[34 Pa.B. 5563]
[Continued from previous Web Page] [Lottery--A game in which a bona fide club member or guest selects a number for a chance at a prize with the winner determined by a random drawing to take place on the licensed premises. The term includes games commonly known as ''member sign-in lotteries'' and ''half-and-half lotteries.'' This part will not be construed to permit lotteries which are conducted at locations other than the licensed premises, nor does the term include a game or contest in which the winning number is determined by another drawing or event, except that winning numbers may be determined by reference to drawings conducted by the Department under the State Lottery Law (72 P. S. §§ 3761-1--3761-15).]
Manufacturer--
(i) A person who assembles from raw materials or subparts a completed [small] game of chance for use in authorized activities, [including punchboards and pull-tabs,] and who sells or otherwise furnishes the same to a licensed distributor.
(ii) The term does not include printers of only raffle, daily drawing or weekly drawing tickets.
Manufacturer registration certificate or certificate--A document issued by the Department, upon application, to a manufacturer authorizing the manufacturer to produce games of chance that have been approved by the Department and to sell those games to licensed distributors.
Manufacturer's representative--
(i) A natural person who represents a manufacturer in connection with the sale or furnishing of [small] games of chance for use in authorized activities.
(ii) The term includes the manufacturer's sales personnel.
(iii) The term does not include warehouse personnel, delivery personnel and other [employes] employees who only have incidental contact with the customers.
* * * * * Nonoperating day--A period of time equivalent to an eligible organization's operating day except that the eligible organization is closed to normal activities or to its members during that period of time.
Normal business or operating site--The location at which an eligible organization conducts its activities as permitted and enumerated in its constitution, charter, articles of incorporation, bylaws or other document of formation.
Office of Attorney General--The Attorney General of the Commonwealth.
Operating day--The period of time during any 24 hour period during which an eligible organization conducts its normal activities or holds itself open to its members.
Operating week--Seven consecutive operating days or nonoperating days.
Passive selection device--A device that is used to hold or denote all of the possible winning numbers or entrants in a daily drawing, weekly drawing or raffle. The device may not have the capability of being utilized to conduct or aid in unauthorized or illegal forms of gambling.
* * * * * Petition--A written statement of facts, under oath, submitted by one of the following:
(i) [An initial or renewal applicant for registration or licensure] A manufacturer or distributor who disagrees with the Department's decision to deny [the] or refuse to renew its application.
(ii) A [A registrant or licensee] registered manufacturer or licensed distributor who disagrees with the Department's decision to revoke his [registration] certificate or license.
Petitioner--[An applicant, licensee or registrant] A manufacturer or distributor who files a petition.
Public interest purposes--
(i) Any of the following:
(A) Benefiting persons by enhancing their opportunity for religious or education advancement, by relieving or protecting them from disease, suffering or distress, by contributing to their physical, emotional or social well-being, by assisting them in establishing themselves in life as worthy and useful citizens or by increasing their comprehension of and devotion to the principles upon which this nation was founded.
(B) Initiating, performing or fostering worthy public works or enabling or furthering the erection or maintenance of public structures.
(C) Lessening the burdens borne by government or voluntarily supporting, augmenting or supplementing services which government would normally render to the people.
(D) Improving, expanding, maintaining or repairing real property owned or leased by an eligible organization and used for purposes specified in clauses (A)--(C).
(ii) The term does not include the erection or acquisition of any real property, unless the property will be used exclusively for one or more of the purposes specified in this definition.
Pull-tab--A single folded or banded ticket or a strip ticket or card with a face covered to conceal one or more numbers or symbols, where one or more tickets or cards in each deal has been designated in advance as a winner. [The term includes a ticket sold in a device known as a ticket-jar, fish-bowl or stamp machine.]
Pull-tab game--A deal and its corresponding flare.
Punch--A crimped strip of paper or similar material that is enclosed in a punchboard receptacle and contains either a winning or losing number or symbol printed on one side and a serial number printed on the other.
Punchboard--A board, placard or other device [marked off in a grid or columns, in which each section contains a hidden number or other symbol, which determines the winning chances, if the following exist:
(i) A specific serial number is assigned to the punchboard and printed on each punch.
(ii) A flare or face sheet covers the receptacles and sets out the winning numbers or symbols and prizes which may be won.
(iii) Upon the payment of consideration, a player may select and remove a punch from a receptacle.
(iv) A prize is awarded if the number or symbol set out on the selected punch matches a predetermined winning symbol on the flare or face sheet.] comprised of receptacles, usually laid out in a grid or column pattern, that each contain a hidden punch or punches, and its corresponding flare. Upon the payment of consideration, a player may select and remove the punches contained in a receptacle. A prize is awarded to a player who selects a receptacle containing a punch with a predetermined winning number or symbol.
Raffle--
(i) A game in which a participant buys a ticket for a chance at a prize with the winner determined by a random drawing of corresponding ticket stubs to take place at a location and date or dates printed upon each ticket.
(ii) The term includes lotteries but not daily or weekly drawings.
(iii) The term does not include the [playing] paying of money or merchandise at roulette wheels, at cards, dice, other tables or another form of gambling not specifically authorized by law.
Registrant--A manufacturer who is issued a manufacturer registration certificate.
Registration--The process of applying to the Department for a manufacturer registration certificate.
* * * * * Responsible person--A person who is connected or associated with [a club] an eligible organization, distributor or manufacturer in a manner that meets at least one of the following criteria:
* * * * * (ii) Has the control, receipt, custody or disposal of the [small] games of chance proceeds.
(iii) Has the control, receipt, custody and disposal of available cash on hand or other quick or liquid assets or pays the liabilities of the [club] eligible organization, manufacturer or distributor.
(iv) Has the duty, power or authority to do one of the following:
* * * * * (D) Direct the payment of the [entities] entity's liabilities.
* * * * * (F) Direct the disposition and use of [small] games of chance proceeds.
* * * * * (J) Direct the transaction involved with the sale, manufacture or use of [small] games of chance.
(v) Is [a club] an eligible organization's manager, officer, director or bar personnel involved with the conduct of [small] games of chance.
Seal card--A flare for a pull-tab game or punchboard containing hold tickets that designates, among the other winning tickets in the pull-tab game or punchboard, the winning hold ticket numbers or symbols each of which are concealed by a paper cover typically referred to as a seal.
* * * * * Special raffle permit--A document issued by a licensing authority to a licensed eligible organization that authorizes the eligible organization to conduct a raffle with prize limits exceeding the standard prize limits for raffles.
* * * * * State Lottery Law--The State Lottery Law (72 P. S. §§ 3761-101--3761-2102).
Veterans organization--
(i) A Congressionally chartered organization within this Commonwealth, or any branch or lodge or chapter of a nonprofit National or State organization within this Commonwealth, the membership of which consists of individuals who were members of the armed services or armed forces of the United States.
(ii) The term includes home associations.
Weekly drawing--A game in which a bona fide member selects or receives a number or numbers in exchange for consideration during an operating week for a chance at a prize with the winner determined by a random drawing to take place on the eligible organization's premises on the last operating day of the eligible organization's operating week.
GENERAL APPLICABILITY § 901.21. Applicability.
(a) This part applies to manufacturers and distributors [of small] who sell or intend to sell games of chance in this Commonwealth and to [clubs] eligible organizations located in municipalities within this Commonwealth which have adopted the act by an affirmative vote in a municipal referendum under the act.
(b) To provide uniform practices, procedures and standards, the following enumerated sections of this part are promulgated for the benefit of and suggested use by the licensing authorities: §§ 901.28, 901.31, 901.51(b), 901.185(b), 901.192, 901.193, 901.196, 901.212--901.219, 901.401--901.407, 901.467 and 901.807. The governing body of each county, on behalf of its licensing authority, shall adopt the sections by independent act for the sections to have legal force and effect.
§ 901.22. [Use of proceeds] (Reserved).
[The proceeds of small games of chance conducted by a club may not be used for the benefit of a person other than the club conducting the activity. Proceeds may only be used for legitimate club purposes as defined in this part or the act.]
§ 901.23. Restriction of sales.
(a) [A person may not sell, offer for sale or furnish games of chance for use in this Commonwealth except to a club or distributor licensed under the act and this part.
(b) Games of chance, other than a raffle conducted with a special permit, sold or offered for sale or furnished for use in this Commonwealth may not contain, permit, depict or designate a prize having a cash value in excess of $500.] Manufacturers.
(1) Registration. A manufacturer shall register with the Department and obtain a manufacturer registration certificate to sell, offer for sale or furnish games of chance for use in this Commonwealth. This paragraph does not apply to manufacturers that only sell, offer for sale or furnish raffle, daily drawing or weekly drawing tickets for use in this Commonwealth.
(2) Sales. A registered manufacturer may only sell, offer for sale or furnish games of chance that have been approved by the Department for sale in this Commonwealth. A registered manufacturer may only sell, offer for sale or furnish approved games of chance for sale in this Commonwealth to a licensed distributor. This paragraph does not apply to the sale of raffle, daily drawing or weekly drawing tickets.
(3) Sales invoice. A registered manufacturer selling to a licensed distributor shall indicate on the sales invoice the games of chance that the Department has approved for sale in this Commonwealth.
(b) Distributors.
(1) Licensure. A distributor shall apply for and obtain a distributor license to sell, offer for sale or furnish games of chance in this Commonwealth. This paragraph does not apply to distributors that only sell, offer for sale or furnish raffle, daily drawing or weekly drawing tickets.
(2) Sales. A licensed distributor may only sell, offer for sale or furnish approved games of chance for use within this Commonwealth to another licensed distributor or a licensed eligible organization. This paragraph does not apply to the sale of raffle, daily drawing or weekly drawing tickets.
(3) Purchase. A licensed distributor may only purchase approved games of chance for resale in this Commonwealth from a registered manufacturer or licensed distributor. This paragraph does not apply to the purchase of raffle, daily drawing or weekly drawing tickets.
(c) Eligible organizations.
(1) Licensure. An eligible organization shall apply for and obtain a games of chance license before purchasing games of chance for use in this Commonwealth.
(2) Purchase. A licensed eligible organization may not purchase or lease games of chance for use in this Commonwealth except from a licensed distributor. This paragraph does not apply to the purchase of raffle, daily drawing or weekly drawing tickets.
§ 901.24. [Enforcement] (Reserved).
[(a) District attorney. The district attorney will investigate alleged violations of the act. If the district attorney finds probable cause that a violation has occurred, he may file a complaint against the alleged violator in the court of common pleas of the county, except in counties of the first class, where the complaint may be filed in the municipal court. The district attorney will prosecute the complaint in the manner provided by law.
(b) Other law enforcement officials. The power of State, county or local enforcement officials to conduct an investigation and enforce the act and this part is not restricted.]
§ 901.25. Vested rights.
[A license issued by the county or a license or registration issued by the Department will not be construed as granting a vested right in the privileges so conferred.] A certificate or license confers only a privilege on the holder. A certificate or license confers no vested right in the privilege so conferred.
§ 901.26. Background checks.
(a) As a condition precedent to the issuance of a license or [registration] certificate, the licensing authority or Department may require background checks on a person seeking a license or for whom [registration] a certificate is sought, or [employes] employees thereof, or of a person participating as an [employe] employee who will be involved in the operation of [small] games of chance or a person with equity ownership of 10% or more.
(b) The applicant or the person for whom a license or [registration] certificate is requested shall cooperate with the licensing authority or Department and shall assist in its investigation.
§ 901.28. Inspection of premises.
(a) Licensed premises, or premises relating to or being used for activities conducted under the act and this part by a licensed [club] eligible organization, registered manufacturer or licensed distributor shall be open to inspection by the [county,] licensing authority and the Department or their authorized representatives [and other law enforcement officials,] but the inspection shall:
* * * * * (2) Take place [at times] only when a reasonable belief exists that a violation of the act or this part [exist] has occurred, is occurring or will occur.
(3) Be limited to the inspection of matters, areas and records associated with games of chance to insure compliance with the act and this part.
(b) The Department [reserves] and the licensing authority, or their authorized representatives, reserve the right to enter and make [the] annual inspections [annually].
§ 901.30. Prohibited practices, contracts, gifts[,] and the like.
* * * * * (b) A manufacturer, distributor or representative thereof may not sell to or solicit from a person an order for a [small] game of chance contingent upon that person or another purchasing or ordering some other [small] game of chance.
(c) [Prices charged by manufacturers, distributors and clubs for goods and services may not be fixed by agreement. A manufacturer, distributor or club, by express or implied agreement with another manufacturer, distributor or club, may not fix the price at which a small games of chance prize or another item used in connection with the small games of chance activities shall be sold, or for which services in connection therewith shall be rendered. The price of these items in the competitive market place shall be established by each manufacturer, distributor or club for the products and services offered by each and may not be established, directly or indirectly, in concert with one another.] A manufacturer, distributor or licensed eligible organization may not fix by express or implied agreement with another manufacturer, distributor, eligible organization or any other person, the prices charged for games of chance or goods, prizes or services sold or rendered in connection with games of chance.
§ 901.31. Examination of records.
[(a) The] In addition to the examination of records authorized during an inspection of the premises, the Department or [county] licensing authority is authorized to examine the reports, books, accounts and records, and the inventory of [small games of chance of] a licensed distributor, registered manufacturer, [their representative or clubs] licensed eligible organization or their representatives. Every [person] manufacturer, distributor or eligible organization is directed and required to give to the Department[,] or [county] licensing authority, or their authorized representative the means, facilities and opportunity for the examinations.
[(b) The district attorney may require licensed clubs, manufacturers and distributors or their representatives, to produce the books, accounts and records relating to small games of chance to determine whether a license should be revoked, suspended or renewal thereof be denied.
(c) Licensees and registrants, upon a reasonable request, shall also produce the books, accounts and records relating to small games of chance to other law enforcement officials.]
§ 901.32. Ownership of [small] games of chance.
[A small game of chance play or ticket is owned by the physical possessor of the ticket] The physical possessor of a game of chance play or ticket is the owner of the play or ticket until a name is imprinted or placed upon [the play or ticket] it. When a name is placed upon the play or ticket, the person whose name appears on the play or ticket is the owner and is entitled to a prize attributable to it [and is the owner of the play or ticket].
§ 901.34. Disputes.
If a dispute occurs about whether [the] a play or ticket is a winning play or ticket and the dispute cannot be resolved through normal verification procedures or other appropriate means the [club] licensed eligible organization may retain the play or ticket and replace it with an equivalent play or ticket in a like game of chance. This is the exclusive remedy of the owner of the play or ticket. Detailed records regarding the dispute, the reasons for the dispute and the play or ticket shall be maintained by the [club] eligible organization for a minimum of 2 years from the date the dispute arose.
§ 901.35. Termination of [small] games of chance.
[The club] A licensed eligible organization may announce a termination date at which point no further plays or tickets may be sold, and a date by which all claims or prizes [will] shall be made. This date may not be less than 30 days after the last date for play of the game being terminated.
§ 901.36. Federal withholding and reporting requirements.
A licensed [club] eligible organization is responsible for complying with Internal Revenue Service rules for reporting and withholding on gambling and lottery winnings.
§ 901.37. State withholding and reporting requirements.
A licensed [club] eligible organization is responsible for complying with Commonwealth rules for reporting and withholding on gambling and lottery winnings.
§ 901.38. Commonwealth resident designee.
A person [seeking registration or licensing] applying for a certificate or distributor's license under the act or this part is required to designate a person and location within this Commonwealth for purposes of service of process and the person shall agree to submit to the jurisdiction of the courts of the Commonwealth and law enforcement officials of the Commonwealth and its subdivisions.
§ 901.40. Prohibition of gambling facilities.
(a) A person, corporation, association, partnership or other business entity may not offer for rent or offer for use a building or other facility to be used exclusively for conducting games of chance.
(b) A licensed eligible organization may not lease, under any terms, a facility or building which is used exclusively for conducting games of chance.
§ 901.41. Operating days, nonoperating days and operating weeks.
(a) An operating day or a nonoperating day may not exceed 24 consecutive hours. An operating day or a nonoperating day may not overlap with any other operating day or nonoperating day.
(b) An operating day may extend from 1 calendar day to another so long as the eligible organization's normal activities or business hours extend from 1 calendar day to another. For example, an eligible organization's operating day may begin at 9 a.m. and end at 3 a.m. the following calendar day (that is, 18 consecutive hours over 2 calendar days).
(c) If an eligible organization operates on a 24 hour-a-day basis, the eligible organization's operating day shall be any consecutive 24-hour period as chosen by the organization. For example, an eligible organization could choose its operating day to be from 9:01 a.m. to 9 a.m. the following calendar day or from 12:01 a.m. to midnight on the same calendar day.
(d) An operating week shall consist of 7 consecutive, reoccurring operating or nonoperating days.
(e) An eligible organization shall choose its operating day and week and report them on its license application.
(f) A licensed eligible organization may change its operating day and week. The eligible organization shall amend its license before the new operating day or week becomes effective.
ADMINISTRATION § 901.51. Power and duties.
(a) The Department has the power and authority granted to it by the Legislature under the act, including the power and authority to do the following:
(1) Review the tax status of an applicant for [registration or licensure by the Department] a certificate or distributor license.
* * * * * (4) Establish procedures by which manufacturers may apply for a certificate and distributors [of games of chance] may apply for [registration and] licensure.
* * * * * (6) [Provide] Prescribe procedures for the suspension or revocation of [distributor] licenses [or manufacturer] and certificates for violations of the act or this title.
(7) Prescribe the form to be used by the licensing authority to license [clubs] eligible organizations.
(8) Conduct investigations prior to licensure and registration [and determine that] to ensure compliance with the requirements and prohibitions of the act and this part [are being complied with]. [Violations are grounds for revocation, suspension and denial of licensure or registration as provided elsewhere in this part.]
(9) Collect a fee for the issuance of a manufacturer registration certificate or distributor license.
(10) Initiate legal proceedings, in law or equity, before any court or tribunal, for purposes of administering or enforcing the provisions of the act or this part.
(11) Notify the Office of Attorney General of violations of the act and this part and request the Attorney General to initiate legal proceedings, criminal or civil, legal or equitable, to enforce the provisions of the act and this part.
(12) Do other matters necessary or desirable for the efficient operation and administration of [small] games of chance and to carry out the act and this part.
(b) [The] Although not limited to the following, the licensing authority has the power and duty to [do the following]:
(1) Issue special raffle permits.
(2) License [clubs] eligible organizations upon application to conduct and operate games of chance after the games have been approved in a municipal referendum.
(3) Send to the Department a [copy] list, on a semiannual basis, of the [names of the licensees to the Department] eligible organizations licensed to conduct games of chance.
(4) Collect a fee for the issuance of a games of chance license to eligible organizations. Establish and collect a fee not to exceed $25 for the issuance of special raffle permits.
* * * * * (7) Initiate legal proceedings, in law or equity, before any court or tribunal, for purposes of administering or enforcing the provisions of the act or this part.
[(c) The district attorney and other law enforcement officials have the power to do the following:
(1) Require licensees to produce books, accounts and records.
(2) Investigate alleged violations of the act or this part.
(3) File complaints against the alleged violator in the appropriate court.
(4) Prosecute complaints in the manner provided by law.]
§ 901.52. Administrative entity.
The Department will carry out its powers provided in the act or this part through the Bureau of Business Trust Fund Taxes--[Registration] Miscellaneous Tax Division. The administrative entity may be changed by notice published in the Pennsylvania Bulletin.
Subchapter B. LICENSING AND REGISTRATION
MANUFACTURER REGISTRATION § 901.101. Manufacturer registration and game approval required.
[A person may not sell or otherwise furnish games of chance to a distributor in this Commonwealth unless that person is currently registered by the Department under this chapter.]
(a) A person shall be registered with the Department and possess a manufacturer's registration certificate to sell or otherwise furnish games of chance to licensed distributors within this Commonwealth.
(b) A registered manufacturer may not sell a game of chance in this Commonwealth to a licensed distributor until the Department has approved it.
(c) If a registered manufacturer modifies an approved game of chance in any substantial way so that the nature or identity of the game is changed, the rules of the game change or the prizes or payouts change, the game of chance must be considered a new game of chance and be submitted for approval.
§ 901.102. Registration and game approval forms.
(a) A person seeking a manufacturer registration [as a manufacturer] certificate shall submit [one copy of a] to the Department an application form [provided] as prescribed by the Department. [A registered manufacturer seeking to renew registration shall submit the same form but indicate in the appropriate box that the request is for renewal. The form shall be completed in full and will not be considered to be received until it has been completed in full.]
(b) A person seeking an approval of a game of chance shall submit its request for approval to the Department on a form prescribed by the Department.
(c) The application forms referenced in subsections (a) and (b) shall be completed in full and will not be considered to be received until completed in full.
§ 901.103. Manufacturer registration application form contents.
An application for registration as a manufacturer of [small] games of chance shall contain at a minimum the following information:
* * * * * (5) A complete list or catalogue of all [small] games of chance to be manufactured.
* * * * * (8) Pennsylvania tax information, [if otherwise required under Pennsylvania law] including:
* * * * * (12) A notarized affidavit for each dispensing machine sold or offered for sale in this Commonwealth indicating that the dispensing machine complies with the act and this part. A form affidavit will be available from the Department.
(13) Other documents as identified in the application materials.
§ 901.103a. Change of application information.
A manufacturer shall report any changes to the information supplied in its application to the Department within 15 days of the change.
§ 901.104. Waiver of confidentiality.
[An applicant] By filing an application for the grant [or renewal] of a manufacturer registration [by the filing of an application insofar as it relates to the Department] certificate, the applicant waives confidentiality with respect to Commonwealth tax information in the possession of the Department, the Office of Attorney General or the Department of Labor and Industry regarding the applicant, regardless of the source of that information, and consents to the provision of that information to the Department by the Office of Attorney General or the Department of Labor and Industry.
§ 901.106. Registration term.
[The registration certificate is valid through the following March 31.] A registration term must begin on April 1 and end on March 31 of the succeeding year. A certificate issued during a registration term is only valid from the date of issuance to the end of the registration term.
§ 901.107. Annual [renewal] applications.
[A registered manufacturer shall renew its registration annually by March 31.] A registered manufacturer should file an application for a certificate 60 days prior to the expiration date of its existing certificate in order to ensure that the manufacturer's registration with the Department is not interrupted.
§ 901.108. Registration number.
[A manufacturer will be assigned an identification number which shall be referred to as a registration number. The name and registration number of the manufacturer shall appear on all orders, documents and other paperwork, and the like, involved with or related to the sale, offer for sale or other provision of small games of chance.] The Department will assign a registration number and issue a certificate to each manufacturer that it approves for registration. The registered manufacturer shall place the registration number on all documents used in any transactions under the act or this part.
§ 901.109. [Registration certificate] Certificate.
The [registration] certificate issued [shall] must be conspicuously displayed on the premises of the manufacturer.
§ 901.110. Duplicate [registration] certificate.
If a [registration] certificate is defaced, destroyed or lost, the Department may issue a duplicate to the holder of the certificate upon submission of a duplicate [registration] application form. A $100 fee will be charged for the duplicate [registration] certificate.
§ 901.111. Transfer.
[The transfer or assignment of a manufacturer's registration] A manufacturer is prohibited from transferring or assigning its certificate.
§ 901.112. [Prohibited sales] (Reserved).
[Manufacturers of small games of chance are prohibited from selling or otherwise furnishing small games of chance to a person not licensed as a distributor unless the manufacturer is also a licensed distributor in which case the manufacturer may sell or otherwise provide small games of chance to licensed clubs.]
§ 901.113. Representatives of manufacturer.
[(a) A representative of a small games of chance manufacturer may sell to only a licensed distributor.
(b)] A representative of a manufacturer acts as an agent of the manufacturer in activities conducted under the manufacturer's registration certificate.
§ 901.114. Dissolutions, terminations, mergers and bankruptcies.
(a) [The] A manufacturer shall notify the Department in writing within 10 days of one or more of the following actions on the part of [a registered] the manufacturer:
* * * * * (2) [A notice of the decision to dissolve is required if filing is not required.
(3)] The filing of a petition in bankruptcy or receivership by the manufacturer.
[(4)] (3) * * *
[(5)] (4) * * *
(b) A notice of the decision to dissolve is required even if filing is not required.
§ 901.117. Denial [of application, revocation, suspension or refusal to renew manufacturer's registration] suspension and revocation.
(a) Manufacturer registration certificate. The Department [has the power to deny the application or suspend, revoke or refuse to renew the registration of a manufacturer,] may deny an application for a certificate or suspend or revoke a certificate if the manufacturer or a person required to be identified in the application form commits one or more of the following acts:
* * * * * (2) Has failed to comply with or engaged in an activity prohibited by the act or this part.
* * * * * (4) Has been convicted of, forfeited bond upon a charge of or pleaded guilty or nolo contendere to one of the following:
* * * * * (vi) A crime, whether a felony or a misdemeanor, involving a gambling activity or a felony involving[,] moral turpitude.
* * * * * (5) Has refused to permit an inspection of its records or premises under one of the following:
(i) Section 901.28 (relating to inspection of premises) or § 901.31 (relating to examination of records).
* * * * * (9) Sells or offers for sale in this Commonwealth a game of chance that has not been approved by the Department as provided for in this part.
(b) Game of chance approval. The Department may deny an application for a game of chance approval and may suspend or revoke an approved game of chance if the game of chance fails to meet the requirements of the act or this part.
(c) Suspensions.
(1) A suspension of a certificate or a game of chance approval is issued for violations enumerated in subsection (a) or (b), as applicable, that have not substantially harmed the public and can be timely remedied.
(2) A suspension period may not exceed 30 days, unless the manufacturer requests an extension, in writing, and the Department approves the extension.
(3) The Department will lift a suspension when the manufacturer has demonstrated compliance.
(4) If the Department determines that the manufacturer is still in violation under subsections (a) or (b), as applicable, by the end of the suspension period, the Department will revoke the certificate or game approval as applicable.
(5) There is no right to appeal a suspension.
(d) Notice.
(1) The Department will issue a written notice of a denial, suspension, lifting of suspension or revocation. The notice will provide:
(i) The issue date of the notice.
(ii) The action taken by the Department.
(iii) The reason for the action.
(iv) The manufacturer's appeal rights.
(2) The Department will serve the notice by certified or first-class mail.
(3) The Department will mail the notice to the manufacturer's Commonwealth resident designee.
§ 901.117a. Registration following revocation.
Unless otherwise provided by the act or this part:
(1) A manufacturer whose certificate is revoked is ineligible to apply for and receive another certificate for the remaining registration term or 6 months, whichever is longer.
(2) For a second revocation, the manufacturer is ineligible to apply for and receive another certificate for the remaining registration term as well as the following registration term.
(3) For a third and subsequent revocation, the manufacturer is ineligible to apply for and receive another certificate for 30 months.
§ 901.119. Raffle, daily drawing and weekly drawing ticket manufacturers.
This section [does] and §§ 901.101--901.118 do not apply to the manufacturers [of] who only produce and sell raffle, daily drawing and weekly drawing tickets.
DISTRIBUTOR LICENSING § 901.131. Distributor license requirement.
[A person may not sell, offer for sale or otherwise furnish small games of chance to licensed clubs in this Commonwealth unless the person is currently licensed by the Department under this section and §§ 901.132--901.153.] A person shall be licensed by the Department and possess a license to sell, offer for sale or otherwise furnish games of chance to licensed eligible organizations in this Commonwealth.
§ 901.132. License application form.
[A person seeking licensure as a distributor shall submit one copy of a form prescribed by the Department. A licensed distributor seeking to renew a license shall submit the same form but indicate in the appropriate block that it is a renewal request.] For a distributor to obtain a license to sell games of chance in this Commonwealth, the distributor shall submit a license application to the Department in the form prescribed by the Department. The application form shall be completed in full and will not be considered to be received until it has been completed in full.
§ 901.133. Distributor license application form contents.
The application form shall include the following:
* * * * * (5) A list of all types of [small] games of chance to be distributed.
* * * * * § 901.133a. Change of application information.
A distributor shall report any changes to the information supplied in its application to the Department within 15 days of the change.
§ 901.136. License term.
[The distributor license is valid through the following April 30.] A license term must begin on June 1 and end on May 31 of the succeeding year. A license issued during a license term is only valid from the date of issuance to the end of the license term.
§ 901.137. Annual [renewal] application.
[A licensed distributor shall renew its license annually by April 30.] A licensed distributor should file an application for a license 60 days prior to the expiration date of its existing license in order to ensure that the distributor's licensure with the Department is not interrupted.
§ 901.138. License number.
[Every distributor will be assigned an identification number which shall be referred to as a license number. The name and license number of the distributor shall appear on all orders, documents or other paperwork, and the like, involved with or related to the sale, offer for sale or other provision of small games of chance.] The Department will assign a license number and issue a license to each distributor it approves for licensure. A licensed distributor shall place its business name and license number on all documents used in any transaction under this part.
§ 901.139. License [certificate].
The license [certificate shall] must be conspicuously displayed at all times at the place of business of the person licensed.
§ 901.140. Duplicate license.
Whenever a license [certificate] is defaced, destroyed or lost, the Department may issue a duplicate to the holder of the license upon submission of a duplicate License Application Form. A $100 fee will be charged for the duplicate license [certificate].
§ 901.141. Transfer.
[The transfer or assignment of a distributor licensed] A licensed distributor is prohibited from transferring or assigning its license.
§ 901.142. [Representatives of distributors] Distributor's representative.
[(a) A representative of a small games of chance distributor shall sell only to licensed clubs.
(b)] A distributor's representative [of a distributor] acts as an agent of the licensee in activities conducted under the distributor's license [certificate].
§ 901.143. Restrictions on distributorship interest.
(a) [An] A licensed eligible organization [which is licensed to conduct games of chance] may not be a distributor.
(b) A person who is an officer, director, proprietor, consultant, [employe] employee or owner of a distributorship may not have a pecuniary interest in the operation of [small] games of chance.
(c) A distributor or person who has a financial interest in a distributorship may not be a lessor of premises, directly or indirectly, to a [club] licensed eligible organization.
§ 901.144. Restrictions of distributor [employes] employees.
(a) An [employe] employee of a distributorship may not be an [employe] employee, consultant or volunteer of a licensed [club] eligible organization unless the [employe] employee has first made a full written disclosure of the [employe's] employee's distributorship employment to the [club] eligible organization.
* * * * * (c) An [employe] employee of a distributorship may not play games of chance at the site of a [club] licensed eligible organization if that [club] eligible organization is a customer of the distributorship.
(d) A Department [employe] employee assigned to the bureau responsible for administering the act or this part may not have an interest in a distributor licensed under the act or this part.
§ 901.146. Sales promotion.
A distributor may not use as a sales promotion a statement, demonstration or implication that a certain portion of a deal [of small games of chance tickets] contains more winners than other portions of the [set] deal or that a [set] game of chance may be played by a [club] licensed eligible organization in a particular manner that would give the organization an advantage in selling more [of the small games of chance] chances before having to pay out winners.
§ 901.147. Fixed prices.
A distributor may not enter into an express or implied agreement with another distributor to fix the price at which [small] games of chance may be sold, or for which services in connection therewith may be rendered. The price of these items in the competitive marketplace [shall] must be established by each distributor for the [small] games of chance and services offered by each and may not be directly or indirectly established in concert with one another.
§ 901.148. Dissolutions, terminations, mergers and bankruptcies.
(a) [The] A distributor [shall] will notify the Department, in writing, within 10 days of one or more of the following actions on the part of [a registered] the distributor:
* * * * * § 901.149. Change of address.
[The] A distributor will notify the Department, in writing, 10 days prior to a change of address.
§ 901.150. Changes in ownership or personnel.
The distributor shall make a written report to the Department of changes of responsible persons engaged in the business of the distributor. This report [shall] must also include a change in the management, ownership, directorship or equity ownership of 10% or more, or a change in the manufacturer's representatives. The report [shall] must be filed [on October 15] within 15 days of the addition or deletion.
§ 901.151. [Revocation, denial, suspension or rejection of renewal of distributor license] Denial, suspension and revocation of licenses.
(a) Distributor license. The Department [has the power to deny the application or suspend, revoke or refuse to renew the license of a distributor under the following circumstances] may deny a license application or suspend or revoke a license if the distributor or a person required to be identified in the application form commits one of the following acts:
* * * * * (2) Has failed to comply with or engaged in an activity prohibited by the act or this part.
* * * * * (5) Has refused to permit an inspection of its records or premises under one of the following:
(i) Section 901.28 (relating to inspection of premises) or § 901.31 (relating to examination of records).
* * * * * (b) Suspensions.
(1) A suspension of a license is issued for violations enumerated in subsection (a) that have not substantially harmed the public and can be timely remedied.
(2) A suspension period may not exceed 30 days, unless the distributor requests an extension, in writing, and the Department approves the extension.
(3) The Department will lift a suspension when the distributor has demonstrated compliance.
(4) If the Department determines that the distributor is still in violation under subsection (a) by the end of the suspension period, the Department will revoke the license.
(5) There is no right to appeal a suspension.
(c) Notice.
(1) The Department will issue a written notice of a denial, suspension, lifting of suspension or revocation. The notice will provide:
(i) The issue date of the notice.
(ii) The action taken by the Department.
(iii) The reason for the action.
(iv) The distributor's appeal rights.
(2) The Department will serve the notice by certified or first-class mail.
(3) The Department will mail the notice to the distributor's Commonwealth resident designee.
§ 901.151a. Licensing following revocation.
Unless otherwise provided by the act or this part:
(1) A distributor whose license is revoked is ineligible to apply for and receive another license for the remaining license term or 6 months, whichever is longer.
(2) For a second revocation, the distributor is ineligible to apply for and receive another license for the remaining license term as well as the following license term.
(3) For a third and subsequent revocation, the distributor is ineligible to apply for and receive another license for 30 months.
§ 901.153. Raffle, daily drawing and weekly drawing ticket distributors.
This section and §§ 901.131--901.152 do not apply to [the distribution of] distributors who only sell raffle, daily drawing and weekly drawing tickets.
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