PRIOR PRINTER'S NOS. 1105, 1241, 1302, PRINTER'S NO. 2101
1319, 1553, 2048
No. 862 Session of 2005
INTRODUCED BY PIPPY, BRIGHTBILL, RHOADES, LAVALLE, CORMAN,
RAFFERTY, EARLL, GORDNER, WONDERLING, KASUNIC, MADIGAN, PUNT,
C. WILLIAMS, WENGER, PILEGGI, ORIE, THOMPSON, O'PAKE,
ERICKSON, BOSCOLA, SCARNATI, D. WHITE, M. WHITE, WAUGH,
REGOLA, ROBBINS, LEMMOND AND JUBELIRER, SEPTEMBER 14, 2005
SENATE AMENDMENTS TO HOUSE AMENDMENTS, SEPTEMBER 26, 2006
AN ACT
1 Amending Titles 4 (Amusements) and 18 (Crimes and Offenses) of
2 the Pennsylvania Consolidated Statutes, further providing for
3 definitions and for the Pennsylvania Gaming Control Board;
4 providing for applicability of other statutes; further
5 providing for powers and duties of board; providing for code
6 of conduct; further providing for temporary regulations, for
7 licensed entity application appeals from board, for license
8 or permit application hearing process, for board minutes and
9 records, for collection of fees and fines, FOR REGULATORY <--
10 AUTHORITY OF BOARD, FOR SLOT MACHINE LICENSE FEE, FOR NUMBER <--
11 OF SLOT MACHINES, FOR REPORTS OF BOARD, FOR LICENSE OR PERMIT
12 PROHIBITION, for Category 2 slot machine licenses, for
13 Category 3 slot machine licenses, for order of initial
14 license issuance, for slot machine license application and
15 for slot machine license application business entity
16 requirements; providing for licensing of principals, for <--
17 licensing of key employees and for recusal and
18 disqualification of members; further providing for supplier
19 and manufacturer licenses; providing for manufacturer
20 licenses; further providing for occupation permit
21 application, for nontransferability of licenses, for gross
22 terminal revenue deductions, for establishment of State
23 Gaming Fund and net slot machine revenue distribution, for
24 the Pennsylvania Gaming Economic Development and Tourism
25 Fund, for transfers from the State Gaming Fund, for the
26 compulsive and problem gambling program, for public official
27 financial interest, for political influence and for
28 enforcement; providing for procedures, for hearing officers
29 PRINCIPALS AND FOR LICENSING OF KEY EMPLOYEES; FURTHER <--
30 PROVIDING FOR SLOT MACHINE LICENSE APPLICATION FINANCIAL
1 FITNESS REQUIREMENTS AND FOR SUPPLIER AND MANUFACTURER
2 LICENSES; PROVIDING FOR MANUFACTURER LICENSES; FURTHER
3 PROVIDING FOR OCCUPATION PERMIT APPLICATION, FOR CENTRAL <--
4 CONTROL COMPUTER SYSTEM, FOR LICENSE OR PERMIT ISSUANCE, FOR
5 NONTRANSFERABILITY OF LICENSES AND FOR GROSS TERMINAL REVENUE
6 DEDUCTIONS; PROVIDING FOR ITEMIZED BUDGET REPORTING; FURTHER
7 PROVIDING FOR ESTABLISHMENT OF STATE GAMING FUND AND NET SLOT
8 MACHINE REVENUE DISTRIBUTION, FOR DISTRIBUTIONS FROM
9 PENNSYLVANIA RACE HORSE DEVELOPMENT FUND, FOR LOCAL LAND USE
10 PREEMPTION AND FOR THE COMPULSIVE AND PROBLEM GAMBLING
11 PROGRAM; PROVIDING FOR LAND USE PREEMPTION AND CONVEYANCES
12 WITHIN CITIES OF THE FIRST CLASS, FOR RIPARIAN RIGHTS AND FOR
13 CLEAN INDOOR AIR; PROVIDING FOR PUBLIC OFFICIAL FINANCIAL
14 INTEREST, FOR POLITICAL INFLUENCE AND FOR ENFORCEMENT;
15 PROVIDING FOR PROCEDURES and for conduct of public officials
16 and employees; further providing for prohibited acts and
17 penalties; providing for detention and for interception of
18 oral communications; further providing for duty to provide
19 and for submission of fingerprints; providing for preemption <--
20 in cities of the first class; FINGERPRINTS AND PHOTOGRAPHS; <--
21 PROVIDING FOR REPAYMENTS TO STATE GAMING FUND; AND further
22 providing for corrupt organizations; and making a related <--
23 repeal.
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. The definitions of "affiliate" or "affiliated
27 company," "applicant," "controlling interest" and "gross
28 terminal revenue" in section 1103 of Title 4 of the Pennsylvania
29 Consolidated Statutes are amended and the section is amended by
30 adding definitions to read:
31 § 1103. Definitions.
32 The following words and phrases when used in this part shall
33 have the meanings given to them in this section unless the
34 context clearly indicates otherwise:
35 "ACCESSORY GAMING USES." USES USE." A USE COMMONLY <--
36 ASSOCIATED WITH THE OPERATION OR MANAGEMENT OF A LICENSED
37 FACILITY OR WITH THE ENTERTAINMENT OR CONVENIENCE OF PATRONS OF
38 A LICENSED FACILITY, INCLUDING THE FOLLOWING:
39 (1) HOTEL, HOSPITALITY, CONVENTION AND CONFERENCE
40 FACILITIES.
41 (2) RESIDENTIAL UNITS, INCLUDING OWNER-OCCUPIED OR
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1 RENTAL UNITS. 2 (3) RETAIL, COMMERCIAL OR OFFICE SPACE. 3 (4) RESTAURANT, PERFORMANCE AREA, THEATER OR NIGHTCLUB. 4 (5) A LICENSEE UNDER THE ACT OF APRIL 12, 1951 (P.L.90, <-- 5 NO.21), KNOWN AS THE LIQUOR CODE. 6 (6) (5) PARKING AREAS OR MARINAS. <-- 7 (7) (6) OUTDOOR ADVERTISING. <-- 8 (8) (7) WAREHOUSES. <-- 9 (9) (8) ATHLETIC OR SPORTS FACILITIES. <-- 10 "Affiliate[" or "affiliated company]," "affiliate of" or 11 "person affiliated with." A person that directly or indirectly, 12 through one or more intermediaries, controls, is controlled by 13 or is under common control with a specified person. 14 "Applicant." Any person[, officer, director or key 15 employee], who on his own behalf or on behalf of another, is 16 applying for permission to engage in any act or activity which 17 is regulated under the provisions of this part. In cases in 18 which the applicant is a [corporation, foundation, organization, 19 business trust, estate, limited liability company, trust, 20 partnership, limited partnership, association or any other form 21 of legal business entity,] person other than an individual, the 22 Pennsylvania Gaming Control Board shall determine the associated 23 persons whose qualifications are necessary as a precondition to 24 the licensing of the applicant. 25 * * * 26 "Associated area." All parcels of land owned by the licensed <-- 27 gaming entity or its affiliate, intermediary, subsidiary or 28 holding company contiguous to the licensed facility. 29 "ASSOCIATED AREA." ALL PARCELS OF LAND AND IMPROVEMENTS, <-- 30 INCLUDING A LICENSED RACETRACK AND BACKSIDE AREA, OWNED BY THE 20050S0862B2101 - 3 -
1 LICENSED GAMING ENTITY OR ITS AFFILIATE, INTERMEDIARY, 2 SUBSIDIARY OR HOLDING COMPANY THAT IS CONTIGUOUS OR ADJOINING, 3 INCLUDING CONNECTION BY A PEDESTRIAN WALKWAY, BRIDGE OR 4 EASEMENT, TO THE LAND-BASED LOCATION OF THE LICENSED FACILITY. 5 * * * 6 "Compensation." Includes salary and benefits. ANY THING OF <-- 7 VALUE, MONEY OR A FINANCIAL BENEFIT CONFERRED ON OR RECEIVED BY 8 A PERSON IN RETURN FOR SERVICES RENDERED, OR TO BE RENDERED, 9 WHETHER BY THAT PERSON OR ANOTHER. 10 "Complimentary service." Any lodging, service or item which 11 is provided to an individual at no cost and OR AT A REDUCED COST <-- 12 which is not generally available to the public under similar 13 circumstances. GROUP RATES, INCLUDING CONVENTION AND GOVERNMENT <-- 14 RATES, SHALL BE DEEMED TO BE GENERALLY AVAILABLE TO THE PUBLIC. 15 "CONDUCT OF GAMING." THE LICENSED PLACEMENT AND OPERATION OF 16 GAMES OF CHANCE UNDER THIS PART AND APPROVED BY THE PENNSYLVANIA 17 GAMING CONTROL BOARD AT A LICENSED FACILITY. 18 "Controlling interest." [A person shall be deemed to have <-- 19 the ability to control a publicly traded corporation, or to 20 elect] An interest in an entity if a A PERSON IF THE person's <-- 21 sole voting rights, as provided by applicable State law or 22 corporate articles or bylaws, entitle the person to elect or 23 appoint one or more of the members of [its] the entity's board <-- 24 of directors[, if such holder] or other governing body or if the 25 person owns or beneficially holds 5% or more of the securities 26 of [such] a publicly traded domestic or foreign corporation[,] <-- 27 or holds 5% or more ownership or voting interest in a 28 partnership, limited liability company or any other form of 29 PUBLICLY TRADED legal entity, unless such presumption of control <-- 30 or ability to elect is rebutted by clear and convincing 20050S0862B2101 - 4 -
1 evidence. A person who is a holder of securities of a privately 2 held domestic or foreign corporation, partnership, limited 3 liability company or any other form of legal entity shall be 4 deemed to possess a controlling interest unless such presumption 5 of control is rebutted by clear and convincing evidence. 6 "CONTROLLING INTEREST." [A PERSON SHALL BE DEEMED TO HAVE <-- 7 THE ABILITY TO CONTROL A PUBLICLY TRADED CORPORATION, OR TO 8 ELECT ONE OR MORE OF THE MEMBERS OF ITS BOARD OF DIRECTORS, IF 9 SUCH HOLDER OWNS OR BENEFICIALLY HOLDS 5% OR MORE OF THE 10 SECURITIES OF SUCH PUBLICLY TRADED DOMESTIC OR FOREIGN 11 CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY OR ANY OTHER 12 FORM OF LEGAL ENTITY, UNLESS SUCH PRESUMPTION OF CONTROL OR 13 ABILITY TO ELECT IS REBUTTED BY CLEAR AND CONVINCING EVIDENCE. A 14 PERSON WHO IS A HOLDER OF SECURITIES OF A PRIVATELY HELD 15 DOMESTIC OR FOREIGN CORPORATION, PARTNERSHIP, LIMITED LIABILITY 16 COMPANY OR ANY OTHER FORM OF LEGAL ENTITY SHALL BE DEEMED TO 17 POSSESS A CONTROLLING INTEREST UNLESS SUCH PRESUMPTION OF 18 CONTROL IS REBUTTED BY CLEAR AND CONVINCING EVIDENCE.] FOR A 19 PUBLICLY TRADED DOMESTIC OR FOREIGN CORPORATION, A CONTROLLING 20 INTEREST IS AN INTEREST IN A LEGAL ENTITY, APPLICANT OR LICENSEE 21 IF A PERSON'S SOLE VOTING RIGHTS UNDER STATE LAW OR CORPORATE 22 ARTICLES OR BYLAWS ENTITLE THE PERSON TO VOTE TO ELECT OR 23 APPOINT ONE OR MORE OF THE MEMBERS OF THE BOARD OF DIRECTORS OR 24 OTHER GOVERNING BOARD OR THE OWNERSHIP OR BENEFICIAL HOLDING OF 25 5% OR MORE OF THE SECURITIES OF THE PUBLICLY TRADED CORPORATION, 26 PARTNERSHIP, LIMITED LIABILITY COMPANY OR OTHER FORM OF PUBLICLY 27 TRADED LEGAL ENTITY, UNLESS THIS PRESUMPTION OF CONTROL OR 28 ABILITY TO ELECT IS REBUTTED BY CLEAR AND CONVINCING EVIDENCE. 29 FOR A PRIVATELY HELD DOMESTIC OR FOREIGN CORPORATION, 30 PARTNERSHIP, LIMITED LIABILITY COMPANY OR OTHER FORM OF 20050S0862B2101 - 5 -
1 PRIVATELY HELD LEGAL ENTITY, A CONTROLLING INTEREST IS THE 2 HOLDING OF ANY SECURITIES IN THE LEGAL ENTITY, UNLESS THIS 3 PRESUMPTION OF CONTROL IS REBUTTED BY CLEAR AND CONVINCING 4 EVIDENCE. 5 * * * 6 "Corporation." Includes a publicly traded corporation. 7 * * * 8 "Gross terminal revenue." The total of cash or cash 9 equivalent wagers received by a slot machine minus the total of: 10 (1) Cash or cash equivalents paid out to patrons as a 11 result of playing a slot machine which are paid to patrons 12 either manually or paid out by the slot machine. 13 (2) Cash paid to purchase annuities to fund prizes 14 payable to patrons over a period of time as a result of 15 playing a slot machine. 16 (3) Any personal property distributed to a patron as the 17 result of playing a slot machine. This does not include 18 travel expenses, food, refreshments, lodging or services. 19 The term does not include counterfeit money or tokens, coins or 20 currency of other countries which are received in slot machines, 21 except to the extent that they are readily convertible to United 22 States currency, cash taken in fraudulent acts perpetrated 23 against a slot machine licensee for which the licensee is not 24 reimbursed or cash received as entry fees for contests or 25 tournaments in which the patrons compete for prizes. 26 "Holding company." An entity A PERSON, other than an <-- 27 individual, which, directly or indirectly, owns, has the power 28 or right to control or to vote any significant part of the 29 outstanding voting securities of a corporation or other form of 30 business organization. A holding company indirectly has, holds 20050S0862B2101 - 6 -
1 or owns any such power, right or security if it does so through 2 an interest in a subsidiary or successive subsidiaries. 3 * * * 4 "Independent contractor." A person who performs 5 professional, scientific, technical, advisory or consulting <-- 6 services to the Pennsylvania Gaming Control Board for a fee, 7 honorarium or similar compensation pursuant to a contract. 8 * * * 9 "Intermediary." An entity A PERSON, other than an <-- 10 individual, which: 11 (1) is a holding company with respect to a corporation 12 or other form of business organization, which holds or 13 applies for a license under this part; and 14 (2) is a subsidiary with respect to any holding company. 15 * * * 16 "Member." An individual appointed to and sworn in as a 17 member of the board in accordance with section 1201(b) (relating 18 to Pennsylvania Gaming Control Board established). 19 * * * 20 "Principal." An officer; director; person who directly or <-- 21 indirectly holds a beneficial interest in or ownership of an <-- 22 amount equal to 5% or more of the securities of an applicant or 23 licensee; person who has a controlling interest in an applicant 24 or licensee, or has the ability to elect a majority of the board 25 of directors of a licensee or to otherwise control a licensee; 26 lender or other licensed financial institution of an applicant 27 or licensee, other than a bank or lending institution which 28 makes a loan or holds a mortgage or other lien acquired in the 29 ordinary course of business; underwriter of an applicant or 30 licensee; or other person or employee of a AN APPLICANT, slot <-- 20050S0862B2101 - 7 -
1 machine licensee, manufacturer licensee or supplier licensee 2 deemed to be a principal by the Pennsylvania Gaming Control 3 Board. 4 * * * 5 "Publicly traded corporation." An entity A PERSON which: <-- 6 (1) has a class or series of securities registered under 7 the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. 8 § 78a et seq.); 9 (2) is a registered management company under the 10 Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. § 11 80a-1 et seq.); or 12 (3) is subject to the reporting obligations imposed by 13 section 15(d) of the Securities Exchange Act of 1934 by 14 reason of having filed a registration statement which has 15 become effective under the Securities Act of 1933 (48 Stat. 16 74, 15 U.S.C. § 77a et seq.). 17 * * * 18 "Registrant." A person issued a registration pursuant to <-- 19 this part. 20 * * * 21 "Subsidiary." An entity A PERSON other than an individual. <-- 22 The term includes: 23 (1) a corporation, any significant part of whose 24 outstanding equity securities are owned, subject to a power 25 or right of control, or held with power to vote, by a holding 26 company or an intermediary company; or 27 (2) a significant interest in a person, other than an 28 individual, which is owned, subject to a power or right of 29 control, or held with power to vote, by a holding company or 30 an intermediary company. 20050S0862B2101 - 8 -
1 * * *
2 "Underwriter." As defined in the act of December 5, 1972
3 (P.L.1280, No.284), known as the Pennsylvania Securities Act of
4 1972.
5 Section 2. Section 1201 of Title 4 is amended to read:
6 § 1201. Pennsylvania Gaming Control Board established.
7 (a) Board established.--There is established an independent
8 [administrative] board which shall be a body corporate and
9 politic to be known as the Pennsylvania Gaming Control Board[,
10 which shall be implemented as set forth in this section].
11 (b) Membership.--The board shall consist of the following
12 members[, who shall serve a set term and may not be removed
13 except for good cause]:
14 (1) Three members appointed by the Governor.[, each
15 being referred to as a "gubernatorial appointee."]
16 (2) One member appointed by each of the following
17 [legislative caucus leaders, each being referred to as a
18 "legislative appointee"]:
19 (i) The President pro tempore of the Senate.
20 (ii) The Minority Leader of the Senate.
21 (iii) The Speaker of the House of Representatives.
22 (iv) The Minority Leader of the House of
23 Representatives.
24 (b.1) Removal.--A member of the board shall be removed from
25 office by the appointing authority:
26 (1) for misconduct in office, willful neglect of duty or
27 conduct evidencing unfitness for office or incompetence; or
28 (2) upon conviction of an offense graded as a felony, an
29 infamous crime, an offense under this part or an equivalent
30 offense under Federal law or the law of another jurisdiction.
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1 (c) Initial appointments to board.--
2 (1) Gubernatorial [appointee members] appointees
3 initially appointed under subsection (b)(1) shall serve an
4 initial term of one, two and three years respectively as
5 designated by the Governor at the time of appointment and
6 until their successors are appointed and qualified.
7 (2) Legislative [appointee members] appointees initially
8 appointed under subsection (b)(2) shall serve until the third
9 Tuesday in January 2007 and until their successors are
10 appointed and qualified.
11 (3) [Any] An appointment to fill a vacancy created by a
12 member appointed in accordance with paragraph (1) or (2)
13 shall be for the remainder of the unexpired term. [Members so
14 appointed to fill the unexpired term of an initial appointee
15 shall be subject to the provisions of subsection (d).]
16 (d) [Appointments after expiration of initial term or upon
17 vacancy] Terms of office.--Upon the expiration of a term of a
18 member appointed under [this subsection or upon the existence of
19 a vacancy of a member appointed pursuant to subsection (c) or
20 this] subsection (c), [the appointing authority shall appoint a
21 member subject to the following:
22 (1) For a gubernatorial appointment under subsection
23 (b)(1), the term shall be for three years and until a
24 successor is appointed and qualified.] the following shall
25 apply:
26 (1) The term of office of a gubernatorial appointee
27 shall be three years and until a successor is appointed and
28 qualified.
29 (2) [Terms for legislative appointee members appointed
30 under subsection (b)(2) shall be for a two-year term and
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1 shall expire on the third Tuesday of January of such year,
2 but such members shall continue to serve until their
3 successors are appointed and qualified.] The term of office
4 of a legislative appointee shall be two years and until a
5 successor is appointed and qualified.
6 (3) [No] A legislative appointee [member] shall serve no
7 more than three full [successive] consecutive terms.
8 (4) [No] A gubernatorial appointee [member] shall serve
9 no more than two full [successive] consecutive terms.
10 (5) An appointment to fill a vacancy shall be for the
11 remainder of the unexpired term.
12 (6) A member appointed to fill a vacancy under paragraph
13 (3) may serve three full terms following the expiration of
14 the term related to the vacancy.
15 (7) A member appointed to fill a vacancy under paragraph
16 (4) may serve two full terms following the expiration of the
17 term related to the vacancy.
18 (e) Ex officio members.--The Secretary of Revenue, the
19 Secretary of Agriculture and the State Treasurer, or their
20 designees, shall serve on the board as nonvoting ex officio
21 members of the board. The designee shall be a deputy secretary
22 or an equivalent position within the agency.
23 (f) Qualified majority vote.--
24 (1) Except as permitted in paragraphs (2) and (3), any
25 action, including, but not limited to, the approval,
26 issuance, denial or conditioning of any license by the board
27 under this part or the making of any order or the
28 ratification of any permissible act done or order made by one
29 or more of the members, shall require a qualified majority
30 vote consisting of at least one gubernatorial appointee and
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1 the four legislative appointees.
2 (2) Any action to suspend or revoke, not renew, void or
3 require forfeiture of a license or permit issued under this
4 part, to impose any administrative fine or penalty under this
5 part or to issue cease and desist orders or similar
6 enforcement actions shall require a majority vote of all the
7 members appointed to the board.
8 (3) Notwithstanding any other provision [to the
9 contrary] of this part or 65 Pa.C.S. § 1103(j) (relating to
10 restricted activities), a member shall disclose [the nature <--
11 of his disqualifying interest], disqualify himself and <--
12 abstain from voting in a proceeding under this part in which
13 his [or her] impartiality may be reasonably questioned, <--
14 including, but not limited to, instances where he [or she]
15 knows that [they possess] he or a member of his immediate
16 family possesses a [substantial] financial interest in the
17 subject matter of the proceeding or any other interest that
18 could be substantially affected by the outcome of the
19 proceeding. [In such circumstances in which it is] If a HIS <--
20 [OR HER IMPARTIALITY] OBJECTIVITY, IMPARTIALITY, INTEGRITY OR
21 INDEPENDENCE OF JUDGMENT MAY BE REASONABLY QUESTIONED,
22 [INCLUDING, BUT NOT LIMITED TO, INSTANCES WHERE HE OR SHE
23 KNOWS THAT THEY POSSESS A SUBSTANTIAL FINANCIAL INTEREST IN
24 THE SUBJECT MATTER OF THE PROCEEDING OR ANY OTHER INTEREST
25 THAT COULD BE SUBSTANTIALLY AFFECTED BY THE OUTCOME OF THE
26 PROCEEDING. IN SUCH CIRCUMSTANCES IN WHICH IT IS] AS PROVIDED
27 IN SUBSECTION (H)(6). IF A legislative appointee [member that
28 has disqualified himself or herself] and his alternate have <--
29 both disqualified themselves HAS DISQUALIFIED HIMSELF, the <--
30 qualified majority shall consist of all of the remaining
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1 [three] legislative appointees and at least two gubernatorial
2 appointees. For purposes of this paragraph, the term
3 "immediate family" shall mean spouse, parent, brother, sister
4 or child.
5 (4) If a member discloses a disqualifying interest and <--
6 abstains from voting on any matter, the provisions of
7 subsection (f.1) shall apply.
8 (5) In the case of a collective vote on all initial
9 applications for slot machine licenses under section 1301
10 (relating to authorized slot machine licenses), if a member
11 disqualifies himself and abstains from voting on a particular
12 license, a collective vote for that category of license may
13 not be taken and each license must be voted upon
14 individually.
15 (6) Prior to the commencement of any proceeding under
16 this part, the board shall conduct a conflict review to
17 determine if a member has a conflict pursuant to paragraph
18 (3) or section 1202.1 (relating to code of conduct) that
19 requires disqualification from voting. The determination
20 shall be in writing and shall be available to the public. If
21 the board determines that there is a conflict requiring a
22 member's disqualification, that member's alternate member
23 shall be eligible to cast a vote. The Attorney General or a
24 party to the proceeding may appeal a determination by the
25 board that does not require disqualification of a member.
26 (f.1) Alternate member.--Each appointing authority under
27 subsection (b) shall appoint one alternate member who shall vote
28 in any proceeding to approve, issue, deny or condition a license
29 in which the member appointed by that authority has disqualified
30 himself and abstained from voting pursuant to subsection (f)(3)
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1 or section 1202.1. The following shall apply to an alternate 2 member: 3 (1) The Executive Board shall establish a per diem 4 amount to be paid to alternate members, to include payment 5 for time to review all materials necessary to make a 6 decision. 7 (2) Alternate members shall be appointed within 30 days 8 of the effective date of this subsection in order to enable a 9 background investigation to occur prior to any vote to issue 10 or deny a slot machine license, manufacturer license or 11 supplier license. 12 (3) All other requirements and restrictions under this 13 title which are applicable to members shall apply to 14 alternate members. 15 (4) A MEMBER WHO DISQUALIFIES HIMSELF FROM VOTING ON A <-- 16 PARTICULAR LICENSE APPLICATION SHALL BE DISQUALIFIED FROM 17 VOTING ON ANY APPLICATION FOR THAT LICENSE IN A PROCEEDING. 18 MULTIPLE LICENSE APPLICATIONS SEEKING THE SAME SLOT MACHINE 19 LICENSE SHALL BE CONSIDERED A SINGLE PROCEEDING. 20 (g) Background investigation.--Appointees shall be subject 21 to a background investigation conducted by the Pennsylvania 22 State Police in accordance with this part. 23 (h) Qualifications and restrictions.-- 24 (1) Each member at the time of appointment shall be at 25 least 25 years of age and shall have been a resident of this 26 Commonwealth for a period of at least one year immediately 27 preceding appointment. Each member shall continue to remain a 28 resident of this Commonwealth during the term of membership 29 on the board. 30 (2) Except for ex officio members, no person shall be 20050S0862B2101 - 14 -
1 appointed a member of the board or [hold any place, position
2 or office under the board if that person holds any other
3 elected office or party office] be employed by or be an
4 independent contractor of the board if that person is a
5 public official or party officer as defined in section 1512
6 (relating to [public official financial interest] financial
7 interests, employment and complimentary services and <--
8 discounts AND EMPLOYMENT INTERESTS) in this Commonwealth or <--
9 any of its political subdivisions.
10 [(3) No member, appointee, employee or official shall
11 hold any office or employment position, the duties of which
12 are incompatible with the duties of the office.
13 (4) No member, employee, appointee or official engaged
14 in the service of or in any manner connected with the board
15 shall hold any office or position, or be engaged in any
16 employment or vocation, the duties of which are incompatible
17 with employment in the service of or in connection with the
18 work of the board.]
19 (3) Each member, employee and independent contractor of
20 the board shall sign an agreement not to disclose
21 confidential information.
22 (4) No member, employee or independent contractor of the
23 board or other agency having regulatory authority over the
24 board or over forms of gaming regulated by this part shall be
25 employed, hold any office or position or be engaged in any
26 activity which is incompatible with the position, employment
27 or contract.
28 (5) No member shall be paid or [accept for any service
29 connected with the office any fee other than the salary and
30 expenses provided by law.] receive any fee or other
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1 compensation other than salary and expenses provided by law 2 for any activity related to the duties or authority of the 3 board. Nothing in this part shall prohibit a member from 4 engaging in any employment [or vocation] or receiving any 5 compensation for such employment [or vocation] that is not 6 [otherwise] connected to or incompatible with his [or her] 7 service as a member of the board. 8 (6) No member, employee[, appointee or official shall 9 participate in any hearing or proceeding in which that person 10 has any direct or indirect pecuniary interest.] or 11 independent contractor of the board shall participate in a 12 hearing, proceeding or other matter in which the member, 13 employee or independent contractor, or the immediate family 14 thereof, has a financial interest in the subject matter of 15 the hearing or proceeding or other interest that could be 16 substantially affected by the outcome of the hearing or 17 proceeding, without first fully disclosing the nature of the 18 interest to the board and other persons participating in the 19 hearing or proceeding. The board shall determine if the 20 interest is a disqualifying interest that requires the 21 disqualification of the member or nonparticipation of the AN <-- 22 employee OR INDEPENDENT CONTRACTOR. For purposes of this <-- 23 paragraph, the term "immediate family" shall mean spouse, 24 parent, brother, sister or child. 25 (7) At the time of appointment and annually thereafter, 26 each member shall disclose the existence of [all ownership 27 interests in licensed facilities and all securities in any 28 licensed entity or applicant, its affiliates or subsidiaries 29 held by the member, the member's spouse and any minor or 30 unemancipated children and must divest such ownership 20050S0862B2101 - 16 -
1 interests in licensed facilities or securities prior to an
2 appointment becoming final. A member may not acquire any
3 security in any licensed entity, its affiliates or
4 subsidiaries during the member's tenure.] any financial
5 interest in any applicant, licensed entity or licensed
6 facility and in an affiliate, intermediary, subsidiary or
7 holding company thereof held by the member or known to be
8 held by the member's immediate family. The disclosure
9 statement shall be filed with the executive director of the
10 board and with the appointing authority for such member and
11 shall be open to inspection by the public at the office of
12 the board during the normal business hours of the board
13 [during the tenure of the member] for the duration of the
14 member's term and for two years after the member leaves
15 office. For purposes of this paragraph, the term "immediate
16 family" shall mean spouse, parent, brother, sister or child.
17 (7.1) Prior to being sworn as a member, a member AN <--
18 APPOINTEE and his immediate family shall divest any financial
19 interest in any applicant, licensed facility or licensed
20 entity and in an affiliate, intermediary, subsidiary or
21 holding company thereof owned or held by the member APPOINTEE <--
22 or known to be held by the member's APPOINTEE'S immediate <--
23 family. For the duration of the member's term, and for one
24 year thereafter, the member and his THE MEMBER'S immediate <--
25 family may not acquire a financial interest in any applicant,
26 licensed facility or licensed entity or in an affiliate,
27 intermediary, subsidiary or holding company thereof. For
28 purposes of this paragraph, the term "immediate family" shall
29 mean spouse and any minor or unemancipated child.
30 (7.2) Prior to entering into employment or a contract
20050S0862B2101 - 17 -
1 with the board and annually thereafter, an employee or 2 independent contractor shall disclose the existence of any 3 financial interest in any applicant, licensed facility or 4 licensed entity and in an affiliate, intermediary, subsidiary 5 or holding company thereof owned or held by the employee or 6 independent contractor or known to be held by the immediate 7 family of the employee or independent contractor. The 8 disclosure statement shall be filed with the board and shall 9 be open to inspection by the public at the office of the 10 board during the normal business hours of the board and for 11 two years after termination of employment or a contract with 12 the board. For purposes of this paragraph, the term 13 "immediate family" shall mean spouse, parent, brother, sister 14 or child. 15 (7.3) Prior to entering into employment or contracting 16 with the board, an employee or independent contractor and his <-- 17 THE EMPLOYEE'S OR INDEPENDENT CONTRACTOR'S immediate family <-- 18 shall divest any financial interest in any applicant, 19 licensed facility or licensed entity, and in an affiliate, <-- 20 intermediary, subsidiary or holding company thereof, owned or <-- 21 held by the employee or independent contractor or known to be 22 held by the immediate family of the employee or independent 23 contractor. For the duration of the employee's employment 24 with the board or the independent contractor's contract with 25 the board, and for one year thereafter, the employee or 26 independent contractor and the immediate family thereof shall 27 not acquire, by purchase, gift, exchange or otherwise, any 28 financial interest in any applicant, licensed facility or 29 licensed entity and in any affiliate, intermediary, 30 subsidiary or holding company thereof. For purposes of this 20050S0862B2101 - 18 -
1 paragraph, the term "immediate family" shall mean spouse and 2 any minor or unemancipated child. 3 (8) [Every member, employee, appointee or official of 4 the board, in the service of or in connection with the work 5 of the board, is forbidden, directly or indirectly, to 6 solicit or request from or to suggest or recommend to any 7 applicant, licensed entity, its] No member, employee or 8 independent contractor of the board may directly or 9 indirectly solicit, request, suggest or recommend to any 10 applicant, licensed entity, licensed facility, or an <-- 11 affiliate, intermediary, subsidiary[,] or holding company 12 thereof or to any [officer, attorney, agent or employee] 13 principal, employee, independent contractor or agent thereof, 14 the appointment or employment of any [individual to any 15 office, place or position in or the employment of any 16 individual] person in any capacity by the applicant, licensed 17 entity, [its] licensed facility, or OR AN affiliate, <-- 18 intermediary, subsidiary or holding company thereof for a 19 period of one year TWO YEARS from the termination of term of <-- 20 office, employment or contract with the board. 21 [(9) Every member, executive-level employee, appointee 22 or official appointed to office in the service of or in 23 connection with the work of the board is prohibited from 24 accepting employment with any applicant, licensed gaming 25 entity, its affiliate, intermediary, subsidiary or holding 26 company for a period of one year from the termination of 27 employment or service with the board. Every member, 28 executive-level employee, appointee or official appointed to 29 office in the service of or in connection with the work of 30 the board is prohibited from appearing before the board on 20050S0862B2101 - 19 -
1 behalf of any applicant, licensed gaming entity, its
2 affiliate, intermediary, subsidiary or holding company or
3 other licensee or permittee of the board for a period of two
4 years after terminating employment or service with the board.
5 (10) If any person employed or appointed in the service
6 of the board violates any provision of this section, the
7 appointing authority or the board shall forthwith remove the
8 person from the office or employment and the person shall be
9 ineligible for future employment or service with the board
10 and shall be ineligible to be approved for any license or
11 permit under this part for a period of two years thereafter.]
12 (9) No member may accept employment with any applicant,
13 licensed entity, licensed facility or an affiliate, <--
14 intermediary, subsidiary or holding company thereof, for a <--
15 period of one year TWO YEARS from the termination of term of <--
16 office.
17 (10) No member may appear before the board on behalf of
18 any applicant, licensed entity, licensed facility or an <--
19 affiliate, intermediary, subsidiary or holding company
20 thereof, or any other licensee or permittee for a period of <--
21 two years from the termination of term of office.
22 (11) No member [or], employee or independent contractor
23 of the board shall wager or be paid any prize from any wager
24 at any licensed facility within this Commonwealth or at any
25 other facility outside this Commonwealth which is owned or
26 operated by a licensed gaming entity or any of its
27 [affiliates or subsidiaries.] affiliates, intermediaries,
28 subsidiaries or holding companies thereof for the duration of
29 their term of office, employment or contract with the board,
30 and for a period of one year from the termination of term of
20050S0862B2101 - 20 -
1 office, employment or contract with the board. The provisions 2 of this paragraph shall ALSO apply to an employee of the <-- 3 executive branch of the Commonwealth, OTHER THAN THE BOARD, <-- 4 whose duties substantially involve the development or 5 adoption of regulations or policy, licensing or enforcement, 6 under this part. The provisions of this paragraph shall not 7 apply to employees who utilize slot machines for testing 8 purposes or to verify the performance of a machine as part of 9 an enforcement investigation. 10 (12) A member [of the board] who has been convicted 11 during his term in any domestic or foreign jurisdiction of a 12 felony, infamous crime [of moral turpitude] or gambling 13 offense shall, upon conviction, be automatically removed from 14 the board and shall be ineligible to become a [board] member 15 in the future. If an ex officio member is convicted during 16 his term in any domestic or foreign jurisdiction of a felony, 17 infamous crime or gambling offense, the ex officio member 18 shall, upon conviction, be automatically removed from the 19 board, and a designee shall be designated pursuant to 20 subsection (e) to serve the remainder of the ex officio 21 member's term. 22 (13) No employee OF THE BOARD, INDEPENDENT CONTRACTOR or <-- 23 individual employed by an independent contractor of the board 24 or other employee of the executive branch of the Commonwealth <-- 25 or of a political subdivision whose duties substantially 26 involve the development or adoption of regulations or policy, 27 licensing or enforcement, under this part, shall: 28 (i) accept employment with an applicant, licensed 29 entity, licensed facility or an affiliate, intermediary, <-- 30 subsidiary or holding company thereof, for a period of <-- 20050S0862B2101 - 21 -
1 one year after the termination of the employment RELATING <-- 2 TO THE CONDUCT OF GAMING or contract with the board; or 3 (ii) appear before the board in any hearing or 4 proceeding or participate in any other activity on behalf 5 of any applicant, licensee, permittee, licensed entity, 6 licensed facility or an affiliate, intermediary, <-- 7 subsidiary or holding company thereof, for a period of <-- 8 two years after termination of the employment or contract 9 with the board. 10 (III) SUBPARAGRAPH (I) SHALL NOT PROHIBIT AN <-- 11 EMPLOYEE, INDEPENDENT CONTRACTOR OR INDIVIDUAL EMPLOYED 12 BY AN INDEPENDENT CONTRACTOR FROM ACCEPTING EMPLOYMENT OR 13 A CONTRACT WITH AN ACCESSORY GAMING USE OWNED OR OPERATED 14 BY AN APPLICANT, LICENSED ENTITY OR AN AFFILIATE, 15 INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY THEREOF IF 16 THE EMPLOYMENT OR CONTRACT IS NOT RELATED TO THE CONDUCT 17 OF GAMING. 18 (14) Upon the written request of an employee of the 19 BOARD, THE executive branch of the Commonwealth or a <-- 20 political subdivision or of the agency or political 21 subdivision employing an employee, the State Ethics 22 Commission shall determine whether the individual's duties 23 substantially involve the development or adoption of 24 regulations or policy, licensing or enforcement, under this 25 part, and shall provide a written determination to the 26 employee to include any prohibition under this paragraph. An 27 individual who relies in good faith on a determination under 28 this paragraph shall not be subject to any penalty for an 29 action taken, provided that all material facts set forth in 30 the request for a determination are correct. 20050S0862B2101 - 22 -
1 (15) If a member, employee or independent contractor of 2 the board violates any provision of this section, the 3 appointing authority or the board may, upon notice and 4 hearing, remove the person from the board, withdraw the 5 appointment or terminate the employment or contract and the 6 person shall be ineligible for future appointment, employment 7 or contract with the board and for approval of a license or 8 permit under this part for a period of two years thereafter. 9 (h.1) Fiduciary relationship.--A member or employee of the 10 board shall serve as a fiduciary of the Commonwealth. 11 (h.2) Standard of care.--Members shall exercise the standard 12 of care required by 20 Pa.C.S. Ch. 73 (relating to 13 municipalities investments) in the performance of their duties 14 under this part. 15 (h.3) Liability.--Members shall not be personally liable for 16 any of the following: 17 (1) Obligations of the board. 18 (2) Actions which were within the scope of their office 19 and made in good faith. 20 (i) Compensation.-- 21 (1) The Executive Board as established in the act of 22 April 9, 1929 (P.L.177, No.175), known as The Administrative 23 Code of 1929, shall establish the compensation of the members 24 [appointed pursuant to this section]. 25 (2) Members shall be reimbursed for all necessary and 26 actual expenses. 27 (3) Members shall be eligible for retirement under the 28 State Employees' Retirement Code and shall, if the member 29 elects to participate, be considered a State employee for the 30 purposes of 71 Pa.C.S. Pt. XXV (relating to retirement for 20050S0862B2101 - 23 -
1 State employees and officers). 2 (j) Chairman.--The chairman of the board shall be selected 3 by the Governor. 4 (k) Appointments.--The appointing authorities shall make 5 their initial appointments within 60 days of the effective date 6 of this part. No appointment shall be final until receipt by the 7 appointing authority of the required background investigation of 8 the appointee by the Pennsylvania State Police which shall be 9 completed within 30 days. No person who has been convicted in 10 any domestic or foreign jurisdiction of a felony [or gambling], 11 infamous crime or gaming offense shall be appointed to the 12 board. 13 [(l) Disclosure statements.--Members and employees of the 14 board are subject to the provisions of 65 Pa.C.S. Ch. 11 15 (relating to ethics standards and financial disclosure) and the 16 act of July 19, 1957 (P.L.1017, No.451), known as the State 17 Adverse Interest Act.] 18 (l) Prohibition against nepotism.--No member may directly or <-- 19 indirectly solicit, request, suggest or recommend the employment 20 by the board of any individual related within the third degree <-- 21 of consanguinity, affinity or adoption to the member. SECOND <-- 22 DEGREE OF CONSANGUINITY AS SET FORTH IN 23 PA.C.S. § 1304(E) 23 (RELATING TO RESTRICTIONS ON ISSUANCE OF LICENSE) OR THE SPOUSE 24 OF THE INDIVIDUAL. 25 (M) EMPLOYMENT REQUIREMENTS.-- 26 (1) PROSPECTIVE EMPLOYEES SHALL SUBMIT AN APPLICATION 27 AND A PERSONAL DISCLOSURE FORM TO THE BOARD WHICH SHALL 28 INCLUDE A COMPLETE CRIMINAL HISTORY, INCLUDING CONVICTIONS 29 AND CURRENT CHARGES FOR ALL FELONIES AND MISDEMEANORS. 30 (2) PROSPECTIVE EMPLOYEES SHALL BE REQUIRED TO UNDERGO 20050S0862B2101 - 24 -
1 TESTING WHICH DETECTS THE PRESENCE OF ILLEGAL SUBSTANCES IN 2 THE BODY. 3 (3) THE BOARD SHALL OBTAIN FINGERPRINTS AND PHOTOGRAPHS 4 FOR EACH EMPLOYEE CONSISTENT WITH THE STANDARDS ADOPTED BY 5 THE PENNSYLVANIA STATE POLICE. 6 (4) THE BOARD SHALL VERIFY THE IDENTIFICATION, 7 EMPLOYMENT AND EDUCATION OF EACH EMPLOYEE, INCLUDING: 8 (I) LEGAL NAME, INCLUDING ANY ALIAS. 9 (II) ALL EDUCATIONAL INSTITUTIONS ATTENDED 10 REGARDLESS OF GRADUATION STATUS. 11 (III) PLACES OF RESIDENCE FOR THE PAST TEN YEARS. 12 (IV) EMPLOYMENT HISTORY FOR THE PAST 15 YEARS. 13 (5) THE BOARD SHALL NOT APPROVE AN APPLICANT IF THE 14 APPLICANT: 15 (I) HAS BEEN CONVICTED OF A CRIME THAT BEARS A CLOSE 16 RELATIONSHIP TO THE DUTIES AND RESPONSIBILITIES OF THE 17 POSITION FOR WHICH EMPLOYMENT IS SOUGHT; 18 (II) HAS BEEN DISMISSED FROM OTHER EMPLOYMENT FOR 19 GROSS MISCONDUCT; OR 20 (III) HAS INTENTIONALLY MADE A FALSE STATEMENT 21 CONCERNING A MATERIAL FACT IN CONNECTION WITH THE 22 APPLICATION TO THE BOARD. 23 (6) THE BOARD SHALL NOT EMPLOY A PERSON WHOSE BACKGROUND 24 CHECK HAS NOT BEEN COMPLETED UNDER PARAGRAPH (1). THIS 25 PARAGRAPH SHALL APPLY ONLY TO PERSONS EMPLOYED AFTER THE 26 EFFECTIVE DATE OF THIS SUBSECTION. 27 (7) THE BOARD SHALL: 28 (I) IMMEDIATELY REFER ANY CRIMINAL MATTER INVOLVING 29 AN EMPLOYEE TO LAW ENFORCEMENT. 30 (II) DEVELOP A DISCIPLINARY PROCESS FOR AN EMPLOYEE 20050S0862B2101 - 25 -
1 CHARGED WITH A CRIME OR WITH GROSS MISCONDUCT. 2 (III) IMMEDIATELY SUSPEND FROM EMPLOYMENT ANY 3 EMPLOYEE CHARGED WITH A FELONY. 4 (IV) DEVELOP A PROCESS TO DISCIPLINE ALL OTHER 5 INSTANCES OF MISCONDUCT. 6 (8) DISCIPLINARY ACTION SHALL BE INSTITUTED PROMPTLY 7 AGAINST AN EMPLOYEE WHO, WHILE ON OR OFF DUTY, ENGAGES IN 8 SERIOUS MISCONDUCT WHICH MAY BRING THE BOARD INTO DISREPUTE. 9 (m) (N) Definitions.--As used in this section, the following <-- 10 words and phrases shall have the meanings given to them in this 11 subsection: 12 "Financial interest." An ownership, property, leasehold or 13 other beneficial interest in an entity. The term shall not 14 include an interest which is held or deemed to be held in any of 15 the following: 16 (1) A blind trust over which the individual or an <-- 17 immediate family member does not exercise managerial or 18 investment control or receive income therefrom. 19 (2) (1) Securities that are held in a pension plan, <-- 20 profit-sharing plan, individual retirement account, tax 21 sheltered annuity, a plan established pursuant to section 457 22 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 23 U.S.C. § 1 et seq.), or any successor provision, deferred 24 compensation plan whether qualified or not qualified under 25 the Internal Revenue Code of 1986, or any successor 26 provision, or other retirement plan that: 27 (i) is not self-directed by the individual; and 28 (ii) is advised by an independent investment adviser 29 who has sole authority to make investment decisions with 30 respect to contributions made by the individual to these 20050S0862B2101 - 26 -
1 plans. 2 (3) (2) A tuition account plan organized and operated <-- 3 pursuant to section 529 of the Internal Revenue Code of 1986 4 (Public Law 99-514, 26 U.S.C. § 529) that is not self- 5 directed by the individual. 6 (4) (3) A mutual fund where the interest owned by the <-- 7 mutual fund in a licensed entity does not constitute a 8 controlling interest as defined in this part. 9 (5) Any other investment over which the individual does <-- 10 not exercise managerial or investment control. 11 "Ownership interest." Owning or holding or being deemed to 12 hold, debt or equity securities or other ownership interest or 13 profit interest. 14 Section 3. Title 4 is amended by adding a section to read: 15 § 1201.1. Applicability of other statutes. 16 (a) General rule.--The following acts shall apply to the 17 board: 18 (1) The act of June 21, 1957 (P.L.390, No.212), referred 19 to as the Right-to-Know Law. 20 (2) The act of July 19, 1957 (P.L.1017, No.451), known 21 as the State Adverse Interest Act. 22 (3) The provisions of 65 Pa.C.S. Chs. 7 (relating to 23 open meetings) and 11 (relating to ethics standards and 24 financial disclosure). 25 (b) Status of board.-- 26 (1) The board shall be considered an independent agency 27 for the purposes of the following: 28 (i) 62 Pa.C.S. Pt. I (relating to Commonwealth 29 Procurement Code). The expediting of the remittance <-- 30 PAYMENT of revenue from licensed facilities to the <-- 20050S0862B2101 - 27 -
1 Commonwealth shall not be grounds for an emergency 2 procurement by the board. 3 (ii) The act of October 15, 1980 (P.L.950, No.164), 4 known as the Commonwealth Attorneys Act. THE ATTORNEY <-- 5 GENERAL SHALL REVIEW PERMANENT REGULATIONS PROMULGATED BY 6 THE BOARD AS PROVIDED IN THE ACT OF JUNE 25, 1982 7 (P.L.633, NO.181), KNOWN AS THE REGULATORY REVIEW ACT. 8 (2) The board shall be considered an agency for the 9 purposes of the following: 10 (i) The act of July 31, 1968 (P.L.769, No.240), 11 referred to as the Commonwealth Documents Law. 12 (ii) The act of June 25, 1982 (P.L.633, No.181), <-- 13 known as the Regulatory Review Act. 14 Section 4. Section 1202 of Title 4 is amended to read: 15 § 1202. General and specific powers. 16 (a) General powers.-- 17