[35 Pa.B. 4045]
[Continued from previous Web Page] Response
The Board will consider the extent to which associated equipment will require testing and certification.
Comment
In subsection (c), add ''or both'' after ''either'' in order to give the Board greater latitude in game certification.
Response
The Board accepts this recommendation and has amended the regulations to reflect this change.
Comment
Subsections (a) and (b) should be amended to include ''slot machine models, games and associated equipment designed specifically for and integral to gaming operations.''
Response
The Board declines to accept this recommendation. The terms offered to modify the existing language are not defined terms. However, the Board has amended the language in subsection (a) to further clarify the intent of this section.
Comment
In subsection (c)(1), the Board should indicate that the acceptable jurisdictions include, but not be limited to, Nevada, New Jersey and Mississippi.
Response
The Board declines to accept this recommendation. The Board will not include a list of states with acceptable testing and certification standards in this regulation. As technology continually improves, the testing and certification capabilities of a particular jurisdiction are subject to change and alteration. Accordingly the Board must retain the authority to review the testing and certification standards of various jurisdictions and to deem the standards of a particular jurisdiction acceptable.
Comment
The Board should add the following language to subsections (c)(1) and (2): ''pursuant to such gaming jurisdictions' current published testing and technical standards.''
Response
The Board declines to accept this recommendation as it feels that this section adequately references the statutory language governing this form of certification. Further, the Board believes the statute speaks for itself.
Comment
Subsection(c)(2) should be amended to read: ''Utilize the services of approved slot machine testing and certification facilities, which are recognized by major gaming jurisdictions within the United States, to conduct testing . . . .''
Response
The Board declines to accept this recommendation as it is not clear by whom the facilities would be approved. Further, the Board is not bound to utilize testing facilities that are recognized by other gaming jurisdictions. The Board recognizes the need to utilize a testing facility that is reputable and will ensure the integrity of gaming in this Commonwealth.
Comment
Subsection (c)(2) should be amended to permit the Board to utilize the services of more than one slot machine testing and certification facility before it establishes a permanent facility.
Response
The Board agrees to review this recommendation.
Chapter 471. Filing Fees
§ 471.1 Fees generally.
Comment
The Board should include language that would tie the fees that the Board could levy and collect to the Board's annual operating budget. Such a requirement would act to constrain the Board's authority in setting fees to that which is reasonable to fund the Board's operations.
Response
The Board acknowledges the financial concerns of potential applicants with regard to the fees associated with licensing. The Board feels that this recommendation is not consistent with the Board's statutory authority and declines to accept this recommendation. Although the Board is given broad authority to levy and collect fees from the applicants, licensees and permittees pursuant to section 1208 of the act, the Board's authority to raise fees is subject to statutory limitation. In section 1208(2) of the Act, the Board is prohibited from raising the fees until two years after the passage of the Act and may only increase fees by an amount not to exceed an annual cost-of-living adjustment.
§ 471.3 Schedule of fees (formerly Schedule of fees for manufacturer and supplier licenses).
Comment
We request that the Board make it clear in this section that slot machine licensees will not be responsible for the costs associated with the licensing of suppliers and manufacturers.
Response
The Board declines to accept this recommendation as it believes that it is clear from the statute and the regulations that the fees will be collected directly from the manufacturer and supplier applicants and licensees, and not from any other licensee.
Comment
Subsection (a) does not address the disposition of surplus amounts should the cost of a manufacturer's or supplier's Key Employee Qualifier background investigations be less than $5,000 per person. We recommend that any surplus be credited back to the specific manufacturer or supplier applicant.
Response
The Board declines to accept this recommendation at this time. Section 1208(1)(iii) requires the Board to collect a nonrefundable fee set by the Board for the cost of a background investigation. This amount is based on the recommendation of jurisdictions and a projection of the average costs associated with these types of investigations. The Board may revisit this issue as the Board continues to collect data relevant to this issue on an ongoing basis.
Comment
We would request that the language in subsection (c) allowing the Board the option to increase fees annually be amended so that the Board may only increase fees every 2 to 3 years, and then only when warranted.
Response
The Board acknowledges the concerns of business owners and potential licensees and will consider the financial needs of the licensees when the Board has the authority to raise fees. The Board declines to accept this recommendation as it is inconsistent with the Board's statutory authority in section 1208(2) of the act. As way of further response, the Board's ability to increase fees commences two years after the passage of the act. At that time, the Board may only increase fees by an amount not to exceed an annual cost-of-living adjustment.
Chapter 481. General Provisions
§ 481.2 Definitions.
Comment
This section defines participation plan as a plan developed by a licensed entity, including manufacturers and suppliers, that requires the utilization of a minority or women owned business enterprise for a specific minimum percentage of the value of the contract. This may not be constitutionally permissible.
Response
In order to negate a unconstitutional interpretation of this provision, the Board has amended this definition.
§ 481.3 Diversity participation.
Comment
How is the list of minority and women's business compiled?
Response
The Bureau of Minority and Women's Business Enterprises of the Department of General Services compiles a list of certified minority and women's businesses through an application and approval process. Minority- and women-owned businesses apply for certification through the Bureau of Minority and Women's Business Enterprises and once they are approved and certified, the companies are added to the list.
§ 481.4 Establishment of diversity plan required.
Comment
Section (a) should describe the steps that Minority and Women's Business Enterprise can take with the Licensee before filing a formal complaint with the Board.
Response
The Board agrees to review this recommendation.
Comment
In sections (a) and (b), construction activities, i.e. construction of the facilities, should be identified as areas for Minority and Women's Business Enterprises participation.
Response
Prior to an entity submitting an application, the Board does not have jurisdiction to enforce diversity participation. However, the Board agrees to review this recommendation.
Chapter 495. Documentary Filings
§ 495.1 Form of documentary filings generally.
Comment
Add a new subpart (d) before the existing subpart (d) as follows: ''Pleadings shall be endorsed with an address where papers may be served in connection with the pending proceedings as well as a phone number. Endorsement with a fax number shall constitute endorser's agreement to accept papers connected with the proceeding by fax. Notation of counsel's current Supreme Court identification number issued by the Court Administrator of Pennsylvania shall constitute proof of the right to practice in the Commonwealth.'' This conforms to PA Rules of Civil Procedure Section 205.1 and 4401(d)(1).
Response
The Board agrees to review this recommendation.
§ 495.5 Execution of documents.
Comment
The Board should consider permitting all filings to be made by fax or electronic means.
Response
It is the Board's intent to make electronic filings possible at a future date. The Board continues to review electronic document filing and management systems and those used by other jurisdictions. While the Board seeks to create the most efficient means of filing possible, the Board likewise must ensure the integrity and security of the filing system in place.
Comment
In section (b)(2), the reference to supplemental documentation ''may be required'' seems like an after-the-fact requirement. Is the document deemed filed if the Board requires supplemental information? We suggest that the document should have information evidencing signor's authority rather than request the evidence after-the-fact.
Response
The Board declines to follow the recommendation that such documents be required to include such supplemental evidence upon their filing. This provision of the Board's regulations is consistent, verbatim, with 1 Pa. Code § 33.11(b)(2) (Execution) as well as 52 Pa. Code § 1.35(b)(2) (Execution), and is standard administrative practice in the Commonwealth.
Chapter 497. Time
§ 497.4 Effective dates of Board orders.
Comment
All Board orders promulgating regulations should be published on the Internet concurrently with their publication in the Pennsylvania Bulletin.
Response
The Board agrees with this comment and intends to proceed in this fashion by making its public meeting minutes, orders, and regulations available both on the Internet and in the Pennsylvania Bulletin.
Paperwork
The Board is publishing manufacturer applications and other necessary forms for the administration of licensing manufacturers. The Board is developing a docket process to monitor and track submitted applications.
The Board will publish notices in the Pennsylvania Bulletin identifying those manufacturers who have been awarded licenses by the Board.
Financial Impact
Act 71 and the temporary regulations will provide for the implementation and management of gaming within this Commonwealth and the collection of fees and taxes from entities and individuals authorized by the Board to be employed in, provide gaming related services or operate gaming facilities.
The appropriations from the Commonwealth for the implementation of Act 71 and costs of administering Act 71 will be reimbursed by the licensed gaming entities as specified within Act 71. Individuals and entities that wish to obtain licenses as manufacturers, suppliers or gaming entities shall pay to the gaming fund significant licensing fees to obtain the authority to do business within this Commonwealth. Part of these fees shall reimburse the Board and the Pennsylvania State Police for licensing processes and background investigations. The licensing and registration of individuals and other classes of licensees will be reimbursed by the individuals and or licensees through fees established by the Board.
It is anticipated that all expenses of the Board and all associated activities will be reimbursed by the applicants and gaming entities as previously specified. The Board will have no financial impact on the State budget.
Statutory Authority
Section 1203 of 4 Pa.C.S. provides the Board authority to adopt and publish temporary regulations to implement the policies and purposes of Act 71.
Regulatory Review
Under 4 Pa.C.S. § 1203, the Board may adopt temporary regulations that are exempted from the Regulatory Review Act and sections 201--205 of the CDL. Section 1203 of 4 Pa.C.S. provides that the Board's authority to adopt regulations expires 2 years from the effective date of Act 71.
Findings
The Board finds that:
(1) Under 4 Pa.C.S. § 1203, the temporary regulations are exempt from the requirements of the Regulatory Review Act and sections 201--205 of the CDL.
(2) A 30-day public comment period was held prior to the adoption of the temporary regulations. All comments received by the Board were reviewed and considered.
(3) The adoption of the temporary regulations provided by this order is necessary and appropriate for the administration of the authorizing statute.
Order
The Board, acting under the authorizing statute, orders that:
(a) The Board, acting under the authority of Act 71, adopts as its final form temporary regulations the draft regulations adopted by resolution at the June 16, 2005, Board meeting. The temporary regulations concern general administrative practice and procedure before the Board and the specific licensing standards for gaming equipment manufacturers.
(b) The following temporary regulations of the Board, 58 Pa. Code, are added: §§ 401.1--401.5, 403.1--403.4, 407.1--407.3, 421.1--421.4, 423.1--423.5, 427.1--427.3, 433.1, 435.1--435.4, 451.1, 461.1, 461.2, 471.1--471.3, 481.1--481.5, 491.1, 491.2, 495.1--495.7, 497.1--497.5 and 499.1--499.7 to read as set forth in Annex A.
(c) The temporary regulations are effective June 16, 2005.
(d) The temporary regulations shall be posted in their entirety on the Board's website and in the Pennsylvania Bulletin.
(e) The temporary regulations shall be subject to amendment as deemed necessary by the Board in accordance with the purpose of Act 71 and in order to further the intent of Act 71.
(f) The Chairperson of the Board shall certify the preceding order and deposit the regulations with the Legislative Reference Bureau as required by law.
THOMAS A. DECKER,
ChairpersonFiscal Note: 125-1. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD Subp.
A. GENERAL PROVISIONS B. LICENSING, REGISTERING AND PERMITTING C. (Reserved) D. RECORDKEEPING E. SLOT MACHINE TESTING AND CERTIFICATION F. FEES G. MINORITY AND WOMEN'S BUSINESS ENTERPRISES H. PRACTICE AND PROCEDURE
Subpart A. GENERAL PROVISIONS Chap.
401. PRELIMINARY PROVISIONS 403. BOARD OPERATIONS AND ORGANIZATION 407. PUBLIC ACCESS TO BOARD RECORDS
CHAPTER 401. PRELIMINARY PROVISIONS Sec.
401.1. Purpose. 401.2. Scope. 401.3. Construction. 401.4. Definitions. 401.5. Jurisdiction. § 401.1. Purpose.
The purpose of this part is to facilitate the implementation of the act.
§ 401.2. Scope.
(a) This subpart governs the practice and procedure before the Board.
(b) This subpart is intended to supersede the applicability of 1 Pa. Code Part II (relating to General Rules of Administrative Practice and Procedure) to practice and procedure before the Board.
§ 401.3. Construction.
(a) This part shall be liberally construed to secure the just, speedy and efficient determination of every action or proceeding to which it is applicable. The Board at any stage of an action or proceeding may disregard an error or defect of procedure which does not affect the substantive rights of the parties.
(b) The Board at any stage of an action or proceeding may waive a requirement of this part when necessary or appropriate, if the waiver does not adversely affect a substantive right of a participant as determined by the Board.
(c) Subsections (a) and (b) supersede 1 Pa. Code § 31.2 (relating to liberal construction).
§ 401.4. Definitions.
The following words and terms, when used in this part, have the following meanings, unless the context clearly indicates otherwise:
Act--The Pennsylvania Race Horse Development and Gaming Act (4 Pa.C.S. §§ 1101--1904).
Affiliate or affiliated company--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, officer, director or key employee, who on his own behalf or on behalf of another, is applying for permission to engage in an act or activity which is regulated under the act. In cases in which the applicant is a corporation, foundation organization, business trust, estate, limited liability company, trust, partnership, limited partnership, association or any other form of legal business entity, the Board will determine the associated persons whose qualifications are necessary as a precondition to the licensing of the applicant.
Application--A written request, on a form or forms approved by the Board, for permission to engage in an act or activity which is regulated under the act. An application shall include supplements, reports, documentation or other information requested by the Board as part of the application process.
Application fee--The amount of money required to be paid by an applicant for processing an application submitted to the Board. Payments are nonrefundable.
Approved, approval or approve--When used in reference to an application submitted to the Commissions to conduct harness or thoroughbred race meetings or to the Board to authorize and regulate the placement and operation of slot machines, the terms refer to the date that an application to the Commissions or the Board is granted regardless of the pendency of administrative or judicial appeals or other legal action challenging the decision of either Commission or the Board.
Associated equipment--Equipment or mechanical, electromechanical or electronic contrivance, component or machine used in connection with gaming, including linking devices which connect to progressive slot machines or slot machines, replacement parts needed to conduct slot machine gaming, equipment which affects the proper reporting of gross revenue, computerized systems for controlling and monitoring slot machines, including the central control computer and devices for weighing or counting money.
Authority--An authority created by the Commonwealth which purchases State gaming receipts under section 1202 of the act (relating to general and specific powers).
Authorized personnel--A member or designated employee of the Board or a designated employee or agent of the Bureau.
Background investigation--A security, criminal, credit and suitability investigation of a person as provided for in the act. The investigation shall include the status of taxes owed to the United States and to the Commonwealth and its political subdivisions.
Backside area--
(i) Those areas of the racetrack facility that are not generally accessible to the public and which include facilities commonly referred to as barns, track kitchens, recreation halls, backside employee quarters and training tracks, and roadways providing access thereto.
(ii) The term does not include those areas of the racetrack facility which are generally accessible to the public, including the various buildings commonly referred to as the grandstand or the racing surfaces, paddock enclosures and walking rings.
Board--The Pennsylvania Gaming Control Board established under section 1201 of the act (relating to Pennsylvania Gaming Control Board established).
Bonds--Bonds, notes, instruments, refunding notes and bonds and other evidences of indebtedness or obligations, which an authority issues to fund the purchase of State gaming receipts.
Bureau--The Bureau of Investigations and Enforcement of the Board.
Central control computer--A central site computer controlled by the Department and accessible by the Board to which all slot machines communicate for the purpose of auditing capacity, real-time information retrieval of the details of a financial event that occurs in the operation of a slot machine, including coin in, coin out, ticket in, ticket out, jackpots, machine door openings and power failure, and remote machine activation and disabling of slot machines.
Cheat--
(i) To alter without authorization the elements of chance, method of selection or criteria which determine:
(A) The result of a slot machine game.
(B) The amount or frequency of payment in a slot machine game.
(C) The value of a wagering instrument.
(D) The value of a wagering credit.
(ii) The term does not include altering for required maintenance and repair.
Clerk--The Clerk to the Board.
Commission or Commissions--The State Horse Racing Commission or the State Harness Racing Commission, or both, as the context may require.
Complainants--Persons who complain to the Board or Bureau of an act or omission by an applicant, licensee, permittee or person, or alleged violation of the act, or of this part, or of an order of the Board.
Confidential information--
(i) Background investigation information, including all information provided under section 1310(a) of the act (relating to slot machine license application character requirements), submitted in connection with an application required for the issuance of any license or permit under this part, Board rules, discovery procedures or cross-examination or that is provided as a courtesy to a party in a formal proceeding received by the Board or the Department as well as records obtained or developed by the Board or the Department as part of an investigation related to an applicant, licensee or permittee containing any of the following:
(A) Personal information, including home addresses, telephone numbers, Social Security numbers, educational records, memberships, medical records, tax returns and declarations, actual or proposed compensation, financial account records, credit-worthiness, or financial condition relating to an applicant, licensee or permittee or the immediate family thereof.
(B) Documents and information relating to proprietary information, trade secrets, patents or exclusive licenses, architectural and engineering plans and information relating to competitive marketing materials and strategy which may include customer-identifying information or customer prospects for services subject to competition.
(C) 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.
(D) 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 as determined by the Board.
(E) Records or information that is designated confidential by statute or the Board.
(F) Records of an applicant or licensee not required to be filed with the United States Securities and Exchange Commission by issuers that either have securities registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C.A. § 78l) or are required to file reports under section 15D of that act (15 U.S.C.A. § 78o-6).
(G) Records considered nonpublic matters or information by the United States Securities and Exchange Commission as provided by 17 CFR 200.80 (relating to Commission records and information).
(ii) Exceptions. Notwithstanding anything contained in subparagraph (i) to the contrary:
(A) Records containing information received by the Board or the Department or information obtained or developed as part of an investigation related to the applicant, licensee or permittee may be disclosed to State or Federal law enforcement agencies or entities when the Attorney General or a court of competent jurisdiction determines that the information contains evidence of a possible violation of laws, rules or regulations enforced by those agencies or entities.
(B) Records from an applicant, licensee or permittee may be disclosed to the applicant, licensee or permittee upon written request. Records from an applicant, licensee or permittee may be disclosed to a person with the written consent of the applicant, licensee or permittee.
(C) Records containing information from an applicant, licensee or permittee that is already in the public domain or subsequently becomes a part of the public domain by an action by the applicant, licensee or permittee is not subject to the confidentiality requirement set forth in subparagraph (i).
Controlling interest--A person shall be deemed to have the ability to control a publicly traded entity, or to elect one or more of the members of its board of directors, if the holder owns or beneficially holds 5% or more of the securities of the publicly traded domestic or foreign corporation, partnership, limited liability company or other form of legal entity, unless the presumption of control or ability to elect is rebutted by clear and convincing evidence. A person who is a holder of securities of a privately held domestic or foreign corporation, partnership, limited liability company or other form of legal entity shall be deemed to possess a controlling interest unless the presumption of control is rebutted by clear and convincing evidence.
Conviction--
(i) 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.
(ii) The term does not include a conviction that has been expunged or overturned or for which an individual has been pardoned or an order of Accelerated Rehabilitative Disposition.
Department--The Department of Revenue of the Commonwealth.
Final order--Includes the following:
(i) An order by the Board which approves, issues, renews, revokes, suspends, conditions, denies issuance or renewal of a license or permit.
(ii) An action by the Board which affects personal or property rights, privileges, immunities, duties, liabilities or obligations and disposes of all claims by or against parties before the Board.
(iii) An action by the Board which is designated by the Board as final.
Financial backer--An investor, mortgagee, bondholder, note holder or other source of equity or capital provided to an applicant or licensed entity.
Formal record--The pleadings in a matter or proceeding, a notice or Board order initiating the matter or proceeding, and if a hearing is held, the following shall be included in the formal record: transcript of hearing, exhibits received in evidence, exhibits offered but not received in evidence, offers of proof, motions, stipulations, subpoenas, proofs of service, determinations made by the Board thereon, and certifications to the Board.
Federal tax identification number--The Social Security number of an individual or the Employer Identification Number of a business entity, fiduciary or other person.
Fund--The State Gaming Fund established under section 1403 of the act (relating to establishment of State Gaming Fund and net slot machine revenue distribution).
Gaming employee--
(i) An employee of a slot machine licensee, including:
(A) Cashiers.
(B) Change personnel.
(C) Counting room personnel.
(D) Slot attendants.
(E) Hosts or other persons authorized to extend complimentary services.
(F) Machine mechanics or computer machine technicians.
(G) Security personnel.
(H) Surveillance personnel.
(I) Supervisors and managers.
(ii) The term includes employees of a person holding a supplier license whose duties are directly involved with the repair or distribution of slot machines and associated equipment sold or provided to a licensed facility within this Commonwealth as determined by the Board.
(iii) The term does not include bartenders, cocktail servers or other persons engaged solely in preparing or serving food or beverages, clerical or secretarial personnel, parking attendants, janitorial, stage, sound and light technicians and other nongaming personnel as determined by the Board.
Gross terminal revenue--The total of wagers received by a slot machine minus the total of:
(i) Cash or cash equivalents paid out to patrons as a result of playing a slot machine which are paid to patrons either manually or paid out by the slot machine.
(ii) Cash paid to purchase annuities to fund prizes payable to patrons over a period of time as a result of playing a slot machine.
(iii) Any personal property distributed to a patron as the result of playing a slot machine. This does not include travel expenses, food, refreshments, lodging or services.
(iv) The term does not include counterfeit money or tokens, coins or currency of other countries which are received in slot machines (except to the extent that they are readily convertible to United States currency), cash taken in fraudulent acts perpetrated against a slot machine licensee for which the licensee is not reimbursed or cash received as entry fees for contests or tournaments in which the patrons compete for prizes.
Horsemen of this Commonwealth--
(i) A thoroughbred or standardbred horse owner or trainer who enters and runs his horse at a licensed racing entity in the current or prior calendar year and meets the requirements of the horsemen's organization of which he is a member to participate in the receipt of benefits therefrom.
(ii) The term includes an employee of a trainer who meets the requirements of the horsemen's organization of which he is a member to participate in the receipt of benefits therefrom.
Horsemen's organization--A trade association which represents the majority of owners and trainers who own and race horses at a licensed racetrack.
IRS--The Internal Revenue Service of the United States.
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 (15 U.S.C.A. §§ 80a-1--80a-64), 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 Advisors Act of 1940 (15 U.S.C.A. §§ 80b-1--80b-21), and other persons as the Board may determine consistent with this part.
Issued, issuance or issue--When used in reference to an application submitted to the State Horse Racing Commission or the State Harness Racing Commission to conduct harness or thoroughbred race meetings or the Board to authorize the placement and operation of slot machines, the terms refer to the date when a determination by the Commissions or the Board approving an application brought before the agencies becomes final, binding and nonappealable and is not subject to a pending legal challenge.
Key employee--Any individual who is employed in a director or department head capacity and who is empowered to make discretionary decisions that regulate slot machine operations in this Commonwealth, including the general manager and assistant manager of the licensed facility, director of slot operations, director of cage and credit operations, director of surveillance, director of marketing, director of management information systems, director of security, comptroller and any employee who supervises the operations of these departments or to whom these department directors or department heads report and other positions which the Board will determine based on detailed analyses of job descriptions as provided in the internal controls of the applicant or licensee as approved by the Board under section 1322(c) of the act (relating to slot machine accounting controls and audits). All other gaming employees unless otherwise designated by the Board, will be classified as nonkey employees.
Key employee qualifier--Officers; directors; persons who directly or indirectly hold any beneficial interest in or ownership of the securities of an applicant or licensee; a person who has the ability to control the applicant or licensee, has a controlling interest in the applicant or licensee, elects a majority of the board of directors of the applicant or licensee, or otherwise has the ability to control the applicant or licensee; a lender, 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; an underwriter; and an employee of a slot machine applicant or licensee, manufacturer applicant or licensee or supplier applicant or licensee required to be licensed by the Board.
License fee--The amount of money required to be paid for the issuance or renewal of any type of license required by the act, this part, or as directed by the Board.
Licensed entity--A slot machine licensee, manufacturer licensee, supplier licensee or other person licensed by the Board under this part.
Licensed facility--The physical land-based location and associated areas at which a licensed gaming entity is authorized to place and operate slot machines.
Licensed gaming entity or slot machine licensee--A person that holds a slot machine license under this part.
Licensed racetrack or racetrack--The term includes the physical facility and grounds where a person has obtained a license from either the State Horse Racing Commission or the State Harness Racing Commission to conduct live thoroughbred or harness race meetings respectively with pari-mutuel wagering. The term ''racetrack or ''its racetrack'' means the physical land-based location at which live horse racing is conducted even if not owned by the person.
Licensed racing entity--A legal entity that has obtained a license to conduct live thoroughbred or harness horse race meetings respectively with pari-mutuel wagering from either the State Horse Racing Commission or the State Harness Racing Commission under the Race Horse Industry Reform Act.
Manufacturer--A person who manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs or otherwise makes modifications to slot machines or associated equipment for use or play of slot machines in this Commonwealth for gaming purposes.
Manufacturer license--A license issued by the Board authorizing a manufacturer to manufacture or produce slot machines or associated equipment for use in this Commonwealth for gaming purposes.
Manufacturer licensee--A manufacturer that obtains a manufacturer license.
Manufacturer's serial number--The unique number permanently assigned to a slot machine by a manufacturer for identification and control purposes, which number shall be affixed to the outside of the slot machine cabinet in a location as approved by the Board.
Municipality--A city, borough, incorporated town or township.
Net terminal revenue--The net amount of the gross terminal revenue less the tax and assessments imposed under sections 1402, 1403, 1405 and 1407 of the act.
Nonprimary location--A facility in which pari-mutuel wagering is conducted by a licensed racing entity other than the racetrack where live racing is conducted.
Occupation permit--A permit authorizing an individual to be employed or work as a gaming employee.
Permit fee--The amount of money required to be paid for issuance or renewal of any type of permit required by the act, this part or as directed by the Board.
Permittee--A holder of a permit issued under this part.
Person--A natural person, corporation, foundation, organization, business trust, estate, limited liability company, licensed corporation, trust, partnership, limited liability partnership, association or other form of legal business entity.
Progressive payout--A slot machine wager payout that increases in a monetary amount based on the amounts wagered in a progressive system.
Progressive system--A computerized system linking slot machines in one or more licensed facilities within this Commonwealth and offering one or more common progressive payouts based on the amounts wagered.
Qualified majority--A vote by the Board consisting of at least one member of the Board who is a gubernatorial appointee and each of the four legislative-appointees.
Race Horse Industry Reform Act--45 P. S. §§ 325.101--325.402.
Respondents--Persons subject to the jurisdiction of the Board, who are required to respond to an order or notice issued by the Board or the Bureau instituting a proceeding or investigation.
Revenue-or tourism-enhanced location--Any location within this Commonwealth determined by the Board, which will maximize net revenue to the Commonwealth or enhance year-round recreational tourism within this Commonwealth, in comparison to other proposed facilities and is otherwise consistent with the act and its declared public policy purposes.
SEC--The Securities and Exchange Commission of the United States.
Securities--As defined in the Pennsylvania Securities Act of 1972 (70 P. S. §§ 1-101--1-703).
Slot machine--
(i) A mechanical or electrical contrivance, terminal, machine or other device approved by the Board which, upon insertion of a coin, bill, ticket, token or similar object therein or upon payment of any consideration, including the use of electronic payment system except a credit card or debit card, is available to play or operate, the play or operation of which, whether by reason of skill or application of the element of chance, or both, may deliver or entitle the person playing or operating the contrivance, terminal, machine or other device to receive cash, billets, tickets, tokens or electronic credits to be exchanged for cash or to receive merchandise or anything of value, whether the payoff is made automatically from the machine or manually. A slot machine:
(A) May utilize spinning reels or video displays, or both.
(B) May or may not dispense coins, tickets or tokens to winning patrons.
(C) May use an electronic credit system for receiving wagers and making payouts.
(ii) The term includes associated equipment necessary to conduct the operation of the contrivance, terminal, machine or other device.
Slot machine license--A license issued by the Board authorizing a person to place and operate slot machines under the act.
Slot machine licensee--A person that holds a slot machine license.
State gaming receipts--Revenues and receipts required by the act to be paid into the State Gaming Fund, the Pennsylvania Race Horse Development Fund and the Pennsylvania Gaming Economic Development and Tourism Fund, and all rights, existing on July 5, 2004, or coming into existence after July 5, 2004, to receive any of those revenues and receipts.
State Treasurer--The State Treasurer of the Commonwealth.
Supplier--A person that sells, leases, offers or otherwise provides, distributes or services slot machines or associated equipment for use or play of slot machines in this Commonwealth at a licensed gaming facility.
Supplier license--A license issued by the Board authorizing a supplier to provide products or services related to slot machines or associated equipment to licensed gaming entities.
Supplier licensee--A supplier that holds a supplier license.
Trade secret--A private formula, pattern, device, cost study or compilation of information which is used in a business and which, if disclosed, would provide the opportunity to obtain an advantage over competitors who do not know or use it.
§ 401.5. Jurisdiction.
The Board will have exclusive jurisdiction over all matters within the scope of its powers under the act.
CHAPTER 403. BOARD OPERATIONS AND ORGANIZATION Sec.
403.1. Participation at meetings and voting. 403.2. Meetings. 403.3. Board office hours. 403.4. Public communication. § 403.1. Participation at meetings and voting.
(a) Qualified majority vote. Any action by the Board, except as set forth in subsections (b) and (c), including the approval, issuance, denial or conditioning of a license or the making of an order or the ratification of a permissible act done or order made by one or more of the members of the Board shall require a qualified majority vote.
(b) Majority vote. Any action by the Board to suspend, revoke, not renew, void or require forfeiture of a license or permit previously issued by the Board, to impose an administrative fine or penalty or to issue cease and desist orders under section 1201 of the act (relating to Pennsylvania Gaming Control Board established), shall require a majority vote of all the Board members.
(c) Disqualifying interest. If a Board member has a disqualifying interest in a voting matter, the member shall disclose the nature of his disqualifying interest, disqualify himself and abstain from voting in a proceeding in which his impartiality may be reasonably questioned, including instances where he knows that he possesses a substantial financial interest in the subject matter of the proceeding or an interest that could be substantially affected by the outcome of the proceeding. If it is a legislative appointee member that has disqualified himself, the qualified majority shall consist of the remaining three legislative appointees and at least two gubernatorial appointees.
(d) Member abstention. When a member has disqualified himself, his abstention from voting shall apply only to the singular voting matter that led to his disqualification and not apply to other matters under consideration by the Board for which he is otherwise qualified.
§ 403.2. Meetings.
(a) Public sessions. The proceedings of all public sessions will be conducted in accordance with 65 Pa.C.S. Chapter 7 (relating to the Sunshine Act).
(b) Regularly scheduled meetings. The Board will meet in Harrisburg once a month, and on other dates, times and locations as the Board determines.
(c) Participation via telephone or video teleconference. When it is possible, Board members will attend meetings in person. A Board member may participate in a meeting by means of telephone or video teleconference when it is impractical for the Board member to attend the meeting in person.
(d) Record of proceedings. The Board will cause to be kept a record of all proceedings held at public meetings of the Board. A verbatim transcript of those proceedings will be prepared by the Board and posted on the Board's website.
§ 403.3. Board office hours.
Board offices will be open from 9 a.m. to 5 p.m. on business days except Saturdays, Sundays and legal holidays or unless otherwise directed by the Board.
§ 403.4. Public communication.
Requests for information regarding the Board may be directed to:
Office of Communications
Pennsylvania Gaming Control Board
P. O. Box 69060
Harrisburg, Pennsylvania 17106-9060
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