Act 71 Pennsylvania Gaming Law Part 2 of 9

1 (B)(1), THE TERM SHALL BE FOR THREE YEARS AND UNTIL A
2 SUCCESSOR IS APPOINTED AND QUALIFIED.
3 (2) TERMS FOR LEGISLATIVE APPOINTEE MEMBERS APPOINTED
4 UNDER SUBSECTION (B)(2) SHALL BE FOR A TWO-YEAR TERM AND
5 SHALL EXPIRE ON THE THIRD TUESDAY OF JANUARY OF SUCH YEAR BUT
6 SUCH MEMBERS SHALL CONTINUE TO SERVE UNTIL THEIR SUCCESSORS
7 ARE APPOINTED AND QUALIFIED.
8 (3) NO LEGISLATIVE APPOINTEE MEMBER SHALL SERVE MORE
9 THAN THREE FULL SUCCESSIVE TERMS.
10 (4) NO GUBERNATORIAL APPOINTEE MEMBER SHALL SERVE MORE
11 THAN TWO FULL SUCCESSIVE TERMS.
12 (5) AN APPOINTMENT TO FILL A VACANCY SHALL BE FOR THE
13 REMAINDER OF THE UNEXPIRED TERM.
14 (E) EX OFFICIO MEMBERS.--THE SECRETARY OF REVENUE, THE
15 SECRETARY OF AGRICULTURE AND THE STATE TREASURER SHALL SERVE ON
16 THE BOARD AS NONVOTING EX OFFICIO MEMBERS OF THE BOARD.
17 (F) QUALIFIED MAJORITY VOTE.--
18 (1) EXCEPT AS PERMITTED IN PARAGRAPHS (2) AND (3), ANY
19 ACTION, INCLUDING, BUT NOT LIMITED TO, THE APPROVAL,
20 ISSUANCE, DENIAL OR CONDITIONING OF ANY LICENSE BY THE BOARD
21 UNDER THIS PART OR THE MAKING OF ANY ORDER OR THE
22 RATIFICATION OF ANY PERMISSIBLE ACT DONE OR ORDER MADE BY ONE
23 OR MORE OF THE MEMBERS SHALL REQUIRE A QUALIFIED MAJORITY
24 VOTE CONSISTING OF AT LEAST ONE GUBERNATORIAL APPOINTEE AND
25 THE FOUR LEGISLATIVE APPOINTEES.
26 (2) ANY ACTION TO SUSPEND OR REVOKE, NOT RENEW, VOID OR
27 REQUIRE FORFEITURE OF A LICENSE OR PERMIT ISSUED UNDER THIS
28 PART, TO IMPOSE ANY ADMINISTRATIVE FINE OR PENALTY UNDER THIS
29 PART, OR TO ISSUE CEASE AND DESIST ORDERS OR SIMILAR
30 ENFORCEMENT ACTIONS SHALL REQUIRE A MAJORITY VOTE OF ALL THE
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1 MEMBERS APPOINTED TO THE BOARD.
2 (3) NOTWITHSTANDING ANY OTHER PROVISION TO THE CONTRARY,
3 A MEMBER SHALL DISCLOSE THE NATURE OF HIS DISQUALIFYING
4 INTEREST, DISQUALIFY HIMSELF AND ABSTAIN FROM VOTING IN A
5 PROCEEDING IN WHICH HIS OR HER IMPARTIALITY MAY BE REASONABLY
6 QUESTIONED, INCLUDING, BUT NOT LIMITED TO, INSTANCES WHERE HE
7 OR SHE KNOWS THAT THEY POSSESS A SUBSTANTIAL FINANCIAL
8 INTEREST IN THE SUBJECT MATTER OF THE PROCEEDING OR ANY OTHER
9 INTEREST THAT COULD BE SUBSTANTIALLY AFFECTED BY THE OUTCOME
10 OF THE PROCEEDING. IN SUCH CIRCUMSTANCES IN WHICH IT IS A
11 LEGISLATIVE APPOINTEE MEMBER THAT HAS DISQUALIFIED HIMSELF OR
12 HERSELF, THE QUALIFIED MAJORITY SHALL CONSIST OF THE
13 REMAINING THREE LEGISLATIVE APPOINTEES AND AT LEAST TWO
14 GUBERNATORIAL APPOINTEES.
15 (G) BACKGROUND INVESTIGATION.--APPOINTEES SHALL BE SUBJECT
16 TO A BACKGROUND INVESTIGATION CONDUCTED BY THE PENNSYLVANIA
17 STATE POLICE IN ACCORDANCE WITH THIS PART.
18 (H) QUALIFICATIONS AND RESTRICTIONS.--
19 (1) EACH MEMBER, AT THE TIME OF APPOINTMENT, SHALL BE AT
20 LEAST 25 YEARS OF AGE AND SHALL HAVE BEEN A RESIDENT OF THIS
21 COMMONWEALTH FOR A PERIOD OF AT LEAST ONE YEAR IMMEDIATELY
22 PRECEDING APPOINTMENT. EACH MEMBER SHALL CONTINUE TO REMAIN A
23 RESIDENT OF THIS COMMONWEALTH DURING THE TERM OF MEMBERSHIP
24 ON THE BOARD.
25 (2) EXCEPT FOR EX OFFICIO MEMBERS, NO PERSON SHALL BE
26 APPOINTED A MEMBER OF THE BOARD OR HOLD ANY PLACE, POSITION
27 OR OFFICE UNDER THE BOARD IF THAT PERSON HOLDS ANY OTHER
28 ELECTED OFFICE OR PARTY OFFICE AS DEFINED IN SECTION 1512
29 (RELATING TO PUBLIC OFFICIAL FINANCIAL INTEREST) IN THIS
30 COMMONWEALTH OR ANY OF ITS POLITICAL SUBDIVISIONS.
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1 (3) NO MEMBER, APPOINTEE, EMPLOYEE OR OFFICIAL SHALL
2 HOLD ANY OFFICE OR EMPLOYMENT POSITION, THE DUTIES OF WHICH
3 ARE INCOMPATIBLE WITH THE DUTIES OF THE OFFICE.
4 (4) NO MEMBER, EMPLOYEE, APPOINTEE OR OFFICIAL ENGAGED
5 IN THE SERVICE OF OR IN ANY MANNER CONNECTED WITH THE BOARD
6 SHALL HOLD ANY OFFICE OR POSITION, OR BE ENGAGED IN ANY
7 EMPLOYMENT OR VOCATION, THE DUTIES OF WHICH ARE INCOMPATIBLE
8 WITH EMPLOYMENT IN THE SERVICE OF OR IN CONNECTION WITH THE
9 WORK OF THE BOARD.
10 (5) NO MEMBER SHALL BE PAID OR ACCEPT FOR ANY SERVICE
11 CONNECTED WITH THE OFFICE ANY FEE OTHER THAN THE SALARY AND
12 EXPENSES PROVIDED BY LAW. NOTHING IN THIS PART SHALL PROHIBIT
13 A MEMBER FROM ENGAGING IN ANY EMPLOYMENT OR VOCATION, OR
14 RECEIVING ANY COMPENSATION FOR SUCH EMPLOYMENT OR VOCATION
15 THAT IS NOT OTHERWISE CONNECTED TO OR INCOMPATIBLE WITH HIS
16 OR HER SERVICE AS A MEMBER OF THE BOARD.
17 (6) NO MEMBER, EMPLOYEE, APPOINTEE OR OFFICIAL SHALL
18 PARTICIPATE IN ANY HEARING OR PROCEEDING IN WHICH THAT PERSON
19 HAS ANY DIRECT OR INDIRECT PECUNIARY INTEREST.
20 (7) AT THE TIME OF APPOINTMENT, AND ANNUALLY THEREAFTER,
21 EACH MEMBER SHALL DISCLOSE THE EXISTENCE OF ALL OWNERSHIP
22 INTERESTS IN LICENSED FACILITIES AND ALL SECURITIES IN ANY
23 LICENSED ENTITY OR APPLICANT, ITS AFFILIATES OR SUBSIDIARIES
24 HELD BY THE MEMBER, THE MEMBER'S SPOUSE AND ANY MINOR OR
25 UNEMANCIPATED CHILDREN AND MUST DIVEST SUCH OWNERSHIP
26 INTERESTS IN LICENSED FACILITIES OR SECURITIES PRIOR TO AN
27 APPOINTMENT BECOMING FINAL. A MEMBER MAY NOT ACQUIRE ANY
28 SECURITY IN ANY LICENSED ENTITY, ITS AFFILIATES OR
29 SUBSIDIARIES DURING THE MEMBER'S TENURE. THE DISCLOSURE
30 STATEMENT SHALL BE FILED WITH THE EXECUTIVE DIRECTOR OF THE
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1 BOARD AND WITH THE APPOINTING AUTHORITY FOR SUCH MEMBER AND
2 SHALL BE OPEN TO INSPECTION BY THE PUBLIC AT THE OFFICE OF
3 THE BOARD DURING THE NORMAL BUSINESS HOURS OF THE BOARD
4 DURING THE TENURE OF THE MEMBER AND FOR TWO YEARS AFTER THE
5 MEMBER LEAVES OFFICE.
6 (8) EVERY MEMBER, EMPLOYEE, APPOINTEE OR OFFICIAL OF THE
7 BOARD, IN THE SERVICE OF OR IN CONNECTION WITH THE WORK OF
8 THE BOARD, IS FORBIDDEN, DIRECTLY OR INDIRECTLY, TO SOLICIT
9 OR REQUEST FROM OR TO SUGGEST OR RECOMMEND TO ANY APPLICANT,
10 LICENSED ENTITY, ITS AFFILIATE, INTERMEDIARY, SUBSIDIARY,
11 HOLDING COMPANY OR TO ANY OFFICER, ATTORNEY, AGENT OR
12 EMPLOYEE THEREOF, THE APPOINTMENT OF ANY INDIVIDUAL TO ANY
13 OFFICE, PLACE OR POSITION IN OR THE EMPLOYMENT OF ANY
14 INDIVIDUAL IN ANY CAPACITY BY THE APPLICANT, LICENSED ENTITY,
15 ITS AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY.
16 (9) EVERY MEMBER, EXECUTIVE LEVEL EMPLOYEE, APPOINTEE OR
17 OFFICIAL APPOINTED TO OFFICE IN THE SERVICE OF OR IN
18 CONNECTION WITH THE WORK OF THE BOARD IS PROHIBITED FROM
19 ACCEPTING EMPLOYMENT WITH ANY APPLICANT, LICENSED GAMING
20 ENTITY, ITS AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING
21 COMPANY FOR A PERIOD OF ONE YEAR FROM THE TERMINATION OF
22 EMPLOYMENT OR SERVICE WITH THE BOARD. EVERY MEMBER, EXECUTIVE
23 LEVEL EMPLOYEE, APPOINTEE OR OFFICIAL APPOINTED TO OFFICE IN
24 THE SERVICE OF OR IN CONNECTION WITH THE WORK OF THE BOARD IS
25 PROHIBITED FROM APPEARING BEFORE THE BOARD ON BEHALF OF ANY
26 APPLICANT, LICENSED GAMING ENTITY, ITS AFFILIATE,
27 INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY, OR OTHER
28 LICENSEE OR PERMITTEE OF THE BOARD FOR A PERIOD OF TWO YEARS
29 AFTER TERMINATING EMPLOYMENT OR SERVICE WITH THE BOARD.
30 (10) IF ANY PERSON EMPLOYED OR APPOINTED IN THE SERVICE
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1 OF THE BOARD VIOLATES ANY PROVISION OF THIS SECTION, THE
2 APPOINTING AUTHORITY OR THE BOARD SHALL FORTHWITH REMOVE THE
3 PERSON FROM THE OFFICE OR EMPLOYMENT, AND THE PERSON SHALL BE
4 INELIGIBLE FOR FUTURE EMPLOYMENT OR SERVICE WITH THE BOARD
5 AND SHALL BE INELIGIBLE TO BE APPROVED FOR ANY LICENSE OR
6 PERMIT UNDER THIS PART FOR A PERIOD OF TWO YEARS THEREAFTER.
7 (11) NO MEMBER OR EMPLOYEE OF THE BOARD SHALL WAGER OR
8 BE PAID ANY PRIZE FROM ANY WAGER AT ANY LICENSED FACILITY
9 WITHIN THIS COMMONWEALTH OR AT ANY OTHER FACILITY OUTSIDE
10 THIS COMMONWEALTH WHICH IS OWNED OR OPERATED BY A LICENSED
11 GAMING ENTITY OR ANY OF ITS AFFILIATES OR SUBSIDIARIES.
12 (12) A MEMBER OF THE BOARD WHO HAS BEEN CONVICTED DURING
13 HIS TERM IN ANY DOMESTIC OR FOREIGN JURISDICTION OF A FELONY,
14 CRIME OF MORAL TURPITUDE OR GAMBLING OFFENSE SHALL BE
15 AUTOMATICALLY REMOVED FROM THE BOARD AND SHALL BE INELIGIBLE
16 TO BECOME A BOARD MEMBER IN THE FUTURE.
17 (I) COMPENSATION.--THE EXECUTIVE BOARD AS ESTABLISHED IN THE
18 ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE
19 ADMINISTRATIVE CODE OF 1929, SHALL ESTABLISH THE COMPENSATION OF
20 THE MEMBERS APPOINTED PURSUANT TO THIS SECTION. MEMBERS SHALL BE
21 REIMBURSED FOR ALL NECESSARY AND ACTUAL EXPENSES.
22 (J) CHAIRMAN.--THE CHAIRMAN OF THE BOARD SHALL BE SELECTED
23 BY THE GOVERNOR.
24 (K) APPOINTMENTS.--THE APPOINTING AUTHORITIES SHALL MAKE
25 THEIR INITIAL APPOINTMENTS WITHIN 60 DAYS OF THE EFFECTIVE DATE
26 OF THIS PART. NO APPOINTMENT SHALL BE FINAL UNTIL RECEIPT BY THE
27 APPOINTING AUTHORITY OF THE REQUIRED BACKGROUND INVESTIGATION OF
28 THE APPOINTEE BY THE PENNSYLVANIA STATE POLICE WHICH SHALL BE
29 COMPLETED WITHIN 30 DAYS. NO PERSON WHO HAS BEEN CONVICTED IN
30 ANY DOMESTIC OR FOREIGN JURISDICTION OF A FELONY OR GAMBLING
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1 OFFENSE SHALL BE APPOINTED TO THE BOARD.
2 (L) DISCLOSURE STATEMENTS.--MEMBERS AND EMPLOYEES OF THE
3 BOARD ARE SUBJECT TO THE PROVISIONS OF 65 PA.C.S. CH. 11
4 (RELATING TO ETHICS STANDARDS AND FINANCIAL DISCLOSURE) AND THE
5 ACT OF JULY 19, 1957 (P.L.1017, NO.451), KNOWN AS THE STATE
6 ADVERSE INTEREST ACT.
7 § 1202. GENERAL AND SPECIFIC POWERS.
8 (A) GENERAL POWERS.--THE BOARD SHALL HAVE GENERAL
9 JURISDICTION OVER ALL GAMING ACTIVITIES OR RELATED ACTIVITIES AS
10 DESCRIBED IN THIS PART. THE BOARD SHALL BE RESPONSIBLE TO ENSURE
11 THE INTEGRITY OF THE ACQUISITION AND OPERATION OF SLOT MACHINES
12 AND ASSOCIATED EQUIPMENT AND SHALL HAVE JURISDICTION OVER EVERY
13 ASPECT OF THE AUTHORIZATION AND OPERATION OF SLOT MACHINES. THE
14 BOARD SHALL EMPLOY AN EXECUTIVE DIRECTOR, CHIEF COUNSEL,
15 DEPUTIES, SECRETARIES, OFFICERS, HEARING OFFICERS AND AGENTS AS
16 IT MAY DEEM NECESSARY, WHO SHALL SERVE AT THE BOARD'S PLEASURE.
17 THE BOARD SHALL ALSO EMPLOY OTHER EMPLOYEES AS IT DEEMS
18 APPROPRIATE WHOSE DUTIES SHALL BE DETERMINED BY THE BOARD. IN
19 ORDER TO ENSURE THE ABILITY OF THE BOARD TO RECRUIT AND RETAIN
20 INDIVIDUALS NECESSARY TO EXECUTE ITS RESPONSIBILITIES UNDER THIS
21 PART, THE BOARD SHALL SET THE CLASSIFICATION AND COMPENSATION OF
22 ITS EMPLOYEES AND SHALL NOT BE SUBJECT TO THE PROVISIONS OF THE
23 ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE
24 ADMINISTRATIVE CODE OF 1929, AS TO CLASSIFICATION AND
25 COMPENSATION FOR ITS EMPLOYEES AND CONDUCT ITS ACTIVITIES
26 CONSISTENT WITH THE PRACTICES AND PROCEDURES OF COMMONWEALTH
27 AGENCIES. FOR THE PURPOSES OF THE ACT OF OCTOBER 15, 1980
28 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT, THE
29 BOARD SHALL NOT BE CONSIDERED AN EXECUTIVE OR INDEPENDENT
30 AGENCY. THE BOARD SHALL HAVE SUCH OTHER POWERS AND AUTHORITY
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1 NECESSARY TO CARRY OUT ITS DUTIES AND THE OBJECTIVES OF THIS
2 PART.
3 (B) SPECIFIC POWERS.--THE BOARD SHALL HAVE THE SPECIFIC
4 POWER AND DUTY:
5 (1) TO REQUIRE BACKGROUND INVESTIGATIONS ON PROSPECTIVE
6 OR EXISTING LICENSEES, PERMITTEES OR PERSONS HOLDING A
7 CONTROLLING INTEREST IN ANY PROSPECTIVE OR EXISTING LICENSEE
8 OR PERMITTEE UNDER THE JURISDICTION OF THE BOARD.
9 (2) TO ENTER INTO AN AGREEMENT WITH THE PENNSYLVANIA
10 STATE POLICE FOR THE REIMBURSEMENT OF ACTUAL COSTS AS
11 APPROVED BY THE BOARD TO THE PENNSYLVANIA STATE POLICE FOR
12 THE INVESTIGATIONS. INVESTIGATIONS SHALL INCLUDE INFORMATION
13 IN THE POSSESSION OF THE ATTORNEY GENERAL.
14 (3) FOR PURPOSES OF THE BACKGROUND INVESTIGATION, THE
15 BOARD MAY RECEIVE INFORMATION OTHERWISE PROTECTED BY 18
16 PA.C.S. CH. 91 (RELATING TO CRIMINAL HISTORY RECORD
17 INFORMATION).
18 (4) AT ITS DISCRETION, TO ISSUE, APPROVE, RENEW, REVOKE,
19 SUSPEND, CONDITION OR DENY ISSUANCE OR RENEWAL OF SLOT
20 MACHINE LICENSES.
21 (5) AT ITS DISCRETION, TO ISSUE, APPROVE, RENEW, REVOKE,
22 SUSPEND, CONDITION OR DENY ISSUANCE OR RENEWAL OF SUPPLIER
23 AND MANUFACTURER LICENSES.
24 (6) AT ITS DISCRETION, TO ISSUE, APPROVE, RENEW, REVOKE,
25 SUSPEND, CONDITION OR DENY ISSUANCE OR RENEWAL OF OCCUPATION
26 PERMITS.
27 (7) AT ITS DISCRETION, TO ISSUE, APPROVE, RENEW, REVOKE,
28 SUSPEND, CONDITION OR DENY ISSUANCE OR RENEWAL OF ANY
29 ADDITIONAL LICENSES OR PERMITS WHICH MAY BE REQUIRED BY THE
30 BOARD UNDER THIS PART OR BY REGULATION, INCLUDING, BUT NOT
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1 LIMITED TO, VIOLATIONS OF SECTIONS 1328 (RELATING TO CHANGE
2 IN OWNERSHIP OR CONTROL OF SLOT MACHINE LICENSEE) AND 1330
3 (RELATING TO MULTIPLE SLOT MACHINE LICENSE PROHIBITION).
4 (8) AT ITS DISCRETION, TO SUSPEND, CONDITION OR DENY THE
5 ISSUANCE OR RENEWAL OF ANY LICENSE OR PERMIT OR LEVY FINES OR
6 OTHER SANCTIONS FOR ANY VIOLATION OF THIS PART.
7 (9) TO REQUIRE APPLICANTS FOR LICENSES AND PERMITS TO
8 SUBMIT TO FINGERPRINTING BY THE PENNSYLVANIA STATE POLICE.
9 THE PENNSYLVANIA STATE POLICE SHALL SUBMIT THE FINGERPRINTS
10 TO THE FEDERAL BUREAU OF INVESTIGATION FOR PURPOSES OF
11 VERIFYING THE IDENTITY OF THE APPLICANTS AND OBTAINING
12 RECORDS OF CRIMINAL ARRESTS AND CONVICTIONS.
13 (10) IN ADDITION TO THE POWER OF THE BOARD REGARDING
14 LICENSE AND PERMIT APPLICANTS, TO DETERMINE AT ITS DISCRETION
15 THE SUITABILITY OF ANY PERSON WHO FURNISHES OR SEEKS TO
16 FURNISH TO A SLOT MACHINE LICENSEE DIRECTLY OR INDIRECTLY ANY
17 SERVICES OR PROPERTY RELATED TO SLOT MACHINES OR ASSOCIATED
18 EQUIPMENT OR THROUGH ANY ARRANGEMENTS UNDER WHICH THAT PERSON
19 RECEIVES PAYMENT BASED DIRECTLY OR INDIRECTLY ON EARNINGS,
20 PROFITS OR RECEIPTS FROM THE SLOT MACHINES AND ASSOCIATED
21 EQUIPMENT. THE BOARD MAY REQUIRE ANY SUCH PERSON TO COMPLY
22 WITH THE REQUIREMENTS OF THIS PART AND THE REGULATIONS OF THE
23 BOARD AND MAY PROHIBIT THE PERSON FROM FURNISHING THE
24 SERVICES OR PROPERTY.
25 (11) AS A BOARD AND THROUGH ITS DESIGNATED OFFICERS,
26 EMPLOYEES OR AGENTS, TO ADMINISTER OATHS, EXAMINE WITNESSES
27 AND ISSUE SUBPOENAS TO COMPEL ATTENDANCE OF WITNESSES AND
28 PRODUCTION OF ALL RELEVANT AND MATERIAL REPORTS, BOOKS,
29 PAPERS, DOCUMENTS AND OTHER EVIDENCE.
30 (12) WITHIN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS
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1 PART, IN A MANNER THAT DOES NOT IMPEDE THE IMMEDIATE
2 IMPLEMENTATION OF THE DUTIES AND RESPONSIBILITIES OF THE
3 BOARD UNDER THIS PART DURING THE IMMEDIATE TWO YEARS AFTER
4 THE EFFECTIVE DATE OF THIS PART, TO DEVELOP AND IMPLEMENT AN
5 AFFIRMATIVE ACTION PLAN TO ASSURE THAT ALL PERSONS ARE
6 ACCORDED EQUALITY OF OPPORTUNITY IN EMPLOYMENT, AND
7 CONTRACTING BY THE BOARD, ITS CONTRACTORS, SUBCONTRACTORS,
8 ASSIGNEES, LESSEES, AGENTS, VENDORS AND SUPPLIERS.
9 (13) EXCEPT FOR CONTRACTS RELATED TO THE CENTRAL CONTROL
10 COMPUTER AND SUCH OTHER CONTRACTS AS THE BOARD, IN
11 CONSULTATION WITH THE SECRETARY OF GENERAL SERVICES,
12 DETERMINES WOULD RESULT IN SUBSTANTIAL SAVINGS TO THE BOARD
13 IF ENTERED INTO FOR A LONGER PERIOD THAN PROVIDED HEREIN, ALL
14 CONTRACTS ENTERED INTO BY THE BOARD DURING THE TWO-YEAR
15 PERIOD FOLLOWING THE EFFECTIVE DATE OF THIS PART SHALL NOT
16 EXCEED A TERM OF TWO YEARS.
17 (14) TO PROMULGATE RULES AND REGULATIONS THE BOARD DEEMS
18 NECESSARY TO CARRY OUT THE POLICY AND PURPOSES OF THIS PART
19 AND TO ENHANCE THE CREDIBILITY AND THE INTEGRITY OF THE
20 LICENSED OPERATION OF SLOT MACHINES AND ASSOCIATED EQUIPMENT
21 IN THIS COMMONWEALTH.
22 (15) THE BOARD SHALL NOT ISSUE OR RENEW A LICENSE OR
23 PERMIT UNLESS IT IS SATISFIED THAT THE APPLICANT IS A PERSON
24 OF GOOD CHARACTER, HONESTY AND INTEGRITY AND IS A PERSON
25 WHOSE PRIOR ACTIVITIES, CRIMINAL RECORD, IF ANY, REPUTATION,
26 HABITS AND ASSOCIATIONS DO NOT POSE A THREAT TO THE PUBLIC
27 INTEREST OR THE EFFECTIVE REGULATION AND CONTROL OF SLOT
28 MACHINE OPERATIONS OR CREATE OR ENHANCE THE DANGER OF
29 UNSUITABLE, UNFAIR OR ILLEGAL PRACTICES, METHODS AND
30 ACTIVITIES IN THE CONDUCT OF SLOT MACHINE OPERATIONS OR THE
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1 CARRYING ON OF THE BUSINESS AND FINANCIAL ARRANGEMENTS
2 INCIDENTAL THERETO.
3 (16) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE
4 BOARD IS AUTHORIZED, TO SELL, IN WHOLE OR IN PART, THE
5 COMMONWEALTH'S RIGHT, TITLE AND INTEREST IN STATE GAMING
6 RECEIPTS TO AN AUTHORITY CREATED BY THE COMMONWEALTH. THE
7 SALE SHALL BE SUBJECT TO THE TERMS AND CONDITIONS CONTAINED
8 IN AGREEMENTS BETWEEN THE BOARD AND THE AUTHORITY. PROCEEDS
9 FROM THE SALE OF STATE GAMING RECEIPTS SHALL BE ALLOCATED AND
10 USED IN THE MANNER OTHERWISE PROVIDED BY THIS PART FOR THE
11 DISTRIBUTION OF STATE GAMING RECEIPTS. THE AUTHORITY CREATED
12 BY THE COMMONWEALTH IS AUTHORIZED TO PURCHASE STATE GAMING
13 RECEIPTS UPON TERMS AND CONDITIONS AGREED TO BY THE BOARD AND
14 TO ISSUE BONDS TO FUND THE PURCHASE OF STATE GAMING RECEIPTS
15 IN THE MANNER PROVIDED FOR THE ISSUANCE OF AUTHORITY
16 INDEBTEDNESS IN THE LAW ESTABLISHING THE AUTHORITY. THE STATE
17 TREASURER IS AUTHORIZED AND DIRECTED TO ENTER INTO ANY
18 AGREEMENTS WITH THE BOARD AND THE AUTHORITY AND ESTABLISH
19 ACCOUNTS AND FUNDS, THAT SHALL NOT BE IN THE STATE TREASURY,
20 AS THE AUTHORITY MAY DIRECT AS BEING NECESSARY OR APPROPRIATE
21 TO EFFECT THE SALE OF STATE GAMING RECEIPTS TO THE AUTHORITY
22 AND THE COLLECTION AND TRANSFER OF THE STATE GAMING RECEIPTS
23 SOLD TO THE AUTHORITY. STATE GAMING RECEIPTS SOLD TO THE
24 AUTHORITY SHALL BE THE PROPERTY OF THE AUTHORITY AND SHALL
25 NOT BE THE PROPERTY OF THE COMMONWEALTH.
26 (17) TO CREATE A BUREAU OF INVESTIGATIONS AND
27 ENFORCEMENT WITHIN THE BOARD. THE BOARD SHALL PROMULGATE
28 REGULATIONS PERTAINING TO THE OPERATION OF THE BUREAU WHICH
29 SHALL INSURE SEPARATION OF FUNCTIONS BETWEEN THE BUREAU AND
30 THE BOARD. THE BOARD SHALL PROVIDE THE EMPLOYEES NECESSARY TO
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1 THE BUREAU FOR ENFORCEMENT OF THIS PART.
2 (18) TO ENTER INTO AN AGREEMENT WITH THE DISTRICT
3 ATTORNEYS OF THE COUNTIES WHEREIN LICENSED FACILITIES ARE
4 LOCATED AND THE OFFICE OF ATTORNEY GENERAL FOR THE
5 REIMBURSEMENT OF ACTUAL COSTS FOR PROSECUTIONS OF CRIMINAL
6 VIOLATIONS OF THIS PART.
7 § 1203. TEMPORARY REGULATIONS.
8 (A) PROMULGATION.--NOTWITHSTANDING ANY OTHER PROVISION OF
9 LAW TO THE CONTRARY AND IN ORDER TO FACILITATE THE PROMPT
10 IMPLEMENTATION OF THIS PART, REGULATIONS PROMULGATED BY THE
11 BOARD DURING THE TWO YEARS FOLLOWING THE EFFECTIVE DATE OF THIS
12 PART SHALL BE DEEMED TEMPORARY REGULATIONS WHICH SHALL EXPIRE NO
13 LATER THAN THREE YEARS FOLLOWING THE EFFECTIVE DATE OF THIS PART
14 OR UPON PROMULGATION OF REGULATIONS AS GENERALLY PROVIDED BY
15 LAW. THE TEMPORARY REGULATIONS SHALL NOT BE SUBJECT TO:
16 (1) SECTIONS 201 THROUGH 205 OF THE ACT OF JULY 31, 1968
17 (P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS
18 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 SUBSECTION (A) SHALL EXPIRE TWO
23 YEARS FROM THE EFFECTIVE DATE OF THIS SECTION. REGULATIONS
24 ADOPTED AFTER THE TWO-YEAR PERIOD SHALL BE PROMULGATED AS
25 PROVIDED BY LAW.
26 § 1204. LICENSED ENTITY APPLICATION APPEALS FROM BOARD.
27 THE SUPREME COURT OF PENNSYLVANIA SHALL BE VESTED WITH
28 EXCLUSIVE APPELLATE JURISDICTION TO CONSIDER APPEALS OF ANY
29 FINAL ORDER, DETERMINATION OR DECISION OF THE BOARD INVOLVING
30 THE APPROVAL, ISSUANCE, DENIAL OR CONDITIONING OF ALL LICENSED
20040H2330B4272 - 28 -

1 ENTITY APPLICATIONS. NOTWITHSTANDING THE PROVISIONS OF 2 PA.C.S.
2 CH. 7 SUBCH. A (RELATING TO JUDICIAL REVIEW OF COMMONWEALTH
3 AGENCY ACTION) AND 42 PA.C.S. § 763 (RELATING TO DIRECT APPEALS
4 FROM GOVERNMENT AGENCIES), THE SUPREME COURT SHALL AFFIRM ALL
5 FINAL ORDERS, DETERMINATIONS OR DECISIONS OF THE BOARD INVOLVING
6 THE APPROVAL, ISSUANCE, DENIAL OR CONDITIONING OF ALL LICENSE
7 ENTITY APPLICATIONS UNLESS IT SHALL FIND THAT THE BOARD
8 COMMITTED AN ERROR OF LAW, OR THAT THE ORDER, DETERMINATION OR
9 DECISION OF THE BOARD WAS ARBITRARY AND THERE WAS A CAPRICIOUS
10 DISREGARD OF THE EVIDENCE.
11 § 1205. LICENSE OR PERMIT APPLICATION HEARING PROCESS.
12 THE BOARD'S CONSIDERATION AND RESOLUTION OF ALL LICENSE OR
13 PERMIT APPLICATIONS SHALL BE CONDUCTED IN ACCORDANCE WITH
14 PROCEDURES ADOPTED BY ORDER OF THE BOARD. NOTWITHSTANDING THE
15 MANDATES OF 2 PA.C.S. §§ 504 (RELATING TO HEARING AND RECORD)
16 AND 505 (RELATING TO EVIDENCE AND CROSS-EXAMINATION), SAID
17 PROCEDURES ADOPTED BY ORDER OF THE BOARD SHALL PROVIDE PARTIES
18 BEFORE IT WITH A DOCUMENTARY HEARING, BUT THE BOARD MAY, AT ITS
19 DISCRETION, RESOLVE DISPUTED MATERIAL FACTS WITHOUT CONDUCTING
20 AN ORAL HEARING, WHERE CONSTITUTIONALLY PERMISSIBLE.
21 § 1206. BOARD MINUTES AND RECORDS.
22 (A) OPEN PROCEEDINGS AND RECORDS.--THE PROCEEDINGS OF THE
23 BOARD SHALL BE CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF 65
24 PA.C.S. CH. 7 (RELATING TO OPEN MEETINGS). THE BOARD SHALL BE AN
25 AGENCY FOR PURPOSES OF THE ACT OF JUNE 21, 1957 (P.L.390,
26 NO.212), REFERRED TO AS THE RIGHT-TO-KNOW LAW. NOTWITHSTANDING
27 ANY PROVISION OF LAW TO THE CONTRARY, CONFIDENTIAL DOCUMENTS
28 RELATIVE TO PERSONAL BACKGROUND INFORMATION PROVIDED TO THE
29 BOARD PURSUANT TO THIS PART AND ANY CLOSED DELIBERATIONS OF THE
30 BOARD, INCLUDING DISCIPLINARY PROCEEDINGS, SHALL BE CONFIDENTIAL
20040H2330B4272 - 29 -

1 AND CONSIDERED IN CLOSED EXECUTIVE SESSION PURSUANT TO
2 SUBSECTION (F).
3 (B) RECORD OF PROCEEDINGS.--THE BOARD SHALL CAUSE TO BE MADE
4 AND KEPT A RECORD OF ALL PROCEEDINGS HELD AT PUBLIC MEETINGS OF
5 THE BOARD. A VERBATIM TRANSCRIPT OF THOSE PROCEEDINGS SHALL BE
6 PREPARED BY THE BOARD UPON THE REQUEST OF ANY BOARD MEMBER OR
7 UPON THE REQUEST OF ANY OTHER PERSON AND THE PAYMENT BY THAT
8 PERSON OF THE COSTS OF PREPARATION.
9 (C) INFORMATION DELIVERED TO GOVERNOR AND GENERAL
10 ASSEMBLY.--A TRUE COPY OF THE MINUTES OF EVERY MEETING OF THE
11 BOARD AND OF ANY REGULATIONS FINALLY ADOPTED BY THE BOARD, MAY
12 BE FORTHWITH DELIVERED, BY AND UNDER THE CERTIFICATION OF THE
13 EXECUTIVE DIRECTOR, TO THE GOVERNOR, THE SECRETARY OF THE SENATE
14 AND THE CHIEF CLERK OF THE HOUSE OF REPRESENTATIVES.
15 (D) APPLICANT INFORMATION.--
16 (1) THE BOARD SHALL KEEP AND MAINTAIN A LIST OF ALL
17 APPLICANTS FOR LICENSES AND PERMITS UNDER THIS PART TOGETHER
18 WITH A RECORD OF ALL ACTIONS TAKEN WITH RESPECT TO THE
19 APPLICANTS, WHICH FILE AND RECORD SHALL BE OPEN TO PUBLIC
20 INSPECTION.
21 (2) INFORMATION UNDER PARAGRAPH (1) REGARDING ANY
22 APPLICANT WHOSE LICENSE OR PERMIT HAS BEEN DENIED, REVOKED,
23 OR NOT RENEWED SHALL BE REMOVED FROM SUCH LIST AFTER SEVEN
24 YEARS FROM THE DATE OF THE ACTION.
25 (E) OTHER FILES AND RECORDS.--THE BOARD SHALL MAINTAIN SUCH
26 OTHER FILES AND RECORDS AS IT MAY DEEM APPROPRIATE.
27 (F) CONFIDENTIALITY OF INFORMATION.--ALL INFORMATION
28 CONTAINED IN THE APPLICATION PROCESS PURSUANT TO SECTION 1310(A)
29 (RELATING TO SLOT MACHINE LICENSE APPLICATION CHARACTER
30 REQUIREMENTS) AND THE REPORT OF AN APPLICANT'S BACKGROUND
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1 INVESTIGATION FURNISHED TO OR OBTAINED BY THE BOARD OR THE
2 BUREAU FROM ANY SOURCE SHALL BE CONSIDERED CONFIDENTIAL AND
3 SHALL BE WITHHELD FROM PUBLIC DISCLOSURE IN WHOLE OR IN PART,
4 EXCEPT THAT ANY INFORMATION SHALL BE RELEASED UPON THE LAWFUL
5 ORDER OF A COURT OF COMPETENT JURISDICTION OR, WITH THE APPROVAL
6 OF THE ATTORNEY GENERAL, TO A DULY AUTHORIZED LAW ENFORCEMENT
7 AGENCY OR SHALL BE RELEASED TO THE PUBLIC, IN WHOLE OR IN PART,
8 TO THE EXTENT THAT SUCH RELEASE IS REQUESTED BY AN APPLICANT AND
9 DOES NOT OTHERWISE CONTAIN CONFIDENTIAL INFORMATION ABOUT
10 ANOTHER PERSON. THE BOARD MAY NOT REQUIRE ANY APPLICANT TO WAIVE
11 ANY CONFIDENTIALITY PROVIDED FOR IN THIS SUBSECTION AS A
12 CONDITION FOR THE APPROVAL OF A LICENSE OR ANY OTHER ACTION OF
13 THE BOARD. ANY PERSON WHO VIOLATES THIS SUBSECTION SHALL BE
14 ADMINISTRATIVELY DISCIPLINED BY DISCHARGE, SUSPENSION OR OTHER
15 FORMAL DISCIPLINARY ACTION AS THE BOARD DEEMS APPROPRIATE.
16 (G) NOTICE.--NOTICE OF THE CONTENTS OF ANY INFORMATION,
17 EXCEPT TO A DULY AUTHORIZED LAW ENFORCEMENT AGENCY PURSUANT TO
18 THIS SECTION, SHALL BE GIVEN TO ANY APPLICANT OR LICENSEE IN A
19 MANNER PRESCRIBED BY THE RULES AND REGULATIONS ADOPTED BY THE
20 BOARD.
21 (H) INFORMATION HELD BY DEPARTMENT.--FILES, RECORDS, REPORTS
22 AND OTHER INFORMATION IN THE POSSESSION OF THE DEPARTMENT
23 PERTAINING TO LICENSEES SHALL BE MADE AVAILABLE TO THE BOARD AS
24 MAY BE NECESSARY TO THE EFFECTIVE ADMINISTRATION OF THIS PART.
25 § 1207. REGULATORY AUTHORITY OF BOARD.
26 THE BOARD SHALL HAVE THE POWER, AND ITS DUTIES SHALL BE TO:
27 (1) DENY, DENY THE RENEWAL, REVOKE, CONDITION OR SUSPEND
28 ANY LICENSE OR PERMIT PROVIDED FOR IN THIS PART IF THE BOARD
29 FINDS IN ITS SOLE DISCRETION THAT A LICENSEE OR PERMITTEE
30 UNDER THIS PART, OR ITS OFFICERS, EMPLOYEES OR AGENTS, HAVE
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1 FURNISHED FALSE OR MISLEADING INFORMATION TO THE BOARD OR
2 FAILED TO COMPLY WITH THE PROVISIONS OF THIS PART OR THE
3 RULES AND REGULATIONS OF THE BOARD AND THAT IT WOULD BE IN
4 THE PUBLIC INTEREST TO DENY, DENY THE RENEWAL, REVOKE,
5 CONDITION OR SUSPEND THE LICENSE OR PERMIT.
6 (2) RESTRICT ACCESS TO CONFIDENTIAL INFORMATION IN THE
7 POSSESSION OF THE BOARD WHICH HAS BEEN OBTAINED UNDER THIS
8 PART AND ENSURE THAT THE CONFIDENTIALITY OF INFORMATION IS
9 MAINTAINED AND PROTECTED. RECORDS SHALL BE RETAINED BY THE
10 BOARD FOR SEVEN YEARS.
11 (3) PRESCRIBE AND REQUIRE PERIODIC FINANCIAL REPORTING
12 AND INTERNAL CONTROL REQUIREMENTS FOR ALL LICENSED ENTITIES.
13 (4) REQUIRE THAT EACH LICENSED ENTITY PROVIDE TO THE
14 BOARD ITS AUDITED ANNUAL FINANCIAL STATEMENTS, WITH SUCH
15 ADDITIONAL DETAIL AS THE BOARD, FROM TIME TO TIME, SHALL
16 REQUIRE, WHICH INFORMATION SHALL BE SUBMITTED NOT LATER THAN
17 60 DAYS AFTER THE END OF THE LICENSEE'S FISCAL YEAR.
18 (5) PRESCRIBE THE PROCEDURES TO BE FOLLOWED BY SLOT
19 MACHINE LICENSEES FOR ANY FINANCIAL EVENT THAT OCCURS IN THE
20 OPERATION OF SLOT MACHINES.
21 (6) PRESCRIBE CRITERIA AND CONDITIONS FOR THE OPERATION
22 OF SLOT MACHINE PROGRESSIVE SYSTEMS.
23 (7) ENFORCE PRESCRIBED HOURS FOR THE OPERATION OF SLOT
24 MACHINES SO THAT SLOT MACHINE LICENSEES MAY OPERATE SLOT
25 MACHINES ON ANY DAY DURING THE YEAR, IN ORDER TO MEET THE
26 NEEDS OF PATRONS OR TO MEET COMPETITION.
27 (8) REQUIRE THAT EACH LICENSED GAMING ENTITY PROHIBIT
28 PERSONS UNDER 21 YEARS OF AGE FROM OPERATING OR USING SLOT
29 MACHINES.
30 (9) ESTABLISH PROCEDURES FOR THE INSPECTION AND
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1 CERTIFICATION OF COMPLIANCE OF EACH SLOT MACHINE AND
2 ASSOCIATED EQUIPMENT PRIOR TO BEING PLACED INTO USE BY A SLOT
3 MACHINE LICENSEE.
4 (10) REQUIRE THAT NO SLOT MACHINE MAY BE SET TO PAY OUT
5 LESS THAN THE THEORETICAL PAYOUT PERCENTAGE, WHICH SHALL BE
6 NO LESS THAN 85%, AS SPECIFICALLY APPROVED BY THE BOARD. THE
7 BOARD SHALL ADOPT REGULATIONS THAT DEFINE THE THEORETICAL
8 PAYOUT PERCENTAGE OF A SLOT MACHINE GAME BASED ON THE TOTAL
9 VALUE OF THE JACKPOTS EXPECTED TO BE PAID BY A PLAY OR A SLOT
10 MACHINE GAME DIVIDED BY THE TOTAL VALUE OF SLOT MACHINE
11 WAGERS EXPECTED TO BE MADE ON THAT PLAY OR SLOT MACHINE GAME
12 DURING THE SAME PORTION OF THE GAME CYCLE. IN SO DOING, THE
13 BOARD SHALL DECIDE WHETHER THE CALCULATION SHALL INCLUDE THE
14 ENTIRE CYCLE OF A SLOT MACHINE GAME OR ANY PORTION THEREOF.
15 (11) REQUIRE EACH SLOT MACHINE LICENSE APPLICANT TO
16 PROVIDE DETAILED SITE PLANS OF ITS PROPOSED LICENSED FACILITY
17 WHICH SHALL BE REVIEWED AND APPROVED BY THE BOARD FOR THE
18 PURPOSE OF DETERMINING THE ADEQUACY OF THE PROPOSED SECURITY
19 AND SURVEILLANCE MEASURES INSIDE AND OUTSIDE THE FACILITY.
20 APPLICANTS WILL COOPERATE WITH THE BOARD IN MAKING CHANGES TO
21 THE PLANS SUGGESTED BY THE BOARD AND WILL ENSURE THAT THE
22 PLANS, AS MODIFIED AND APPROVED, ARE IMPLEMENTED.
23 (12) UPON REQUEST, PROVIDE BACKGROUND INVESTIGATION
24 REPORTS OF APPLICANTS FOR LICENSES AND PERMITS FOR USE AT
25 RACETRACKS TO THE STATE HORSE RACING COMMISSION AND THE STATE
26 HARNESS RACING COMMISSION.
27 (13) REQUIRE SLOT MACHINE LICENSEES TO PROVIDE ONSITE
28 FACILITIES FOR USE BY THE BOARD, AND OTHER APPROPRIATE
29 PERSONS, FOR THE PURPOSE OF CARRYING OUT THEIR RESPECTIVE
30 RESPONSIBILITIES UNDER THIS PART.
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1 (14) CONSULT WITH MEMBERS OF THE PENNSYLVANIA STATE
2 POLICE, THE OFFICE OF ATTORNEY GENERAL, THE DEPARTMENT AND
3 SUCH OTHER PERSONS IT DEEMS NECESSARY FOR ADVICE REGARDING
4 THE VARIOUS ASPECTS OF THE POWERS AND DUTIES IMPOSED ON IT
5 UNDER THIS PART AND ITS JURISDICTION OVER THE AUTHORIZATION
6 AND OPERATION OF SLOT MACHINES AND LICENSED FACILITIES.
7 (15) ENTER INTO CONTRACTS WITH ANY PERSON FOR THE
8 PURPOSES OF CARRYING OUT THE POWERS AND DUTIES OF THE BOARD
9 UNDER THIS PART.
10 (16) REQUIRE EACH SLOT MACHINE LICENSEE TO SELL
11 PENNSYLVANIA STATE LOTTERY TICKETS AT ITS LICENSED FACILITY
12 AT A LOCATION AS NEAR AS PRACTICABLE TO THE PAY WINDOWS.
13 (17) PERMIT, IN ITS DISCRETION AND UPON APPLICATION, THE
14 USE OF A TEMPORARY FACILITY WITHIN WHICH SLOT MACHINES MAY BE
15 AVAILABLE FOR PLAY OR OPERATION AT A LICENSED GAMING
16 FACILITY, FOR A PERIOD NOT TO EXCEED 24 MONTHS, PROVIDED THAT
17 UPON GOOD CAUSE SHOWN, THE BOARD MAY EXTEND PERMISSION TO
18 OPERATE A TEMPORARY FACILITY FOR AN ADDITIONAL 12-MONTH
19 PERIOD.
20 § 1208. COLLECTION OF FEES AND FINES.
21 THE BOARD HAS THE FOLLOWING POWERS AND DUTIES:
22 (1) TO LEVY AND COLLECT FEES FROM THE VARIOUS
23 APPLICANTS, LICENSEES AND PERMITTEES TO FUND THE OPERATIONS
24 OF THE BOARD. THE FEES SHALL BE DEPOSITED INTO THE STATE
25 GAMING FUND AS ESTABLISHED IN SECTION 1403 (RELATING TO
26 ESTABLISHMENT OF STATE GAMING FUND AND NET SLOT MACHINE
27 REVENUE DISTRIBUTION). IN ADDITION TO THE FEES SET FORTH IN
28 SECTIONS 1209 (RELATING TO SLOT MACHINE LICENSE FEE) AND 1305
29 (RELATING TO CATEGORY 3 SLOT MACHINE LICENSE), THE BOARD
30 SHALL ASSESS AND COLLECT FEES AS FOLLOWS:
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