Regular Session 2023-2024 Senate Bill 1142 P.N. 1491

PRINTER'S NO. 1491

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1142

Session of

2024

INTRODUCED BY FARRY, FONTANA, PENNYCUICK, DILLON, SANTARSIERO,

MILLER AND LAUGHLIN, APRIL 5, 2024

REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,

APRIL 5, 2024

AN ACT

Amending Titles 4 (Amusements), 18 (Crimes and Offenses) and 35

(Health and Safety) of the Pennsylvania Consolidated

Statutes, in revenues, further providing for establishment of

State Gaming Fund and net slot machine revenue distribution;

adding provisions relating to local gaming terminals by

providing for general provisions, for application and

licensure, for operation, for enforcement and for revenue;

imposing the local gaming terminal tax; establishing the

Local Gaming Fund; providing for ethics; in riot, disorderly

conduct and related offenses, further providing for the

offense of gambling devices, gambling, etc.; in Commonwealth

services, establishing the Pennsylvania Emergency Management

Programs Fund; prescribing penalties; and making

appropriations.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 1403(b) of Title 4 of the Pennsylvania

Consolidated Statutes is amended to read:

§ 1403. Establishment of State Gaming Fund and net slot machine

revenue distribution.

* * *

(b) Slot machine tax.--The department shall determine and

each slot machine licensee, other than a Category 4 slot machine

licensee, shall pay a daily tax of [34%] 32% from its daily

gross terminal revenue from the slot machines in operation at

its facility and a local share assessment as provided in

subsection (c). All funds owed to the Commonwealth, a county or

a municipality under this section shall be held in trust by the

licensed gaming entity for the Commonwealth, the county and the

municipality until the funds are paid or transferred to the

fund. Unless otherwise agreed to by the board, a licensed gaming

entity shall establish a separate bank account to maintain gross

terminal revenue until such time as the funds are paid or

transferred under this section. Moneys in the fund are hereby

appropriated to the department on a continuing basis for the

purposes set forth in subsection (c).

* * *

Section 2. Title 4 is amended by adding a part to read:

PART IV

LOCAL GAMING TERMINALS

Chapter

51. General Provisions

53. Administration

55. Application and Licensure

57. Operation

59. Enforcement

61. Revenues

63. Ethics

65. Miscellaneous Provisions

CHAPTER 51

GENERAL PROVISIONS

Sec.

5101. Scope of part.

20240SB1142PN1491 - 2 -

5102. Legislative intent.

5103. Definitions.

§ 5101. Scope of part.

This part relates to local gaming terminals.

§ 5102. Legislative intent.

The General Assembly recognizes the following public policy

purposes and declares that the following objectives of the

Commonwealth are to be served by this part:

(1) It is the intent of the General Assembly to occupy

the field of gaming in Pennsylvania and to prohibit all forms

of gaming, wagering and gambling in this Commonwealth that

have not been expressly authorized by statute.

(2) The authorization of local gaming in this part is

intended to provide a significant source of new revenue to

the Commonwealth and to licensed clubs, fraternal

organizations and small businesses and to provide for new

employment opportunities by creating skilled jobs for

individuals related to the conduct of local gaming at

licensed facilities in this Commonwealth, as well as

supporting property tax relief, economic development

opportunities and other similar initiatives.

§ 5103. Definitions.

The following words and phrases when used in this part shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Affiliate," "affiliate of" or "person affiliated with." A

person that directly or indirectly, through one or more

intermediaries, controls, is controlled by or is under common

control with a specified person.

"Applicant." A person that, on the person's own behalf or on

20240SB1142PN1491 - 3 -

behalf of another, applies for permission to engage in an act or

activity that is regulated under the provisions of this part.

"Associated equipment." Equipment or a mechanical,

electromechanical or electronic contrivance, component or

machine used in connection with local gaming terminals or

redemption terminals, including replacement parts, hardware and

software.

"Background investigation." A security, criminal, credit and

suitability investigation of a person as provided for in this

part that includes the status of taxes owed to the United

States, the Commonwealth and a political subdivision of the

Commonwealth.

"Board." The Pennsylvania Gaming Control Board established

under section 1201 (relating to Pennsylvania Gaming Control

Board established).

"Bureau." The Bureau of Investigations and Enforcement of

the board.

"Cash." United States currency and coin, including cash

equivalent.

"Cash equivalent." A ticket, token, chip, gift card,

voucher, billet, electronic credit, prepaid debit card or other

similar instrument or representation of more than nominal value

that the board deems a cash equivalent in accordance with this

part.

"Central control computer." A central site computer

controlled by the department and accessible by the board to

which all local gaming terminals communicate for the purpose of

auditing capacity, real-time information retrieval of the

details of any financial event that occurs in the operation of a

local gaming terminal or redemption terminal, including, but not

20240SB1142PN1491 - 4 -

limited to, coin in, coin out, ticket in, ticket out, jackpots,

local gaming terminal and redemption terminal door openings and

power failure and remote local gaming terminal or redemption

terminal activation and disabling of local gaming terminals or

redemption terminals.

"Cheat." Any of the following:

(1) To defraud or steal from a player, terminal operator

licensee, establishment licensee or the Commonwealth while

operating or playing a local gaming terminal, including

causing, aiding, abetting or conspiring with another person

to do so.

(2) To alter or causing, aiding, abetting or conspiring

with another person to alter the elements of chance, method

of selection or criteria that determine:

(i) The result of a local gaming terminal game.

(ii) The amount or frequency of payment in a local

gaming terminal game.

(iii) The value of a wagering instrument.

(iv) The value of a wagering credit.

(3) The term does not include altering a local gaming

terminal or associated equipment for maintenance or repair

with the approval of a terminal operator licensee and the

board.

"Cheating or thieving device." A device:

(1) used or possessed with the intent to be used to

cheat during the operation or play of a local gaming

terminal; or

(2) used to alter a local gaming terminal without the

terminal operator licensee's and the board's approval.

"Coin-operated amusement game." A machine that requires the

20240SB1142PN1491 - 5 -

insertion of a coin, currency or token to play or activate a

game the outcome of which is predominantly and primarily

determined by the skill of the player and does not pay, award or

offer a prize in the form of cash or merchandise. The term does

not include a slot machine, hybrid slot machine, video gaming

terminal or local gaming terminal.

"Compensation." Anything of value, money or a financial

benefit conferred on or received by a person in return for

services rendered or to be rendered whether by the person or

another.

"Complimentary service." A lodging, service or item provided

to an individual at no cost or at a reduced cost that is not

generally available to the public under similar circumstances. A

group rate, including a convention and government rate, shall be

deemed to be generally available to the public.

"Conduct of local gaming." The licensed placement, operation

and play of local gaming terminals under this part, as

authorized and approved by the board.

"Controlling interest." Any of the following:

(1) For a publicly traded domestic or foreign

corporation, the term means a person has a controlling

interest in a legal entity, applicant or licensee if the

person's sole voting rights under State law or corporate

articles or bylaws entitle the person to elect or appoint one

or more of the members of the board of directors or other

governing board or the person holds an ownership or

beneficial holding of 5% or more of the securities of the

publicly traded corporation, partnership, limited liability

company or other form of publicly traded legal entity, unless

this presumption of control or ability to elect is rebutted

20240SB1142PN1491 - 6 -

by clear and convincing evidence.

(2) For a privately held domestic or foreign

corporation, partnership, limited liability company or other

form of privately held legal entity, the term means the

holding of a security in the legal entity, unless this

presumption of control is rebutted by clear and convincing

evidence.

"Conviction." A finding of guilt or a plea of guilty or nolo

contendere, whether or not a judgment of sentence has been

imposed as determined by the law of the jurisdiction in which

the prosecution was held. The term does not include a conviction

that has been expunged or overturned or for which an individual

has been pardoned or had an order of Accelerated Rehabilitative

Disposition entered.

"Corporation." The term includes a publicly traded

corporation.

"Department." The Department of Revenue of the Commonwealth.

"Eligible establishment." An establishment that meets the

eligibility criteria specified in section 5513(f) (relating to

local gaming establishment licenses).

"Establishment license." A local gaming establishment

license.

"Establishment licensee." A local gaming establishment

licensee.

"Executive-level public employee." The term includes the

following:

(1) A deputy secretary of the Commonwealth and a member

of the Governor's Office executive staff.

(2) An employee of the executive branch:

(i) whose duties substantially involve licensing or

20240SB1142PN1491 - 7 -

enforcement under this part, who has discretionary power

that may affect or influence the outcome of a

Commonwealth agency's action or decision or who is

involved in the development of regulations or policies

relating to a licensed entity; or

(ii) with law enforcement authority.

(3) An employee of a county or municipality with:

(i) discretionary powers that may affect or

influence the outcome of the county's or municipality's

action or decision related to this part or who is

involved in the development of law, regulation or policy

relating to matters regulated under this part; or

(ii) law enforcement authority.

(4) An employee of a department, agency, board,

commission, authority or other governmental body not included

in paragraph (1), (2) or (3) with:

(i) discretionary power that may affect or influence

the outcome of the governmental body's action or decision

related to this part or who is involved in the

development of regulation or policy relating to matters

regulated under this part; or

(ii) law enforcement authority.

"Financial backer." An investor, mortgagee, bondholder,

noteholder or other sources of equity or capital provided to an

applicant or licensed entity.

"Fund." The Local Gaming Fund established in section 6104

(relating to Local Gaming Fund).

"Gaming area." The area of an establishment licensee's

premises where local gaming terminals and redemption terminals

are installed for operation and play.

20240SB1142PN1491 - 8 -

"Gaming employee." Either of the following:

(1) An employee of a terminal operator licensee or

manufacturer licensee who is not a key employee and who the

board determines is involved in the conduct of local gaming.

(2) An employee of an establishment licensee whom the

establishment licensee designates as the gaming manager in

accordance with this part.

"Gaming manager." An individual employed by an establishment

licensee and primarily responsible for the management of local

gaming at the licensed premises as required by this part. A

gaming manager may not be licensed as an employee of more than

one licensed eligible establishment.

"Gaming service provider." A person not required to be

licensed as a terminal operator, manufacturer, supplier or

establishment licensee and provides goods or services to a

terminal operator licensee that the board determines directly

relates to the operation and security of a local gaming terminal

or redemption terminal. The term shall not include a person that

supplies goods or services that, at the discretion of the board,

does not impact the integrity of local gaming, local gaming

terminals or the connection of local gaming terminals to the

central control computer system, including:

(1) Seating to accompany local gaming terminals.

(2) Structural or cosmetic renovations, improvements or

other alterations to a local gaming area.

"Gross terminal revenue." The total of cash or cash

equivalents received by a local gaming terminal minus the total

of cash or cash equivalents paid out to players as a result of

playing a local gaming terminal. The term does not include

counterfeit cash or cash taken in a fraudulent act perpetrated

20240SB1142PN1491 - 9 -

against a terminal operator licensee for which the terminal

operator licensee is not reimbursed.

"Holding company." A person, other than an individual,

which, directly or indirectly, owns or has the power or right to

control or to vote a significant part of the outstanding voting

securities of a corporation or other form of business

organization. A holding company indirectly has, holds or owns

such power, right or security if it does so through an interest

in a subsidiary or successive subsidiaries.

"Incentive." Consideration, including a promotion or prize,

provided to a player or potential player as an enticement to

play a local gaming terminal.

"Inducement."

(1) Any of the following:

(i) Consideration paid directly or indirectly, from

a manufacturer, supplier, terminal operator, procurement

agent, employee or another person on behalf of an

applicant or a licensee under this part to an eligible

establishment, establishment licensee, establishment

licensee owner or an employee of the establishment

licensee, directly or indirectly as an enticement to

enter into a terminal placement agreement with the

terminal operator and solicit or maintain the

establishment licensee or establishment licensee owner's

business.

(ii) Cash, incentive, marketing and advertising

cost, gift, food, beverage, loan, prepayment of gross

terminal revenue and other contribution or payment that

offsets an establishment licensee's operational costs or

as otherwise determined by the board.

20240SB1142PN1491 - 10 -

(2) The term does not include the cost paid by a

terminal operator applicant or terminal operator licensee

related to making local gaming terminals operate at the

premises of an establishment licensee, including wiring and

rewiring, software updates, ongoing local gaming terminal

maintenance, redemption terminals, network connections, site

controllers and cost associated with communicating with the

central control computer system.

"Institutional investor." A retirement fund administered by

a public agency for the exclusive benefit of Federal, State or

local public employees, investment company registered under the

Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. § 80a-1

et seq.), collective investment trust organized by banks under

Part Nine of the Rules of the Comptroller of the Currency,

closed-end investment trust, chartered or licensed life

insurance company or property and casualty insurance company,

banking and other chartered or licensed lending institution,

investment advisor registered under the Investment Advisers Act

of 1940 (54 Stat. 847, 15 U.S.C. § 80b-1 et seq.) and any other

person as the board determines is consistent with this part.

"Intermediary." A person, other than an individual, that is:

(1) a holding company with respect to a corporation or

other form of business organization, that holds or applies

for a license under this part; and

(2) a subsidiary with respect to a holding company.

"Key employee." The term includes the following:

(1) An individual employed by a manufacturer licensee or

a terminal operator licensee and designated by the licensee

to have primary authority to make decisions regarding the

conduct of local gaming.

20240SB1142PN1491 - 11 -

(2) A gaming manager.

(3) Any other individual employed by a manufacturer

licensee or terminal operator licensee whom the board, in its

reasonable discretion, determines holds primary authority to

make decisions regarding the conduct of local gaming.

"Key employee licensee." An individual who holds a key

employee license.

"Law enforcement authority." The power to conduct

investigations of or to make arrests for criminal offenses.

"Licensed entity." A terminal operator licensee,

establishment licensee or manufacturer licensee under this part.

"Licensed entity representative." A person, including an

attorney, agent or lobbyist, acting on behalf of or authorized

to represent the interest of an applicant, licensee or other

person authorized by the board to engage in an act or activity

that is regulated under this part regarding a matter before or

that may reasonably be expected to come before the board.

"Licensed facility." As defined in section 1103 (relating to

definitions).

"Licensed gaming entity." As defined in section 1103.

"Licensee." A person licensed under this part.

"Local gaming terminal."

(1) Any of the following:

(i) A mechanical, computerized or electrical

contrivance, game, terminal, machine or other device

approved by the board which, upon insertion or payment of

cash or cash equivalent as a wager, is available to play

or operate one or more games, the play or outcome of

which is determined by any element of either chance or

skill, and may deliver or entitle the player to receive

20240SB1142PN1491 - 12 -

cash or cash equivalent, or any instrument or

representation of value that is more than nominal, as

determined by the board in its sole discretion.

(ii) A redemption terminal or other associated

equipment necessary to operate or utilize a machine or

device described in subparagraph (i).

(iii) A slot machine, a hybrid slot machine or a

skill slot machine as those terms are defined in section

1103 that is not in operation at a licensed facility

under Part II (relating to gaming).

(iv) A video gaming terminal that is not in

operation at a truck stop establishment as defined in

section 3102 (relating to definitions).

(2) The term does not include:

(i) A lottery game, as that term is defined under

the act of August 26, 1971 (P.L.351, No.91), known as the

State Lottery Law.

(ii) A gambling-style device or game made available

for play at a family entertainment center in accordance

with the provisions of 18 Pa.C.S. (relating to crimes and

offenses).

(iii) A coin-operated amusement game.

(iv) A device used to play multiplayer video gaming

competitions where the element of chance does not have a

material effect on the play or outcome of the game.

(v) Any game determined by the board, in its sole

discretion, to fall within subparagraph (i), (ii), (iii)

or (iv).

"Manufacturer." A person that manufactures, builds,

rebuilds, fabricates, assembles, produces, programs, designs or

20240SB1142PN1491 - 13 -

otherwise makes modifications to a local gaming terminal,

redemption terminal or associated equipment for use or play of

local gaming terminals in this Commonwealth.

"Manufacturer license." A license issued by the board

authorizing a manufacturer to manufacture or produce local

gaming terminals, redemption terminals or associated equipment

for use in this Commonwealth.

"Manufacturer licensee." A person that holds a manufacturer

license issued under this part.

"Minor." An individual under 21 years of age.

"Municipality." A city, township, borough or incorporated

town.

"Party." The bureau or an applicant, licensee, registrant or

other person appearing of record in a proceeding before the

board.

"Person." A natural person, corporation, foundation,

organization, business trust, estate, limited liability company,

trust, partnership, limited liability partnership, association

or other form of legal business entity.

"Player." An individual who wagers cash or a cash equivalent

in the play or operation of a local gaming terminal.

"Principal." Any of the following:

(1) An officer, director, person that directly holds a

beneficial interest in or ownership of the securities of an

applicant or anyone licensed under this part.

(2) A person that has a controlling interest in an

applicant or anyone licensed under this part or has the

ability to elect a majority of the board of directors of a

licensee or to otherwise control anyone licensed under this

part.

20240SB1142PN1491 - 14 -

(3) A procurement agent, lender or other licensed

financial institution of an applicant or anyone licensed

under this part, other than a bank or lending institution

which makes a loan or holds a mortgage or other lien acquired

in the ordinary course of business.

(4) An underwriter of an applicant or anyone licensed

under this part or other person or employee of an applicant.

(5) A terminal operator licensee, manufacturer licensee

or supplier licensee deemed to be a principal by the board,

including a procurement agent.

"Procurement agent." A person that shares in the gross

terminal revenue or is otherwise compensated for the purpose of

soliciting or procuring a terminal placement agreement.

"Publicly traded corporation." A person, other than an

individual, that:

(1) has a class or series of securities registered under

the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C.

§ 78a et seq.);

(2) is a registered management company under the

Investment Company Act of 1940; or

(3) is subject to the reporting obligations imposed by

section 15(d) of the Securities Exchange Act of 1934 by

reason of having filed a registration statement that has

become effective under the Securities Act of 1933 (48 Stat.

74, 15 U.S.C. § 77a et seq.).

"Redemption terminal." The collective hardware, software,

communications technology and other ancillary equipment used to

facilitate the payment of cash or a cash equivalent to a player

as a result of playing a local gaming terminal.

"Security." As defined in the act of December 5, 1972

20240SB1142PN1491 - 15 -

(P.L.1280, No.284), known as the Pennsylvania Securities Act of

1972.

"Slot machine." As defined in section 1103.

"State Treasurer." The State Treasurer of the Commonwealth.

"Subsidiary." As defined in section 1103.

"Terminal operator." A person that owns, services or

maintains local gaming terminals for placement and operation on

the premises of an establishment licensee.

"Terminal operator license." A license issued by the board

authorizing a terminal operator to place and operate local

gaming terminals in an establishment licensee's premises in

accordance with this part and the rules and regulations

promulgated under this part.

"Terminal operator licensee." A person that holds a terminal

operator license.

"Terminal placement agreement." The formal written agreement

or contract between an applicant for a terminal operator license

or terminal operator licensee and an applicant for an

establishment license or establishment licensee that establishes

the terms and conditions regarding the placement of local gaming

terminals and the conduct of local gaming.

CHAPTER 53

ADMINISTRATION

Sec.

5301. Powers of board.

5302. Regulatory authority of board.

5303. Temporary regulations.

5304. Appeals.

5305. Records and confidentiality of information.

5306. Reporting.

20240SB1142PN1491 - 16 -

5307. Diversity.

5308. Authority of department.

5309. Central control computer system.

5310. Department of Drug and Alcohol Programs or successor

agency.

§ 53 01. Powers of board.

(a) General powers.--

(1) The board shall have general and sole regulatory

authority over the conduct of local gaming as described in

this part. The board shall ensure the integrity of the

acquisition and operation of local gaming terminals,

redemption terminals and associated equipment and shall have

sole regulatory authority over every aspect of the conduct of

local gaming.

(2) The board may employ individuals as necessary to

carry out the requirements of this part who shall serve at

the board's pleasure.

(b) Specific powers.--The board shall have the power and

duty:

(1) To require background investigations from certain

applicants and licensees.

(2) At its discretion, to issue, approve, renew, revoke,

suspend, condition or deny issuance or renewal of licenses or

other authorizations that may be required by the board under

this part.

(3) At its discretion, to suspend, condition or deny the

issuance or renewal of a license or other authorization or

levy a fine or other sanction for a violation of this part.

(4) To require prospective and licensed gaming employees

to submit to fingerprinting by the Pennsylvania State Police

20240SB1142PN1491 - 17 -

or its authorized designee. The Pennsylvania State Police or

its authorized designee shall submit the fingerprints to the

Federal Bureau of Investigation for purposes of verifying the

identity of the individual and obtaining records of criminal

arrests and convictions.

(5) To require prospective and licensed gaming employees

to submit photographs consistent with a statement of policy

developed by the board.

(6) To determine the suitability of a person that

furnishes or seeks to furnish to a terminal operator licensee

directly or indirectly goods, services or property related to

the conduct of local gaming.

(7) To approve an application for or issue or renew a

license or other authorization that may be required by the

board, if the board is satisfied the person has demonstrated

by clear and convincing evidence that the person is of good

character, honesty and integrity whose prior activities,

criminal record, if any, reputation, habits and associations

do not pose a threat to the public interest or the effective

regulation and control of local gaming or create or enhance

the danger of unsuitable, unfair or illegal practices,

methods and activities in the conduct of local gaming or the

carrying on of the business and financial arrangements

incidental thereto.

(8) To publish on the board's publicly accessible

Internet website a complete list of persons or entities who

applied for or held a terminal operator license,

establishment license or manufacturer license at any time

during the preceding calendar year and affiliates,

intermediaries, subsidiaries and holding companies thereof

20240SB1142PN1491 - 18 -

and the status of the applications or licenses.

(9) To prepare and, through the Governor, submit

annually to the General Assembly an itemized budget

consistent with Article VI of the act of April 9, 1929

(P.L.177, No.175), known as The Administrative Code of 1929,

consisting of the amounts necessary to be appropriated by the

General Assembly out of the accounts established under

section 6102 (relating to regulatory assessments) required to

meet the obligations under this part accruing during the

fiscal period beginning July 1 of the following year.

(10) In the event that appropriations for the

administration of this part are not enacted by June 30 of any

year, funds appropriated for the administration of this part

which are unexpended, uncommitted and unencumbered at the end

of a fiscal year shall remain available for expenditure by

the board or other agency to which the funds were

appropriated until the enactment of an appropriation for the

ensuing fiscal year.

(11) To collect and post information on the board's

publicly accessible Internet website with sufficient detail

to inform the public of persons with a controlling interest

or ownership interest in an applicant for a license or

affiliate, intermediary, subsidiary or holding company of an

applicant for a license. The posting shall include:

(i) If the applicant is a publicly traded domestic

or foreign corporation, partnership, limited liability

company or other legal entity, the names of persons with

a controlling interest.

(ii) If the applicant is a privately held domestic

or foreign corporation, partnership, limited liability

20240SB1142PN1491 - 19 -

company or other legal entity, the names of all persons

with an ownership interest equal to or greater than 1%.

(iii) The name of a person entitled to cast the vote

of a person named under subparagraph (i) or (ii).

(iv) The names of officers, directors and principals

of the applicant for a license or licensee.

(12) Determine, designate and classify employees of an

applicant entity or licensed entity as key employees.

(13) Designate and classify games as local gaming

terminals.

(14) Refer potential violations of the criminal

provisions in this part or of 18 Pa.C.S. (relating to crimes

and offenses) to the Pennsylvania State Police for

investigation and initiation of proceedings as specified in

Chapter 59 (relating to enforcement).

§ 53 02. Regulatory authority of board.

(a) General rule.--The board shall have the power and duty:

(1) To deny, deny the renewal of, revoke, condition or

suspend a license or permit provided for in this part if the

board finds in its sole discretion that an applicant,

licensee or permittee or its officers, employees or agents

have furnished false or misleading information to the board

or failed to comply with the provisions of this part or the

rules and regulations of the board and that it would be in

the public interest to deny, deny the renewal of, revoke,

condition or suspend the license or permit.

(2) To restrict access to confidential information in

the possession of the board that has been obtained under this

part and ensure that the confidentiality of information is

maintained and protected.

20240SB1142PN1491 - 20 -

(3) To prescribe and require periodic financial

reporting and internal control requirements for terminal

operator licensees.

(4) To require that a terminal operator licensee provide

to the board its annual financial statements, with such

additional detail as the board requires, which shall be

submitted not later than 180 days after the end of the

licensee's fiscal year.

(5) To prescribe the procedures to be followed by

terminal operator licensees for a financial event that occurs

in the operation and play of local gaming terminals.

(6) To require that an establishment licensee prohibit

minors from operating or using local gaming terminals or

redemption terminals.

(7) To establish procedures for the inspection and

certification of compliance of local gaming terminals,

redemption terminals and associated equipment prior to being

placed into use on the premises of an establishment licensee

by a terminal operator licensee.

(8) To require that a local gaming terminal may not be

set to pay out less than the theoretical payout percentage,

which percentage shall be no less than 85% as specifically

approved by the board. The board shall adopt regulations that

define the theoretical payout percentage of a local gaming

terminal game based on the total value of the jackpots

expected to be paid by a play on a local gaming terminal game

divided by the total value of local gaming terminals wagers

expected to be made on that play or local gaming terminal

game during the same portion of the game cycle. In so doing,

the board shall specify whether the calculation includes a

20240SB1142PN1491 - 21 -

portion of or the entire cycle of a local gaming terminal

game.

(9) To require that an establishment license applicant

provide detailed site plans of its proposed local gaming area

for review and approval by the board for the purpose of

determining the adequacy of the proposed security and

surveillance measures. The applicant shall cooperate with the

board in making changes to the plans suggested by the board

and shall ensure that the plans as modified and approved are

implemented. The board may not require a floor-to-ceiling

wall to segregate the local gaming area, but may adopt rules

to establish segregation requirements.

(10) To promulgate rules and regulations governing the

advertisement of local gaming terminals, provided that the

board shall require all advertisements to display or

reference the toll-free problem gambling telephone number

maintained by the Department of Drug and Alcohol Programs or

successor agency under section 53 10(b) (relating to

Department of Drug and Alcohol Programs or successor agency).

(11) To enter into contracts with persons for the

purposes of carrying out the powers and duties of the board

under this part.

(12) To adopt regulations governing the postemployment

limitations and restrictions applicable to members and

employees of the board subject to section 6302 (relating to

additional board restrictions). In developing the

regulations, the board may consult with the State Ethics

Commission, governmental agencies and the Disciplinary Board

of the Supreme Court regarding postemployment limitations and

restrictions on members and employees of the board who are

20240SB1142PN1491 - 22 -

members of the Pennsylvania Bar.

(13) To review and approve all cash and cash equivalent

handling policies and procedures employed by terminal

operator licensees.

(14) To promulgate rules and regulations governing the

placement of automated teller machines within or adjacent to

local gaming areas.

(15) To establish mandatory age-verification training

and procedures for establishment licensees and their

employees to ensure that minors do not access a local gaming

area, local gaming terminal or redemption terminal.

(16) To establish mandatory problem gambling training to

be completed by all employees of licensed entities under this

part.

(17) To promulgate rules and regulations necessary for

the administration and enforcement of this part.

(b) Applicable law.--Except as provided in section 53 03

(relating to temporary regulations), regulations shall be

adopted in accordance with the act of July 31, 1968 (P.L.769,

No.240), referred to as the Commonwealth Documents Law, and the

act of June 25, 1982 (P.L.633, No.181), known as the Regulatory

Review Act.

§ 53 03. Temporary regulations.

(a) Promulgation.--In order to facilitate the prompt

implementation of this part, regulations promulgated by the

board shall be deemed temporary regulations which shall expire

no later than two years following the publication of the

temporary regulations. The board may promulgate temporary

regulations not subject to:

(1) Section 612 of the act of April 9, 1929 (P.L.177,

20240SB1142PN1491 - 23 -

No.175), known as The Administrative Code of 1929.

(2) Sections 201, 202, 203, 204 and 205 of the act of

July 31, 1968 (P.L.769, No.240), referred to as the

Commonwealth Documents Law.

(3) Section 204(b) of the act of October 15, 1980

(P.L.950, No.164), known as the Commonwealth Attorneys Act.

(4) The act of June 25, 1982 (P.L.633, No.181), known as

the Regulatory Review Act.

(b) Expiration.--Except for temporary regulations related to

security and surveillance, the authority provided to the board

to adopt temporary regulations in subsection (a) shall expire

two years following the publication of the temporary

regulations. Regulations adopted after that date shall be

promulgated as provided by law.

§ 53 04. Appeals.

An applicant, licensee or permittee may appeal a final order,

determination or decision of the board involving the approval,

issuance, denial, revocation, nonrenewal, suspension or

conditioning, including any disciplinary action, of a license,

permit or authorization under this part in accordance with 2

Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of

Commonwealth agencies) and 7 Subch. A (relating to judicial

review of Commonwealth agency action).

§ 53 05. Records and confidentiality of information.

(a) Records.--The board shall maintain files and records

deemed necessary for the administration and enforcement of this

part.

(b) Confidentiality of information.--

(1) The following information submitted by an applicant,

licensee or permittee under Chapter 55 (relating to

20240SB1142PN1491 - 24 -

application and licensure) or obtained by the board or the

bureau as part of a background or other investigation from

any source shall be confidential and withheld from public

disclosure:

(i) Information relating to character, honesty and

integrity, including family, habits, reputation, history

of criminal activity, business activities, financial

affairs and business, professional and personal

associations submitted to or otherwise obtained by the

board or the bureau.

(ii) Nonpublic personal information, including home

addresses, telephone numbers and other personal contact

information, Social Security numbers, educational

records, memberships, medical records, tax returns and

declarations, actual or proposed compensation, financial

account records, creditworthiness or financial condition

relating to an applicant, licensee or permittee or the

immediate family thereof.

(iii) Information relating to proprietary

information, trade secrets, patents or exclusive

licenses, architectural and engineering plans and

information relating to competitive marketing materials

and strategies, including customer-identifying

information or customer prospects for services subject to

competition.

(iv) Security information, including risk prevention

plans, detection and countermeasures, emergency

management plans, security and surveillance plans,

equipment and usage protocols and theft and fraud

prevention plans and countermeasures.

20240SB1142PN1491 - 25 -

(v) Information with respect to which there is a

reasonable possibility that public release or inspection

of the information would constitute an unwarranted

invasion into personal privacy of an individual as

determined by the board.

(vi) Records of an applicant, licensee or permittee

not required to be filed with the Securities and Exchange

Commission by issuers that either have securities

registered under section 12 of the Securities Exchange

Act of 1934 (48 Stat. 881, 15 U.S.C. § 78l) or are

required to file reports under section 15(d) of the

Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C.

§ 78o).

(vii) Records considered nonpublic matters or

information by the Securities and Exchange Commission as

provided by 17 CFR 200.80 (relating to Securities and

Exchange Commission records and information).

(viii) Financial information provided to the board

by an applicant or licensee.

(2) No claim of confidentiality may be made regarding

criminal history record information that is available to the

public under 18 Pa.C.S. § 9121(b) (relating to general

regulations).

(3) Except as provided in paragraph (1), no claim of

confidentiality may be made regarding a record in possession

of the board that is otherwise publicly available from the

board under the act of February 14, 2008 (P.L.6, No.3), known

as the Right-to-Know Law.

(4) Except as provided in section 5904(h) (relating to

investigations and enforcement), the information made

20240SB1142PN1491 - 26 -

confidential under this section shall be withheld from public

disclosure in whole or in part, except that confidential

information shall be released upon the order of a court of

competent jurisdiction or, with the approval of the Attorney

General, to a duly authorized law enforcement agency or shall

be released to the public, in whole or in part, to the extent

that the release is requested by an applicant, licensee or

permittee and does not otherwise contain confidential

information about another person.

(5) The board may seek a voluntary waiver of

confidentiality from an applicant, licensee or permittee but

may not require an applicant, licensee or permittee to waive

the confidentiality provided under this subsection as a

condition for the approval of an application, renewal of a

license or other action of the board.

(6) (i) No current or former member and no current or

former employee, agent or independent contractor of the

board, the department, the Pennsylvania State Police, the

Office of Attorney General or other executive branch

office who has obtained confidential information in the

performance of duties under this part shall intentionally

disclose the information to a person, knowing that the

information being disclosed is confidential under this

subsection, unless the person is authorized by law to

receive it.

(ii) A violation of this subsection shall constitute

a misdemeanor of the third degree.

(iii) In addition to any penalty under subparagraph

(ii), an employee, agent or independent contractor who

violates this subsection shall be administratively

20240SB1142PN1491 - 27 -

disciplined by discharge, suspension, termination of

contract or other formal disciplinary action as

appropriate. If a current member violates this paragraph,

the other members shall refer the matter to the current

member's appointing authority.

to a duly authorized law enforcement agency pursuant to this

section, shall be given to an applicant or licensee in a manner

prescribed by the rules and regulations adopted by the board.

(d) Information held by other agencies.--Files, records,

reports and other information in the possession of the

department pertaining to an applicant, licensee or permittee

shall be made available to the board as may be necessary to the

effective administration of this part.

§ 53 06. Reporting.

(a) Report by board.--Beginning October 1, 2025, and every

year thereafter, the annual report submitted to the Governor and

the General Assembly by the board under section 1211 (relating

to reports of board) shall include information on the conduct of

local gaming for the previous calendar year:

(1) Total gross terminal revenue.

(2) Total number of terminal operator licensees,

establishment licensees and manufacturer licensees.

(3) All taxes, fees, fines and other revenue collected

and, where appropriate, revenue disbursed. The department

shall collaborate with the board to carry out the

requirements of this paragraph.

(4) Other information related to the conduct of local

gaming that the board deems appropriate.

(b) Participation.--The board may require licensees to

20240SB1142PN1491 - 28 -

provide information to the board to assist in the preparation of

the report under subsection (a).

§ 53 07. Diversity.

(a) Intent.--It is the intent and goal of the General

Assembly that the board promote and ensure diversity in the

gaming activities authorized under this part.

(b) Reports by applicants.--An applicant for a terminal

operator license shall submit a diversity plan to the board. At

a minimum, the diversity plan shall contain a summary of:

(1) All employee recruitment and retention efforts

undertaken to promote the participation of diverse groups in

employment with the applicant if issued a terminal operator

license.

(2) Other information deemed necessary by the board to

assess the diversity plan.

plan. When reviewing the adequacy of a diversity plan, the board

shall take into consideration the total number of local gaming

terminals the applicant proposes to operate within this

Commonwealth.

(d) Periodic review.--The board shall periodically review

the terminal operator licensee's diversity plan and recommend

changes.

(e) Applicant or licensee responsibility.--An applicant or

licensee shall provide information as required by the board to

enable the board to complete the reviews required under

subsections (c) and (d).

§ 53 08. Authority of department.

(a) General rule.--The department shall administer and

collect taxes imposed under this part and interest imposed under

20240SB1142PN1491 - 29 -

section 806 of the act of April 9, 1929 (P.L.343, No.176), known

as The Fiscal Code, and promulgate and enforce rules and

regulations to carry out its prescribed duties in accordance

with this part, including the collection of taxes, penalties and

interest imposed by this part.

(b) Application of rules and regulations.--The department

may prescribe the extent, if any, to which any rules and

regulations shall be applied without retroactive effect. The

department shall prescribe the forms and the system of

accounting and recordkeeping to be employed and through its

representative shall at all times have power of access to and

examination and audit of any equipment and records relating to

all aspects of the operation of local gaming terminals and

redemption terminals under this part.

department may promulgate regulations in the same manner in

which the board is authorized as provided in section 53 03

(relating to temporary regulations).

(d) Additional penalty.--A person that fails to timely remit

to the department or the State Treasurer amounts required under

this part shall be liable, in addition to liability imposed

elsewhere in this part, to a penalty of 5% per month up to a

maximum of 25% of the amounts ultimately found to be due, to be

recovered by the department.

(e) Liens and suits for taxes.--The provisions of this part

shall be subject to the provisions of sections 242 and 243 of

the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform

Code of 1971.

§ 53 09. Central control computer system.

(a) General rule.--To facilitate the auditing and security

20240SB1142PN1491 - 30 -

programs critical to the integrity of local gaming terminals in

this Commonwealth, the department shall have overall control of

local gaming terminals which shall:

(1) Be linked, at an appropriate time to be determined

by the department, to a central control computer under the

control of the department and accessible by the board to

provide auditing program capacity and individual terminal

information as approved by the department.

(2) Include real-time information retrieval and terminal

activation and disabling programs.

(b) System requirements.--The central control computer

employed by the department shall provide:

(1) A fully operational Statewide local gaming terminal

control system that has the capability of supporting up to

30,000 local gaming terminals permitted to be in operation

under this part.

(2) The employment of a widely accepted gaming industry

protocol to facilitate a local gaming terminal manufacturers'

ability to communicate with the Statewide system.

(3) The delivery of a system that has the ability to

verify software, detect alterations in payout and detect

other methods of fraud in all aspects of the operation of

local gaming terminals.

(4) The delivery of a system that does not alter the

statistical awards of local gaming terminal games as designed

by the manufacturer and approved by the board.

(5) The delivery of a system that provides redundancy so

that each component of the network is capable of operating

independently by the department if any component of the

network, including the central control computer, fails or

20240SB1142PN1491 - 31 -

cannot be operated for any reason as determined by the

department, and to assure that all transactional data is

captured and secured. Costs associated with a computer system

required by the department to operate within a local gaming

area, whether independent or as part of the central control

computer, shall be paid by the terminal operator licensee.

The computer system shall be controlled by the department and

accessible to the board.

(6) The ability to meet all reporting and control

requirements as prescribed by the board and department.

(7) The delivery of a system that provides centralized

issuance of cash redemption tickets and facilitates the

acceptance of the tickets by local gaming terminals and

redemption terminals.

(8) Other capabilities as determined by the department

in consultation with the board.

not provide for the monitoring or reading of personal or

financial information concerning a patron of a terminal operator

licensee.

(d) Initial acquisition of central control computer.--

(1) Notwithstanding any other provision of law to the

contrary and in order to facilitate the prompt implementation

of this part, initial contracts entered into by the

department for a central control computer, including

necessary computer hardware, software, licenses or related

services, shall not be subject to the provisions of 62

Pa.C.S. (relating to procurement).

(2) Contracts executed under this section may not exceed

five years.

20240SB1142PN1491 - 32 -

(e) Resolution of contract disputes.--The process specified

in 62 Pa.C.S. Ch. 17 Subch. B (relating to prelitigation

resolution of controversies) shall be the sole means of

resolution for controversies arising with respect to contracts

executed under this section.

(f) Existing central control computer system.--The

department, in its discretion, may alter or utilize the central

control computer system controlled by the department under

section 1323 (relating to central control computer system) to

fulfill the requirements of this section.

§ 53 10. Department of Drug and Alcohol Programs or successor

agency.

(a) Program update.--

(1) The Department of Drug and Alcohol Programs or

successor agency shall update the compulsive and problem

gambling program established in section 1509 (relating to

compulsive and problem gambling program) to address public

education, awareness and training regarding compulsive and

problem gambling and the treatment and prevention of

compulsive and problem gambling related to local gaming

terminals.

(2) The updated guidelines shall include strategies for

the prevention of compulsive and problem gambling related to

local gaming terminals.

(3) The Department of Drug and Alcohol Programs or

successor agency may consult with the board and terminal

operator licensees to develop the strategies.

(b) Duties of Department of Drug and Alcohol Programs or

successor agency.--From funds available in the Compulsive and

Problem Gambling Treatment Fund, the Department of Drug and

20240SB1142PN1491 - 33 -

Alcohol Programs or successor agency shall, with respect to

local gaming terminals:

(1) Maintain one compulsive gamblers assistance

organization's toll-free problem gambling telephone number,

which number shall be 1-800-GAMBLER, to provide crisis

counseling and referral services to individuals and families

experiencing difficulty as a result of problem or compulsive

gambling.

(2) Maintain one compulsive gambler's assistance

organization's telephone number, which shall be accessible

via a free text message service, to provide crisis counseling

and referral services to individuals and families

experiencing difficulty as a result of problem or compulsive

gambling.

(3) Facilitate, through in-service training and other

means, the availability of effective assistance programs for

problem and compulsive gamblers and family members affected

by problem and compulsive gambling.

(4) At its discretion, conduct studies to identify

individuals in this Commonwealth who are or are at risk of

becoming problem or compulsive gamblers.

(5) Provide grants to and contract with single county

authorities and other organizations that provide services

specified in this section.

(6) Reimburse organizations for reasonable expenses

incurred assisting the Department of Drug and Alcohol

Programs or successor agency with implementing this section.

(7) Maintain a comprehensive list of all self-excluded

individuals under section 1516 (relating to list of persons

self excluded from gaming activities), 3903 (relating to

20240SB1142PN1491 - 34 -

self-exclusion) or 5903 (relating to self-exclusion).

effective date of this subsection, the Department of Drug and

Alcohol Programs or successor agency and the board's Office of

Compulsive and Problem Gambling shall jointly collaborate with

other appropriate offices and agencies of State or local

government, including single county authorities and providers

and other persons, public or private, with expertise in

compulsive and problem gambling treatment, and shall, with

respect to local gaming terminals:

(1) Implement a strategic plan for the prevention and

treatment of compulsive and problem gambling.

(2) Adopt compulsive and problem gambling treatment

standards to be integrated with the Department of Drug and

Alcohol Programs' or successor agency's uniform Statewide

guidelines that govern the provision of addiction treatment

services.

(3) Develop a method to coordinate compulsive and

problem gambling data collection and referral information to

crisis response hotlines, child welfare and domestic violence

programs and providers and other appropriate programs and

providers.

(4) Develop and disseminate educational materials to

provide public awareness related to the prevention,

recognition and treatment of compulsive and problem gambling.

(5) Develop demographic-specific compulsive and problem

gambling prevention, intervention and treatment programs.

(6) Prepare an itemized budget outlining how funds will

be allocated to fulfill the responsibilities under this

section.

20240SB1142PN1491 - 35 -

(d) Report.--The Department of Drug and Alcohol Programs or

successor agency shall include in the report required under

section 1509 information involving local gaming terminals.

CHAPTER 55

APPLICATION AND LICENSURE

Sec.

55 01. General prohibition.

55 02. Local gaming terminal operator licenses.

55 03. Existing licensees.

55 04. Principal licenses.

55 05. Key employee licenses.

55 06. Divestiture of disqualifying applicant.

55 07. (Reserved).

55 08. Local gaming manufacturer licenses.

55 09. Gaming service provider.

55 10. (Reserved).

55 11. Alternative local gaming terminal operator licensing

standards.

55 12. Alternative local gaming manufacturer licensing

standards.

55 13. Local gaming establishment licenses.

55 14. License or permit prohibition.

55 15. Issuance and renewal.

55 16. Change in ownership or control of licensee.

55 17. Local gaming terminal accounting controls and audits.

55 18. Multiple licenses prohibited.

5519. Conditional licenses.

§ 55 01. General prohibition.

A person who offers or otherwise makes available for play in

this Commonwealth a slot machine, hybrid slot machine, skill

20240SB1142PN1491 - 36 -

slot machine, video gaming terminal, local gaming terminal or

other gambling device or game that offers the player the ability

to place a wager on the outcome of an uncertain event or game,

but is not licensed by the board or expressly authorized by

statute, commits a crime in violation of 18 Pa.C.S. § 5513

(relating to gambling devices, gambling, etc.) and is subject to

the penalties specified in section 5905 (relating to prohibited

acts and penalties).

§ 55 02. Local gaming terminal operator licenses.

(a) General requirements.--An application for a local gaming

terminal operator license shall be on the form required by the

board and shall include, at a minimum, all of the following:

(1) The name, address and photograph of the applicant

and of all directors and owners and key employees and their

positions within the corporation or organization, as well as

additional financial information required by the board.

(2) A current tax lien certificate issued by the

department.

(3) The details of any gaming license applied for,

granted to or denied to the applicant by another jurisdiction

where the form of gaming is legal and the consent for the

board to acquire copies of the application submitted or

license issued in connection with the application.

(4) The details of any loan obtained from a financial

institution or not obtained from a financial institution.

(5) The consent to conduct a background investigation by

the board, the scope of which investigation shall be

determined by the bureau in its discretion consistent with

the provisions of this part, and a release signed by all

persons subject to the investigation of all information

20240SB1142PN1491 - 37 -

required to complete the investigation.

(6) The details of the applicant's diversity plan to

assure that all persons are accorded equality of opportunity

in employment and contracting by the applicant, its

contractors, subcontractors, assignees, lessees, agents,

vendors and suppliers.

(7) Any information concerning maintenance and operation

of local gaming terminals in any other jurisdiction.

(8) Proof that the applicant has or will establish a

place of business in this Commonwealth. A terminal operator

licensee shall maintain its place of business in this

Commonwealth to remain eligible for licensure.

(9) Any other information determined to be appropriate

by the board.

(b) Character requirements.--An application for a terminal

operator license shall include such information, documentation

and assurances as may be required to establish by clear and

convincing evidence of the applicant's suitability, including

good character, honesty and integrity. The application shall

include, without limitation, information pertaining to family,

habits, character, reputation, criminal history background,

business activities, financial affairs and business,

professional and personal associates, covering at least the 10-

year period immediately preceding the filing date of the

application.

any civil judgment obtained against the applicant pertaining to

laws of the Federal Government, this Commonwealth or another

state, jurisdiction, province or country.

(d) (Reserved).

20240SB1142PN1491 - 38 -

(e) (Reserved).

(f) Additional eligibility requirements.--In order to be

eligible for a terminal operator license under this part, the

principals and key employees of the applicant must obtain a

license to meet the character requirements of this section or

other eligibility requirements established by the board.

(g) Classification system.--The board shall develop a

classification system for other agents, employees or persons who

directly or indirectly hold or are deemed to be holding debt or

equity securities or other financial interest in the applicant

and for other persons that the board considers appropriate for

review under this section.

(h) Related entities.--

(1) Except as provided in paragraph (2), no person shall

be eligible to receive a terminal operator license unless the

principals and key employees of each intermediary or holding

company of the person meet the requirements of subsection

(f).

(2) The board may require that lenders and underwriters

of intermediaries, subsidiaries or holding companies of a

terminal operator license applicant meet the requirements of

subsection (f) if the board determines that the suitability

of a lender or underwriter is at issue and necessary to

consider a pending application for a terminal operator

license.

(i) Revocable privilege.--The issuance or renewal of a

license or other authorization by the board under this section

shall be a revocable privilege.

(j) Waiver for publicly traded corporations.--The board may

waive the requirements of subsection (f) for a person directly

20240SB1142PN1491 - 39 -

or indirectly holding ownership of securities in a publicly

traded corporation if the board determines that the holder of

the securities does not have the ability to control the

corporation or elect one or more directors of the corporation.

(k) (Reserved).

(l) Ongoing duty.--A person applying for a license or other

authorization under this part shall continue to provide

information required by the board or the bureau and cooperate in

any inquiry or investigation.

(m) Criminal history record check.--The board may conduct a

criminal history record check on a person for whom a waiver is

granted under this section.

(n) Applicant financial information.--

(1) The board shall require an applicant for a terminal

operator license to produce the information, documentation

and assurances concerning financial background and resources

as the board deems necessary to establish by clear and

convincing evidence the financial stability, integrity and

responsibility of the applicant, its affiliate, intermediary,

subsidiary or holding company, including, but not limited to,

bank references, business and personal income and

disbursement schedules, tax returns and other reports filed

with governmental agencies and business and personal

accounting and check records and ledgers.

(2) An applicant shall in writing authorize the

examination of all bank accounts and records deemed necessary

by the board.

(o) Financial backer information.--

(1) The board shall require an applicant for a terminal

operator license to produce the information, documentation

20240SB1142PN1491 - 40 -

and assurances as may be necessary to establish by clear and

convincing evidence the integrity of all financial backers,

institutional investors, investors, mortgagees, bondholders

and holders of indentures, notes or other evidences of

indebtedness, either in effect or proposed.

(2) The board may waive the qualification requirements

for banking or lending institution and institutional

investors.

(3) A banking or lending institution or institutional

investor shall produce for the board upon request any

document or information that bears relation to the proposal

submitted by the applicant.

(4) The integrity of the financial sources shall be

judged upon the same standards as the applicant. Any such

person or entity shall produce for the board upon request any

document or information that bears any relation to the

application.

(5) The applicant shall produce the information,

documentation or assurances the board requires to establish

by clear and convincing evidence the adequacy of financial

resources.

(p) Applicant's business experience.--

(1) The board shall require an applicant for a terminal

operator license to produce the information, documentation

and assurances as the board may require to establish by clear

and convincing evidence that the applicant has sufficient

business ability and experience to create and maintain a

successful, efficient operation.

(2) An applicant shall produce the names of all proposed

key employees and a description of their respective or

20240SB1142PN1491 - 41 -

proposed responsibilities as they become known.

(q) Additional information.--In addition to other

information required by this part, a person applying for a

terminal operator license shall provide the following

information:

(1) The organization, financial structure and nature of

all businesses operated by the person, including any

affiliate, intermediary, subsidiary or holding companies, the

names and personal employment and criminal histories of all

officers, directors and key employees of the corporation, the

names of all holding, intermediary, affiliate and subsidiary

companies of the corporation and the organization, financial

structure and nature of all businesses operated by such

holding, intermediary and subsidiary companies as the board

may require, including names and personal employment and

criminal histories of such officers, directors and principal

employees of such corporations and companies as the board may

require.

(2) The extent of securities held in the corporation by

all officers, directors and underwriters and their

remuneration in the form of salary, wages, fees or otherwise.

(3) Copies of all management and service contracts.

(r) Review and approval.--Upon being satisfied that the

requirements of subsections (a), (b), (c), (f), (g), (h), (i),

(j), (l), (m), (n), (o), (p) and (q) have been met, the board

may approve the application and issue the applicant a terminal

operator license consistent with all of the following:

(1) (i) The license shall be valid for a period of five

years.

(ii) Nothing in this paragraph shall be construed to

20240SB1142PN1491 - 42 -

relieve a licensee of the affirmative duty to notify the

board of any changes relating to the status of its

license or to any information contained in the

application materials on file with the board.

(2) The license shall be nontransferable.

(3) Any other condition established by the board.

(s) Renewal.--

(1) At least six months prior to expiration of a

terminal operator license, the terminal operator licensee

seeking renewal of its license shall submit a renewal

application to the board.

(2) If the renewal application satisfies the

requirements of subsections (a), (b), (c), (f), (g), (h),

(i), (j), (l), (m), (n), (o), (p) and (q), the board may

renew the licensee's terminal operator license.

(3) If the board receives a complete renewal application

but fails to act upon the renewal application prior to the

expiration of the terminal operator license, the terminal

operator license shall continue in effect until acted upon by

the board.

§ 55 03. Existing licensees.

Upon receipt of an application under this part from a

licensee who is already licensed by the board under Part II

(relating to gaming) or III (relating to video gaming), the

board shall subject to the application an abbreviated

application and licensure procedure established by the board.

§ 55 04. Principal licenses.

(a) License required.--All principals shall obtain a

principal license from the board.

(b) Application.--A principal license application shall be

20240SB1142PN1491 - 43 -

in a form prescribed by the board and shall include the

following:

(1) Verification of status as a principal from a

terminal operator licensee, manufacturer licensee or supplier

licensee.

(2) A description of responsibilities as a principal.

(3) All releases necessary to obtain information from

governmental agencies, employers and other organizations.

(4) Details relating to a similar license, permit or

other authorization obtained in another jurisdiction.

(5) Additional information required by the board.

background investigation, the board may issue a principal

license if the applicant has proven by clear and convincing

evidence that the applicant is a person of good character,

honesty and integrity and is eligible and suitable to be

licensed as a principal.

(d) Nontransferability.--A license issued under this section

shall be nontransferable.

(e) Principals.--An individual who receives a principal

license need not obtain a key employee license.

§ 55 05. Key employee licenses.

(a) License required.--A key employee, including a gaming

manager and a procurement agent, shall obtain a key employee

license from the board, regardless of whether employed by a

licensee or serving as an independent contractor to the

licensee.

(b) Application.--A key employee license application shall

be in a form prescribed by the board and shall include the

following:

20240SB1142PN1491 - 44 -

(1) Verification of status as a key employee from a

terminal operator licensee, establishment licensee,

manufacturer licensee or supplier licensee.

(2) A description of employment responsibilities.

(3) All releases necessary to obtain information from

governmental agencies, employers and other organizations.

(4) Details relating to a similar license or other

authorization obtained in another jurisdiction.

(5) Additional information required by the board.

background investigation, the board may issue a key employee

license if the applicant has proven by clear and convincing

evidence that the applicant is a person of good character,

honesty and integrity and is eligible and suitable to be

licensed as a key employee.

(d) Nontransferability.--A license issued under this section

shall be nontransferable.

§ 55 06. Divestiture of disqualifying applicant.

(a) Board power to require.--

(1) In the event that an establishment license

application, terminal operator license application or

manufacturer license application is not approved by the board

based on a finding that an individual who is a principal or

has an interest in the person applying for the license does

not meet the character requirements of this part or any

eligibility requirement under this part or a person who

purchases a controlling interest in the applicant in

violation of section 5516 (relating to change in ownership or

control of licensee), the board may afford the individual the

opportunity to completely divest the individual's interest in

20240SB1142PN1491 - 45 -

the person, its affiliate, intermediary, subsidiary or

holding company seeking the license and, after divestiture,

reconsider the person's or applicant's suitability for

licensure in an expedited proceeding and may, after the

proceeding, issue the person or applicant a terminal operator

license.

(2) The board shall approve the terms and conditions of

any divestiture under this section.

(b) Limitation.--Under no circumstances shall any

divestiture be approved by the board if the compensation for the

divested interest exceeds the cost of the interest.

§ 55 07. (Reserved).

§ 55 08. Local gaming manufacturer licenses.

(a) Application.--A person seeking to manufacture local

gaming terminals, redemption terminals and associated equipment

for use in this Commonwealth must apply to the board for a

manufacturer license.

(b) Requirements.--An application for a manufacturer license

shall be on the form required by the board and shall include all

of the following:

(1) The name and business address of the applicant and

the applicant's affiliates, intermediaries, subsidiaries and

holding companies, the principals and key employees of each

business and a list of employees and their positions within

each business, as well as financial information required by

the board.

(2) A statement that the applicant and each affiliate,

intermediary, subsidiary or holding company of the applicant

are not terminal operator licensees.

(3) The consent to a background investigation by the

20240SB1142PN1491 - 46 -

bureau of the applicant, its principals, its key employees,

its intermediaries, its subsidiaries or other persons

required by the board and a release to obtain the information

necessary for the completion of the background investigation.

(4) The details of any equivalent license granted or

denied by other jurisdictions where gaming activities as

authorized by this part are permitted.

(5) The details of any manufacturer license issued by

the board to the applicant under section 1317.1 (relating to

manufacturer licenses) or 3508 (relating to manufacturer

licenses), if applicable.

(6) The type of local gaming terminals, redemption

terminals or associated equipment to be manufactured or

repaired.

(7) Other information determined by the board to be

appropriate.

requirements of subsection (b) have been met, the board may

approve the application and grant the applicant a manufacturer

license consistent with all of the following:

(1) (i) The license shall be valid for a period of five

years.

(ii) Nothing in this paragraph shall be construed to

relieve the licensee of the affirmative duty to notify

the board of a change relating to the status of its

license or to other information contained in application

materials on file with the board.

(2) The license shall be nontransferable.

(3) Other conditions established by the board.

(d) Renewal.--

20240SB1142PN1491 - 47 -

(1) At least six months prior to expiration of a

manufacturer license, the manufacturer licensee seeking

renewal of its license shall submit a renewal application

accompanied by the renewal fee to the board.

(2) If the renewal application satisfies the

requirements of subsection (b), the board may renew the

licensee's manufacturer license.

(3) If the board receives a complete renewal application

but fails to act upon the renewal application prior to the

expiration of the manufacturer license, the manufacturer

license shall continue in effect until acted upon by the

board.

(e) Authority.--A manufacturer or its designee, as licensed

by the board, may supply or repair a local gaming terminal,

redemption terminal or associated equipment manufactured by the

manufacturer, provided the manufacturer holds the appropriate

manufacturer license.

(f) Prohibitions.--

(1) No person may manufacture local gaming terminals,

redemption terminals or associated equipment for use within

this Commonwealth by a terminal operator licensee unless the

person has been issued the appropriate manufacturer license

under this section.

(2) No person issued a license under this section may

apply for or be issued a terminal operator license under

section 55 02 (relating to local gaming terminal operator

licenses) or an establishment license under section 5513

(relating to local gaming establishment licenses).

§ 55 09. Gaming service provider.

(a) Development of classification system.--The board shall

20240SB1142PN1491 - 48 -

develop a classification system governing the certification,

registration and regulation of gaming service providers and

individuals and entities associated with them. The

classification system shall be based upon the following:

(1) Whether the employees of the gaming service provider

will have access to the local gaming area or local gaming

terminals or redemption terminals prior to or after

installation.

(2) Whether the goods or services provided or to be

provided by the gaming service provider would impact the

integrity of local gaming terminals, redemption terminals or

the conduct of local gaming.

(b) Authority to exempt.--The board may exempt a person or

type of business from the requirements of this section if the

board determines:

(1) the person or type of business is regulated by an

agency of the Federal Government, an agency of the

Commonwealth or the Pennsylvania Supreme Court; or

(2) the regulation of the person or type of business is

determined not to be necessary in order to protect the public

interest or the integrity of gaming.

provider shall have a continuing duty to:

(1) Provide all information, documentation and

assurances as the board may require.

(2) Cooperate with the board in investigations, hearings

and enforcement and disciplinary actions.

(3) Comply with all conditions, restrictions,

requirements, orders and rulings of the board in accordance

with this part.

20240SB1142PN1491 - 49 -

(4) Report a change in circumstances that may render the

gaming service provider ineligible, unqualified or unsuitable

for continued registration or certification.

(d) (Reserved).

(e) Interim authorization.--The board or a designated

employee of the board may permit a gaming service provider

applicant to engage in business with an applicant for a terminal

operator license or a terminal operator licensee prior to

approval of the gaming service provider application if the

following criteria have been satisfied:

(1) A completed application has been filed with the

board by the gaming service provider.

(2) The terminal operator license applicant or terminal

operator licensee contracting or doing business with the

gaming service provider certifies that it has performed due

diligence on the gaming service provider and believes the

applicant meets the qualification to be a gaming service

provider under this section.

(3) The gaming service provider applicant agrees in

writing that the grant of interim authorization to conduct

business prior to board approval of the application does not

create a right to continue to engage in business if the board

determines that the applicant is not suitable or continued

authorization is not in the public interest.

(f) Construction.--Nothing in this section shall be

construed to prohibit the board from rescinding a grant of

interim authorization if, at any time, the suitability of the

person subject to interim authorization is at issue or if the

person fails to cooperate with the board, the bureau or an agent

of the board or bureau.

20240SB1142PN1491 - 50 -

(g) Gaming service provider lists.--

(1) The board shall:

(i) Develop and maintain a list of approved gaming

service providers authorized to provide goods or services

whether under a grant of interim or continued

authorization.

(ii) Develop and maintain a list of prohibited

gaming service providers.

(2) An applicant for a terminal operator license or a

terminal operator licensee may not enter into an agreement or

engage in business with a gaming service provider listed on

the prohibited gaming service provider list.

(h) Emergency authorization.--

(1) A terminal operator licensee may utilize a gaming

service provider that has not been approved by the board when

a threat to public health, welfare or safety exists or

circumstances outside the control of the terminal operator

licensee require immediate action to mitigate damage or loss

to the licensee's local gaming terminals.

(2) The board shall promulgate regulations to govern the

use of gaming service providers under emergency

circumstances. The regulations shall include a requirement

that the terminal operator licensee contact the board

immediately upon utilizing a gaming service provider that has

not been approved by the board.

(i) Criminal history record information.--If the

classification system developed by the board in accordance with

subsection (a) requires a gaming service provider or an

individual or entity associated with the gaming service provider

to submit to or provide the bureau with criminal history record

20240SB1142PN1491 - 51 -

information under 18 Pa.C.S. Ch. 91 (relating to criminal

history record information), the bureau shall notify a terminal

operator licensee that submitted a certification under

subsection (e)(2) whether the applicant has been convicted of a

felony or misdemeanor gambling offense.

§ 55 10. (Reserved).

§ 55 11. Alternative local gaming terminal operator licensing

standards.

(a) Determination.--

(1) The board may determine whether the licensing

standards of another jurisdiction within the United States in

which an applicant, its affiliate, intermediary, subsidiary

or holding company for a local gaming terminal operator

license is similarly licensed are comprehensive and thorough

and provide similar adequate safeguards as those required by

this part.

(2) If the board makes that determination, it may issue

a terminal operator license to an applicant who holds a

terminal operator license in the other jurisdiction after

conducting an evaluation of the information relating to the

applicant from the other jurisdiction, as updated by the

board, and evaluating other information related to the

applicant received from the other jurisdiction and other

jurisdictions where the applicant may be licensed, the board

may incorporate the information in whole or in part into the

board's evaluation of the applicant.

(b) Abbreviated process.--

(1) In the event an applicant for a terminal operator

license is licensed in another jurisdiction, the board may

determine to use an alternate process requiring only the

20240SB1142PN1491 - 52 -

information determined by the board to be necessary to

consider the issuance of a license, including financial

viability of the licensee, to the applicant.

(2) Nothing in this section shall be construed to waive

fees associated with obtaining a license through the normal

application process.

a terminal operator license under this part holds a slot machine

license under Part II (relating to gaming) or III (relating to

video gaming), the board shall use an abbreviated process

requiring only the information determined by the board to be

necessary to consider the issuance of a license, including

financial viability of the applicant.

§ 55 12. Alternative local gaming manufacturer licensing

standards.

(a) Determination.--

(1) The board may determine whether the licensing

standards of another jurisdiction within the United States in

which an applicant for a manufacturer license is similarly

licensed are comprehensive and thorough and provide similar

adequate safeguards as those required by this part.

(2) If the board makes that determination, it may issue

a manufacturer license to an applicant who holds a similar

manufacturer license in the other jurisdiction after

conducting an evaluation of the information relating to the

applicant from the other jurisdiction, as updated by the

board, and evaluating other information related to the

applicant received from the other jurisdiction and other

jurisdictions where the applicant may be licensed, the board

may incorporate the information in whole or in part into the

20240SB1142PN1491 - 53 -

board's evaluation of the applicant.

(b) Abbreviated process.--

(1) In the event an applicant for a manufacturer license

is licensed in another jurisdiction, the board may determine

to use an abbreviated process requiring only the information

determined by the board to be necessary to consider the

issuance of a license, including financial viability of the

applicant.

(2) Nothing in this section shall be construed to waive

fees associated with obtaining a license through the normal

application process.

a manufacturer license under this part holds a manufacturer

license under section 1317.1 (relating to manufacturer licenses)

or 3507 (relating to supplier licenses), the board may determine

to use an abbreviated process requiring only the information

determined by the board to be necessary to consider the issuance

of a license, including financial viability of the applicant.

§ 55 13. Local gaming establishment licenses.

(a) General requirements.--An eligible establishment that

submits an application for a local gaming establishment license

under this part shall include, at a minimum:

(1) The name, address and photograph of the applicant

and additional financial information required by the board.

(2) A description of the proposed surveillance and

security measures to ensure the security of the proposed

local gaming area.

(3) A current tax lien certificate issued by the

department.

(4) The criminal history record of the applicant,

20240SB1142PN1491 - 54 -

principal and key employees and a consent for the bureau to

conduct a background investigation on the applicant,

principals and key employees.

(5) Other information determined to be appropriate by

the board.

(b) Nontransferability.--A license issued under this section

shall be nontransferable.

license under this section shall continue to provide information

required by the board or the bureau and cooperate in any inquiry

or investigation.

(d) Review and approval.--Upon being satisfied that the

requirements of subsection (a) have been met, the board may

approve the application and issue the applicant a local gaming

establishment license consistent with all of the following:

(1) (i) The license shall be valid for a period of five

years.

(ii) Nothing in this paragraph shall be construed to

relieve a licensee of the affirmative duty to notify the

board of a change relating to the status of its license

or to information contained in application materials on

file with the board.

(2) The license shall be nontransferable.

(3) Other conditions established by the board.

(e) Renewal.--

(1) At least three months prior to expiration of an

establishment license, the establishment licensee seeking

renewal of its license shall submit a renewal application

accompanied by the renewal fee to the board.

(2) If the renewal application satisfies the

20240SB1142PN1491 - 55 -

requirements of subsection (d), the board may renew the

licensee's establishment license.

(3) If the board receives a complete renewal application

but fails to act upon the renewal application prior to the

expiration of the establishment license, the establishment

license shall continue in effect until acted upon by the

board.

(f) Eligibility requirements.--In order to be eligible for a

local gaming establishment license, an establishment must hold

an active club license, restaurant license, hotel license or

brewery pub license in compliance and in good standing with the

Pennsylvania Liquor Control Board, as determined in the sole

discretion of the board.

(g) Ineligible establishments.--The board may not issue an

establishment license to:

(1) a licensed facility under Part II (relating to

gaming); or

(2) a licensed truck stop establishment under Part III

(relating to video gaming).

§ 55 14. License or permit prohibition.

(a) Limitations on power of board.--

(1) The board shall be prohibited from granting a

license under this part to an applicant who has been

convicted of a felony offense in any jurisdiction.

(2) In addition to the prohibition under paragraph (1),

the board shall be prohibited from granting the following:

(i) A principal license or key employee license to

an individual who has been convicted in a jurisdiction of

a misdemeanor gambling offense, unless 15 years have

elapsed from the date of conviction for the offense.

20240SB1142PN1491 - 56 -

(ii) A license other than a principal license or key

employee license to an individual who has been convicted

in a jurisdiction of a misdemeanor gambling offense,

unless 15 years have elapsed from the date of conviction

for the offense.

(iii) An establishment license to an applicant who

has been convicted in a jurisdiction of a misdemeanor

gambling offense, unless 15 years have elapsed from the

date of conviction for the offense.

(3) Following the expiration of any prohibition period

applicable to an applicant under paragraph (2), in

determining whether to issue a license or permit, the board

shall consider the following factors:

(i) The nature and duties of the applicant's

position with the licensed entity.

(ii) The nature and seriousness of the offense or

conduct.

(iii) The circumstances under which the offense or

conduct occurred.

(iv) The age of the applicant when the offense or

conduct was committed.

(v) Whether the offense or conduct was an isolated

or a repeated incident.

(vi) Evidence of rehabilitation, including good

conduct in the community, counseling or psychiatric

treatment received and the recommendation of individuals

who have substantial contact with the applicant.

(b) Definition.--For purposes of this section, the term

"felony offense" means:

(1) an offense classified as a felony or punishable

20240SB1142PN1491 - 57 -

under the laws of this Commonwealth by imprisonment for more

than five years;

(2) an offense which, under the laws of another

jurisdiction, is:

(i) classified as a felony; or

(ii) punishable by imprisonment for more than five

years; or

(3) an offense under the laws of another jurisdiction

which, if committed in this Commonwealth, would be subject to

imprisonment for more than five years.

§ 55 15. Issuance and renewal.

(a) Issuance.--

(1) In addition to any other criteria provided under

this part, a terminal operator, eligible local gaming

establishment, manufacturer, gaming employee, gaming manager,

key employee, principal or other person that the board

approves as qualified to receive a license or other

authorization under this part shall be issued a license or

permit upon the payment of a fee required in section 6101

(relating to fees) and fulfillment of conditions required by

the board or provided for in this part.

(2) Nothing contained in this part is intended or shall

be construed to create an entitlement to a license or other

authorization by a person.

(b) Renewal.--

(1) A license issued under this part unless otherwise

provided shall be subject to renewal every five years.

(2) The application for renewal of a license, unless

otherwise provided, must be submitted at least 180 days prior

to the expiration of the permit or license and include an

20240SB1142PN1491 - 58 -

update of the information contained in the initial and any

prior renewal applications and the payment of any renewal fee

required under section 6101.

(3) Nothing in this subsection shall be construed to

relieve a licensee of the affirmative duty to notify the

board of a change relating to the status of its license or to

other information contained in the application materials on

file with the board.

(1) In addition to other sanctions the board may impose

under this part, the board may at its discretion suspend,

revoke or deny renewal of a license issued under this part if

it receives information from any source that the applicant or

any of its officers, directors, owners or key employees is in

violation of any provision of this part, that the applicant

has furnished the board with false or misleading information

or that the information contained in the applicant's initial

application or renewal application is no longer true and

correct such that the applicant is no longer eligible.

(2) In the event of a revocation or failure to renew,

the licensee's authorization to conduct the previously

approved activity shall immediately cease the activity and

all fees paid in connection with the license shall be

forfeited.

(3) In the event of a suspension, the applicant's

authorization to conduct the previously approved activity

shall immediately cease until the board has notified the

applicant that the suspension is no longer in effect.

(d) Nontransferability of licenses.--

(1) A license issued by the board is a grant of the

20240SB1142PN1491 - 59 -

privilege to conduct a business in this Commonwealth.

(2) Except as permitted by section 5516 (relating to

change in ownership or control of licensee), a license

granted or renewed under this part may not be sold,

transferred or assigned to another person.

(3) A licensee may not pledge or otherwise grant a

security interest in or lien on the license.

(4) The board has the sole discretion to issue, renew,

condition or deny the issuance of a license based upon the

requirements of this part.

§ 55 16. Change in ownership or control of licensee.

(a) Notification and approval.--

(1) A licensee shall promptly notify the board of a

proposed or contemplated change of ownership of the licensee

by a person or group of persons acting in concert that

involves any of the following:

(i) More than 5% of a licensee's securities or other

ownership interests.

(ii) More than 5% of the securities or other

ownership interests of a corporation or other form of

business entity that owns directly or indirectly at least

20% of the voting or other securities or other ownership

interests of the licensee.

(iii) The sale of all or substantially all of a

licensee's assets.

(iv) Other transaction or occurrence deemed by the

board to be relevant to license qualifications.

(2) (i) Notwithstanding the provisions of paragraph

(1), a licensee may not be required to notify the board

of an acquisition by an institutional investor under

20240SB1142PN1491 - 60 -

paragraph (1)(i) or (ii) if the institutional investor

holds less than 10% of the securities or other ownership

interests referred to in paragraph (1)(i) or (ii), the

securities or interests are publicly traded securities

and its holdings of the securities were purchased for

investment purposes only and the institutional investor

files with the board a certified statement to the effect

that it has no intention of influencing or affecting,

directly or indirectly, the affairs of the licensee,

provided, however, that it shall be permitted to vote on

matters put to the vote of the outstanding security

holders.

(ii) Notice to the board and board approval shall be

required prior to completion of a proposed or

contemplated change of ownership of a terminal operator

licensee that meets the criteria of this section.

(b) Qualification of purchaser of licensee; change of

control.--

(1) The purchaser of all or substantially all of the

assets of a licensee shall, if not already a licensee,

independently qualify for a license in accordance with this

part and shall pay the license fee as required by section

6101 (relating to fees).

(2) A change in control of a licensee shall require that

the licensee independently qualify for a license in

accordance with this part, and the licensee shall pay a new

license fee as required by section 6101, except as otherwise

required by the board under this section.

(3) The new license fee shall be paid upon the

assignment and actual change of control or ownership of the

20240SB1142PN1491 - 61 -

license.

(4) The transferee shall be eligible for a conditional

license if the transferee meets the requirements in section

5519 (relating to conditional licenses), pending final

approval.

eliminate the need for qualification or proportionately reduce,

but not eliminate, the new license fee otherwise required under

this section in connection with a change of control of a

licensee, depending upon the type of transaction, the relevant

ownership interests and changes to the interests resulting from

the transaction and other considerations deemed relevant by the

board.

(d) License revocation.--The board shall revoke or suspend a

license if the licensee fails to comply with this section,

unless the purchase of the assets or the change in control that

meets the criteria of this section has been independently

qualified in advance by the board and any required license fee

has been paid.

(e) Definition.--For purposes of this section, the term

"change in control of a licensee" means the acquisition by a

person or group of persons acting in concert of more than 20% of

a licensee's securities or other ownership interests, with the

exception of any ownership interest of the person that existed

at the time of initial licensing and payment of the initial

gaming terminal license fee, or more than 20% of the securities

or other ownership interests of a corporation or other form of

business entity that owns directly or indirectly at least 20% of

the voting or other securities or other ownership interests of

the licensee.

20240SB1142PN1491 - 62 -

§ 55 17. Local gaming terminal accounting controls and audits.

(a) Approval.--Except as otherwise provided by this part, an

applicant for a terminal operator license shall, in addition to

obtaining a terminal operator license, obtain approval from the

board in consultation with the department of its internal

control systems and audit protocols prior to the installation

and operation of local gaming terminals at licensed

establishments.

(b) Minimum requirements.--The applicant's proposed internal

controls and audit protocols shall, at a minimum:

(1) Safeguard its assets and revenues, including, but

not limited to, the recording of cash and cash equivalents

and evidences of indebtedness related to the local gaming

terminals.

(2) Provide for reliable records, accounts and reports

of a financial event that occurs in the operation of a local

gaming terminal, including reports to the board related to

the local gaming terminals.

(3) Ensure that each local gaming terminal directly

provides or communicates all required activities and

financial details to the central control computer system as

set by the board and the department.

(4) Provide for accurate and reliable financial records.

(5) Ensure that a financial event that occurs in the

operation of a local gaming terminal is performed only in

accordance with the management's general or specific

authorization, as approved by the board.

(6) Ensure that a financial event that occurs in the

operation of a local gaming terminal is recorded adequately

to permit proper and timely reporting of gross revenue and

20240SB1142PN1491 - 63 -

the calculation thereof and of fees and taxes and to maintain

accountability for assets.

(7) Ensure that access to assets is permitted only in

accordance with management's specific authorization, as

approved by the board.

(8) Ensure that recorded accountability for assets is

compared with actual assets at intervals as required by the

board and appropriate action is taken with respect to

discrepancies.

(9) Ensure that all functions, duties and

responsibilities are appropriately segregated and performed,

by competent, qualified personnel, in accordance with sound

financial practices.

(10) Meet any other requirement of the board or the

department.

board and department, in such manner as the board requires, a

description of its administrative and accounting procedures in

detail, including its written system of internal control. The

written system of internal control shall include:

(1) Records of direct and indirect ownership in the

proposed terminal operator licensee, its affiliate,

intermediary, subsidiary or holding company.

(2) An organizational chart depicting appropriate

segregation of employee functions and responsibilities.

(3) A description of the duties and responsibilities of

each employee position shown on the organizational chart.

(4) A detailed narrative description of the

administrative and accounting procedures designed to satisfy

the requirements of this section.

20240SB1142PN1491 - 64 -

(5) Record retention policy.

(6) Procedure to ensure that assets are safeguarded,

including mandatory count procedures.

(7) A statement signed by the chief financial officer of

the applicant or other competent person and the chief

executive officer of the terminal operator license applicant

or other competent person attesting that the officer

believes, in good faith, that the system satisfies the

requirements of this section.

(8) Other items that the board or department may require

in its discretion.

§ 5518 . Multiple licenses prohibited.

(a) Manufacturer restriction.--A manufacturer licensee may

not be licensed as an establishment or terminal operator and may

not own, manage or control an establishment licensee or terminal

operator licensee.

(b) Terminal operator restriction.--A terminal operator

licensee may not be licensed as an establishment or a

manufacturer and may not own, manage or control an establishment

licensee or a terminal operator licensee.

may not be licensed as a manufacturer or a terminal operator.

(d) Existing license.--Subject to subsections (a), (b) and

(c), nothing in this part shall be construed to prohibit a

person or entity that has been approved by the board for

licensure under Part II (relating to gaming) or III (relating to

video gaming) from applying for and receiving a license under

this part.

§ 55 19. Conditional licenses.

(a) Conditional establishment licenses.--

20240SB1142PN1491 - 65 -

(1) Within 90 days after the effective date of this

paragraph, the board shall make applications for local gaming

establishment licenses available to applicants.

(2) Within 90 days after receipt of a complete

application for a local gaming establishment license, the

board shall issue a conditional license to an applicant for

an establishment license if the applicant satisfies, as

determined by the board, all of the following criteria:

(i) The applicant has never been convicted of a

felony in any jurisdiction.

(ii) The applicant is current on all State taxes.

(iii) The applicant has submitted a completed

application for an establishment license in accordance

with this part, which may be submitted concurrently with

the applicant's request for a conditional license.

(iv) The applicant has never been convicted of a

gambling law violation in any jurisdiction.

(v) The applicant attests that it does not have any

unauthorized or illegal gambling devices at the premises

or elsewhere within its control.

(3) (i) The board shall issue a conditional license to

an applicant for an establishment license within 60 days

after the completed application has been received by the

board, provided that the board determines that the

criteria contained in paragraph (2) have been satisfied.

(ii) If the board determines that the criteria

contained in paragraph (2) have not been satisfied, the

board shall give a written explanation to the applicant

as to why it has determined the criteria have not been

satisfied.

20240SB1142PN1491 - 66 -

(4) A conditional license shall be valid until:

(i) the board either approves or denies the

applicant's application for licensure;

(ii) the conditional license is terminated for a

violation of this part; or

(iii) one calendar year has passed since the

conditional license was issued.

(5) The board may extend the duration of the conditional

license for one calendar year.

(6) An applicant must attest by way of affidavit under

penalty of perjury that the applicant is not otherwise

prohibited from licensure according to the requirements of

this section or any other provision of this part.

(7) A request for conditional licensure under this

subsection shall include payment of a $100 fee, which fee

shall be in addition to the applicable fee required under

section 6101 (relating to fees).

(b) Conditional terminal operator licenses.--

(1) Within 90 days after the effective date of this

paragraph, the board shall make applications for terminal

operator licenses available to applicants.

(2) The board shall issue a conditional license to an

applicant for a terminal operator license if the applicant

satisfies, as determined by the board, all of the following

criteria:

(i) The applicant has never been convicted of a

felony in any jurisdiction.

(ii) The applicant is current on all State taxes.

(iii) The applicant has submitted a completed

application for a terminal operator license which may be

20240SB1142PN1491 - 67 -

submitted concurrently with the applicant's request for a

conditional license.

(iv) The applicant has never had its terminal

operator license or similar gaming license denied or

revoked in another jurisdiction.

(v) The applicant has never been convicted of a

gambling law violation in any jurisdiction.

(3) (i) The board shall issue a conditional license to

an applicant for a terminal operator license within 90

days after the completed application has been received by

the board, provided that the board determines that the

criteria contained in paragraph (2) have been satisfied.

(ii) If the board determines that the criteria

contained in paragraph (2) have not been satisfied, the

board shall give a written explanation to the applicant

as to why it has determined the criteria have not been

satisfied.

(4) A conditional license shall be valid until:

(i) the board either approves or denies the

applicant's application for licensure;

(ii) the conditional license is terminated for a

violation of this part; or

(iii) one calendar year has passed since the

conditional license was issued.

(5) The board may extend the duration of the conditional

license for one calendar year.

(6) An applicant must attest by way of affidavit under

penalty of perjury that the applicant is not otherwise

prohibited from licensure according to the requirements of

this subsection or any other provision of this part.

20240SB1142PN1491 - 68 -

(7) A request for conditional licensure under this

subsection shall include payment of a $100 fee, which fee

shall be in addition to the applicable fee required under

section 6101.

(1) Within 90 days after the effective date of this

paragraph, the board shall make applications available for

manufacturer licenses.

(2) The board shall issue a conditional license to an

applicant for a manufacturer license if the applicant

satisfies, as determined by the board, all of the following

criteria:

(i) The applicant has never been convicted of a

felony.

(ii) The applicant is current on all State taxes.

(iii) The applicant has submitted a completed

application for a manufacturer or supplier license, which

may be submitted concurrently with the applicant's

request for a conditional license.

(iv) The applicant has never had its manufacturer or

similar gaming license denied or revoked in another

jurisdiction.

(v) The applicant has never been convicted of a

gambling law violation in any jurisdiction.

(3) (i) The board shall issue a conditional license to

an applicant for a manufacturer or supplier license

within 90 days after the completed application has been

received by the board, provided that the board determines

that the criteria contained in paragraph (2) have been

satisfied.

20240SB1142PN1491 - 69 -

(ii) If the board determines that the criteria

contained in paragraph (2) have not been satisfied, the

board shall give a written explanation to the applicant

as to why it has determined the criteria have not been

satisfied.

(4) A conditional license shall be valid until:

(i) the board either approves or denies the

applicant's application for licensure;

(ii) the conditional license is terminated for a

violation of this part; or

(iii) one calendar year has passed since the

conditional license was issued.

(5) The board may extend the duration of the conditional

license for one calendar year.

(6) An applicant shall attest by way of affidavit under

penalty of perjury that the applicant is not otherwise

prohibited from licensure according to the requirements of

this subsection or any other provision of this part.

(7) A request for a conditional license under this

subsection shall include payment of a $1,000 fee, which fee

shall be in addition to the applicable fee required under

section 6101.

(d) Other conditional licenses.--

(1) Within 90 days after the effective date of this

paragraph, the board shall make applications available for

any other license required under this part.

(2) The board shall issue a conditional license to an

applicant if the applicant satisfies, as determined by the

board, all of the following criteria:

(i) The applicant has never been convicted of a

20240SB1142PN1491 - 70 -

felony in any jurisdiction.

(ii) The applicant is current on all State taxes.

(iii) The applicant has submitted a completed

application for licensure, which may be submitted

concurrently with the applicant's request for a

conditional license.

(iv) The applicant has never been convicted of a

gambling law violation in any jurisdiction.

(3) (i) The board shall issue a conditional license to

an applicant within 60 days after the completed

application has been received by the board, provided that

the board determines that the criteria contained in

paragraph (2) have been satisfied.

(ii) If the board determines that the criteria

contained in paragraph (2) have not been satisfied, the

board shall give a written explanation to the applicant

as to why it has determined the criteria have not been

satisfied.

(4) A conditional license shall be valid until:

(i) the board either approves or denies the

applicant's application for licensure;

(ii) the conditional license is terminated for a

violation of this part; or

(iii) one calendar year has passed since the

conditional license was issued.

(5) The board may extend the duration of the conditional

license for one calendar year.

(6) An applicant must attest by way of affidavit under

penalty of perjury that the applicant is not otherwise

prohibited from licensure according to the requirements of

20240SB1142PN1491 - 71 -

this subsection or any other provision of this part.

(7) A request for conditional licensure under this

subsection shall include payment of a $100 fee, which fee

shall be in addition to the applicable fee required under

section 6101.

(e) Prioritization prohibited.--

(1) The board may not utilize the alternative licensing

standards for a terminal operator license or a manufacturer

license under section 55 11 (relating to alternative local

gaming terminal operator licensing standards), 55 12 (relating

to alternative local gaming manufacturer licensing standards)

or 5513 (relating to local gaming establishment licenses) to

prioritize the issuance of a terminal operator or

manufacturer license.

(2) The board shall ensure that applications made to the

board according to the alternative standards under sections

55 11, 55 12 and 55 13 are not approved or denied in a time

period that is less than the time period in which an

application for a conditional license is approved or denied

under this section.

(f) Incomplete applications.--If the board receives an

application that is incomplete, the board shall, within seven

days of receiving the incomplete application, notify the

applicant of additional information required by the board.

CHAPTER 57

OPERATION

Sec.

5701. Testing and certification of terminals.

5702. Local gaming limitations.

5703. (Reserved).

20240SB1142PN1491 - 72 -

5704. Terminal placement agreements.

5705. Duties of licensees.

5706. Compulsive and problem gambling.

§ 57 01. Testing and certification of terminals.

(a) General rule.--A local gaming terminal or redemption

terminal or associated equipment may not be made available for

use in this Commonwealth prior to being tested and certified by

the board in accordance with this section.

(b) Local gaming terminal specifications.--The board shall

test and certify whether a local gaming terminal meets the

following specifications:

(1) The local gaming terminal shall have the ability to

be linked to the central control computer.

(2) The local gaming terminal shall be marked with an

irremovable identification plate that is placed in a

conspicuous location on the exterior of the local gaming

terminal. The identification plate shall contain the name of

the manufacturer and the serial and model numbers of the

local gaming terminal.

(3) The local gaming terminal shall prominently display

the rules of play either on the local gaming terminal face or

screen.

(4) The local gaming terminal may not have the ability

to dispense cash, tokens or anything of value, except

redemption tickets which shall only be exchangeable for cash

at a redemption terminal or reinserted into another local

gaming terminal located in the same local gaming area as the

local gaming terminal.

(5) The cost of a credit shall only be 1¢, 5¢, 10¢ or

25¢.

20240SB1142PN1491 - 73 -

(6) The maximum wager per individual game shall not

exceed $5.

(7) The maximum prize per individual game shall not

exceed $1,000.

(8) The local gaming terminal shall be designed and

manufactured with total accountability to include gross

proceeds, net profits, winning percentages and other

information the board requires.

(9) The local gaming terminal shall pay out a minimum of

85% of the amount wagered.

(10) Other specifications the board requires.

test and certify whether a redemption terminal meets the

following specifications:

(1) The redemption terminal shall be marked with an

irremovable identification plate that is placed in a

conspicuous location on the exterior of the redemption

terminal. The identification plate shall contain the name of

the manufacturer and the serial and model numbers of the

redemption terminal.

(2) The redemption terminal shall only accept redemption

tickets from local gaming terminals located in the same local

gaming area.

(3) The redemption terminal shall be designed and

manufactured with total accountability to record information

the board requires.

(4) Other specifications the board requires.

(d) Use of other state standards.--

(1) The board may determine, in its discretion, whether

the local gaming terminal or redemption terminal testing and

20240SB1142PN1491 - 74 -

certification standards of another jurisdiction within the

United States in which a manufacturer licensee is licensed

are comprehensive and thorough and provide similar adequate

safeguards as those required by this part.

(2) If the board makes the determination under paragraph

(1), the board may permit a manufacturer licensee to deploy

the local gaming terminals or redemption terminals which have

met the local gaming terminal or redemption terminal testing

and certification standards in such other jurisdictions

without undergoing the full testing and certification process

by the board's testing facility.

(3) In the event local gaming terminals or redemption

terminals of a manufacturer licensee are licensed in the

other jurisdiction, the board may determine to use an

abbreviated process requiring only that information

determined by the board to be necessary to consider the

issuance of a local gaming terminal or redemption terminal

certification to the applicant.

(e) Private testing.--The board may, in its discretion, rely

upon the certification of a local gaming terminal or redemption

terminal that has met the testing and certification standards of

one or more board-approved independent private testing and

certification facilities.

(f) Testing and certification fee.--

(1) A fee for the testing and certification of a local

gaming terminal or redemption terminal shall be paid by the

manufacturer licensee submitting the terminal. The fee shall

be an amount established by the board according to a schedule

adopted by the board.

(2) Fees established by the board shall be exempt from

20240SB1142PN1491 - 75 -

any fee limitation contained in section 6101 (relating to

fees).

(g) Central control computer compatibility.--The board shall

ensure that all local gaming terminals certified and approved

for use in this Commonwealth are compatible and comply with the

central control computer and protocol specifications approved by

the department.

§ 57 02. Local gaming limitations.

(a) Establishment licensee limitations.--A local gaming

establishment licensee may offer local gaming terminals for play

within its premises, subject to the following:

(1) No more than three local gaming terminals may be

placed on the premises of a licensed establishment that holds

an active restaurant liquor license , hotel liquor license,

brewery liquor license, limited distillery liquor license,

limited winery liquor license or brewery pub license that is

in good standing with the Pennsylvania Liquor Control Board.

(1.1) No more than five local gaming terminals may be

placed on the premises of a licensed establishment that holds

an active club liquor license that is in good standing with

the Pennsylvania Liquor Control Board.

(2) Redemption tickets shall only be exchanged for cash

through a redemption terminal or reinserted into another

local gaming terminal in the same local gaming area or as

otherwise authorized by the board in the event of a failure

or malfunction in a redemption terminal, and at least one

redemption terminal shall be located in the local gaming

area.

(3) Local gaming terminals located on the premises of

the establishment licensee shall be placed and operated by a

20240SB1142PN1491 - 76 -

terminal operator licensee in accordance with a terminal

placement agreement executed on or after the effective date

of this paragraph.

(4) A local gaming terminal may not be located in an

area that is not properly segregated from minors.

(5) A local gaming terminal shall be secure and visible

by employees of the establishment licensee at all times.

(6) The local gaming area shall at all times be

monitored by an employee of the establishment licensee,

either directly or through live monitoring of video

surveillance. The employee monitor must be at least 18 years

of age and have completed the mandatory training program

required in section 5706 (relating to compulsive and problem

gambling).

(7) An establishment licensee may not provide an

incentive.

(8) A minor may not be permitted to play a local gaming

terminal or enter the local gaming area.

(9) A visibly intoxicated person may not be permitted to

play a local gaming terminal.

(10) An establishment licensee may not extend credit or

accept a credit card or debit card for play of a local gaming

terminal.

(11) An establishment licensee may not make structural

alterations or significant renovations to a local gaming area

unless the establishment licensee has notified the terminal

operator licensee and obtained prior approval from the board.

(12) An establishment licensee may not move or

disconnect a local gaming terminal or redemption terminal

after installation by a terminal operator licensee.

20240SB1142PN1491 - 77 -

(13) An eligible establishment located within 15 linear

miles of the licensed facility of a Category 1, Category 2,

Category 3 or Category 4 slot machine licensee located in a

county other than a county of the first class, second class

or second class A may not enter into a terminal operator

agreement or place or operate local gaming terminals.

(14) An eligible establishment located within one linear

mile of the licensed facility of a Category 2 slot machine

licensee located in a county of the first class or second

class may not enter into a terminal operator agreement or

place or operate local gaming terminals.

(15) An eligible establishment located within five

linear miles of the licensed facility of a Category 1,

Category 2, Category 3 or Category 4 slot machine licensee

located in a county of the second class A may not enter into

a terminal operator agreement or place or operate local

gaming terminals.

(16) Notwithstanding paragraph (13), an eligible

establishment located within 15 linear miles of the licensed

facility of a Category 1, Category 2, Category 3 or Category

4 slot machine licensee located in a county other than a

county of the first class, second class or second class A may

enter into a terminal operator agreement with a slot machine

licensee or its designee that has been approved by the board

as a terminal operator licensee to place and operate local

gaming terminals.

(17) Notwithstanding paragraph (14), an eligible

establishment located within one linear mile of the licensed

facility of a Category 2 slot machine licensee located in a

county of the first class or second class may enter into a

20240SB1142PN1491 - 78 -

terminal operator agreement with a slot machine licensee or

its designee that has been approved by the board as a

terminal operator licensee to place and operate local gaming

terminals.

(18) Notwithstanding paragraph (15), an eligible

establishment located within five linear miles of the

licensed facility of a Category 1, Category 2, Category 3 or

Category 4 slot machine licensee located in a county of the

second class A may enter into a terminal operator agreement

with a slot machine licensee or its designee that has been

approved by the board as a terminal operator licensee to

place and operate local gaming terminals.

(19) Notwithstanding any other provision of this

subsection to the contrary, if a slot machine licensee or its

designee does not offer an eligible establishment described

in paragraph (13), (14) or (15) the opportunity to enter into

a terminal operator agreement to place and operate local

gaming terminals within one year from the effective date of

this section, the eligible establishment may enter into a

terminal operator agreement with a licensed terminal operator

that is not a slot machine licensee or its designee.

(b) Terminal operator licensee limitations.--A terminal

operator licensee may place and operate local gaming terminals

on the premises of an establishment licensee, subject to the

following:

(1) No more than three local gaming terminals may be

placed on the premises of the establishment licensee that

holds an active restaurant, hotel, brewery, limited

distillery, limited winery or brewery pub liquor license that

is in good standing with the Pennsylvania Liquor Control

20240SB1142PN1491 - 79 -

Board.

(1.1) No more than five local gaming terminals may be

placed on the premises of the establishment licensee that

holds a club liquor license from the Pennsylvania Liquor

Control Board.

(2) Redemption tickets shall only be exchanged for cash

through a redemption terminal located within the same local

gaming area or reinserted into another local gaming terminal

located in the same local gaming area as the local gaming

terminal.

(3) Local gaming terminals located on the premises of

the establishment licensee shall be placed and operated in

accordance with a terminal placement agreement.

(4) A terminal operator licensee may not provide an

incentive.

(5) A terminal operator licensee may not extend credit

or accept a credit card or debit card for play of a local

gaming terminal.

(6) A terminal operator licensee may not give or offer

to give, directly or indirectly, any type of inducement to a

local gaming establishment to secure or maintain a terminal

placement agreement.

(7) A terminal operator licensee may not give an

establishment licensee a percentage of net terminal revenue

other than 45% of the net terminal revenue of the local

gaming terminals operating in the establishment licensee's

premises.

(8) A terminal operator licensee may only operate,

install or otherwise make available for public use a local

gaming terminal or redemption terminal that has been obtained

20240SB1142PN1491 - 80 -

from a manufacturer licensee or supplier licensee.

(9) A terminal operator licensee may not make structural

alterations or significant renovations to a local gaming area

unless the terminal operator licensee has notified the

establishment licensee and obtained prior approval from the

board.

(10) A terminal operator licensee may not move a local

gaming terminal or redemption terminal after installation

unless prior approval is obtained from the board.

§ 57 03. (Reserved).

§ 57 04. Terminal placement agreements.

(a) General rule.--A terminal operator licensee may not

place and operate local gaming terminals on the premises of an

establishment licensee unless in accordance with a terminal

placement agreement approved by the board and executed after the

effective date of this subsection. Approval shall be presented

upon connection of one or more local gaming terminals at the

establishment licensee to the central control computer.

(b) Form of agreement.--The board shall establish through

regulation minimum standards for terminal placement agreements.

shall be valid for a minimum 60-month term and not exceed a 120-

month term.

(d) Provisions required.--A terminal placement agreement

shall include a provision that:

(1) Renders the agreement invalid if either the terminal

operator license or terminal operator application or the

establishment license or establishment licensee application

is denied, revoked, not renewed, withdrawn or surrendered.

(2) Provides the establishment licensee no more or less

20240SB1142PN1491 - 81 -

than 45% of net terminal revenue from each local gaming

terminal located on the premises of the establishment

licensee.

(3) Provides the terminal operator licensee no more or

less than 55% of net terminal revenue from each local gaming

terminal placed at a licensed establishment.

(4) Identifies the procurement agent who solicited the

terminal placement agreement on behalf of a terminal operator

licensee or applicant.

(e) Parties to agreement.--Only an eligible establishment or

establishment licensee may sign or agree to sign a terminal

placement agreement with an applicant for a terminal operator

license or a terminal operator licensee.

(f) Void agreements.--An agreement entered into by an

eligible establishment prior to the effective date of this

subsection with a person or entity for the placement, operation,

service or maintenance of local gaming terminals, including an

agreement granting a person or entity the right to enter into an

agreement or match any offer made after the effective date of

this subsection shall be void and may not be approved by the

board.

(g) Transferability of agreements.--A terminal placement

agreement may not be transferred or assigned unless the

individual or entity making the assignment is either a terminal

operator applicant or terminal operator licensee and the

individual or entity receiving the assignment of the terminal

placement agreement is either a terminal operator applicant or

terminal operator licensee under this chapter.

§ 57 05. Duties of licensees.

A person issued a license shall:

20240SB1142PN1491 - 82 -

(1) Provide assistance or information required by the

board, the bureau, the department or the Pennsylvania State

Police, and to cooperate in inquiries, investigations and

hearings.

(2) Consent to inspections, searches and seizures.

(3) Inform the board of actions that the person believes

would constitute a violation of this part.

(4) Inform the board of arrests for violations of

offenses enumerated under 18 Pa.C.S. (relating to crimes and

offenses).

(5) Report illegal or unlicensed games or devices to the

board.

§ 57 06. Compulsive and problem gambling.

(a) Required posting.--

(1) An establishment licensee shall conspicuously post

signs similar to the following statement:

If you or someone you know has a gambling problem,

help is available. Call (Toll-free telephone number)

or Text (Toll-free telephone number).

(2) At least one sign shall be posted within the local

gaming area and at least one sign shall be posted within five

feet of each automated teller machine located within the

establishment licensee's premises, if applicable.

(b) Toll-free telephone number.--The toll-free telephone

number required to be posted under subsection (a) shall be the

same number maintained by the Department of Drug and Alcohol

Programs or successor agency under section 5310 (relating to

Department of Drug and Alcohol Programs or successor agency).

(1) An establishment licensee shall have available on

20240SB1142PN1491 - 83 -

its premises access to materials regarding compulsive and

problem gambling assistance.

(2) The available materials required by paragraph (1)

shall be a uniform, Statewide handout developed by the board

in consultation with the Department of Drug and Alcohol

Programs or successor agency.

(3) The available materials required by paragraph (1)

shall be displayed conspicuously at least within the local

gaming area.

(d) Mandatory training.--

(1) The board's Office of Compulsive and Problem

Gambling, in consultation with the Department of Drug and

Alcohol Programs or successor agency, shall develop a

mandatory training program for employees and management of an

establishment licensee. The training program shall address

responsible gaming and other compulsive and problem gambling

issues related to local gaming terminals.

(2) The board shall establish a fee to cover the cost of

the mandatory training program.

(e) Penalty.-- An establishment licensee that fails to

fulfill the requirements of subsection (a), (b), (c) or (d)

shall be assessed by the board an administrative penalty in an

amount established by the board in its discretion and may have

its establishment license suspended depending on the severity

and length of noncompliance.

CHAPTER 59

ENFORCEMENT

Sec.

5901. Exclusion or ejection of certain persons.

5902. Repeat offenders.

20240SB1142PN1491 - 84 -

5903. Self-exclusion.

5904. Investigations and enforcement.

5905. Prohibited acts and penalties.

5906. Report of suspicious transactions.

5907. Additional authority.

5908. Detention.

§ 59 01. Exclusion or ejection of certain persons.

(a) General rule.--The board shall by regulation provide for

the establishment of a list of persons who are to be excluded or

ejected from the local gaming area of an establishment licensee.

The provisions shall define the standards for exclusion and

shall include standards relating to persons who are career or

professional offenders as defined by regulations of the board or

whose presence in a local gaming area would, in the opinion of

the board, be inimical to the interest of the Commonwealth or of

licensed local gaming in this Commonwealth, or both.

(b) Categories to be defined.--The board shall promulgate

definitions establishing categories of persons who shall be

excluded or ejected in accordance with this section, including

cheats and persons whose privileges for licensure,

certification, permit or registration have been revoked.

origin or ancestry or sex shall not be a reason for placing the

name of a person upon a list under this section.

(d) Prevention of access.--The board shall, in consultation

with terminal operator licensees and establishment licensees,

develop policies and procedures to reasonably prevent persons on

the list required by this section from entering a local gaming

area.

(e) Sanctions.--The board may impose sanctions upon an

20240SB1142PN1491 - 85 -

establishment licensee in accordance with this part if the

establishment licensee knowingly fails to implement the policies

and procedures established by the board under subsection (d).

(f) List not all-inclusive.--A list compiled by the board

under this section shall not be deemed an all-inclusive list,

and an establishment licensee shall keep from the local gaming

area persons known to the establishment licensee to be within

the classifications declared in this section and the regulations

promulgated under this section whose presence in a local gaming

area would be inimical to the interest of the Commonwealth or of

licensed local gaming in this Commonwealth, or both, as defined

in standards established by the board.

(g) Notice.--If the bureau decides to place the name of a

person on a list under this section, the bureau shall serve

notice of the decision to the person by personal service or

certified mail at the last known address of the person. The

notice shall inform the person of the right to request a hearing

under subsection (h).

(h) Hearing.--

(1) Within 30 days after receipt of notice in accordance

with subsection (g), the person named for exclusion or

ejection may demand a hearing before the board, at which

hearing the bureau must demonstrate that the person named for

exclusion or ejection satisfies the criteria for exclusion or

ejection established by this section and the board's

regulations.

(2) Failure of the person to demand a hearing within 30

days after service shall be deemed an admission of all

matters and facts alleged in the bureau's notice and shall

preclude the person from having an administrative hearing,

20240SB1142PN1491 - 86 -

but shall in no way affect the right to judicial review as

provided in this section.

(i) Review.--

(1) If, upon completion of a hearing on the notice of

exclusion or ejection, the board determines that placement of

the name of the person on the exclusion or ejection list is

appropriate, the board shall make and enter an order to that

effect.

(2) The order shall be subject to review by Commonwealth

Court in accordance with the rules of court.

§ 59 02. Repeat offenders.

(a) Discretion to exclude or eject.--An establishment

licensee may exclude or eject from the establishment licensee's

local gaming area or premises a person who is known to the

establishment licensee to have been convicted of a misdemeanor

or felony committed in or on the premises of a licensed

establishment.

(b) Construction.--Nothing in this section or in any other

law of this Commonwealth shall be construed to limit the right

of an establishment licensee to exercise its common law right to

exclude or eject permanently from its local gaming area or

premises a person who:

(1) disrupts the operations of its premises;

(2) threatens the security of its premises or its

occupants; or

(3) is disorderly or intoxicated.

§ 59 03. Self-exclusion.

(a) Establishment of list.--

(1) The board shall provide by regulation for the

establishment of a list of persons self-excluded from local

20240SB1142PN1491 - 87 -

gaming activities within specific establishment licensees or

establishment licensees in geographic areas of this

Commonwealth.

(2) A person may request placement on the list of self-

excluded persons by:

(i) acknowledging in a manner to be established by

the board that the person is a problem gambler;

(ii) agreeing that, during any period of voluntary

exclusion, the person may not collect any winnings or

recover any losses resulting from any local gaming

activity within establishment licensees and that person

may be subject to arrest for trespass; and

(iii) agreeing to another condition established by

the board.

(b) Regulations.--The regulations of the board shall

establish:

(1) Procedures for placement on and removal from the

list of a self-excluded person.

(2) Procedures for the transmittal to establishment

licensees of identifying information concerning a self-

excluded person and shall require establishment licensees to

establish reasonable procedures designed at a minimum to

prevent entry of a self-excluded person into the local gaming

area of an establishment licensee, provided that the board

may not require local gaming terminals to be equipped with

identification card-reading devices or require establishment

licensees to purchase identification card-reading devices.

(3) Procedures for the transmittal to terminal operator

licensees of identifying information concerning a self-

excluded person and shall require terminal operator licensees

20240SB1142PN1491 - 88 -

to establish procedures to remove self-excluded persons from

customer loyalty or reward card programs and targeted

mailings or other forms of advertising or promotions.

establishment licensee shall not be liable to a self-excluded

person or to another party in a judicial proceeding for harm,

monetary or otherwise, which may arise as a result of:

(1) the failure of the establishment licensee to

withhold local gaming privileges from or restore local gaming

privileges to the self-excluded person; or

(2) otherwise permitting or not permitting the self-

excluded person to engage in local gaming activity within the

establishment licensee's premises while on the list of self-

excluded persons.

(d) Nondisclosure.--Notwithstanding any other law to the

contrary, the board's list of self-excluded persons shall not be

open to public inspection.

§ 59 04. Investigations and enforcement.

(a) Powers and duties of bureau.--The bureau shall have the

following powers and duties:

(1) Enforce the provisions of this part.

(2) Investigate and review applicants and applications

for a license or registration. The bureau shall be prohibited

from disclosing any portion of a background investigation

report to a member of the board prior to the submission of

the bureau's final background investigation report relating

to the applicant's suitability for licensure to the board.

The Office of Enforcement Counsel, on behalf of the bureau,

shall prepare the final background investigation report for

inclusion in a final report relating to the applicant's

20240SB1142PN1491 - 89 -

suitability for licensure.

(3) Investigate licensees, registrants and other persons

regulated by the board under this part for noncriminal

violations of this part, including potential violations

referred to the bureau by the board or other person.

(4) Monitor local gaming operations to ensure compliance

with this part.

(5) Inspect and examine licensed entities. Inspections

may include the review and reproduction of documents or

records.

(6) Conduct reviews of a licensed entity as necessary to

ensure compliance with this part. A review may include the

review of accounting, administrative and financial records,

management control systems, procedures and other records

utilized by a licensed entity.

(7) Refer possible criminal violations of this title or

18 Pa.C.S. (relating to crimes and offenses) to the

Pennsylvania State Police. The bureau shall not have the

power of arrest.

(8) Cooperate in the investigation and prosecution of

criminal violations related to this part or 18 Pa.C.S.

(9) Be a criminal justice agency under 18 Pa.C.S. Ch. 91

(relating to criminal history record information).

(b) Office of Enforcement Counsel.--The board's Office of

Enforcement Counsel shall act as the prosecutor in all

noncriminal enforcement actions initiated by the bureau under

this part and shall have the following powers and duties:

(1) Advise the bureau on all matters, including the

granting of licenses or registrations, the conduct of

background investigations, audits and inspections and the

20240SB1142PN1491 - 90 -

investigation of potential violations of this part and the

referral of criminal violations of 18 Pa.C.S. or this title

to the Pennsylvania State Police.

(2) File on behalf of the bureau recommendations and

objections relating to the issuance of licenses and

registrations.

(3) Initiate, in its sole discretion, proceedings for

noncriminal violations of this part by filing a complaint or

other pleading with the board.

(1) The department shall at all times have the power of

access to examine and audit equipment and records relating to

all aspects of the operation of local gaming terminals and

redemption terminals under this part.

(2) Notwithstanding the provisions of section 353(f) of

the act of March 4, 1971 (P.L.6, No.2), known as the Tax

Reform Code of 1971, the department shall supply the board,

the bureau, the Pennsylvania State Police and the Office of

Attorney General with information concerning the status of

delinquent taxes owed by applicants or licensees.

(d) Powers and duties of Pennsylvania State Police.--The

Pennsylvania State Police shall have the following powers and

duties:

(1) Promptly conduct background investigations on

persons as directed by the board under this part. The

Pennsylvania State Police may contract with other law

enforcement annuitants to assist in the conduct of

investigations under this paragraph.

(2) Initiate proceedings for criminal violations of this

part or 18 Pa.C.S.

20240SB1142PN1491 - 91 -

(3) Provide the board with all information necessary for

all actions under this part for all proceedings involving

criminal enforcement of this part.

(4) Inspect, when appropriate, a licensee's person and

personal effects present within an establishment licensee's

premises under this part while that licensee is present.

(5) Enforce the criminal provisions of this part and all

other criminal laws of this Commonwealth.

(6) Fingerprint applicants.

(7) Exchange fingerprint data with and receive national

criminal history record information from the Federal Bureau

of Investigation for use in background investigations

performed by the bureau under this part.

(8) Receive and take appropriate action on any referral

relating to criminal conduct in violation of this title or 18

Pa.C.S.

(9) Conduct administrative inspections on the premises

of an establishment licensee at such times, under such

circumstances and to such extent as the bureau determines to

ensure compliance with this part and the regulations of the

board and, in the course of inspections, review and make

copies of all documents and records required by the

inspection through onsite observation and other reasonable

means to ensure compliance with this part and regulations

promulgated under this part.

(10) Conduct audits or verification of information of

local gaming terminal operations at such times, under such

circumstances and to such extent as the bureau determines.

This paragraph includes the review of accounting,

administrative and financial records and management control

20240SB1142PN1491 - 92 -

systems, procedures and records utilized by a terminal

operator licensee.

(11) Assign members of the Pennsylvania State Police to

duties of enforcement under this part. The assigned members

shall not be counted toward the complement as provided in

section 205 of the act of April 9, 1929 (P.L.177, No.175),

known as The Administrative Code of 1929.

(12) Report to the General Assembly. By March 1 of each

year, the Commissioner of Pennsylvania State Police shall

submit a report to the Appropriations Committee of the

Senate, the Appropriations Committee of the House of

Representatives, the Community, Economic and Recreational

Development Committee of the Senate and the Gaming Oversight

Committee of the House of Representatives. The report shall

summarize all law enforcement activities at each

establishment licensee during the previous calendar year and

shall include all of the following:

(i) The number of arrests made and citations issued

at each licensed establishment and unlicensed

establishment and the name of the law enforcement agency

making the arrests or issuing the citations.

(ii) A list of specific offenses charged for each

arrest made or citation issued.

(iii) The number of criminal prosecutions resulting

from arrests made or citations issued.

(iv) The number of convictions resulting from

prosecutions reported under subparagraph (iii).

(13) Report violations of this part to the bureau that

are found during the normal course of duties required under

any law of this Commonwealth.

20240SB1142PN1491 - 93 -

(e) Powers and duties of Attorney General.--The Gaming Unit

within the Office of Attorney General shall investigate and

institute criminal proceedings as authorized under subsection

(f).

(f) Criminal action.--

(1) The district attorneys of the several counties shall

have authority to investigate and institute criminal

proceedings for a violation of this part, 18 Pa.C.S. or any

other law of this Commonwealth.

(2) In addition to the authority conferred upon the

Attorney General under the act of October 15, 1980 (P.L.950,

No.164), known as the Commonwealth Attorneys Act, the

Attorney General shall have the authority to investigate and,

following consultation with the appropriate district

attorney, institute criminal proceedings for a violation of

this part.

(3) A person charged with a violation of this part by

the Attorney General shall not have standing to challenge the

authority of the Attorney General to investigate or prosecute

the case, and, if any such challenge is made, the challenge

shall be dismissed and no relief shall be available in the

courts of this Commonwealth to the person making the

challenge.

(g) Regulatory action.--Nothing contained in subsection (e)

shall be construed to limit the existing regulatory or

investigative authority of an agency or the Commonwealth whose

functions relate to persons or matters within the scope of this

part.

(h) Inspection, seizure and warrants.--

(1) The board, the bureau, the department and the

20240SB1142PN1491 - 94 -

Pennsylvania State Police shall have the authority without

notice and without warrant to do all of the following in the

performance of their duties under this part:

(i) Inspect and examine all premises where local

gaming operations are conducted, where local gaming

terminals, redemption terminals and associated equipment

are manufactured, sold, distributed or serviced or where

records of these activities are prepared or maintained.

(ii) Inspect all equipment and supplies in, about,

upon or around premises referred to in subparagraph (i).

(iii) Seize, summarily remove and impound equipment

and supplies from premises referred to in subparagraph

(i) for the purposes of examination and inspection.

(iv) Inspect, examine and audit all books, records

and documents pertaining to a terminal operator

licensee's local gaming operation.

(v) Seize, impound or assume physical control of any

book, record, ledger or device related to local gaming

operations or the local gaming terminals or redemption

terminals.

(2) The provisions of paragraph (1) shall not be

construed to limit warrantless inspections except in

accordance with constitutional requirements.

(3) To further effectuate the purposes of this part, the

bureau and the Pennsylvania State Police may obtain

administrative warrants for the inspection and seizure of

property possessed, controlled, bailed or otherwise held by

an applicant, licensee, intermediary, subsidiary, affiliate

or holding company.

(i) Information sharing and enforcement referral.--With

20240SB1142PN1491 - 95 -

respect to the administration, supervision and enforcement of

this part, the bureau, the department, the Pennsylvania State

Police or the Office of Attorney General may obtain or provide

pertinent information regarding applicants or licensees from or

to law enforcement entities or gaming authorities of the

Commonwealth and other domestic, foreign or federally approved

jurisdictions, including the Federal Bureau of Investigation,

and may transmit the information to each other electronically.

§ 59 05. Prohibited acts and penalties.

(a) Criminal offenses.--

(1) The provisions of 18 Pa.C.S. § 4902 (relating to

perjury), 4903 (relating to false swearing) or 4904 (relating

to unsworn falsification to authorities) shall apply to a

person providing information or making a statement, whether

written or oral, to the board, the bureau, the department,

the Pennsylvania State Police or the Office of Attorney

General, as required by this part.

(2) It shall be unlawful for a person to willfully:

(i) fail to report, pay or truthfully account for

and pay over a license fee, authorization fee, tax or

assessment imposed under this part; or

(ii) attempt in any manner to evade or defeat a

license fee, authorization fee, tax or assessment imposed

under this part.

(3) It shall be unlawful for a licensed entity, key

employee or any other person to permit a local gaming

terminal to be operated, transported, repaired or opened on

the premises of an establishment licensee by a person other

than a person licensed or permitted by the board under this

part.

20240SB1142PN1491 - 96 -

(4) In accordance with 18 Pa.C.S. § 5513 (relating to

gambling devices, gambling, etc.), it shall be unlawful for a

licensed entity or other person to manufacture, supply or

place any illegal gambling device or any local gaming

terminal, redemption terminal or associated equipment into

play or display local gaming terminal, redemption terminal or

associated equipment on the premises of an establishment

without the authority of the board.

(5) It shall be unlawful for a licensed entity or other

person to manufacture, supply, operate, carry on or expose

for play an illegal gambling device or local gaming terminal

or associated equipment after the person's license has

expired or failed to be renewed in accordance with this part.

(6) It shall be unlawful for an individual while on the

premises of an establishment licensee to knowingly use

currency other than lawful coin or legal tender of the United

States or a coin not of the same denomination as the coin

intended to be used in the local gaming terminal or use a

counterfeit or altered redemption ticket with the intent to

cheat or defraud a terminal operator licensee or the

Commonwealth or damage the local gaming terminal or

redemption terminal.

(7) (i) Except as provided in subparagraph (ii), it

shall be unlawful for an individual to use or possess a

cheating or thieving device, counterfeit or altered

billet, ticket, token or similar object accepted by a

local gaming terminal or counterfeit or altered

redemption ticket on the premises of an establishment

licensee.

(ii) An authorized employee of a licensee or an

20240SB1142PN1491 - 97 -

employee of the board may possess and use a cheating or

thieving device, counterfeit or altered billet, ticket,

token or similar object accepted by a local gaming

terminal or counterfeit or altered redemption ticket in

performance of the duties of employment.

(8) (i) Except as provided in subparagraph (ii), it

shall be unlawful for an individual to knowingly possess

or use while on the premises of an establishment licensee

a key or device designed for the purpose of and suitable

for opening or entering a local gaming terminal or

redemption terminal that is located on the premises of

the establishment licensee.

(ii) An authorized employee of a licensee or a

member of the board may possess and use a device referred

to in subparagraph (i) in the performance of the duties

of employment.

(9) It shall be unlawful for a person or licensed entity

to possess a device, equipment or material which the person

or licensed entity knows has been manufactured, distributed,

sold, tampered with or serviced in violation of this part

with the intent to use the device, equipment or material as

though it had been manufactured, distributed, sold, tampered

with or serviced under this part.

(10) It shall be unlawful for a person to sell, offer

for sale, represent or pass off as lawful any device,

equipment or material that the person or licensed entity

knows has been manufactured, distributed, sold, tampered with

or serviced in violation of this part.

(11) It shall be unlawful for an individual to work or

be employed in a position the duties of which would require

20240SB1142PN1491 - 98 -

licensing under this part without first obtaining the

requisite license issued under this part.

(12) It shall be unlawful for a licensed entity to

employ or continue to employ an individual in a position the

duties of which require a license under this part if the

individual:

(i) Is not licensed under this part.

(ii) Is prohibited from accepting employment from a

licensee.

(13) It shall be unlawful for a minor to enter and

remain in a local gaming area, except that an individual at

least 18 years of age employed by a terminal operator

licensee, a gaming service provider, an establishment

licensee, the board or another regulatory or emergency

response agency may enter and remain in the area while

engaged in the performance of the individual's employment

duties.

(14) It shall be unlawful for a minor to wager, play or

attempt to play a local gaming terminal or submit a

redemption ticket into a redemption terminal.

(15) It shall be unlawful for a terminal operator

licensee to require a local gaming terminal wager to be

greater than the stated minimum wager or greater than the

stated maximum wager.

(16) An individual who engages in conduct prohibited by

18 Pa.C.S. § 6308 (relating to purchase, consumption,

possession or transportation of liquor or malt or brewed

beverages) on the premises of an establishment licensee

commits a nongambling offense.

(17) It shall be unlawful for an individual to claim,

20240SB1142PN1491 - 99 -

collect or take, or attempt to claim, collect or take, money

or anything of value in or from a local gaming terminal or

redemption terminal with the intent to defraud, or to claim,

collect or take an amount greater than the amount won, or to

manipulate with the intent to cheat, a component of a local

gaming terminal or redemption terminal in a manner contrary

to the designed and normal operational purpose.

(b) Criminal penalties and fines.--

(1) (i) A person that commits a first offense in

violation of 18 Pa.C.S. § 4902, 4903 or 4904 in

connection with providing information or making a

statement, whether written or oral, to the board, the

bureau, the department, the Pennsylvania State Police,

the Office of Attorney General or a district attorney as

required by this part commits an offense to be graded in

accordance with the applicable section violated. A person

that is convicted of a second or subsequent violation of

18 Pa.C.S. § 4902, 4903 or 4904 in connection with

providing information or making any statement, whether

written or oral, to the board, the bureau, the

department, the Pennsylvania State Police, the Office of

Attorney General or a district attorney as required by

this part commits a felony of the second degree.

(ii) A person that violates subsection (a)(2), (3),

(4), (5), (6), (7), (8), (9), (10), (11), (12) or (17)

commits a misdemeanor of the first degree. A person that

is convicted of a second or subsequent violation of

subsection (a)(2), (3), (4), (5), (6), (7), (8), (9),

(10), (11), (12) or (17) commits a felony of the second

degree.

20240SB1142PN1491 - 100 -

(2) (i) For a first violation of subsection (a)(1),

(2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12)

or (17), a person shall be sentenced to pay a fine of:

(A) not less than $75,000 nor more than $150,000

if the person is an individual or establishment

licensee;

(B) not less than $300,000 nor more than

$600,000 if the person is a terminal operator

licensee; or

$300,000 if the person is a licensed manufacturer or

supplier.

(ii) For a second or subsequent violation of

subsection (a)(1), (2), (3), (4), (5), (6), (7), (8),

(9), (10), (11), (12) or (17), a person shall be

sentenced to pay a fine of:

(A) not less than $150,000 nor more than

$300,000 if the person is an individual or

establishment licensee;

(B) not less than $600,000 nor more than

$1,200,000 if the person is a terminal operator

licensee; or

$600,000 if the person is a licensed manufacturer or

supplier.

(3) An individual who commits an offense in violation of

subsection (a)(13) or (14) commits a nongambling summary

offense and upon conviction of a first offense shall be

sentenced to pay a fine of not less than $200 nor more than

$1,000. An individual who is convicted of a second or

20240SB1142PN1491 - 101 -

subsequent offense under subsection (a)(13) or (14) shall be

sentenced to pay a fine of not less than $500 nor more than

$1,500. In addition to the fine imposed, an individual

convicted of an offense under subsection (a)(13) or (14) may

be sentenced to perform a period of community service not to

exceed 40 hours.

(4) An individual who commits an offense in violation of

subsection (a)(16) commits a nongambling offense to be graded

in accordance with 18 Pa.C.S. § 6308 and shall be subject to

the same penalties imposed under 18 Pa.C.S. § 6308 except

that the fine imposed for a violation of subsection (a)(16)

shall be not less than $350 nor more than $1,000.

(1) In addition to any other penalty authorized by law,

the board may impose without limitation the following

sanctions:

(i) Revoke the license of a person convicted of a

criminal offense under this part or regulations

promulgated under this part or committing any other

offense or violation of this part or applicable law that

would otherwise disqualify the person from holding the

license.

(ii) Revoke the license of a person determined to

have violated a provision of this part or regulations

promulgated under this part that would otherwise

disqualify the person from holding the license.

(iii) Revoke the license of a person for willfully

and knowingly violating or attempting to violate an order

of the board directed to the person.

(iv) Subject to subsection (g), assess

20240SB1142PN1491 - 102 -

administrative penalties as necessary to punish

violations of this part.

(v) Order restitution of money or property

unlawfully obtained or retained by a licensee.

(vi) Enter cease and desist orders which specify the

conduct to be discontinued, altered or implemented by a

licensee.

(vii) Issue letters of reprimand or censure, which

letters shall be made a permanent part of the file of the

licensee so sanctioned.

(2) (i) If the board refuses to issue or renew a

license, suspends or revokes a license, assesses civil

penalties, orders restitution, enters a cease and desist

order or issues a letter of reprimand or censure, the

board shall provide the applicant or licensee with

written notification of its decision, including a

statement of the reasons for its decision, by certified

mail within five business days of the decision of the

board.

(ii) The applicant or licensee shall have the right

to appeal the decision in accordance with 2 Pa.C.S. Chs.

5 Subch. A (relating to practice and procedure of

Commonwealth agencies) and 7 Subch. A (relating to

judicial review of Commonwealth agency action).

(d) Aiding and abetting.--A person who aids, abets,

counsels, commands, induces, procures or causes another person

to violate this part shall be subject to all sanctions and

penalties, both civil and criminal, provided under this part.

(e) Continuing offenses.--A violation of this part that is

determined to be an offense of a continuing nature shall be

20240SB1142PN1491 - 103 -

deemed to be a separate offense on each event or day during

which the violation occurs.

(f) Property subject to seizure, confiscation, destruction

or forfeiture.--Any equipment, device or apparatus, money,

material, gaming proceeds or substituted proceeds or real or

personal property used, obtained or received or an attempt to

use, obtain or receive the device, apparatus, money, material,

proceeds or real or personal property in violation of this part

shall be subject to seizure, confiscation, destruction or

forfeiture.

(g) Penalty limitation.--

(1) Administrative penalties assessed by the board on an

establishment licensee shall not exceed $5,000 for each

noncriminal violation of this part.

(2) When imposing an administrative penalty on an

establishment licensee for a noncriminal violation of this

part, the board shall take into consideration the

establishment licensee's annual taxable income and whether

the penalty amount would cause the establishment licensee to

cease non local gaming operations.

(h) Deposit of fines.--Fines imposed and collected by the

board under subsection (c) shall be deposited into the General

Fund.

§ 59 06. Report of suspicious transactions.

(a) Duty.--An establishment licensee or terminal operator

licensee or a person acting on behalf of an establishment

licensee or terminal operator licensee shall, on a form and in a

manner as required by the bureau, notify the bureau of a

suspicious transaction.

(b) Failure to report.--

20240SB1142PN1491 - 104 -

(1) A person that is required to file a report of a

suspicious transaction under this section and knowingly fails

to file the report or that knowingly causes another person

having that responsibility to fail to file the report commits

a misdemeanor of the third degree.

(2) A person required to file a report of a suspicious

transaction under this section and fails to file the report

or a person that causes another person required under this

section to file the report to fail to file the report shall

be strictly liable for the person's actions and may be

subject to sanction under section 59 05(c) (relating to

prohibited acts and penalties).

reports made under this section for a period of five years. The

bureau shall make the reports available to any Federal or State

law enforcement agency upon written request and without

necessity of subpoena.

(d) Notice prohibited.--

(1) A person that is required to file a report of a

suspicious transaction under this section may not notify an

individual suspected of committing the suspicious transaction

that the transaction has been reported.

(2) A person that violates this subsection commits a

misdemeanor of the third degree and may be subject to

sanction under section 59 05(c).

(e) Immunity.--A person that is required to file a report of

a suspicious transaction under this section and in good faith

makes the report shall not be liable in any civil action brought

by a person for making the report, regardless of whether the

transaction is later determined to be a suspicious transaction.

20240SB1142PN1491 - 105 -

(f) Sanctions.--

(1) In considering appropriate administrative sanctions

against a person for violating this section, the board shall

consider all of the following factors:

(i) The risk to the public and to the integrity of

gaming operations created by the conduct of the person.

(ii) The seriousness of the conduct of the person

and whether the conduct was purposeful and with knowledge

that it was in contravention of this part or regulations

promulgated under this part.

(iii) Justification or excuse for the conduct by the

person.

(iv) The prior history of the particular licensee or

person involved with respect to local gaming terminal

activity.

(v) The corrective action taken by the establishment

licensee or terminal operator licensee to prevent future

misconduct of a like nature from occurring.

(vi) In the case of a monetary penalty, the amount

of the penalty in relation to the severity of the

misconduct and the financial means of the licensee or

person. The board may impose any schedule or terms of

payment of such penalty as it may deem appropriate.

(2) It shall be no defense to disciplinary action before

the board that a person inadvertently, unintentionally or

unknowingly violated this section. The factors enumerated

under paragraph (1) shall only apply to the degree of the

penalty to be imposed by the board and not to a finding of a

violation itself.

(g) Regulations.--The board shall promulgate regulations to

20240SB1142PN1491 - 106 -

effectuate the purposes of this section.

§ 59 07. Additional authority.

(a) Petition for access to agency information.--

(1) The director of the Office of Enforcement Counsel

within the bureau may petition a court of record having

jurisdiction over information in the possession of an agency

in this Commonwealth or, if there is no such court, the

Commonwealth Court for authorization to review or obtain

information in the possession of an agency in this

Commonwealth by averring specific facts demonstrating that:

(i) The agency has in its possession information

material to a pending investigation or inquiry being

conducted by the bureau pursuant to this part.

(ii) Disclosure or release of the information is in

the best interest of the Commonwealth.

(2) The petition shall request that the court enter a

rule upon the agency to show cause why the agency should not

be directed to disclose to the bureau, or identified agents

of the bureau, information in the agency's possession about

any pending matter under the jurisdiction of the bureau under

this part.

(3) If the respondent is a local agency, a copy of a

rule issued under this section shall be provided to the

district attorney of the county in which the local agency is

located and the Office of Attorney General.

(4) Upon request of a local agency, the district

attorney or the Attorney General may elect to enter an

appearance to represent the local agency in the proceedings.

(b) Procedure.--

(1) The filing of a petition under this section and

20240SB1142PN1491 - 107 -

related proceedings shall be in accordance with court rule,

including issuance as of course.

(2) A party to the proceeding may not disclose the

filing of a petition or answer or the receipt, content or

disposition of a rule or order issued under this section,

without leave of court.

(3) A party to the proceedings may request that the

record be sealed and proceedings be closed. The court shall

grant the request if it is in the best interest of a person

or the Commonwealth to do so.

(1) Following review of the record, the court shall

grant the relief sought by the director of the Office of

Enforcement Counsel if the court determines that:

(i) The agency has in its possession information

material to the investigation or inquiry.

(ii) Disclosure or release of the information is in

the best interest of the Commonwealth.

(iii) The disclosure or release of the information

is not otherwise prohibited by statute or regulation.

(iv) The disclosure or release of the information

would not inhibit an agency in the performance of the

agency's duties.

(2) If the court so determines, the court shall enter an

order authorizing and directing the information be made

available for review in camera.

(d) Release of materials or information.--

(1) If, after an in-camera review by the court, the

director of the Office of Enforcement Counsel seeks to obtain

copies of materials in the agency's possession, the court

20240SB1142PN1491 - 108 -

may, if not otherwise prohibited by statute or regulation,

enter an order that the requested materials be provided.

(2) An order authorizing the release of materials or

other information shall contain direction regarding the

safekeeping and use of the materials or other information

sufficient to satisfy the court that the materials or

information will be sufficiently safeguarded.

(3) In making the determination under paragraph (2) the

court shall consider input of the agency in possession of the

information and input from any agency with which the

information originated concerning a pending investigation or

ongoing matter and the safety of person and property.

(e) Modification of order.--

(1) If subsequent investigation or inquiry by the bureau

warrants modification of an order entered under this section,

the director of the Office of Enforcement Counsel may

petition to request modification of the order.

(2) Upon the request, the court may modify the order at

any time and in any manner it deems necessary and

appropriate.

(3) The agency named in the original petition shall be

given notice and an opportunity to be heard.

(f) Use of information or materials.--An individual who, by

any means authorized by this section, has obtained knowledge of

information or materials solely under this section may use the

information or materials in a manner consistent with any

direction imposed by the court and appropriate to the proper

performance of the individual's duties under this part.

(g) Violation.--In addition to the remedies and penalties

provided in this part, a violation of the provisions of this

20240SB1142PN1491 - 109 -

section may be punished as contempt of court.

(h) Definition.--As used in this section, the term "agency"

shall mean a "Commonwealth agency" or a "local agency" as those

terms are defined in section 102 of the act of February 14, 2008

(P.L.6, No.3), known as the Right-to-Know Law.

§ 59 08. Detention.

(a) General rule.--A peace officer who has probable cause to

believe that criminal violation of this part has occurred or is

occurring on or about an establishment licensee's premises and

who has probable cause to believe that a specific individual has

committed or is committing the criminal violation may detain the

individual in a reasonable manner for a reasonable time on the

premises of the establishment licensee to require the suspect to

identify himself, to verify the identification or to inform a

peace officer.

(b) Immunity.--A peace officer shall not be subject to civil

or criminal liability for detention of an individual in

accordance with subsection (a).

CHAPTER 61

REVENUES

Sec.

6101. Fees.

6102. Regulatory assessments.

6103. Local gaming terminal tax.

6104. Local Gaming Fund.

§ 6101. Fees.

(a) Application fees.--Subject to section 5511 (relating to

alternative local gaming terminal operator licensing standards),

the following nonrefundable application fees shall accompany an

application for the following licenses or permits applied for

20240SB1142PN1491 - 110 -

under Chapter 55 (relating to application and licensure):

(1) For a manufacturer or supplier license, $25,000.

(2) For a terminal operator license, $1,000,000.

(3) For an establishment license, $250.

(4) For a key employee or principal license, $500.

(5) For any other authorization or permit authorized by

this part, an amount established by the board, through

regulation, which may not exceed $100.

(b) Initial license and renewal fees.--The following

nonrefundable fees shall be required upon issuance of an initial

license and shall accompany an application for renewal for the

following licenses or permits under Chapter 55:

(1) For a manufacturer or supplier license, $5,000.

(2) For a terminal operator license, $10,000.

(3) For an establishment license, an amount equal to $50

per each local gaming terminal in operation at the premises

of the establishment licensee.

(4) For a key employee, procurement agent license or

principal license, $500.

(5) For any other authorization or license authorized by

this part, an amount established by the board, through

regulation, which may not exceed $100.

increases the total number of local gaming terminals within the

establishment after submission of the renewal fee required in

subsection (b) shall provide the board with a $50 renewal fee

for each additional local gaming terminal added to the

establishment within 60 days of installation of each additional

local gaming terminal.

(d) Deposit of fees.--Fees collected under this section

20240SB1142PN1491 - 111 -

shall be deposited into the fund.

§ 6102. Regulatory assessments.

(a) Accounts established.--The State Treasurer shall

establish within the State Treasury an account for each terminal

operator for the deposit of a regulatory assessment amount

required under subsection (b) to recover costs or expenses

incurred by the board, the department, the Pennsylvania State

Police and the Office of Attorney General in carrying out their

powers and duties under this part based upon a budget submitted

by the department under subsection (c).

(b) Bimonthly deposits.--

(1) The department shall determine the appropriate

assessment amount for each terminal operator licensee, which

shall be a percentage assessed on the terminal operator

licensee's bimonthly gross terminal revenue.

(2) The percentage assessed shall not exceed an amount

equal to the costs or expenses incurred by the board, the

department, the Pennsylvania State Police or the Office of

Attorney General in carrying out their powers and duties

under this part based upon a budget submitted by the

department under subsection (c).

(1) The department shall prepare and annually submit to

the chairperson and minority chairperson of the

Appropriations Committee of the Senate and the chairperson

and minority chairperson of the Appropriations Committee of

the House of Representatives an itemized budget consisting of

amounts to be appropriated out of the accounts established

under this section necessary to administer this part.

(2) As soon as practicable after submitting copies of

20240SB1142PN1491 - 112 -

the itemized budget, the department shall submit to the

chairperson and minority chairperson of the Appropriations

Committee of the Senate and the chairperson and minority

chairperson of the Appropriations Committee of the House of

Representatives analyses of and recommendations regarding the

itemized budget.

(3) The itemized budget required under paragraph (1)

shall be submitted in conjunction with the budget required to

be submitted under section 1202(b)(28) (relating to general

and specific powers).

(d) Appropriation.--

(1) Costs and expenses may be paid from the accounts

established under subsection (a) only upon appropriation by

the General Assembly.

(2) If the total costs or expenses incurred by the

board, the department, the Pennsylvania State Police or the

Office of Attorney General exceed the amounts available in

the accounts established under subsection (a), the General

Assembly may appropriate additional amounts to the board, the

department, the Pennsylvania State Police or the Office of

Attorney General from the fund.

§ 6103. Local gaming terminal tax.

The department shall determine and each terminal operator

licensee shall pay on a bimonthly basis a tax of 54% of its

gross terminal revenue from all local gaming terminals operated

by the terminal operator licensee within this Commonwealth.

§ 6104. Local Gaming Fund.

(a) Establishment.--The Local Gaming Fund is established in

the State Treasury. The money in the fund is appropriated on a

continuing basis as provided in this section.

20240SB1142PN1491 - 113 -

(b) Deposits.--The following shall be deposited into the

fund:

(1) Licensing fees collected under section 6101

(relating to fees).

(2) Regulatory and enforcement assessments collected

under section 6102 (relating to regulatory assessments).

(3) The local gaming terminal tax collected under

section 6103 (relating to local gaming terminal tax).

2026 and continuing each fiscal year thereafter, the money in

the fund shall be used and distributed as follows:

(1) The first $250,000,000 shall be disbursed as

follows:

(i) The amount of $125,000,000 is allocated to the

Pennsylvania State Police for general operations.

(ii) The amount of $50,000,000 is transferred to the

Property Tax Relief Fund.

(iii) The amount of $6,000,000 is allocated to the

Pennsylvania Emergency Management Agency to fund PA Task

Force 1 and urban search and rescue teams in accordance

with a funding formula established by statute enacted

after the effective date of this paragraph.

(iv) The amount of $25,000,000 is transferred to a

fund, established by statute enacted after the effective

date of this section, that provides property tax relief

to disabled veterans.

(v) An amount equal to 0.0002 multiplied by gross

terminal revenue in accordance with section 1509

(relating to compulsive and problem gambling program) is

allocated for compulsive and problem gambling treatment.

20240SB1142PN1491 - 114 -

(vi) Any remaining balance is transferred to the

General Fund.

(2) The second $250,000,000 shall be disbursed as

follows:

(i) The amount of $125,000,000 is allocated to the

Pennsylvania State Police for general operations.

(ii) The amount of $6,000,000 is allocated for the

purpose of making grants under 35 Pa.C.S. Ch. 78 Subch. B

(relating to Fire Company Grant Program).

(iii) The amount of $6,000,000 is allocated for the

purpose of making grants under 35 Pa.C.S. Ch. 78 Subch. C

(relating to Emergency Medical Services Grant Program).

(iv) The amount of $25,000,000 is transferred to a

fund, established by statute enacted after the effective

date of this paragraph, that provides property tax relief

to disabled veterans.

(v) The amount of $25,000,000 is transferred to the

State Lottery Fund.

(vi) The amount of $6,000,000 is transferred to the

Pennsylvania Race Horse Development Trust Fund

established in section 1405 (relating to Pennsylvania

Race Horse Development Trust Fund) for distribution in

accordance with section 1406 (relating to distributions

from Pennsylvania Race Horse Development Trust Fund).

(vii) Any remaining balance is transferred to the

General Fund.

(3) The third $250,000,000 shall be disbursed as

follows:

(i) The amount of $125,000,000 is allocated to the

Pennsylvania State Police for general operations.

20240SB1142PN1491 - 115 -

(ii) The amount of $25,000,000 is transferred to the

State Lottery Fund.

(iii) The amount of $25,000,000 is transferred to

the Property Tax Relief Fund.

(iv) The amount of $6,000,000 is transferred to the

Pennsylvania Race Horse Development Trust Fund

established in section 1405 for distribution in

accordance with section 1406.

(v) Any remaining balance is transferred to the

General Fund.

(4) After disbursements under paragraphs (1), (2) and

(3), any balance shall be disbursed as follows:

(i) The first $125,000,000 is allocated to the

Pennsylvania State Police for general operations.

(ii) The next $6,000,000 is transferred to the

Pennsylvania Race Horse Development Trust Fund

established in section 1405.

(iii) Any remaining balance is transferred to the

General Fund.

(5) In the event that:

(i) The money in the fund is insufficient to pay the

distribution under paragraph (1), the distribution shall

be prorated and no transfer shall be made to the General

Fund.

(ii) The money in the fund is insufficient to pay

the distribution under paragraph (2), the distribution

shall be prorated and no transfer shall be made to the

General Fund.

(iii) The money in the fund is insufficient to pay

the distribution under paragraph (3), the distribution

20240SB1142PN1491 - 116 -

shall be prorated and no transfer shall be made to the

General Fund.

(6) Money remaining in the fund after the use and

distribution under paragraphs (1), (2), (3), (4) and (5) is

transferred to the General Fund.

CHAPTER 63

ETHICS

Sec.

6301. Board code of conduct.

6302. Additional board restrictions.

6303. Financial and employment interests.

6304. Additional restrictions.

§ 6301. Board code of conduct.

(a) Update required.--The board shall update the

comprehensive code of conduct established under section 1202.1

(relating to code of conduct) prior to the consideration of a

license, permit or other authorization under this part in order

to avoid a perceived or actual conflict of interest and to

promote public confidence in the integrity and impartiality of

the board as related to local gaming. At a minimum, the updated

code of conduct adopted under this section shall include

registration of licensed entity representatives under subsection

(b) and the restrictions under subsection (c) as they relate to

local gaming.

(b) Registration.--

(1) A licensed entity representative shall register with

the board in a manner prescribed by the board. The

registration shall include the name, employer or firm,

business address and business telephone number of both the

licensed entity representative and any licensed entity,

20240SB1142PN1491 - 117 -

applicant for licensure or other person being represented.

(2) A licensed entity representative shall update the

registration information on an ongoing basis and failure to

do so shall be punishable by the board.

(3) The board shall maintain a registration list that

contains the information required under paragraph (1). The

list shall be available on the board's publicly accessible

Internet website.

contained in this part, a member of the board shall:

(1) Not accept a discount, gift, gratuity, compensation,

travel, lodging or other thing of value, directly or

indirectly, from an applicant, licensed entity, affiliate,

subsidiary or intermediary of an applicant or a licensed

entity, registrant or licensed entity representative.

(2) Disclose and recuse himself from a hearing or other

proceeding in which the member's objectivity, impartiality,

integrity or independence of judgment may be reasonably

questioned due to the member's relationship or association

with a party connected to a hearing or proceeding or a person

appearing before the board.

(3) Refrain from financial or business dealings that

would tend to reflect adversely on the member's objectivity,

impartiality or independence of judgment.

(4) (i) Not solicit funds for a charitable,

educational, religious, health, fraternal, civic or other

nonprofit entity from an applicant, licensed entity,

party, registrant or licensed entity representative or

from an affiliate, subsidiary, intermediary or holding

company of an applicant, licensed entity, party or

20240SB1142PN1491 - 118 -

licensed entity representative.

(ii) Subject to the provisions of section 1201(h)

(4.1) (relating to Pennsylvania Gaming Control Board

established), a member may serve as an officer, employee

or member of the governing body of a nonprofit entity and

may attend, make personal contributions to and plan or

preside over the entity's fundraising events.

(iii) A member may permit the member's name to

appear on the letterhead used for fundraising events if

the letterhead contains only the member's name and

position with the nonprofit entity.

(5) (i) Not meet or engage in discussions with an

applicant, licensed entity, registrant, licensed entity

representative, person who provides goods, property or

services to a terminal operator licensee or another

person or entity under the jurisdiction of the board

unless the meeting or discussion occurs on the business

premises of the board and is recorded in a log.

(ii) The log shall be posted on the board's publicly

accessible Internet website.

(iii) The log shall include the date and time of the

meeting or discussion, the names of the participants and

the subject discussed.

(iv) This paragraph shall not apply to a meeting

that considers matters requiring the physical inspection

of the equipment or premises of an applicant or a

licensed entity, if the meeting is entered in the log.

(6) Avoid impropriety and the appearance of impropriety

at all times and observe standards and conduct that promote

public confidence in the oversight of local gaming.

20240SB1142PN1491 - 119 -

(7) Comply with other laws, rules or regulations

relating to the conduct of a member.

§ 6302. Additional board restrictions.

(a) Board restrictions.--The following shall apply to a

board member or employee of the board whose duties substantially

involve licensing, enforcement, development of law, promulgation

of regulations or development of policy relating to gaming under

this part or who has other discretionary authority which may

affect or influence the outcome of an action, proceeding or

decision under this part:

(1) The individual may not, for a period of two years

following termination of employment, accept employment with

or be retained by an applicant or a licensed entity or by an

affiliate, intermediary, subsidiary or holding company of an

applicant or a licensed entity.

(2) The individual may not, for a period of two years

following termination of employment, appear before the board

in a hearing or proceeding or participate in activity on

behalf of an applicant, licensee or licensed entity or on

behalf of an affiliate, intermediary, subsidiary or holding

company of an applicant, licensee or licensed entity.

(3) (i) An applicant or a licensed entity or an

affiliate, intermediary, subsidiary or holding company of

an applicant or a licensed entity may not, until the

expiration of two years following termination of

employment, employ or retain the individual.

(ii) Violation of this paragraph shall result in

termination of the individual's employment and subject

the violator to section 5905(c) (relating to prohibited

acts and penalties).

20240SB1142PN1491 - 120 -

(4) (i) A prospective employee who, upon employment,

would be subject to this subsection must, as a condition

of employment, sign an affidavit that the prospective

employee will not violate paragraph (1) or (2).

(ii) If the prospective employee fails to sign the

affidavit, the board shall rescind an offer of employment

and may not employ the individual.

(b) Contractor restrictions.--The following shall apply to

an independent contractor of the board and to an employee of an

independent contractor whose duties substantially involve

consultation relating to licensing, enforcement, development of

law, promulgation of regulations or development of policy

relating to local gaming under this part:

(1) The person may not, for a period of one year

following termination of the contract with the board, be

retained by an applicant or a licensed entity or by an

affiliate, intermediary, subsidiary or holding company of an

applicant or a licensed entity.

(2) The person may not, for a period of two years

following termination of the contract with the board, appear

before the board in a hearing or proceeding or participate in

activity on behalf of an applicant, licensee or licensed

entity or on behalf of an affiliate, intermediary, subsidiary

or holding company of an applicant, licensee or licensed

entity.

(3) (i) An applicant or a licensed entity or an

affiliate, intermediary, subsidiary or holding company of

an applicant or a licensed entity may not, until the

expiration of one year following termination of the

contract with the board, employ or retain the person.

20240SB1142PN1491 - 121 -

(ii) A knowing violation of this subparagraph shall

result in termination of the individual's employment and

subject the violator to section 5905(c).

(4) (i) A contract between the board and an independent

contractor that involves the duties specified in this

subsection shall contain a provision requiring the

independent contractor to sign an affidavit that the

independent contractor will not violate paragraph (1) or

(2).

(ii) If the independent contractor fails to sign the

affidavit, the board may not enter into the contract or

must terminate the contract.

(5) (i) An independent contractor shall require a

prospective employee whose employment would involve the

duties specified in this subsection to sign an affidavit

that the prospective employee will not violate paragraph

(1) or (2).

(ii) If the prospective employee fails to sign the

affidavit, the independent contractor shall rescind an

offer of employment and may not employ the individual.

be construed to prevent a current or former employee of the

board, a current or former independent contractor or a current

or former employee of an independent contractor, from appearing

before the board in a hearing or proceeding as a witness or

testifying as to any fact or information.

(d) State Ethics Commission.--

(1) The State Ethics Commission shall issue a written

determination of whether a person is subject to subsection

(a) or (b) upon the written request of the person or the

20240SB1142PN1491 - 122 -

person's employer or potential employer. A person that relies

in good faith on a determination issued under this paragraph

shall not be subject to a penalty for an action taken,

provided that all material facts specified in the request for

the determination are correct.

(2) (i) The State Ethics Commission shall publish a

list of all employment positions within the board and

employment positions within independent contractors whose

duties would subject the individuals in those positions

to the provisions of subsections (a) and (b).

(ii) The board and each independent contractor shall

assist the State Ethics Commission in the development of

the list, which shall be published by the State Ethics

Commission in the Pennsylvania Bulletin biennially and

posted by the board on the board's publicly accessible

Internet website.

(iii) Upon request, employees of the board and each

independent contractor shall provide the State Ethics

Commission with adequate information to accurately

develop and maintain the list.

(iv) The State Ethics Commission may impose a civil

penalty under 65 Pa.C.S. § 1109(f) (relating to

penalties) upon an individual who fails to cooperate with

the State Ethics Commission under this paragraph.

(v) An individual who relies in good faith on the

list published by the State Ethics Commission shall not

be subject to a penalty for a violation of subsection (a)

or (b).

§ 6303. Financial and employment interests.

(a) Financial interests.--Except as may be provided for the

20240SB1142PN1491 - 123 -

judiciary by rule or order of the Pennsylvania Supreme Court, an

executive-level public employee, public official or party

officer, or an immediate family member thereof, shall not

intentionally or knowingly hold a financial interest in an

applicant or a licensee, or in a holding company, affiliate,

intermediary or subsidiary thereof, while the individual is an

executive-level public employee, public official or party

officer and for one year following termination of the

individual's status as an executive-level public employee,

public official or party officer.

(b) Employment.--Except as may be provided by rule or order

of the Pennsylvania Supreme Court and except as provided in

section 1202.1 (relating to code of conduct) or 4304 (relating

to additional restrictions), no executive-level public employee,

public official or party officer, or an immediate family member

thereof, shall be employed by an applicant or licensee, or by a

holding company, affiliate, intermediary or subsidiary thereof,

while the individual is an executive-level public employee,

public official or party officer and for one year following

termination of the individual's status as an executive-level

public employee, public official or party officer.

(1) No executive-level public employee, public official

or party officer, or an immediate family member thereof,

shall solicit or accept a complimentary service from an

applicant or licensee, or from an affiliate, intermediary,

subsidiary or holding company thereof, which the executive-

level public employee, public official or party officer, or

an immediate family member thereof, knows or has reason to

know is other than a service or discount which is offered to

20240SB1142PN1491 - 124 -

members of the general public in like circumstances.

(2) No applicant or licensee, or an affiliate,

intermediary, subsidiary or holding company thereof, shall

offer or deliver to an executive-level public employee,

public official or party officer, or an immediate family

member thereof, a complimentary service from the applicant or

licensee, or an affiliate, intermediary, subsidiary or

holding company thereof, that the applicant or licensee, or

an affiliate, intermediary, subsidiary or holding company

thereof, knows or has reason to know is other than a service

or discount that is offered to members of the general public

in like circumstances.

(d) Grading.--An individual who violates this section

commits a misdemeanor of the third degree and shall, upon

conviction, be sentenced to pay a fine of not more than $1,000

or to imprisonment for not more than one year, or both.

(e) Divestiture.--

(1) An executive-level public employee, public official

or party officer, or an immediate family member thereof, who

holds a financial interest prohibited by this section shall

divest the financial interest within three months of the

effective date of this paragraph, as applicable.

(2) An executive-level public employee, public official,

party officer or immediate family member shall have 30 days

from the date the individual knew or had reason to know of

the violation or 30 days from publication on the board's

publicly accessible Internet website under section 5301(b)

(12) (relating to powers of board) of the application or

licensure of the executive-level public employee, public

official, party officer or immediate family member, whichever

20240SB1142PN1491 - 125 -

occurs earlier, to divest the financial interest.

(3) The State Ethics Commission may, for good cause,

extend the time period under this subsection.

(f) State Ethics Commission.--The State Ethics Commission

shall do all of the following:

(1) (i) Issue a written determination of whether a

person is subject to subsection (a), (b) or (c) upon the

written request of the person or another person that may

have liability for an action taken with respect to the

person.

(ii) A person that relies in good faith on a

determination made under this paragraph shall not be

subject to penalty for an action taken, provided that all

material facts specified in the request for the

determination are correct.

(2) (i) Publish a list of all State, county, municipal

and other government positions that meet the definitions

of "public official" as defined under subsection (g) or

"executive-level public employee" as defined under

section 5103 (relating to definitions).

(ii) The Office of Administration shall assist the

State Ethics Commission in the development of the list,

which list shall be published by the State Ethics

Commission in the Pennsylvania Bulletin biennially and

posted by the board on the board's publicly accessible

Internet website.

(iii) Upon request, a public official shall provide

the State Ethics Commission with adequate information to

accurately develop and maintain the list.

(iv) The State Ethics Commission may impose a civil

20240SB1142PN1491 - 126 -

penalty under 65 Pa.C.S. § 1109(f) (relating to

penalties) upon an individual, including a public

official or executive-level public employee, who fails to

cooperate with the State Ethics Commission under this

subsection.

(v) A person that relies in good faith on the list

published by the State Ethics Commission shall not be

subject to penalty for a violation of this section.

(g) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Applicant." A person that applies for a manufacturer

license, supplier license or terminal operator license under

this part.

"Financial interest." Owning or holding, or being deemed to

hold, debt or equity securities or other ownership interest or

profits interest. A financial interest shall not include a debt

or equity security, or other ownership interest or profits

interest, which is held or deemed to be held in any of the

following:

(1) A blind trust over which the executive-level public

employee, public official, party officer or immediate family

member thereof may not exercise any managerial control or

receive income during the tenure of office and the period

under subsection (a). The provisions of this paragraph shall

apply only to blind trusts established prior to the effective

date of this paragraph.

(2) Securities that are held in a pension plan, profit-

sharing plan, individual retirement account, tax-sheltered

annuity, a plan established in accordance with section 457 of

20240SB1142PN1491 - 127 -

the Internal Revenue Code of 1986 (Public Law 99-514, 26

U.S.C. § 1 et seq.) or a successor provision deferred

compensation plan whether qualified or not qualified under

the Internal Revenue Code of 1986 or any successor provision

or other retirement plan that:

(i) is not self-directed by the individual; and

(ii) is advised by an independent investment adviser

who has sole authority to make investment decisions with

respect to contributions made by the individual to these

plans.

(3) A tuition account plan organized and operated under

section 529 of the Internal Revenue Code of 1986 that is not

self-directed by the individual.

(4) A mutual fund where the interest owned by the mutual

fund in a licensed entity does not constitute a controlling

interest as defined in this part.

"Immediate family." A spouse, minor child or unemancipated

child.

"Licensee." A manufacturer licensee, supplier licensee or a

terminal operator licensee.

"Party officer." A member of a national committee, a

chairperson, vice chairperson, secretary, treasurer or counsel

of a State committee or member of the executive committee of a

State committee, a county chairperson, vice chairperson,

counsel, secretary or treasurer of a county committee in which a

licensed facility is located or a city chairperson, vice

chairperson, counsel, secretary or treasurer of a city committee

of a city in which a licensed facility is located.

"Public official." The term shall include the following:

(1) The Governor, Lieutenant Governor, a member of the

20240SB1142PN1491 - 128 -

Governor's cabinet, State Treasurer, Auditor General and

Attorney General of the Commonwealth.

(2) A member of the Senate or the House of

Representatives of the Commonwealth.

(3) An individual elected or appointed to an office of a

county or municipality that directly receives a distribution

of revenue under this part.

(4) An individual elected or appointed to a department,

agency, board, commission, authority or other governmental

body not included in paragraph (1), (2) or (3) that directly

receives a distribution of revenue under this part.

(5) An individual elected or appointed to a department,

agency, board, commission, authority, county, municipality or

other governmental body not included in paragraph (1), (2) or

(3) with discretionary power that may influence or affect the

outcome of an action or decision and who is involved in the

development of regulation or policy relating to a licensed

entity or is involved in other matters under this part.

§ 6304. Additional restrictions.

(a) Restrictions.--

(1) No individual trooper or employee of the

Pennsylvania State Police or employee of the Office of

Attorney General or the department, whose duties

substantially involve licensing or enforcement, the

development of laws or the development or adoption of

regulations or policy related to gaming under this part, or

who has other discretionary authority that may affect or

influence the outcome of an action, proceeding or decision

under this part may do any of the following:

(i) Accept employment with or be retained by an

20240SB1142PN1491 - 129 -

applicant or licensed entity, or an affiliate,

intermediary, subsidiary or holding company of an

applicant or licensed entity, for a period of two years

after the termination of employment.

(ii) (A) Appear before the board in a hearing or

proceeding or participate in other activity on behalf

of an applicant, licensee or licensed entity, or an

affiliate, intermediary, subsidiary or holding

company of an applicant, licensee or licensed entity,

for a period of two years after termination of

employment.

(B) Nothing in this subparagraph shall be

construed to prevent a current or former trooper or

employee of the Pennsylvania State Police, the Office

of Attorney General or the department from appearing

before the board in a proceeding or hearing as a

witness or testifying as to a fact or information.

(2) As a condition of employment, a potential employee

who would be subject to this subsection shall sign an

affidavit that the individual will not accept employment with

or be retained by an applicant or licensed entity, or an

affiliate, intermediary, subsidiary or holding company of an

applicant or licensed entity, for a period of two years after

the termination of employment.

(b) Employment or retention.--

(1) No applicant or licensed entity or an affiliate,

intermediary, subsidiary or holding company of an applicant

or licensed entity may employ or retain an individual subject

to subsection (a) until the expiration of the period required

in subsection (a)(1)(i).

20240SB1142PN1491 - 130 -

(2) An applicant or licensed entity, or an affiliate,

intermediary, subsidiary or holding company of an applicant

or licensed entity, that knowingly employs or retains an

individual in violation of this subsection, shall terminate

the employment of the individual and be subject to penalty

under section 1518(c) (relating to prohibited acts;

penalties).

refuses or otherwise fails to sign an affidavit, the

individual's potential employer shall rescind the offer of

employment.

(d) Code of conduct.--

(1) The Pennsylvania State Police, Office of Attorney

General and department each shall adopt a comprehensive code

of conduct that supplements all other requirements under this

part and 65 Pa.C.S. Pt. II (relating to accountability), as

applicable, and shall provide guidelines applicable to

troopers, employees, independent contractors of the agency

whose duties substantially involve licensing or enforcement,

the development of laws or the development or adoption of

regulations or policy related to local gaming under this part

or who have other discretionary authority that may affect the

outcome of an action, proceeding or decision under this part,

and the immediate families of these individuals to enable

them to avoid a perceived or actual conflict of interest and

to promote public confidence in the integrity and

impartiality of local gaming enforcement and regulation.

(2) At a minimum, the code of conduct adopted under this

section shall apply the types of restrictions applicable to

members under section 1202.1(c) (relating to code of

20240SB1142PN1491 - 131 -

conduct), except that the restrictions under section

1202.1(c)(5) shall not apply to an elected Attorney General.

(e) State Ethics Commission.--The State Ethics Commission

shall do all of the following:

(1) (i) Issue a written determination of whether an

individual is subject to subsection (a) upon the written

request of the individual or the individual's employer or

potential employer.

(ii) A person that relies in good faith on a

determination made under this paragraph shall not be

subject to penalty for an action taken, provided that all

material facts specified in the request for the

determination are correct.

(2) (i) Publish a list of all positions within the

Pennsylvania State Police, the Office of Attorney General

and the department the duties of which would subject the

individuals in those positions to the provisions of

subsection (a).

(ii) Each agency subject to this subsection shall

assist the State Ethics Commission in the development of

the list, which list shall be published by the State

Ethics Commission in the Pennsylvania Bulletin

biennially, shall be posted by the board on the board's

publicly accessible Internet website and shall be posted

by each agency on the agency's publicly accessible

Internet website.

(iii) Upon request by the State Ethics Commission,

members and employees of each agency subject to this

subsection shall provide the State Ethics Commission with

adequate information to accurately develop and maintain

20240SB1142PN1491 - 132 -

the list.

(iv) The State Ethics Commission may impose a civil

penalty under 65 Pa.C.S. § 1109(f) (relating to

penalties) upon an individual who fails to cooperate with

the State Ethics Commission under this subsection.

(v) A person who relies in good faith on the list

published by the State Ethics Commission shall not be

subject to penalty for a violation of subsection (a).

CHAPTER 65

MISCELLANEOUS PROVISIONS

Sec.

6501. Funding.

6502. Declaration of exemption from Federal laws prohibiting

local gaming terminals.

6503. Preemption of local taxes and license fees.

6504. Exclusive jurisdiction of Supreme Court.

§ 6501. Funding.

(a) Appropriation.--The General Assembly appropriates the

following:

(1) The sum of $5,000,000 is hereby appropriated from

the General Fund to the board for the fiscal period July 1,

2024, to June 30, 2025, to implement and administer the

provisions of this part.

(2) The sum of $3,000,000 is hereby appropriated from

the General Fund to the department for the fiscal period July

1, 2024, to June 30, 2025, to prepare for, implement and

administer the provisions of this part.

(3) The sum of $2,000,000 is hereby appropriated from

the General Fund to the Pennsylvania State Police for the

fiscal period July 1, 2024, to June 30, 2025, to prepare for,

20240SB1142PN1491 - 133 -

implement and administer the provisions of this part.

(b) Repayment required.--The money appropriated under this

section shall be repaid to the General Fund by establishment

licensees according to subsection (c).

the board authorizes the first local gaming terminal to be

connected to the central control computer system and is made

available for public use, the department shall collect an

assessment of .05% of gross terminal revenue on a bimonthly

basis from each terminal operator licensee for deposit into the

General Fund. The department shall continue to collect the

assessment until the amounts under subsection (a) are repaid to

the General Fund.

(d) Unused amounts.--On July 1, 2026, any portion of amounts

appropriated under this section that are unexpended,

unencumbered or uncommitted as of June 30 of the prior fiscal

year shall automatically be transferred to the General Fund.

§ 6502. Declaration of exemption from Federal laws prohibiting

local gaming terminals.

(a) Declaration.--Under the Gambling Devices Transportation

Act (64 Stat. 1134, 15 U.S.C. § 1171 et seq.), the Commonwealth

declares that it is exempt from section 2 of that act.

(b) Legal shipments.--All shipments of gambling devices, as

defined in section 1 of the Gambling Devices Transportation Act,

into this Commonwealth, the registering, recording and labeling

of which has been effected by the manufacturer and supplier of

those devices in accordance with sections 3 and 4 of the

Gambling Devices Transportation Act, shall be deemed legal

shipments of gambling devices into this Commonwealth.

§ 6503. Preemption of local taxes and license fees.

20240SB1142PN1491 - 134 -

(a) Statutes.--Local gaming terminals shall be exempt from

taxes levied under the following:

(1) The act of August 5, 1932 (Sp.Sess., P.L.45, No.45),

referred to as the Sterling Act.

(2) The act of December 31, 1965 (P.L.1257, No.511),

known as The Local Tax Enabling Act.

(3) 53 Pa.C.S. Pt. III Subpt. E (relating to home rule

and optional plan government).

(4) Any statute that confers taxing authority to a

political subdivision.

(b) Licensing fees.--Local gaming terminals are exempt from

local licensing fees.

§ 6504. Exclusive jurisdiction of Supreme Court.

The Pennsylvania Supreme Court shall have exclusive

jurisdiction to hear a challenge to or to render a declaratory

judgment concerning the constitutionality of this part. The

Pennsylvania Supreme Court may take such action as it deems

appropriate, consistent with the Pennsylvania Supreme Court

retaining jurisdiction over the matter, to find facts or to

expedite a final judgment in connection with a challenge or

request for declaratory relief.

Section 3. Section 5513(a)(1) and (e.1) of Title 18 are

amended and subsection (f) is amended by adding a definition to

read:

§ 5513. Gambling devices, gambling, etc.

(a) Offense defined.--A person is guilty of a misdemeanor of

the first degree if he:

(1) intentionally or knowingly makes, assembles, sets

up, maintains, sells, lends, leases, gives away, or offers

for sale, loan, lease or gift, any [punch board, drawing

20240SB1142PN1491 - 135 -

card, slot machine or any] illegal gambling device [to be

used for gambling purposes, except playing cards];

* * *

[(e.1) Construction.--Nothing in this section shall be

construed to prohibit any activity that is lawfully conducted

under any of the following:

(1) The act of August 26, 1971 (P.L.351, No.91), known

as the State Lottery Law.

(2) The act of July 10, 1981 (P.L.214, No.67), known as

the Bingo Law.

(3) The act of December 19, 1988 (P.L.1262, No.156),

known as the Local Option Small Games of Chance Act.

(4) 4 Pa.C.S. (relating to amusements).]

(f) Definitions.--The following words and phrases when used

in this section shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

* * *

"Illegal gambling device." A mechanical, computerized or

electrical contrivance, game, terminal, machine or device which,

upon insertion or payment of cash or cash equivalent as a wager,

is available to play or operate one or more games, the play or

outcome of which is determined by any element of either chance

or skill, and may deliver or entitle the player to receive cash

or cash equivalent or any instrument or representation of value

that is more than nominal. The term shall not include any

activity that is lawfully conducted under any of the following:

(1) The act of August 26, 1971 (P.L.351, No.91), known

as the State Lottery Law.

(2) The act of July 10, 1981 (P.L.214, No.67), known as

the Bingo Law.

20240SB1142PN1491 - 136 -

(3) The act of December 19, 1988 (P.L.1262, No.156),

known as the Local Option Small Games of Chance Act.

(4) 4 Pa.C.S. (relating to amusements).

* * *

Section 4. Title 35 is amended by adding a section to read:

§ 7322. Pennsylvania Emergency Management Programs Fund.

(a) Establishment.--The Pennsylvania Emergency Management

Programs Fund is established in the State Treasury. The money in

the fund is appropriated upon approval of the Governor to the

agency for the uses specified in subsection (c).

(b) Funding sources.--The fund shall consist of money

transferred from the Local Gaming Fund established in 4 Pa.C.S.

§ 6104 (relating to Local Gaming Fund), interest earned on the

money and other money made available to the agency for deposit

into the fund.

awarded under the following:

(1) A grant program, established by statute enacted

after the effective date of this paragraph, for urban search

and rescue teams.

(2) Section 7811 (relating to establishment).

(3) Section 7821 (relating to establishment).

Section 5. This act shall take effect as follows:

(1) The addition of 35 Pa.C.S. § 7322 shall take effect

June 30, 2025.

(2) This section shall take effect immediately.

(3) The remainder of this act shall take effect in 60

days.

20240SB1142PN1491 - 137 -