machine or other device that requires the
insertion of a coin, currency, token or similar object to play
or activate a game and meets each of the following criteria:
(1) The outcome of the game is predominantly and
primarily determined by the skill of the player.
(2) Winning the game entitles the player to noncash
merchandise prizes or a gift card that may be redeemable for
a noncash merchandise prize, food or drink or additional
credits to play the game. The value of the noncash prize may
not exceed the cost of playing the game or the total
aggregate cost of playing multiple games.
"Consideration associated with a related product, service or
activity." Money or other value collected for a product,
service or activity which is offered in any direct or indirect
relationship to playing or participating in the simulated
gambling program. The term includes consideration paid for
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computer time, Internet time, telephone calling cards and a
sweepstakes entry.
"Electronic video monitor." An electronic device capable of
showing moving or still images.
"Simulated gambling program." Any method intended to be used
by a person interacting with an electronic video monitor in a
business establishment that directly or indirectly implements
the predetermination of sweepstakes cash or cash-equivalent
prizes or otherwise connects the sweepstakes player or
participant with the cash or cash-equivalent prize.
"Skill." The knowledge, dexterity, adroitness, acumen or
mental or physical ability of an individual.
"Video gaming terminal." The following apply:
(1) A mechanical or electrical contrivance, terminal,
machine or other device approved by the board that, upon
insertion of cash or cash equivalents, is available to play
or operate one or more gambling games, the play of which
utilizes a random number generator and:
(i) May award a winning player either a free game or
credit that shall only be redeemable for cash or cash
equivalents at a redemption terminal.
(ii) May utilize video displays.
(iii) May use an electronic credit system for
receiving wagers and making payouts that are only
redeemable at a redemption terminal.
(2) Associated equipment necessary to conduct the
operation of the contrivance, terminal, machine or other
device.
(3) The term does not include a slot machine operated at
a licensed facility in accordance with 4 Pa.C.S. Pt. II
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(relating to gaming) or an amusement game.
(4) The term does not include a lottery as defined under
the act of August 26, 1971 (P.L.351, No.91), known as the
State Lottery Law.
(5) The term includes a hybrid video gaming terminal as
defined in 4 Pa.C.S. § 3102 (relating to definitions).
Section 17. The amendment of 4 Pa.C.S. § 3704(d) shall apply
to terminal placement agreements entered into or renewed on or
after the effective of this section.
Section 18. This act shall take effect as follows:
(1) This section shall take effect immediately.
(2) The amendment or addition of 4 Pa.C.S. §§ 4506 and
4507 shall take effect immediately.
(3) The amendment of 4 Pa.C.S. § 13A62 shall take effect
in 30 days.
(4) The remainder of this act shall take effect in 60
days.
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