[35 Pa.B. 4045]
[Continued from previous Web Page]
CHAPTER 407. PUBLIC ACCESS TO BOARD RECORDS Sec.
407.1. Case files. 407.2. Minutes of public meeting and annual report. 407.3. Extensions of time to review folders. § 407.1. Case files.
(a) Records. Formal records in proceedings before the Board or the Bureau shall contain a file for nonconfidential records and a file for confidential records.
(b) Contents. Contents of folders containing records relating to a particular proceeding shall conform to the following:
(1) A nonconfidential file shall contain formal records, complaints, petitions, answers, replies, motions, briefs, orders and opinions that are nonconfidential. The file shall also include correspondence, reports and other materials that are nonconfidential.
(2) A confidential folder shall contain confidential information which may include formal records, complaints, petitions, answers, replies, motions, briefs, orders and opinions. The file shall also include correspondence, reports and other materials that are confidential.
(c) Access. Access to formal records shall conform to the following:
(1) Nonconfidential formal records shall be available for inspection upon request made during normal Board business hours.
(2) Requests for confidential formal records shall be made to determine if the material may be released for inspection. The Board or the Bureau shall review the request and provide its determination and notice to the requestor within 30 days of the request.
(d) The Board or its designee may issue protective orders or establish standards governing the protection of proprietary or confidential documents for a given proceeding or a given type of proceeding. All parties to a proceeding shall submit, classify and mark documents in accordance with the directives of the Board or its designee. In the absence of any protective order or standard, parties shall clearly mark documents that are deemed to be proprietary or confidential, which documents shall be treated as marked by the Board. Any party or member of the public may dispute the designation of a document as submitted by filing a notice of dispute with the Board. The Board will determine the proper classification of documents subject to a notice of dispute as soon as administratively possible.
§ 407.2. Minutes of public meeting and annual report.
Minutes of the public meeting and annual reports shall be available for public inspection and copying upon request to the Office of the Clerk during normal Board business hours and for a certain cost for copying as the Board may determine through a schedule published in the Pennsylvania Bulletin.
§ 407.3. Extensions of time to review folders.
For good cause the Board may extend the time limits applicable to requests for access to documents. In the case of documents displaying no need for confidentiality, or, conversely, documents containing information which the Board considers confidential, the Board may direct the appropriate treatment thereof.
Subpart B. LICENSING, REGISTERING AND PERMITTING Chap.
421. GENERAL PROVISIONS 423. APPLICATIONS 427. MANUFACTURER LICENSES 433. LICENSE RENEWAL 435. EMPLOYEES
CHAPTER 421. GENERAL PROVISIONS Sec.
421.1. General requirements. 421.2. Licenses and permits. 421.3. Disqualification criteria. 421.4. Investigations; supplementary information. § 421.1. General requirements.
(a) A license issuance, renewal or other licensing approval issued by the Board is deemed a revocable privilege. No person holding a license, renewal, or other licensing approval is deemed to have any property rights.
(b) An application submitted under the act constitutes the seeking of a privilege, and the burden of proving qualification is on the applicant.
(c) An application for license, renewal or other licensing approval from the Board will constitute a request to the Board for a decision on the applicant's general suitability, financial suitability, character, integrity, and ability to engage in, or be associated with, gaming activity in this Commonwealth. By filing an application with the Board, the applicant specifically consents to investigation to the extent deemed appropriate by the Board. The investigation may include a background investigation of the applicant, employees of the applicant, all persons having a controlling interest in the applicant, and other persons as determined by the Board.
(d) By applying for a license, renewal or other licensing approval from the Board, the applicant agrees to:
(1) Abide by all provisions of the act.
(2) Waive liability as to the Board, its members, its employees, the Pennsylvania State Police, the Commonwealth and its instrumentalities for damages resulting from disclosure or publication in any manner, other than a willfully unlawful disclosure or publication of material or information acquired during an investigation of the applicant.
(3) Consent to execute all releases requested by the Board.
(e) No applicant, permittee or licensee may give or provide, or offer to give or provide, compensation or reward or a percentage or share of the money or property played or received through gaming in consideration or in exchange for obtaining a license or permit issued pursuant to this part.
(f) An individual regulated by this part shall have a duty to inform the Board and the Bureau of an action which the individual believes would constitute a violation of the act. No person who so informs the Board or the Bureau will be discriminated against by an applicant, licensee or person for supplying the information.
§ 421.2. Licenses and permits.
(a) Licenses that may be issued by the Board include:
(1) Manufacturer license, which authorizes the approved licensee to manufacture, build, rebuild, fabricate, assemble, produce, program, design or otherwise make modifications to slot machines or associated equipment for use or play of slot machines in this Commonwealth in accordance with the act.
(2) Supplier license, which authorizes the approved licensee to sell, lease, offer or otherwise provide, distribute or service slot machines or associated equipment for use or play of slot machines in this Commonwealth in accordance with the act.
(3) Slot machine license, which authorizes the approved licensee to place and operate slot machines and associated equipment for use or play of slot machines in this Commonwealth in accordance with the act.
(4) Key employee qualifier license, which authorizes the approved key employee qualifier to hold a designated position or be associated with an applicant or holder of a manufacturer license, a supplier license or a slot machine license.
(5) Key employee license, which authorizes the approved key employee to be employed in a designated position by an applicant or holder of a manufacturer license, supplier license or slot machine license.
(b) Permits that may be issued by the Board include occupation permits which authorize individuals to be employed as gaming employees by slot machine licensees and supplier licensees.
§ 421.3. Disqualification criteria.
A manufacturer license, a supplier license or a slot machine license or a renewal thereof, may be denied, suspended or revoked to or from a person or applicant who has failed to provide to the satisfaction of the Board that the person or applicant or any of the persons required to be qualified, are in fact qualified in accordance with the act and with this part, who has violated the act or this part, who is disqualified under the criteria set forth in the act, who has materially departed from representation made in the application for licensure or renewal, or who has failed to comply with applicable Federal or state laws or regulations. A suspension, non-renewal or denial of a license or license application may be made for a sufficient cause consistent with the act and the public interest.
§ 421.4. Investigations; supplementary information.
The Board and the Bureau may make an inquiry or investigation concerning an applicant, licensee or any associate of the applicant or licensee as it may deem appropriate either at the time of the initial application and licensure or at any time thereafter. It shall be the continuing duty of all applicants and licensees to provide full cooperation to the Board and the Bureau in the conduct of the inquiry or investigation and to provide supplementary information requested by the Board or the Bureau.
CHAPTER 423. APPLICATIONS Sec.
423.1. General requirements. 423.2. Application processing. 423.3. License issuance. 423.4. Incomplete applications. 423.5. Application withdrawal. § 423.1. General requirements.
(a) Every application shall be submitted on forms supplied or approved by the Board and shall contain all information and documents as required by the Board.
(b) The applicant shall file with the application all supplemental forms provided by the Board. The forms require full disclosure of all details relative to the applicant's suitability to conduct business in this Commonwealth under the act.
(c) Upon request of the Board, the applicant shall further supplement any information provided in the application. The applicant shall provide all requested documents, records, supporting data and other information within the time period specified in the request, or if no time is specified, within 30 days of the date of the request. If the applicant fails to provide the requested information within the required time period as set forth in the request, the Board may deny the application.
(d) An applicant shall submit evidence to the Board of the applicant's financial fitness, integrity and responsibility. The Board's review will include: the applicant's bank references, business and personal income and disbursement schedules, annual financial statements and tax returns, whether the applicant has adequate financing available to pay all current obligations and whether the applicant is likely to be able to adequately cover all existing and foreseeable obligations in the future.
(e) All information provided to the Board shall be true and complete. If there is any change in the information provided to the Board, the applicant shall promptly file a written amendment in a form prescribed by the Board.
(f) The application and any amendments or supplements must be sworn to or affirmed by the applicant before a notary public.
(g) The Board will automatically deny the application of any applicant that refuses to submit to a background investigation or provide requested information as required under the act.
(h) An applicant that submits a document to the Board which is in a language other than English shall also submit an English translation of the non-English language document. The translation shall include the signature, printed name, address and telephone number of the translator and a verification by the translator of the truth and accuracy of the translation. At its discretion, the Board may accept an English summary of a document in lieu of a complete translation of the document.
§ 423.2. Application processing.
(a) Upon a determination that all prerequisites for filing have been met, the Board will:
(1) Accept the application for filing and cause it to be docketed.
(2) Notify the applicant or the applicant's attorney, if any, in writing of the fact that the application has been accepted for filing and docketed, the date of the acceptance for filing and the docket number assigned to the applicant. The Board will also notify the applicant that the acceptance for filing and docketing of the application will not constitute evidence that any requirement of the act has been satisfied.
(3) Obtain and evaluate information as may be necessary to determine the qualifications of the applicant and any matter relating to the application.
(4) Request the Bureau to promptly conduct an investigation and provide the information necessary to determine the qualifications of the applicant and any matter relating to the application.
(5) Request the Pennsylvania State Police to provide a criminal history background investigation report, determine employee eligibility consistent with § 435.1 (relating to general provisions), conduct fingerprinting, receive handwriting exemplars, photograph applicants and perform duties as directed by the Board.
(6) Request the Department to promptly conduct a tax clearance and lien review.
(7) Request the Department of Labor and Industry to perform an Unemployment Compensation Tax clearance review and a Workers Compensation Tax clearance review.
(8) Request any agencies, entities or persons to conduct investigations or evaluations or to provide information on behalf of the Board or the Bureau, as deemed necessary by the Board.
(b) The Board will keep and maintain a list of all applicants for licenses under this part together with a record of all actions taken with respect to applicants.
(c) An application submitted under this part and all information obtained by the Board or the Bureau relating to the application shall be part of the evidentiary record of the licensing proceeding. All information obtained, including background investigation information and documents and information from other jurisdictions shall be served on the applicant. The Board's decision to issue or deny a license shall be based solely on the evidentiary record before the Board.
§ 423.3. License issuance.
(a) In addition to criteria provided under the act, the Board will not issue or renew a license unless the Board finds that the applicant has established it has met the following criteria:
(1) The applicant has developed and implemented or agreed to develop and implement a diversity plan, in accordance with section 1325(b) of the act (relating to license or permit issuance), 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.
(2) The applicant has paid all applicable fees.
(3) The applicant has fulfilled any conditions required by the Board or provided by the act.
(4) The applicant in all other respects is found suitable consistent with the laws of the Commonwealth and is otherwise qualified to be issued a license or permit.
(b) Nothing contained in the act is intended or may be construed to create an entitlement to a license by any person.
§ 423.4. Incomplete applications.
(a) The Board will not consider an application that is incomplete. An application will be deemed incomplete if it fails to include one or more of the following requirements:
(1) Applicable fees paid.
(2) Information and accompanying documentation as may be requested by the Board.
(b) If an application is deemed incomplete, the Board will notify the applicant of the deficiencies in the application and permit the applicant to revise the application and resubmit the application to the Board within a time period prescribed by the Board.
(c) Refusal to provide information as requested by the Board, its designees or agents or the Pennsylvania State Police shall result in the immediate denial of a license or permit.
§ 423.5. Application withdrawal.
(a) Except as provided in subsection (e), a written notice of withdrawal of application may be filed by an applicant at any time prior to the Board's final decision.
(b) An application will not be permitted to be withdrawn, however, unless the applicant has first established to the satisfaction of the Board that withdrawal of the application would be consistent with the public interest and the policies of the act.
(c) The Board will have the authority to direct that any applicant so permitted to withdraw his application will not be eligible to apply again for licensure, permit, or registration until a designated time as the Board determines.
(d) Unless the Board otherwise directs, no fee or other payment relating to any application will be refunded by reason of withdrawal of the application.
(e) When a hearing on an application has been requested by a party or directed by the Board, the Board will not permit withdrawal of the application after one of the following applies:
(1) The application matter has been assigned to a hearing examiner authorized by law to hear a matter.
(2) The Board has made a determination to hear the application matter directly.
CHAPTER 427. MANUFACTURER LICENSES Sec.
427.1. Manufacturer license requirements. 427.2. Manufacturer licensing standards and application. 427.3. Alternative manufacturer licensing standards. § 427.1. Manufacturer license requirements.
(a) In determining whether an applicant shall be licensed as a manufacturer under this section, the Board will consider whether the applicant satisfies the criteria listed in this section and whether the applicant manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs or otherwise makes modifications to slot machines or associated equipment at a licensed facility which:
(1) Are specifically designed for use in the operation of a slot machine.
(2) Are needed to conduct an authorized game.
(3) Have the capacity to affect the outcome of the play of a game.
(4) Have the capacity to affect the calculation, storage, collection or control of gross terminal revenue.
(b) An applicant for or holder of a manufacturer license shall have a continuing duty to promptly:
(1) Notify the Board of a material change in the information, materials and documents submitted in the license application or renewal application submitted by the applicant or licensee or a change in circumstances that may render the applicant or licensee ineligible, unqualified or unsuitable to hold the license under the licensing standards and requirements of the act and of this part.
(2) Provide any information requested by the Board or the Bureau relating to licensing or regulation; cooperate with the Board or the Bureau in investigations, hearings, and enforcement and disciplinary actions; and comply with all conditions, restrictions, requirements, orders and rulings of the Board in accordance with the act.
(c) In accordance with section 1317 of the act (relating to supplier and manufacturer licenses application), neither an applicant for or the holder of a manufacturer license or slot machine license nor any of the applicant's or holder's affiliates, intermediaries, subsidiaries or holding companies, is eligible to apply for or hold a supplier license.
§ 427.2. Manufacturer licensing standards and application.
(a) The standards and requirements for qualification for a manufacturer license are set forth as follows and in section 1317 of the act (relating to supplier and manufacturer licenses application). The applicant shall submit:
(1) A nonrefundable application processing fee.
(2) An original and seven copies of the Manufacturer/Supplier Application and Disclosure Information Form for the applicant that has applied for the license under this part.
(3) A diversity plan as set forth in section 1325(b) of the act (relating to license or permit issuance) and Chapter 481 (relating to general provisions), which shall be signed by the chief executive officer of the applicant.
(4) An application from every key employee and key employee qualifier as specified by the Manufacturer Application and Disclosure Information Form or as determined by the Board, which shall consist of the following:
(i) An original and seven copies of the Multi Jurisdictional Personal History Disclosure Form with a nonrefundable deposit to be set by the Board and provided in a fee schedule for each key employee and key employee qualifier.
(ii) The applicant may be subject to additional fees based on the actual expenses incurred by the Board in conducting the background investigation.
(5) If applicable, copies of all filings required by the Securities and Exchange Commission during the 2 immediately preceding fiscal years, including all annual reports filed with the United States Securities Exchange Commission, under sections 13 or 15D of the Securities Exchange Act of 1934 (15 U.S.C.A. §§ 78m and 78o-6), quarterly reports filed with the United States Securities Exchange Commission, under sections 13 or 15D of the Securities Exchange Act of 1934, current reports filed with the United States Securities Exchange Commission, under sections 13 or 15D of the Securities Exchange Act of 1934, and proxy statements issued by the applicant.
(6) Properly executed forms for consents to inspections, searches and seizures; waivers of liability for disclosures of information and consents to examination of accounts and records in forms as prescribed by the Board.
(7) The applicant shall affirm that neither it nor any of its affiliates, intermediaries, subsidiaries or holding companies, holds any direct or indirect ownership interest in any applicant for or holder of a supplier license, or employs, directly or indirectly, any person who satisfies the definition of a key employee qualifier or key employee of a supplier licensee. In applying this provision to an applicant for a manufacturer license, the Board will not include interests that are held by individuals in any of the following manners:
(i) In mutual funds when the value of the interest owned does not exceed 1% of the total fair market value of the applicant or licensee and provided that the mutual fund is not a nondiversified fund invested primarily in entities operating in, or connected with, the gaming industry.
(ii) Through defined benefit pension plans.
(iii) Through deferred compensation plans organized and operated under section 457 of the Internal Revenue Code of 1986 (26 U.S.C.A. § 457).
(iv) In blind trusts over which the holder may not exercise any managerial control or receive income during the time period the holder is subject to these provisions.
(v) Through tuition account plans organized and operated under section 529 of the Internal Revenue Code of 1986 (26 U.S.C.A. § 529).
(vi) Through plans described in section 401(k) of the Internal Revenue Code of 1986 (26 U.S.C.A. § 401(k)).
(vii) An interest held by a spouse if an action seeking a divorce and dissolution of marital status has been initiated in any jurisdiction by either party to the marriage.
(8) Other information or documentation as may be requested by the Board.
(b) Each application for a manufacturer license shall include the production of copies of financial books, records, information, documentation and assurances to satisfy the Board of the following:
(1) The financial fitness, good character, honesty, integrity and responsibility of the applicant.
(2) That all key employee qualifiers individually qualify under the standards of section 1317 of the act.
(3) The integrity of all financial backers.
(4) The suitability of the applicant and all key employee qualifiers of the applicant based on the satisfactory results of:
(i) A background investigation of all owners, officers, members of the board of directors and key employees or their equivalent in other jurisdictions.
(ii) A current tax clearance and lien review performed by the Department.
(iii) A current Unemployment Compensation Tax clearance review and a Workers Compensation Tax clearance review performed by the Department of Labor and Industry.
(c) A sworn or affirmed statement that the applicant has developed and implemented internal safeguards and policies to prevent a violation of section 1513 of the act (relating to political influence).
§ 427.3. Alternative manufacturer licensing standards.
(a) If an applicant for a manufacturer license holds a similar license in another jurisdiction in the United States, the applicant may submit a written request with its application for the Board to adopt an abbreviated licensing process under section 1319 of the act (relating to alternative manufacturer licensing standards) to review a manufacturer license application.
(b) The Board may use the abbreviated process if:
(1) The Board determines, after investigation, that the licensing standards in a jurisdiction in which the applicant is licensed are similarly comprehensive, thorough and provide equal, if not greater, safeguards as provided in the act and that granting the request is in the public interest.
(2) A completed application has been filed by the applicant.
(3) The applicant has provided current, updated information to the Board associated with the similar license in the other jurisdiction related to its financial viability and suitability.
(4) The applicant has no administrative or enforcement actions pending in another jurisdiction or the applicant has adequately disclosed and satisfactorily explained the action to the satisfaction of the Board.
(5) There are no pending or ongoing investigations of possible material violations by the applicant in another jurisdiction or the applicant has adequately disclosed and satisfactorily explained the investigation to the satisfaction of the Board.
(c) This section may not be construed to waive fees associated with obtaining a license through the application process in this Commonwealth.
CHAPTER 433. LICENSE RENEWAL Sec.
433.1. Renewal of manufacturer and supplier license. § 433.1. Renewal of manufacturer and supplier license.
(a) A license issued under this part shall be valid for a term of 1 year and for all subsequent renewals. An application for renewal shall be filed by a licensed entity no later than 60 days prior to the expiration of the license.
(b) The licensed entity shall complete and file an original and seven copies of a Manufacturer/Supplier License Renewal Application Form which shall, without limitation, disclose all changes in ownership of the licensed entity, and the new owner shall be required to submit an application for licensure and evidence that it is qualified for licensure.
(1) The licensed entity shall disclose all changes in personnel who are to be licensed by the Board.
(2) The licensed entity shall pay the license renewal fee, as established by the Board under section 1208 of the act (relating to collection of fees and fines), when the Renewal Application Form is filed.
(3) Once a Renewal Application Form has been filed and the renewal fee has been paid, the original license shall remain in effect until the Board sends written notification to the licensed entity that the Board has denied renewal of the license.
CHAPTER 435. EMPLOYEES Sec.
435.1. General provisions. 435.2. Key employee qualifier license. 435.3. Key employee license. 435.4. Occupation permit. § 435.1. General provisions.
(a) The issuance or renewal of a license or permit by the Board shall be a revocable privilege. No individual holding a license or permit under this part shall be deemed to have a property interest in the license or permit.
(b) It shall be the affirmative responsibility of each individual applying for a license or permit under this part to establish his individual qualifications. All information provided to the Board must be true and complete. If there is a change in the information provided to the Board, an applicant shall promptly file a written amendment in a manner prescribed by the Board. An applicant who fails to cooperate with the review of its application under this part will not be granted a license or permit.
(c) An individual applying for a license or permit under this part will provide all information required by the act and this part and satisfy all requests for information pertaining to qualification in a form required by the Board. An individual who fails to provide information, documentation and disclosures required by this part or by the Board or who fails to reveal a fact material to qualification will not be granted a license or permit under this part. An applicant agrees to waive liability as to the Board, its members, its employees, the Pennsylvania State Police, the Commonwealth and its instrumentalities for damages resulting from disclosure or publication in any manner, other than a willfully unlawful disclosure or publication, of material or information acquired during an investigation of the applicant.
(d) An individual applying for a license or permit under this part shall have the continuing duty to provide assistance or information requested by the Board or the Bureau, and to cooperate in an inquiry, investigation or hearing conducted by the Board or the Bureau. If, upon issuance of a formal request for information, evidence or testimony, an applicant, licensee or permittee refuses to comply with requests for assistance or information, the application, license or permit shall be denied or revoked by the Board.
(e) An individual who receives a license or permit under this part shall have the continuing duty to report to the Board an arrest or conviction for an offense under 18 Pa.C.S. (relating to crimes and offenses), or an offense under 75 Pa.C.S. § 3802 (relating to driving under influence of alcohol or controlled substance) or of comparable offenses in other states or foreign jurisdictions.
(f) An individual may not be employed in this Commonwealth by a slot machine licensee, manufacturer licensee or supplier licensee in any capacity unless he is a citizen of the United States or can demonstrate that he holds a current and valid work authorization and is not restricted from working in the capacity for which employment is sought or held. Authorization to work in the United States may be demonstrated by submitting one of the following:
(1) A permanent resident alien card.
(2) A temporary employment authorization card.
(3) A document which the Board deems to be sufficient evidence or authorization.
(g) No applicant, licensee or permittee may give or provide, or offer to give or provide, compensation or reward or a percentage or share of the money or property played or received through gaming in consideration or in exchange for obtaining a license or permit issued under this part.
(h) An individual regulated by this part shall have a duty to inform the Board and the Bureau of any action which the individual believes would constitute a violation of the act. No person who so informs the Board or the Bureau will be discriminated against by an applicant, licensee or person for supplying the information.
(i) An applicant who submits a document to the Board which is in a language other than English shall also submit an English translation of the non-English language document. The translation shall include the signature, printed name, address and telephone number of the translator and a verification by the translator of the truth and accuracy of the translation. At its discretion, the Board may accept an English summary of a document in lieu of a complete translation of the document.
(j) Sixty days prior to the expiration of a license or permit under this part, a licensee or permittee may submit a renewal application to the Board. If the renewal application meets all the requirements of this part, the license or permit shall remain in effect until the Board sends written notification to the licensee or permittee that the Board has denied renewal of the license or permit. A new background investigation is not required unless ordered by the Board. All licensees and permittees shall provide an updated photograph at least every 2 years.
(k) A reference to a slot machine licensee, manufacturer licensee or supplier licensee under this chapter includes an applicant for a slot machine license, manufacturer license or supplier license in addition to a person who is already licensed.
(l) The Board will maintain a list of all individuals who have applied for a license or permit under this part as well as a record of all actions taken with respect to each applicant, which list shall be open to public inspection.
§ 435.2. Key employee qualifier license.
(a) All key employee qualifiers shall obtain a key employee qualifier license from the Board.
(b) An application for licensure as a key employee qualifier shall be on a form prescribed by the Board and include the following:
(1) The name and address of the individual to include the home address and history of residence and all current business addresses.
(2) Daytime and evening telephone numbers.
(3) Date of birth.
(4) Physical description of the applicant.
(5) Social Security number.
(6) Citizenship, resident alien status or authorization to work in the United States.
(7) Marital status.
(8) Military history.
(9) Employment history, including gaming-related employment and contact information for prior employers.
(10) Education history.
(11) Family and marital history, including any current court orders relating to alimony, spousal support or child support.
(12) Credit history.
(13) History of insurance claims relating to the business activities of the applicant or its affiliates, intermediaries, subsidiaries or holding companies.
(14) Information relating to any health-related issues involving alcohol or controlled substances.
(15) A list of at least five references, to include contact information for each.
(16) Verification of the applicant's status as a key employee qualifier from a slot machine licensee, manufacturer licensee or a supplier licensee.
(17) If the applicant is an employee, a description of the employment responsibilities of the individual and their relationship to the operation of the slot machine licensee, manufacturer licensee or supplier licensee and of all education, training and experience that qualifies the individual for the position.
(18) A signed, dated and notarized release authorization necessary to obtain information from governmental agencies and other institutions about the applicant.
(19) The individual's criminal history records information and arrests or criminal charges brought against the individual.
(20) A photograph that meets the requirements prescribed by the Board.
(21) A set of fingerprints taken by the Pennsylvania State Police or a criminal justice agency designated by the Pennsylvania State Police and transmitted to the Pennsylvania State Police.
(22) A list of civil judgments consistent with section 1310(b) of the act (relating to slot machine license application character requirements).
(23) Details relating to any similar licenses obtained in other jurisdictions.
(24) A tax clearance and lien review from the Department.
(25) A nonrefundable application processing fee.
(26) Any additional information requested by the Board.
(c) In addition to the information under subsection (b), the Board may require letters of reference under section 1310(b) of the act (relating to slot machine license application character requirements).
(d) After review of the information submitted under subsections (b) and (c), including the background investigation, the Board may issue a key employee qualifier license if the individual applicant has proven by clear and convincing evidence that he is a person of good character, honesty and integrity and is qualified and suitable to be licensed as a key employee qualifier.
(e) A license issued under this section will be nontransferable.
(f) An individual who receives a license under this chapter need not obtain an additional license as a key employee.
(g) Notwithstanding the definition of key employee qualifier in § 401.4 (relating to definitions), any of the following persons may request in writing that the Board waive their obligation to be licensed as a key employee qualifier as part of a manufacturer, supplier or slot machine license issuance or renewal by making the appropriate showing:
(1) If the person required to be licensed is a key employee qualifier as an officer of an entity, the person shall be required to demonstrate that he is not significantly involved in and has no authority over the conduct of business with a licensee. The request shall include, at a minimum, the following:
(i) A description of his title, duties and responsibilities with the applicant, licensee or with any of its affiliates, intermediaries, subsidiaries or holding companies.
(ii) The terms of his compensation.
(iii) A certification by the officer stating that the officer is not significantly involved in and has no authority over the conduct of business with any slot machine licensee or applicant.
(2) If the person required to be licensed as a key employee qualifier as an outside director of an affiliate, intermediary, subsidiary or holding company of an applicant or licensee, the person shall be required to demonstrate that he is not significantly involved in the management or ownership of the applicant or licensee. The request shall include, at a minimum, the following:
(i) A description of his title, duties and responsibilities with the applicant, licensee or with any of its affiliates, intermediaries, subsidiaries or holding companies.
(ii) The terms of his compensation.
(iii) Any board committee memberships, including a description of the functions and responsibilities of any such committee.
(iv) A description of his ownership interest.
(v) A certification by the director stating that the director is not significantly involved in the management of the applicant or licensee.
(3) If the person required to be licensed is a key employee qualifier as an owner of the applicant or licensee or any of its affiliates, intermediaries, subsidiaries or holding companies, and requests a waiver as an institutional investor, the person shall be required to demonstrate the following:
(i) The institutional investor shall demonstrate that its ownership interest consists of one of the following:
(A) Under 10% of the equity securities of a licensee's holding or intermediary companies, if the securities are those of a publicly traded corporation and its holdings of the securities were purchased for investment purposes only.
(B) Debt securities of a licensee's affiliates, intermediaries, subsidiaries or holding companies or another affiliate, intermediary, subsidiary or holding company of a licensee's affiliate, intermediary, subsidiary or holding company which is related in any way to the financing of the licensee, where the securities represent a percentage of the outstanding debt of the company not exceeding 20% or a percentage of any issue of the outstanding debt of the company not exceeding 50%, if the securities are those of a publicly traded corporation and its holdings of the securities were purchased for investment purposes only.
(ii) A request for waiver by an institutional investor shall include, at a minimum, the following:
(A) The number of shares or units held by it and the percentage of ownership of the entity that the shares or units represent.
(B) A copy of the most recent notice filed by it with the Securities and Exchange Commission.
(C) A list of any direct or indirect owners of the institutional investor.
(D) An explanation as to why the investor should be considered an institutional investor under the definition in § 401.4.
(E) A certification by the investor stating that the investor has no present involvement in, and no intention of influencing the business activities of, the applicant or licensee or any of its affiliates, intermediaries, subsidiaries or holding companies and will give the Board 30 days notice if the investor intends to become involved in or to influence the activities in the future.
(h) A request for a waiver of a key employee qualifier license shall include a nonrefundable application processing fee. The Board may charge additional fees based on the actual expenses incurred in processing the waiver request.
§ 435.3. Key employee license.
(a) All key employees shall obtain a key employee license from the Board.
(b) An application for licensure as a key employee shall be on a form prescribed by the Board and include the following:
(1) The name and address of the individual, to include the home address and history of residence and all business addresses.
(2) Daytime and evening telephone numbers.
(3) Date of birth.
(4) Physical description of the applicant.
(5) Social Security number.
(6) Citizenship, resident alien status or authorization to work in the United States.
(7) Marital status.
(8) Military history.
(9) Employment history, including gaming-related employment and contact information for prior employers.
(10) Education history.
(11) Family and marital history, including any current court orders relating to alimony, spousal support or child support.
(12) Credit history.
(13) History of insurance claims relating to the business activities of the applicant or its affiliate, intermediary, subsidiary or holding company.
(14) Information relating to any health-related issues involving alcohol or controlled substances.
(15) A list of at least five references, to include contact information for each.
(16) Verification of the applicant's employment or an offer of employment from a slot machine licensee, manufacturer licensee or a supplier licensee.
(17) A description of the employment responsibilities of the individual and their relationship to the operation of the slot machine licensee, manufacturer licensee or supplier licensee and of all education, training and experience that qualifies the individual for the position.
(18) A signed, dated and notarized release authorization necessary to obtain information from governmental agencies and other institutions about the applicant.
(19) The individual's criminal history records information and arrests or criminal charges brought against the individual.
(20) A photograph that meets the requirements prescribed by the Board.
(21) A set of fingerprints taken by the Pennsylvania State Police or a criminal justice agency designated by the Pennsylvania State Police and transmitted to the Pennsylvania State Police.
(22) A list of civil judgments consistent with section 1310(b) of the act (relating to slot machine license application character requirements).
(23) Details relating to any similar licenses obtained in other jurisdictions.
(24) A tax clearance and lien review from the Department.
(25) A nonrefundable application processing fee.
(26) Any additional information requested by the Board.
(c) In addition to the information under subsection (b), the Board may require letters of reference from law enforcement agencies under section 1310(b) of the act.
(d) After review of the information submitted under subsections (b) and (c), including the background investigation, the Board may issue a key employee license if the individual applicant has proven by clear and convincing evidence that he is a person of good character, honesty and integrity and is qualified to be licensed as a key employee.
(e) A license issued under this section will be nontransferable.
(f) Notwithstanding the definition of key employee in § 401.4 (relating to definitions), any of the following persons may request in writing that the Board waive their obligation to be licensed as a key employee as part of a manufacturer, supplier or slot machine license issuance or renewal by making the appropriate showing:
(1) The person shall be required to demonstrate one of the following:
(i) He is not assigned to the licensee's gaming operations in this Commonwealth.
(ii) His duties do not have an effect on or require contact with slot machines for use or play in this Commonwealth.
(2) The request shall include, at a minimum, the following:
(i) A description of his title, duties and responsibilities with the applicant, licensee or with any of its affiliates, intermediaries, subsidiaries or holding companies.
(ii) A certification by the chief executive officer stating that the employee is not assigned to the licensee's gaming operations in this Commonwealth or that the employee's duties do not have an effect on or require contact with slot machines for use or play in this Commonwealth.
(g) A request for a waiver of a key employee license must include a nonrefundable application processing fee. The Board may charge additional fees based on the actual expenses incurred in processing the waiver request.
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