Act 71 Pennsylvania Gaming Law Part 4 of 9

1 REQUIRED BY THE BOARD.
2 (2) THE PROPOSED LOCATION OF THE SLOT MACHINE AREAS, IF
3 KNOWN.
4 (3) THE NUMBER OF SLOT MACHINES REQUESTED.
5 (4) A CURRENT TAX LIEN CERTIFICATE ISSUED BY THE
6 DEPARTMENT.
7 (5) IN THOSE INSTANCES WHERE ADDITIONAL SLOT MACHINES
8 ARE BEING REQUESTED, THE JUSTIFICATION AND EXPLANATION FOR
9 THE NUMBER AND PROPOSED LOCATION OF THE SLOT MACHINE AREAS
10 WITHIN THE CONFINES OF THE LICENSED FACILITY.
11 (6) THE CURRENT STATUS OF THE HORSE OR HARNESS RACING
12 LICENSE ISSUED PURSUANT TO THE RACE HORSE INDUSTRY REFORM
13 ACT, IF ANY.
14 (7) THE DETAILS OF ANY GAMING, SLOT MACHINE OR CASINO
15 LICENSE APPLIED FOR, GRANTED TO OR DENIED TO THE APPLICANT BY
16 OTHER JURISDICTIONS WHERE SUCH FORM OF GAMING IS LEGAL, AND
17 THE CONSENT FOR THE BOARD TO ACQUIRE COPIES OF APPLICATIONS
18 SUBMITTED OR LICENSES ISSUED IN CONNECTION THEREWITH.
19 (8) THE DETAILS OF ANY LOANS OBTAINED FROM A FINANCIAL
20 INSTITUTION OR NOT OBTAINED FROM A FINANCIAL INSTITUTION.
21 (9) THE CONSENT TO CONDUCT A BACKGROUND INVESTIGATION BY
22 THE BOARD, THE SCOPE OF WHICH SHALL BE DETERMINED BY THE
23 BOARD IN ITS DISCRETION CONSISTENT WITH THE PROVISIONS OF
24 THIS PART, AND A RELEASE SIGNED BY ALL PERSONS SUBJECT TO THE
25 INVESTIGATION OF ALL INFORMATION REQUIRED TO COMPLETE THE
26 INVESTIGATION.
27 (10) ANY OTHER INFORMATION DETERMINED TO BE APPROPRIATE
28 BY THE BOARD.
29 (B) REFUSAL TO COOPERATE.--ANY REFUSAL TO PROVIDE THE
30 INFORMATION REQUIRED UNDER THIS SECTION OR TO CONSENT TO A
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1 BACKGROUND INVESTIGATION SHALL RESULT IN THE IMMEDIATE DENIAL OF
2 A LICENSE OR PERMIT.
3 § 1310. SLOT MACHINE LICENSE APPLICATION CHARACTER
4 REQUIREMENTS.
5 (A) APPLICATION.--EVERY APPLICATION FOR A SLOT MACHINE
6 LICENSE SHALL INCLUDE SUCH INFORMATION, DOCUMENTATION AND
7 ASSURANCES AS MAY BE REQUIRED TO ESTABLISH BY CLEAR AND
8 CONVINCING EVIDENCE THE APPLICANT'S GOOD CHARACTER, HONESTY AND
9 INTEGRITY. INFORMATION SHALL INCLUDE, WITHOUT LIMITATION,
10 INFORMATION PERTAINING TO FAMILY, HABITS, CHARACTER, REPUTATION,
11 CRIMINAL HISTORY BACKGROUND, BUSINESS ACTIVITIES, FINANCIAL
12 AFFAIRS AND BUSINESS, PROFESSIONAL AND PERSONAL ASSOCIATES,
13 COVERING AT LEAST THE TEN-YEAR PERIOD IMMEDIATELY PRECEDING THE
14 FILING DATE OF THE APPLICATION.
15 (B) CIVIL JUDGMENTS AND LAW ENFORCEMENT AGENCY
16 INFORMATION.--EACH APPLICANT SHALL NOTIFY THE BOARD OF ANY CIVIL
17 JUDGMENTS OBTAINED AGAINST THE APPLICANT PERTAINING TO ANTITRUST
18 OR SECURITY REGULATION LAWS OF THE FEDERAL GOVERNMENT, THIS
19 COMMONWEALTH OR ANY OTHER STATE, JURISDICTION, PROVINCE OR
20 COUNTRY. IN ADDITION, EACH APPLICANT SHALL PRODUCE A LETTER OF
21 REFERENCE FROM LAW ENFORCEMENT AGENCIES HAVING JURISDICTION IN
22 THE APPLICANT'S PLACE OF RESIDENCE AND PRINCIPAL PLACE OF
23 BUSINESS, WHICH LETTER OF REFERENCE SHALL INDICATE THAT THE LAW
24 ENFORCEMENT AGENCIES DO NOT HAVE ANY PERTINENT INFORMATION
25 CONCERNING THE APPLICANT OR, IF THE LAW ENFORCEMENT AGENCY DOES
26 HAVE INFORMATION PERTAINING TO THE APPLICANT, SHALL SPECIFY THE
27 NATURE AND CONTENT OF THAT INFORMATION. IF NO LETTERS ARE
28 RECEIVED WITHIN 30 DAYS OF THE REQUEST, THE APPLICANT MAY SUBMIT
29 A STATEMENT UNDER OATH WHICH IS SUBJECT TO THE PENALTY FOR FALSE
30 SWEARING UNDER 18 PA.C.S. § 4903 (RELATING TO FALSE SWEARING)
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1 THAT THE APPLICANT IS OR WAS DURING THE PERIOD THE ACTIVITIES
2 WERE CONDUCTED IN GOOD STANDING WITH THE GAMING OR CASINO
3 ENFORCEMENT OR CONTROL AGENCY.
4 (C) GAMING OR CASINO ENFORCEMENT AGENCY INFORMATION.--IF THE
5 APPLICANT HAS HELD A GAMING LICENSE IN A JURISDICTION WHERE
6 GAMING ACTIVITIES ARE PERMITTED, THE APPLICANT SHALL PRODUCE A
7 LETTER OF REFERENCE FROM THE GAMING OR CASINO ENFORCEMENT OR
8 CONTROL AGENCY WHICH SHALL SPECIFY THE EXPERIENCES OF THAT
9 AGENCY WITH THE APPLICANT, THE APPLICANT'S ASSOCIATES AND THE
10 APPLICANT'S GAMING OPERATION. IF NO LETTERS ARE RECEIVED WITHIN
11 30 DAYS OF THE REQUEST, THE APPLICANT MAY SUBMIT A STATEMENT
12 UNDER OATH WHICH IS SUBJECT TO THE PENALTY FOR FALSE SWEARING
13 UNDER 18 PA.C.S. § 4903 (RELATING TO FALSE SWEARING) THAT THE
14 APPLICANT IS OR WAS DURING THE PERIOD THE ACTIVITIES WERE
15 CONDUCTED IN GOOD STANDING WITH THE GAMING OR CASINO ENFORCEMENT
16 OR CONTROL AGENCY.
17 § 1311. SLOT MACHINE LICENSE APPLICATION BUSINESS ENTITY
18 REQUIREMENTS.
19 (A) KEY EMPLOYEE REQUIREMENT QUALIFICATION.--NO CORPORATION
20 OR ANY OTHER LEGAL BUSINESS ENTITY SHALL BE ELIGIBLE TO HOLD A
21 SLOT MACHINE LICENSE UNLESS THE FOLLOWING WOULD INDIVIDUALLY BE
22 QUALIFIED FOR LICENSURE AS A KEY EMPLOYEE: EACH OFFICER; EACH
23 DIRECTOR; EACH PERSON WHO DIRECTLY OR INDIRECTLY HOLDS ANY
24 BENEFICIAL INTEREST OR OWNERSHIP OF THE SECURITIES IN THE
25 ENTITY; EACH PERSON WHO IN THE OPINION OF THE BOARD HAS THE
26 ABILITY TO CONTROL THE ENTITY, HAS A CONTROLLING INTEREST OR
27 ELECTS A MAJORITY OF THE BOARD OF DIRECTORS OF THAT CORPORATION
28 OR BUSINESS ENTITY, OTHER THAN A BANKING OR OTHER LICENSED
29 LENDING INSTITUTION WHICH MAKES A LOAN OR HOLDS A MORTGAGE OR
30 OTHER LIEN ACQUIRED IN THE ORDINARY COURSE OF BUSINESS; EACH KEY
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1 EMPLOYEE; EACH LENDER, OTHER THAN A BANKING OR OTHER LICENSED
2 LENDING INSTITUTION WHICH MAKES A LOAN OR HOLDS A MORTGAGE OR
3 OTHER LIEN ACQUIRED IN THE ORDINARY COURSE OF BUSINESS; EACH
4 UNDERWRITER; EACH AGENT; EACH EMPLOYEE OF THE CORPORATION OR
5 ENTITY AND EACH OTHER PERSON WHOM THE BOARD MAY CONSIDER
6 APPROPRIATE FOR APPROVAL OR QUALIFICATION. THE BOARD MAY WAIVE
7 COMPLIANCE WITH THE PROVISIONS OF THIS SUBSECTION ON THE PART OF
8 A PUBLICLY TRADED CORPORATION AS TO A PERSON DIRECTLY OR
9 INDIRECTLY HOLDING OWNERSHIP OF SECURITIES OF SUCH CORPORATION
10 WHERE THE BOARD IS SATISFIED THAT THE SECURITY HOLDER IS NOT
11 SIGNIFICANTLY INVOLVED IN THE ACTIVITIES OF THE CORPORATION AND
12 DOES NOT HAVE THE ABILITY TO CONTROL THE CORPORATION OR ELECT
13 ONE OR MORE DIRECTORS THEREOF.
14 (B) SLOT MACHINE LICENSE QUALIFICATION REQUIREMENT.--NO
15 CORPORATION OR ANY OTHER LEGAL BUSINESS ENTITY OR OTHER FORM OF
16 BUSINESS ORGANIZATION WHICH IS A SUBSIDIARY SHALL BE ELIGIBLE TO
17 RECEIVE OR HOLD A SLOT MACHINE LICENSE UNLESS EACH HOLDING AND
18 INTERMEDIARY COMPANY WITH RESPECT THERETO:
19 (1) IF IT IS A CORPORATION OR OTHER LEGAL BUSINESS
20 ENTITY, SHALL COMPLY WITH THE PROVISIONS OF SUBSECTION (A) OF
21 THIS SECTION AS IF SAID HOLDING OR INTERMEDIARY COMPANY WERE
22 ITSELF APPLYING FOR A SLOT MACHINE LICENSE. THE BOARD MAY
23 WAIVE COMPLIANCE WITH THE PROVISIONS OF SUBSECTION (A) ON THE
24 PART OF A PUBLICLY TRADED CORPORATION WHICH IS A HOLDING
25 COMPANY AS TO ANY OFFICER, DIRECTOR, LENDER, UNDERWRITER,
26 AGENT OR EMPLOYEE THEREOF, OR PERSON DIRECTLY OR INDIRECTLY
27 HOLDING A BENEFICIAL INTEREST OR OWNERSHIP OF THE SECURITIES
28 OF SUCH CORPORATION, WHERE THE BOARD IS SATISFIED THAT SUCH
29 OFFICER, DIRECTOR, LENDER, UNDERWRITER, AGENT OR EMPLOYEE IS
30 NOT SIGNIFICANTLY INVOLVED IN THE ACTIVITIES OF THE CORPORATE
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1 LICENSEE, AND IN THE CASE OF THE SECURITY HOLDER, DOES NOT
2 HAVE THE ABILITY TO CONTROL OR POSSESS A CONTROLLING INTEREST
3 IN THE HOLDING COMPANY OR ELECT ONE OR MORE DIRECTORS
4 THEREOF; OR
5 (2) IF IT IS NOT A CORPORATION, SHALL COMPLY WITH THE
6 PROVISIONS OF SUBSECTION (C) AS IF SAID COMPANY WERE ITSELF
7 APPLYING FOR A SLOT MACHINE LICENSE. THE BOARD MAY WAIVE
8 COMPLIANCE WITH THE PROVISIONS OF SUBSECTION (C) ON THE PART
9 OF A NONCORPORATE BUSINESS ORGANIZATION WHICH IS A HOLDING
10 COMPANY AS TO ANY PERSON WHO DIRECTLY OR INDIRECTLY HOLDS ANY
11 BENEFICIAL INTEREST OR OWNERSHIP IN SUCH COMPANY, WHEN THE
12 BOARD IS SATISFIED THAT SUCH PERSON DOES NOT HAVE THE ABILITY
13 TO CONTROL THE COMPANY.
14 (C) NONCORPORATE APPLICANT REQUIREMENT.--ANY NONCORPORATE
15 APPLICANT FOR A SLOT MACHINE LICENSE SHALL PROVIDE THE
16 INFORMATION REQUIRED IN THIS SECTION IN SUCH FORM AS MAY BE
17 REQUIRED BY THE BOARD. NO SUCH APPLICANT SHALL BE ELIGIBLE TO
18 HOLD A SLOT MACHINE LICENSE UNLESS EACH PERSON WHO DIRECTLY OR
19 INDIRECTLY HOLDS ANY BENEFICIAL INTEREST OR OWNERSHIP IN THE
20 APPLICANT, OR HAS THE ABILITY TO CONTROL THE APPLICANT OR WHOM
21 THE BOARD MAY CONSIDER APPROPRIATE FOR APPROVAL OR
22 QUALIFICATION, WOULD INDIVIDUALLY BE QUALIFIED FOR APPROVAL AS A
23 KEY EMPLOYEE PURSUANT TO THE PROVISIONS OF THIS PART.
24 § 1312. DIVESTITURE OF DISQUALIFYING APPLICANT.
25 IN THE EVENT THAT ANY SLOT MACHINE LICENSE APPLICATION IS NOT
26 APPROVED BY THE BOARD BASED ON A FINDING THAT AN INDIVIDUAL WHO
27 IS A PRINCIPAL OR HAS AN INTEREST IN THE PERSON APPLYING FOR THE
28 LICENSE DOES NOT MEET THE CHARACTER REQUIREMENTS OF SECTION 1310
29 (RELATING TO SLOT MACHINE LICENSE APPLICATION CHARACTER
30 REQUIREMENTS) OR ANY OF THE ELIGIBILITY REQUIREMENTS UNDER THIS
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1 PART, OR A PERSON WHO PURCHASES A CONTROLLING INTEREST IN A
2 LICENSED GAMING ENTITY IN VIOLATION OF SECTION 1328 (RELATING TO
3 CHANGE IN OWNERSHIP OR CONTROL OF SLOT MACHINE LICENSEE), THE
4 BOARD MAY AFFORD THE INDIVIDUAL THE OPPORTUNITY TO COMPLETELY
5 DIVEST HIS INTEREST IN THE PERSON, ITS AFFILIATE, INTERMEDIARY,
6 SUBSIDIARY OR HOLDING COMPANY SEEKING THE LICENSE AND, AFTER
7 SUCH DIVESTITURE, RECONSIDER THE PERSON'S OR APPLICANT'S
8 SUITABILITY FOR LICENSURE IN AN EXPEDITED PROCEEDING AND MAY,
9 AFTER SUCH PROCEEDING, ISSUE THE PERSON OR APPLICANT A SLOT
10 MACHINE LICENSE. THE BOARD SHALL APPROVE THE TERMS AND
11 CONDITIONS OF ANY DIVESTITURE UNDER THIS SECTION. UNDER NO
12 CIRCUMSTANCES SHALL ANY DIVESTITURE BE APPROVED BY THE BOARD IF
13 THE COMPENSATION FOR THE DIVESTED INTEREST EXCEEDS THE COST OF
14 THE INTEREST.
15 § 1313. SLOT MACHINE LICENSE APPLICATION FINANCIAL FITNESS
16 REQUIREMENTS.
17 (A) APPLICANT FINANCIAL INFORMATION.--THE BOARD SHALL
18 REQUIRE EACH APPLICANT FOR A SLOT MACHINE LICENSE TO PRODUCE THE
19 INFORMATION, DOCUMENTATION AND ASSURANCES CONCERNING FINANCIAL
20 BACKGROUND AND RESOURCES AS THE BOARD DEEMS NECESSARY TO
21 ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THE FINANCIAL
22 STABILITY, INTEGRITY AND RESPONSIBILITY OF THE APPLICANT, ITS
23 AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY,
24 INCLUDING, BUT NOT LIMITED TO, BANK REFERENCES, BUSINESS AND
25 PERSONAL INCOME AND DISBURSEMENT SCHEDULES, TAX RETURNS AND
26 OTHER REPORTS FILED WITH GOVERNMENTAL AGENCIES, AND BUSINESS AND
27 PERSONAL ACCOUNTING AND CHECK RECORDS AND LEDGERS. IN ADDITION,
28 EACH APPLICANT SHALL, IN WRITING, AUTHORIZE THE EXAMINATION OF
29 ALL BANK ACCOUNTS AND RECORDS AS MAY BE DEEMED NECESSARY BY THE
30 BOARD.
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1 (B) FINANCIAL BACKER INFORMATION.--THE BOARD SHALL REQUIRE
2 EACH APPLICANT FOR A SLOT MACHINE LICENSE TO PRODUCE THE
3 INFORMATION, DOCUMENTATION AND ASSURANCES AS MAY BE NECESSARY TO
4 ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THE INTEGRITY OF ALL
5 FINANCIAL BACKERS, INVESTORS, MORTGAGEES, BONDHOLDERS AND
6 HOLDERS OF INDENTURES, NOTES OR OTHER EVIDENCES OF INDEBTEDNESS,
7 EITHER IN EFFECT OR PROPOSED. ANY SUCH BANKING OR LENDING
8 INSTITUTION AND INSTITUTIONAL INVESTORS MAY BE WAIVED FROM THE
9 QUALIFICATION REQUIREMENTS. BANKING OR LENDING INSTITUTION OR
10 INSTITUTIONAL INVESTOR SHALL, HOWEVER, PRODUCE FOR THE BOARD
11 UPON REQUEST ANY DOCUMENT OR INFORMATION WHICH BEARS ANY
12 RELATION TO THE PROPOSAL SUBMITTED BY THE APPLICANT OR
13 APPLICANTS. THE INTEGRITY OF THE FINANCIAL SOURCES SHALL BE
14 JUDGED UPON THE SAME STANDARDS AS THE APPLICANT. ANY SUCH PERSON
15 OR ENTITY SHALL PRODUCE FOR THE BOARD UPON REQUEST ANY DOCUMENT
16 OR INFORMATION WHICH BEARS ANY RELATION TO THE APPLICATION. IN
17 ADDITION, THE APPLICANT SHALL PRODUCE WHATEVER INFORMATION,
18 DOCUMENTATION OR ASSURANCES THE BOARD REQUIRES TO ESTABLISH BY
19 CLEAR AND CONVINCING EVIDENCE THE ADEQUACY OF FINANCIAL
20 RESOURCES.
21 (C) APPLICANT'S ABILITY TO PAY LICENSE FEE.--THE BOARD SHALL
22 REQUIRE EACH APPLICANT FOR A CATEGORY 1 OR 2 SLOT MACHINE
23 LICENSE, AT THE TIME OF APPLICATION TO POST A LETTER OF CREDIT
24 OR BOND IN THE AMOUNT OF $50,000,000 TO DEMONSTRATE THE
25 FINANCIAL ABILITY TO PAY THE SLOT MACHINE LICENSE FEE AS
26 REQUIRED IN SECTION 1209 (RELATING TO SLOT MACHINE LICENSE FEE)
27 IF ISSUED A SLOT MACHINE LICENSE BY THE BOARD. EACH APPLICANT
28 FOR A CATEGORY 3 SLOT MACHINE LICENSE, AT THE TIME OF
29 APPLICATION SHALL BE REQUIRED TO POST A LETTER OF CREDIT OR BOND
30 IN THE AMOUNT OF $5,000,000 TO DEMONSTRATE THE FINANCIAL ABILITY
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1 TO PAY THE CATEGORY 3 SLOT MACHINE LICENSE FEE AS REQUIRED IN
2 SECTION 1305 (RELATING TO CATEGORY 3 SLOT MACHINE LICENSE) IF
3 ISSUED A SLOT MACHINE LICENSE BY THE BOARD.
4 (D) APPLICANT'S BUSINESS EXPERIENCE.--THE BOARD SHALL
5 REQUIRE EACH APPLICANT FOR A SLOT MACHINE LICENSE TO PRODUCE THE
6 INFORMATION, DOCUMENTATION AND ASSURANCES AS THE BOARD MAY
7 REQUIRE TO ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THAT THE
8 APPLICANT HAS SUFFICIENT BUSINESS ABILITY AND EXPERIENCE TO
9 CREATE AND MAINTAIN A SUCCESSFUL, EFFICIENT OPERATION.
10 APPLICANTS SHALL PRODUCE THE NAMES OF ALL PROPOSED KEY EMPLOYEES
11 AND A DESCRIPTION OF THEIR RESPECTIVE OR PROPOSED
12 RESPONSIBILITIES AS THEY BECOME KNOWN.
13 (E) APPLICANT'S OPERATIONAL VIABILITY.--IN ASSESSING THE
14 FINANCIAL VIABILITY OF THE PROPOSED LICENSED FACILITY, THE BOARD
15 SHALL MAKE A FINDING, AFTER REVIEW OF THE APPLICATION, THAT THE
16 APPLICANT IS LIKELY TO MAINTAIN A FINANCIALLY SUCCESSFUL, VIABLE
17 AND EFFICIENT BUSINESS OPERATION AND WILL LIKELY BE ABLE TO
18 MAINTAIN STEADY LEVEL AND GROWTH OF REVENUE TO THE COMMONWEALTH
19 PURSUANT TO SECTION 1403 (RELATING TO ESTABLISHMENT OF STATE
20 GAMING FUND AND NET SLOT MACHINE REVENUE DISTRIBUTION).
21 NOTWITHSTANDING ANY PROVISION OF THIS PART TO THE CONTRARY, AN
22 APPLICANT THAT INCLUDES A COMMITMENT OR PROMISE TO PAY A SLOT
23 MACHINE LICENSE FEE IN EXCESS OF THE AMOUNT PROVIDED IN SECTION
24 1209 OR A DISTRIBUTION OF TERMINAL REVENUE IN EXCESS OF THE
25 AMOUNTS PROVIDED IN SECTIONS 1403, 1405 (RELATING TO
26 PENNSYLVANIA RACE HORSE DEVELOPMENT FUND) AND 1407 (RELATING TO
27 PENNSYLVANIA GAMING ECONOMIC DEVELOPMENT TOURISM FUND) SHALL NOT
28 BE DEEMED A FINANCIALLY SUCCESSFUL, VIABLE OR EFFICIENT BUSINESS
29 OPERATION AND SHALL NOT BE APPROVED FOR A SLOT MACHINE LICENSE.
30 (F) ADDITIONAL INFORMATION.--IN ADDITION TO OTHER
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1 INFORMATION REQUIRED BY THIS PART, A PERSON APPLYING FOR A SLOT
2 MACHINE LICENSE SHALL PROVIDE THE FOLLOWING INFORMATION:
3 (1) THE ORGANIZATION, FINANCIAL STRUCTURE AND NATURE OF
4 ALL BUSINESSES OPERATED BY THE PERSON, INCLUDING ANY
5 AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANIES, THE
6 NAMES AND PERSONAL EMPLOYMENT AND CRIMINAL HISTORIES OF ALL
7 OFFICERS, DIRECTORS AND KEY EMPLOYEES OF THE CORPORATION; THE
8 NAMES OF ALL HOLDING, INTERMEDIARY, AFFILIATE AND SUBSIDIARY
9 COMPANIES OF THE CORPORATION; AND THE ORGANIZATION, FINANCIAL
10 STRUCTURE AND NATURE OF ALL BUSINESSES OPERATED BY SUCH
11 HOLDING, INTERMEDIARY AND SUBSIDIARY COMPANIES AS THE BOARD
12 MAY REQUIRE, INCLUDING NAMES AND PERSONAL EMPLOYMENT AND
13 CRIMINAL HISTORIES OF SUCH OFFICERS, DIRECTORS AND PRINCIPAL
14 EMPLOYEES OF SUCH CORPORATIONS AND COMPANIES AS THE BOARD MAY
15 REQUIRE.
16 (2) THE EXTENT OF SECURITIES HELD IN THE CORPORATION BY
17 ALL OFFICERS, DIRECTORS AND UNDERWRITERS, AND THEIR
18 REMUNERATION IN THE FORM OF SALARY, WAGES, FEES OR OTHERWISE.
19 (3) COPIES OF ALL MANAGEMENT AND SERVICE CONTRACTS.
20 § 1314. ALTERNATIVE CATEGORY 1 LICENSING STANDARDS.
21 (A) DETERMINATION.--THE BOARD MAY DETERMINE WHETHER THE
22 LICENSING STANDARDS OF ANOTHER JURISDICTION WITHIN THE UNITED
23 STATES OR CANADA IN WHICH AN APPLICANT, ITS AFFILIATE,
24 INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY FOR A CATEGORY 1
25 SLOT MACHINE LICENSE IS SIMILARLY LICENSED ARE COMPREHENSIVE AND
26 THOROUGH AND PROVIDE SIMILAR ADEQUATE SAFEGUARDS AS THOSE
27 REQUIRED BY THIS PART. IF THE BOARD MAKES THAT DETERMINATION, IT
28 MAY ISSUE A SLOT MACHINE LICENSE TO AN APPLICANT WHO HOLDS A
29 SLOT MACHINE LICENSE IN SUCH OTHER JURISDICTION AFTER CONDUCTING
30 AN EVALUATION OF THE INFORMATION RELATING TO THE APPLICANT FROM
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1 SUCH OTHER JURISDICTIONS, AS UPDATED BY THE BOARD, AND
2 EVALUATING OTHER INFORMATION RELATED TO THE APPLICANT RECEIVED
3 FROM THAT JURISDICTION AND OTHER JURISDICTIONS WHERE THE
4 APPLICANT MAY BE LICENSED, THE BOARD MAY INCORPORATE SUCH
5 INFORMATION, IN WHOLE OR IN PART, INTO ITS EVALUATION OF THE
6 APPLICANT.
7 (B) ABBREVIATED PROCESS.--IN THE EVENT AN APPLICANT FOR A
8 SLOT MACHINE LICENSE IS LICENSED IN ANOTHER JURISDICTION, THE
9 BOARD MAY DETERMINE TO USE AN ALTERNATE PROCESS REQUIRING ONLY
10 THAT INFORMATION DETERMINED BY THE BOARD TO BE NECESSARY TO
11 CONSIDER THE ISSUANCE OF A LICENSE, INCLUDING FINANCIAL
12 VIABILITY OF THE LICENSEE, TO SUCH AN APPLICANT. NOTHING IN THIS
13 SECTION SHALL BE CONSTRUED TO WAIVE ANY FEES ASSOCIATED WITH
14 OBTAINING A LICENSE THROUGH THE NORMAL APPLICATION PROCESS.
15 § 1315. CONDITIONAL CATEGORY 1 LICENSES.
16 (A) ISSUANCE.--NOTWITHSTANDING ANY PROVISIONS OF THIS PART
17 TO THE CONTRARY, UPON A FINDING THAT IT IS IN THE PUBLIC
18 INTEREST, THE BOARD MAY ISSUE A CONDITIONAL SLOT MACHINE LICENSE
19 TO A PERSON WHO QUALIFIES AS A CATEGORY 1 LICENSE APPLICANT UPON
20 PAYMENT OF THE FEE PURSUANT TO SECTION 1209 (RELATING TO SLOT
21 MACHINE LICENSE FEE). THIS LICENSE MAY BE ISSUED AFTER THE
22 COMPLETION OF A BACKGROUND INVESTIGATION OF THE APPLICANT AND
23 EACH KEY EMPLOYEE AND PRIOR TO FULL COMPLIANCE BY THE APPLICANT
24 WITH SECTION 1325 (RELATING TO LICENSE OR PERMIT ISSUANCE).
25 (B) SUITABILITY; FINANCIAL CAPABILITY.--AN APPLICANT SHALL
26 PROVIDE THE BOARD WITH SATISFACTORY EVIDENCE OF SUITABILITY AND
27 FINANCIAL CAPABILITY OF THE APPLICANT TO BE A SLOT MACHINE
28 LICENSEE PRIOR TO THE BOARD GRANTING THE CONDITIONAL LICENSE.
29 (C) COMPLETE APPLICATION.--NO LATER THAN UPON ISSUANCE OF A
30 CONDITIONAL LICENSE, THE APPLICANT SHALL SUBMIT A COMPLETE
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1 APPLICATION FOR A CATEGORY 1 LICENSE PURSUANT TO SECTION 1302
2 (RELATING TO CATEGORY 1 SLOT MACHINE LICENSE) AS SET FORTH BY
3 THIS PART.
4 (D) EXPIRATION.--IF THE HOLDER OF A CONDITIONAL LICENSE DOES
5 NOT RECEIVE BOARD APPROVAL FOR THE ISSUANCE OF A CATEGORY 1 SLOT
6 MACHINE LICENSE UNDER THE STANDARDS SET FORTH IN THIS PART
7 WITHIN 18 MONTHS FROM THE TIME SET BY THE BOARD PURSUANT TO
8 SECTION 1301 (RELATING TO AUTHORIZED SLOT MACHINE LICENSES) AT
9 WHICH ALL APPLICATIONS ARE TO BE FILED AND DEEMED COMPLETE, THE
10 CONDITIONAL LICENSE SHALL EXPIRE. FAILURE TO MEET THE
11 REQUIREMENTS OF THIS PART FOR LICENSURE SHALL CAUSE IMMEDIATE
12 FORFEITURE OF THE CONDITIONAL SLOT MACHINE LICENSE AND
13 REVOCATION OF AUTHORIZATION TO OPERATE SLOT MACHINES AT THE
14 LICENSED FACILITY.
15 (E) RETURN OF FEE.--IN THE EVENT OF THE EXPIRATION OF A
16 CONDITIONAL LICENSE OR THE DENIAL OF AN APPLICATION FOR A SLOT
17 MACHINE LICENSE PURSUANT TO SECTION 1302, THE APPLICANT SHALL BE
18 ENTITLED TO A RETURN OF 85% OF THE CONDITIONAL SLOT MACHINE
19 LICENSE FEE IT SUBMITTED WITH ITS APPLICATION.
20 § 1316. BOND FOR ISSUANCE OF SLOT MACHINE LICENSE.
21 BEFORE ANY CATEGORY OF SLOT MACHINE LICENSE IS ISSUED, THE
22 LICENSEE SHALL POST A BOND IN AN AMOUNT NOT LESS THAN THE SUM OF
23 $1,000,000, AS SET BY THE BOARD, PAYABLE TO THE COMMONWEALTH.
24 THE BOND SHALL BE USED TO GUARANTEE THAT THE SLOT MACHINE
25 LICENSEE FAITHFULLY MAKES THE PAYMENTS, KEEPS BOOKS AND RECORDS,
26 MAKES REPORTS AND CONDUCTS OPERATIONS IN CONFORMITY WITH THIS
27 PART AND RULES, REGULATIONS AND ORDERS PROMULGATED BY THE BOARD.
28 THE BOND SHALL NOT BE CANCELED BY A SURETY ON LESS THAN 30 DAYS'
29 NOTICE IN WRITING TO THE BOARD. IF A BOND IS CANCELED AND THE
30 SLOT MACHINE LICENSEE FAILS TO FILE A NEW BOND WITH THE BOARD IN
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1 THE REQUIRED AMOUNT ON OR BEFORE THE EFFECTIVE DATE OF
2 CANCELLATION, THE LICENSEE'S LICENSE SHALL BE REVOKED OR
3 SUSPENDED. THE TOTAL AND AGGREGATE LIABILITY OF THE SURETY ON
4 THE BOND IS LIMITED TO THE AMOUNT SPECIFIED IN THE BOND.
5 § 1317. SUPPLIER AND MANUFACTURER LICENSES APPLICATION.
6 (A) APPLICATION.--ANY PERSON SEEKING TO PROVIDE SLOT
7 MACHINES OR ASSOCIATED EQUIPMENT TO A SLOT MACHINE LICENSEE
8 WITHIN THIS COMMONWEALTH OR TO MANUFACTURE SLOT MACHINES FOR USE
9 IN THIS COMMONWEALTH SHALL APPLY TO THE BOARD FOR EITHER A
10 SUPPLIER OR MANUFACTURER LICENSE. NO PERSON, ITS AFFILIATE,
11 INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY WHO HAS APPLIED FOR
12 OR IS A HOLDER OF A MANUFACTURER OR SLOT MACHINE LICENSE, SHALL
13 BE ELIGIBLE TO APPLY FOR OR HOLD A SUPPLIER LICENSE. A SUPPLIER
14 LICENSEE SHALL ESTABLISH A PRINCIPLE PLACE OF BUSINESS IN THIS
15 COMMONWEALTH WITHIN ONE YEAR OF ISSUANCE OF ITS SUPPLIER LICENSE
16 AND MAINTAIN SUCH DURING THE PERIOD IN WHICH THE LICENSE IS
17 HELD. NO SLOT MACHINE LICENSEE SHALL ENTER INTO ANY SALE, LEASE,
18 CONTRACT OR ANY OTHER TYPE OF AGREEMENT PROVIDING SLOT MACHINES,
19 PROGRESSIVE SLOT MACHINES, PARTS OR ASSOCIATED EQUIPMENT FOR USE
20 OR PLAY WITH ANY PERSON OTHER THAN A SUPPLIER LICENSED PURSUANT
21 TO THIS SECTION. SLOT MONITORING SYSTEMS, CASINO MANAGEMENT
22 SYSTEMS, PLAYER TRACKING SYSTEMS AND WIDE-AREA PROGRESSIVE
23 SYSTEMS ARE EXCLUDED FROM ANY REQUIREMENTS THAT THEY BE PROVIDED
24 THROUGH A LICENSED SUPPLIER AS SET FORTH IN THIS PART.
25 (B) REQUIREMENTS.--THE APPLICATION FOR A SUPPLIER OR
26 MANUFACTURER LICENSE SHALL INCLUDE, AT A MINIMUM:
27 (1) THE NAME AND BUSINESS ADDRESS OF THE APPLICANT, THE
28 DIRECTORS AND OWNERS OF THE APPLICANT AND A LIST OF EMPLOYEES
29 AND THEIR POSITIONS WITHIN THE BUSINESS, AS WELL AS ANY
30 FINANCIAL INFORMATION REQUIRED BY THE BOARD.
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1 (2) THE CONSENT TO A BACKGROUND INVESTIGATION OF THE
2 APPLICANT, ITS OFFICERS, DIRECTORS, OWNERS, KEY EMPLOYEES OR
3 OTHER PERSONS REQUIRED BY THE BOARD AND A RELEASE TO OBTAIN
4 ANY AND ALL INFORMATION NECESSARY FOR THE COMPLETION OF THE
5 BACKGROUND INVESTIGATION.
6 (3) THE DETAILS OF ANY EQUIVALENT LICENSE GRANTED OR
7 DENIED BY OTHER JURISDICTIONS WHERE GAMING ACTIVITIES ARE
8 PERMITTED AND CONSENT FOR THE BOARD TO ACQUIRE COPIES OF
9 APPLICATIONS SUBMITTED OR LICENSES ISSUED IN CONNECTION
10 THEREWITH.
11 (4) THE TYPE OF GOODS AND SERVICES TO BE SUPPLIED OR
12 MANUFACTURED AND WHETHER THOSE GOODS AND SERVICES WILL BE
13 PROVIDED THROUGH PURCHASE, LEASE, CONTRACT OR OTHERWISE.
14 (5) ANY OTHER INFORMATION DETERMINED BY THE BOARD TO BE
15 APPROPRIATE.
16 § 1318. OCCUPATION PERMIT APPLICATION.
17 (A) APPLICATION.--ANY PERSON WHO DESIRES TO BE A GAMING
18 EMPLOYEE AND HAS A BONA FIDE OFFER OF EMPLOYMENT FROM A LICENSED
19 GAMING ENTITY SHALL APPLY TO THE BOARD FOR AN OCCUPATION PERMIT.
20 A PERSON MAY NOT BE EMPLOYED AS A GAMING EMPLOYEE UNLESS AND
21 UNTIL THAT PERSON HOLDS AN APPROPRIATE OCCUPATION PERMIT ISSUED
22 UNDER THIS SECTION. THE BOARD MAY PROMULGATE REGULATIONS TO
23 RECLASSIFY A CATEGORY OF NONGAMING EMPLOYEES OR GAMING EMPLOYEES
24 UPON A FINDING THAT THE RECLASSIFICATION IS IN THE PUBLIC
25 INTEREST AND CONSISTENT WITH THE OBJECTIVES OF THIS PART.
26 (B) REQUIREMENTS.--THE APPLICATION FOR AN OCCUPATION PERMIT
27 SHALL INCLUDE, AT A MINIMUM:
28 (1) THE NAME AND HOME ADDRESS OF THE PERSON.
29 (2) THE PREVIOUS EMPLOYMENT HISTORY OF THE PERSON.
30 (3) THE CRIMINAL HISTORY RECORD OF THE PERSON, AS WELL
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1 AS THEIR CONSENT FOR THE PENNSYLVANIA STATE POLICE TO CONDUCT
2 A BACKGROUND INVESTIGATION.
3 (4) A PHOTOGRAPH AND HANDWRITING EXEMPLAR OF THE PERSON.
4 (5) EVIDENCE OF THE OFFER OF EMPLOYMENT AND THE NATURE
5 AND SCOPE OF THE PROPOSED DUTIES OF THE PERSON, IF KNOWN.
6 (6) THE DETAILS OF ANY OCCUPATION PERMIT OR SIMILAR
7 LICENSE GRANTED OR DENIED TO THE APPLICANT IN OTHER
8 JURISDICTIONS AND CONSENT FOR THE BOARD TO OBTAIN COPIES OF
9 APPLICATIONS SUBMITTED OR PERMITS OR LICENSES ISSUED IN
10 CONNECTION THEREWITH.
11 (7) ANY OTHER INFORMATION DETERMINED BY THE BOARD TO BE
12 APPROPRIATE.
13 (C) PROHIBITION.--NO SLOT MACHINE LICENSEE MAY EMPLOY OR
14 PERMIT ANY PERSON UNDER 18 YEARS OF AGE TO RENDER ANY SERVICE
15 WHATSOEVER IN ANY AREA OF ITS LICENSED FACILITY AT WHICH SLOT
16 MACHINES ARE PHYSICALLY LOCATED.
17 § 1319. ALTERNATIVE MANUFACTURER LICENSING STANDARDS.
18 (A) GENERAL RULE.--THE BOARD MAY DETERMINE WHETHER THE
19 LICENSING STANDARDS OF ANOTHER JURISDICTION WITHIN THE UNITED
20 STATES IN WHICH AN APPLICANT FOR A MANUFACTURER LICENSE IS
21 SIMILARLY LICENSED ARE COMPREHENSIVE AND THOROUGH AND PROVIDE
22 SIMILAR ADEQUATE SAFEGUARDS AS THOSE REQUIRED BY THIS PART. IF
23 THE BOARD MAKES THAT DETERMINATION, IT MAY ISSUE A MANUFACTURER
24 LICENSE TO AN APPLICANT WHO HOLDS A SIMILAR MANUFACTURER LICENSE
25 IN SUCH OTHER JURISDICTION AFTER CONDUCTING AN EVALUATION OF THE
26 INFORMATION RELATING TO THE APPLICANT FROM SUCH OTHER
27 JURISDICTIONS, AS UPDATED BY THE BOARD, AND EVALUATING OTHER
28 INFORMATION RELATED TO THE APPLICANT RECEIVED FROM THAT
29 JURISDICTION AND OTHER JURISDICTIONS WHERE THE APPLICANT MAY BE
30 LICENSED, THE BOARD MAY INCORPORATE SUCH INFORMATION, IN WHOLE
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1 OR IN PART, INTO ITS EVALUATION OF THE APPLICANT.
2 (B) ABBREVIATED PROCESS.--IN THE EVENT AN APPLICANT FOR A
3 SLOT MACHINE MANUFACTURER LICENSE IS LICENSED IN ANOTHER
4 JURISDICTION, THE BOARD MAY DETERMINE TO USE AN ALTERNATE
5 PROCESS REQUIRING ONLY THAT INFORMATION DETERMINED BY THE BOARD
6 TO BE NECESSARY TO CONSIDER THE ISSUANCE OF A LICENSE, INCLUDING
7 FINANCIAL VIABILITY OF THE LICENSEE, TO SUCH AN APPLICANT.
8 NOTHING IN THIS SECTION SHALL BE CONSTRUED TO WAIVE ANY FEES
9 ASSOCIATED WITH OBTAINING A LICENSE THROUGH THE NORMAL
10 APPLICATION PROCESS.
11 § 1320. SLOT MACHINE TESTING AND CERTIFICATION STANDARDS.
12 (A) USE OF OTHER STATE STANDARDS.--UNTIL SUCH TIME AS THE
13 BOARD ESTABLISHES AN INDEPENDENT TESTING AND CERTIFICATION
14 FACILITY PURSUANT TO SUBSECTION (B), THE BOARD MAY DETERMINE, AT
15 ITS DISCRETION, WHETHER THE SLOT MACHINE TESTING AND
16 CERTIFICATION STANDARDS OF ANOTHER JURISDICTION WITHIN THE
17 UNITED STATES IN WHICH AN APPLICANT FOR A MANUFACTURER LICENSE
18 IS LICENSED ARE COMPREHENSIVE AND THOROUGH AND PROVIDE SIMILAR
19 ADEQUATE SAFEGUARDS, AS THOSE REQUIRED BY THIS PART. IF THE
20 BOARD MAKES THAT DETERMINATION, IT MAY PERMIT A MANUFACTURER,
21 THROUGH A LICENSED SUPPLIER AS PROVIDED IN SECTION 1317
22 (RELATING TO SUPPLIER AND MANUFACTURER LICENSES APPLICATION), TO
23 DEPLOY THOSE SLOT MACHINES WHICH HAVE MET THE SLOT MACHINE
24 TESTING AND CERTIFICATION STANDARDS IN SUCH OTHER JURISDICTIONS,
25 WITHOUT UNDERGOING THE FULL TESTING AND CERTIFICATION PROCESS BY
26 A BOARD-ESTABLISHED INDEPENDENT FACILITY. IN THE EVENT SLOT
27 MACHINES OF AN APPLICANT FOR A MANUFACTURER LICENSE ARE LICENSED
28 IN SUCH OTHER JURISDICTION, THE BOARD MAY DETERMINE TO USE AN
29 ABBREVIATED PROCESS REQUIRING ONLY THAT INFORMATION DETERMINED
30 BY THE BOARD TO BE NECESSARY TO CONSIDER THE ISSUANCE OF A SLOT
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1 MACHINE CERTIFICATION TO SUCH AN APPLICANT. ALTERNATIVELY, THE
2 BOARD, IN ITS DISCRETION, MAY ALSO RELY UPON THE CERTIFICATION
3 OF A SLOT MACHINE THAT HAS MET THE TESTING AND CERTIFICATION
4 STANDARDS OF A BOARD-APPROVED PRIVATE TESTING AND CERTIFICATION
5 FACILITY UNTIL SUCH TIME AS THE BOARD ESTABLISHES AN INDEPENDENT
6 TESTING AND CERTIFICATION FACILITY PURSUANT TO SUBSECTION (B).
7 NOTHING IN THIS SECTION SHALL BE CONSTRUED TO WAIVE ANY FEES
8 ASSOCIATED WITH OBTAINING A LICENSE THROUGH THE NORMAL
9 APPLICATION PROCESS.
10 (B) FACILITY IN COMMONWEALTH.--WITHIN THREE YEARS
11 IMMEDIATELY FOLLOWING THE EFFECTIVE DATE OF THIS PART, THE BOARD
12 SHALL ESTABLISH AND MAINTAIN AN INDEPENDENT SLOT MACHINE TESTING
13 AND CERTIFICATION FACILITY. THE COST FOR THE ESTABLISHMENT AND
14 OPERATION OF AN INDEPENDENT SLOT MACHINE TESTING AND
15 CERTIFICATION FACILITY SHALL BE PAID BY EACH LICENSED
16 MANUFACTURER IN ACCORDANCE WITH A SCHEDULE ADOPTED BY THE BOARD.
17 THE FACILITY SHALL BE MADE AVAILABLE TO EACH SLOT MACHINE
18 MANUFACTURER AND SUPPLIER AS DETERMINED BY THE BOARD.
19 (C) CENTRAL CONTROL COMPUTER COMPATIBILITY.--THE BOARD SHALL
20 ENSURE THAT ALL SLOT MACHINES CERTIFIED AND APPROVED FOR USE IN
21 THIS COMMONWEALTH ARE COMPATIBLE AND COMPLY WITH THE CENTRAL
22 CONTROL COMPUTER AND PROTOCOL SPECIFICATIONS APPROVED BY THE
23 DEPARTMENT.
24 § 1321. ADDITIONAL LICENSES AND PERMITS AND APPROVAL OF
25 AGREEMENTS.
26 (A) REQUIREMENTS.--IN ADDITION TO THE REQUIREMENTS FOR A
27 LICENSE OR PERMIT SPECIFICALLY SET FORTH IN THIS PART, THE BOARD
28 MAY REQUIRE A LICENSE OR PERMIT, AND SET A FEE FOR THE SAME, FOR
29 ANY KEY OR GAMING EMPLOYEE OR ANY PERSON WHO SATISFIES ANY OF
30 THE FOLLOWING CRITERIA:
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1 (1) THE PERSON TRANSACTS BUSINESS WITHIN THIS
2 COMMONWEALTH WITH A SLOT MACHINE LICENSEE AS A TICKET
3 PURVEYOR, TOUR OPERATOR, OPERATOR OF A BUS TRIP PROGRAM OR
4 OPERATOR OF ANY OTHER TYPE OF TRAVEL PROGRAM OR PROMOTIONAL
5 BUSINESS RELATED TO SLOT MACHINES. THE BOARD MAY ALSO REVIEW,
6 DENY, ORDER MODIFICATION OR APPROVE, AT ITS DISCRETION,
7 PROPOSED TOURS, BUS ROUTES AND TRAVEL PROGRAMS.
8 (2) THE PERSON IS PRESENTLY NOT OTHERWISE REQUIRED TO BE
9 LICENSED UNDER THIS PART AND PROVIDES ANY GOODS, PROPERTY OR
10 SERVICES, INCLUDING, BUT NOT LIMITED TO, MANAGEMENT CONTRACTS
11 FOR COMPENSATION TO A SLOT MACHINE LICENSEE AT THE LICENSED
12 FACILITY.
13 (B) AGREEMENT.--ANY AGREEMENT TO CONDUCT BUSINESS WITHIN
14 THIS COMMONWEALTH BETWEEN A PERSON AND A SLOT MACHINE LICENSEE
15 RELATING TO SLOT MACHINES OR ASSOCIATED EQUIPMENT IS SUBJECT TO
16 THE APPROVAL OF THE BOARD IN ACCORDANCE WITH RULES AND
17 REGULATIONS PROMULGATED BY THE BOARD. EVERY AGREEMENT SHALL BE
18 IN WRITING AND SHALL INCLUDE A PROVISION FOR ITS TERMINATION
19 WITHOUT LIABILITY ON THE PART OF THE SLOT MACHINE LICENSEE UPON
20 A FINDING BY THE BOARD THAT THE AGREEMENT IS NOT APPROVED OR
21 THAT IT IS TERMINATED. FAILURE TO EXPRESSLY INCLUDE THIS
22 CONDITION IN THE AGREEMENT IS NOT A DEFENSE IN ANY ACTION
23 BROUGHT UNDER THIS SECTION RELATING TO THE TERMINATION OF THE
24 AGREEMENT.
25 § 1322. SLOT MACHINE ACCOUNTING CONTROLS AND AUDITS.
26 (A) APPROVAL.--EXCEPT AS OTHERWISE PROVIDED BY THIS PART,
27 EACH SLOT MACHINE LICENSE APPLICANT SHALL, IN ADDITION TO
28 OBTAINING A SLOT MACHINE LICENSE, OBTAIN APPROVAL FROM THE BOARD
29 IN CONSULTATION WITH THE DEPARTMENT OF ITS PROPOSED SITE PLANS
30 AND INTERNAL CONTROL SYSTEMS AND AUDIT PROTOCOLS PRIOR TO THE
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