[37 Pa.B. 2197]
[Saturday, May 12, 2007]
[Continued from previous Web Page]
CHAPTER 431a. SUPPLIER LICENSES Sec.
431a.1. Supplier general requirements. 431a.2. Supplier license applications and standards. 431a.3. Supplier license term and renewal. 431a.4. Responsibilities of a supplier. 431a.5. Supplier log books. § 431a.1. Supplier general requirements.
(a) A supplier seeking to sell, lease, offer or otherwise provide, distribute or service slot machines or associated equipment to a slot machine licensee within this Commonwealth through a contract with a licensed manufacturer shall apply to the Board for a supplier license.
(b) In accordance with sections 1317 and 1317.1 of the act (relating to supplier licenses; and manufacturer licenses), an applicant for or the holder of a supplier license or any of the applicant's or holder's affiliates, intermediaries, subsidiaries or holding companies, may not apply for or hold a slot machine license or a manufacturer license.
(c) Limitations will not be placed on the number of supplier licenses issued or when an application for a supplier license may be filed.
§ 431a.2. Supplier license applications and standards.
(a) An applicant for a supplier license shall submit:
(1) An original and three copies of the Supplier Application and Disclosure Information Form for the applicant and each of the applicant's affiliated entities.
(2) A nonrefundable application fee.
(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 diversity).
(4) An application from every key employee under § 435.3 (relating to key employee license) and principal under Chapter 433 (relating to principal license) as specified by the Supplier Application and Disclosure Information Form or as determined by the Board
(5) If applicable, copies of all filings required by the SEC during the 2 immediately preceding fiscal years, including annual reports filed under section 13 or section 15D of the Securities Exchange Act of 1934 (15 U.S.C.A. §§ 78a and 78o-6), quarterly reports filed under section 13 or section 15D of the Securities Exchange Act of 1934, current reports filed under section 13 or section 15D of the Securities Exchange Act of 1934, and proxy statements issued by the applicant.
(6) An affirmation that neither the applicant nor any of its affiliates, subsidiaries, intermediaries and holding companies holds any direct or indirect ownership interest in an applicant for or holder of a manufacturer license or slot machine licensee, or employs, directly or indirectly, any person who satisfies the definition of a principal or key employee of a manufacturer or slot machine applicant or licensee. In applying this provision to an applicant for a supplier 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 manufacturer or slot machine 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 does not exercise 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 (26 U.S.C.A. § 529).
(vi) Through plans described in section 401(k) of the Internal Revenue Code (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.
(7) 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) and a copy the safeguards and policies.
(b) In addition to the materials required under subsection (a), an applicant for a supplier license shall:
(1) Promptly provide information requested by the Board relating to the supplier's application or regulation and cooperate with the Board in investigations, hearings, and enforcement and disciplinary actions.
(2) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications).
(3) Demonstrate that the applicant has or will establish a principal place of business in this Commonwealth.
(c) An applicant for a supplier license shall be required to reimburse the Board for additional costs, based on the actual expenses incurred by the Board, in conducting the background investigation.
(d) In determining whether an applicant is suitable to be licensed as a supplier under this section, the Board will consider the following:
(1) The financial fitness, good character, honesty, integrity and responsibility of the applicant.
(2) If all principals of the applicant individually qualify under the standards of section 1317 of the act (relating to supplier license).
(3) The integrity of financial backers.
(4) The suitability of the applicant and principals and key employees of the applicant based on the satisfactory results of:
(i) A background investigation of the principals and key employees.
(ii) A current tax clearance 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.
§ 431a.3. Supplier license term and renewal.
(a) A supplier license or renewal shall be valid for 1 year from the date on which the license or renewal is approved by the Board.
(b) A renewal application and renewal fee shall be filed at least 2 months prior to the expiration of the current license.
(c) A supplier license for which a completed renewal application and fee has been received by the Board will continue in effect for an additional 6-month period or until acted upon by the Board, whichever occurs first.
§ 431a.4. Responsibilities of a supplier.
(a) Within 1 year of the Board's issuance of a supplier license, the supplier shall establish and maintain a principal place of business in this Commonwealth.
(b) At the time of licensure, a supplier shall have assets or available lines of credit to support the sale, financing, servicing or repair of all slot machines to be placed in service or repaired by the supplier. The assets and available lines of credit shall be from a source independent of slot machine manufacturers and licensed gaming entities. Notwithstanding the forgoing, a licensed manufacturer may extend financing or payment terms to a licensed supplier, at prevailing market rates and terms, for the acquisition or leasing of slot machines, to be secured by the slot machines sold, leased or transferred.
(c) A supplier shall submit to the Board for review any agreements with a licensed manufacturer or with a slot machine licensee and detailed business plans. The Board's review may include, but not be limited to, financing arrangements, inventory requirements, warehouse requirements, warehouse space, technical competency, compensative agreements and other terms or conditions to ensure the financial independence of the licensed supplier from any licensed manufacturer or licensed gaming entity.
(d) A holder of a supplier license shall have a continuing duty to:
(1) Provide information requested by the Board relating to licensing or regulation; cooperate with the Board in investigations, hearings, and enforcement and disciplinary actions; and comply with conditions, restrictions, requirements, orders and rulings of the Board in accordance with the act.
(2) Report a change in circumstances that may render the holder of a supplier license ineligible, unqualified or unsuitable to hold a license under the standards and requirements of the act and of this part.
(3) Provide a copy of all SEC filings listed in § 427a.2(a)(5) (relating to manufacturer license applications and standards) that are filed after the date of issuance of its license. The copy shall be submitted within 30 days after the date of filing with the SEC.
(e) An employee of a licensed supplier whose duties of employment or incidental activities related to employment allow the employee access to slot machines or associated equipment or require the employee to be on the gaming floor or in a restricted area shall be required to obtain an occupational permit under § 435.4 (relating to occupational permit).
(f) A slot machine licensee may service or repair slot machines or associated equipment at its licensed facility pursuant to a written agreement between the licensed gaming entity and the supplier licensee that provided the slot machines or associated equipment for use or play at the licensed facility.
(g) A slot machine licensee may perform routine maintenance directly related to the availability of slot machines for play, customer service or a clean and gracious playing environment. The routine maintenance includes installation or replacement of the following: batteries, hardware, including hinges, screws, bolts and custom handles, light bulbs, locks on slot machines and slot cash storage boxes, including the rekeying of the locks, printers, exclusive of printer software and paper stock. Routine maintenance also includes external cleaning and the clearing of paper, bill and coin jams which do not require removal or dismantling of the mechanisms.
(h) A licensed manufacturer or a manufacturer's designee may supply, install, service or repair slot machines or associated equipment manufactured by the licensed manufacturer.
§ 431a.5. Supplier log books.
(a) A supplier licensee shall maintain a log book to register the individuals who enter the licensee's principal place of business and each physical facility utilized by the licensee to house inventory, replacement parts, supplies, transportation or delivery equipment.
(b) The supplier licensee shall record or cause to be recorded in the log book the following:
(1) The date, entrance time and departure time of each individual.
(2) The name of each individual entering the place of business or physical facility and who they represent.
(3) The signature of each individual.
(4) The purpose for the visit.
(5) If applicable, the individual's Board license, permit, certification or registration number.
(c) Licensed, permitted or registered employees of a supplier are not required to register in the log book.
(d) Each log book required by this section shall be maintained at the entrance of the location to which it pertains and shall be made readily accessible for examination and inspection upon the demand of any agent, employee or representative of the Board, the Department of Revenue or the Pennsylvania State Police.
CHAPTER 436a. HORSEMEN'S ORGANIZATIONS Sec.
436a.1. Definitions. 436a.2. Horsemen's organization registration. 436a.3. Permitting of officers, directors, representatives and fiduciaries. 436a.4. Responsibilities of horsemen's organizations, officers, directors, representatives and fiduciaries. 436a.5. Fiduciaries. 436a.6. Health and pension benefit plans. § 436a.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Fiduciary--A person who is entrusted by a horsemen's organization or its members to hold or manage any funds received for horsemen under section 1406 of the act (relating to distributions from Pennsylvania Race Horse Development Fund) or who exercises control or discretionary authority over selection or management of a health or pension benefit plan, disposition of its assets or distribution of its funds.
Health benefits--A plan, fund or program which is maintained by a horsemen's organization and that provides healthcare benefits to horsemen at licensed racetracks, their families and employees, and others designated by the rules and eligibility requirements of the organization consistent with the act.
Horsemen--A thoroughbred or standardbred horse owner or trainer who enters and runs a horse at a licensed racing entity in the current or prior calendar year and meets the membership requirements of a horsemen's organization to participate in the receipt of benefits there from.
Horsemen's organization--A trade association which represents the majority of horsemen at a licensed racetrack and which exists for the purpose, in whole or in part, of negotiating a horsemen's contract and resolving grievances, disputes or other matters with management of a licensed racing entity, as defined by section 1103 of the act (relating to definitions).
Horsemen's organization officer--An officer or person authorized to perform the functions of president, vice president, secretary/treasurer or other executive function of a horsemen's organization, and any member of its board of directors or similar governing body.
Horsemen's organization representative--A person, compensated or not, who is authorized to represent a horsemen's organization or members thereof in matters relating to horsemen's agreements with a licensed racing entity, or who undertakes on behalf of a horsemen's organization or members thereof to promote, facilitate or otherwise influence the relations between a horsemen's organization and a licensed racing entity.
Pension benefits--A plan, fund or program which is maintained by a horsemen's organization and that funds a program which provides retirement income to horsemen at licensed racetracks, their families and employees, and any others so designated by the rules and eligibility requirements of the organization consistent with the act.
§ 436a.2. Horsemen's organization registration.
(a) Each horsemen's organization or affiliate representing horsemen shall register with the Board in accordance with this section.
(b) Each horsemen's organization shall file a completed Horsemen's Organization Registration Statement with the registration fee established by the Board.
(c) Horsemen's organization applicants and registrants shall be subject to the general application requirements of Chapters 421a and 423a (relating to general provisions; and applications).
(d) Horsemen's organization registrations will be valid for 4 years from the date on which the registration is approved by the Board. Renewals will be valid for 4 years and shall be filed no later than 120 days prior to the expiration of the current registration period. A registration for which a completed renewal application and fee has been received by the Board will continue in effect until the Board sends written notification to the horsemen's organization that the Board has approved or denied the renewal of the registration.
§ 436a.3. Permitting of officers, directors, representatives and fiduciaries.
(a) Every officer, director or representative of a horsemen's organization who is currently elected or appointed and authorized to act on behalf of the horsemen's organization, or an individual authorized to act in a fiduciary capacity on behalf of horsemen shall be permitted in accordance with this section.
(b) Every officer, director or representative of a horsemen's organization who is currently elected or appointed and authorized to act on behalf of the horsemen's organization, or an individual authorized to act in a fiduciary capacity on behalf of horsemen shall file a completed Horsemen's Permit Application Form with the permit fee established by the Board.
(c) Applicants and permittees under this section shall be subject to the general application requirements of Chapters 421a and 423a (relating to general provisions; and applications).
(d) Permits issued under this section will be valid for 1 year from the date on which the permit is approved by the Board. Renewals will be valid for 1 year and shall be filed at least 60 days prior to the expiration of the current permit. A permit for which a completed renewal application and fee has been received by the Board will continue in effect until the Board sends written notification to the permittee that the Board has approved or denied the renewal of the permit.
(e) If a current officer, director or representative of a horsemen's organization is denied a permit required by this section, that officer, director or representative shall be precluded from engaging in any activity of the horsemen's organization involving gaming funds allocated to, received by, or distributed from the horsemen's organization.
(f) A person who is a third-party provider of a health or pension benefit plan to a horsemen's organization shall be exempt from the requirements of this section. A licensed attorney or accountant representing a horsemen's organization who does not meet the conditions in subsection (a) shall also be exempt this section.
§ 436a.4. Responsibilities of horsemen's organizations, officers, directors, representatives and fiduciaries.
(a) Horsemen's organizations, officers, directors, representatives and fiduciaries shall ensure that the funds allocated to the horsemen and horsemen's organizations are used for the benefit of all horsemen of this Commonwealth.
(b) Funds allocated to horsemen's organizations for benevolent programs are not to be used for the personal benefit of any officer, director, representative or fiduciary of a horsemen's organization except to the extent that the officer, director, representative or fiduciary of the horsemen's organization is a participant in the benevolent programs on the same basis as other eligible program participants.
(c) Horsemen's organizations shall maintain adequate records of receipts and distributions of the funds allocated to them under the act.
(d) By March 30 of each calendar year, each horsemen's organization shall file with the Board two copies of its audited financial statements together with any management letters or reports written thereon as prepared by its independent auditor. These filings will be available for public inspection during the normal operating hours of the Board at its Harrisburg office.
§ 436a.5. Fiduciaries.
Fiduciaries shall:
(1) Ensure that the funds received for the benefit of the horsemen are distributed pursuant to the act.
(2) Manage health and pension benefit plans for the exclusive benefit of participants and beneficiaries.
(3) Carry out their duties in a prudent manner and refrain from conflict-of-interest transactions.
(4) Comply with limitations on certain plans' investments in particular securities and properties.
(5) Fund benefits in accordance with applicable law and plan rules.
(6) File quarterly reports with the Board within 20 days of the end of each calendar quarter. The reports must detail the expenditure of funds designated by the act for the benefit of horsemen and be in a format and manner designated by the Board.
(7) Provide documents to the Board as may be requested in the conduct of investigations or to ensure compliance with the act and this chapter.
§ 436a.6. Health and pension benefit plans.
(a) Contracts for health and pension benefit plans established for the benefit of members of a horsemen's organization must:
(1) Be submitted to the Board for review at least 90 days prior to the proposed effective date of the contract.
(2) Not be effective until approved by the Board.
(b) Administrative and overhead costs incurred by the horsemen's organization for the administration of health and pension benefit plans must be reasonable. Administrative costs that do not exceed 15% of the statutory allocation are considered reasonable.
CHAPTER 438a. LABOR ORGANIZATIONS Sec.
438a.1. Definitions. 438a.2. Labor organization notification. 438a.3. Permitting of labor organization officers, agents and management employees. § 438a.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Labor organization--An organization, union, agency, employee representation committee, group, association or plan in which employees participate which exists for the purpose, in whole or in part, of dealing with a slot machine licensee or licensed management company concerning grievances, labor disputes, wages, rates of pay, hours or other terms or conditions of employment, including any conference, general committee, joint or systems board or international labor organization.
Labor organization agent--A person, compensated or not, who is authorized to represent a labor organization in an employment matter relating to employees who are employed by a slot machine licensee or licensed management company, or who undertakes on behalf of the labor organization to promote, facilitate or otherwise influence the relations between the labor organization and a slot machine licensee or licensed management company.
Labor organization officer--An officer or person authorized to perform the functions of president, vice president, secretary/treasurer or other executive function of a labor organization, and a member of its executive board or similar governing body who exercises authority, discretion or influence with regard to matters relating to employees who are employed at a licensed facility.
Labor organization management employee--An employee of a labor organization who serves in a management, supervisory or policy making position, who exercises authority, discretion or influence with regard to matters relating to employees who are employed at a licensed facility.
§ 438a.2. Labor organization notification.
(a) Each labor organization shall file a completed Labor Organization Notification Form in a format prescribed by the Board.
(b) Labor organizations shall file an updated version of the Labor Organization Notification Form within 30 days of a change in the information contained on the form.
§ 438a.3. Permitting of labor organization officers, agents and management employees.
(a) Every labor organization officer, agent and management employee shall be permitted in accordance with this section.
(b) Every labor organization officer, agent and management employee shall file a completed Labor Organization Permit Application Form with the permit fee established by the Board.
(c) Applicants and permittees under this section shall be subject to the general application requirements of Chapters 421a and 423a (relating to general provisions; and applications).
(d) Permits issued under this section will be valid for 1 year from the date on which the permit is approved by the Board. Renewals will be valid for 1 year and shall be filed no later than 60 days prior to the expiration of the current permit. A permit for which a completed renewal application and fee has been received by the Board will continue in effect until the Board sends written notification to the permittee that the Board has approved or denied the renewal of the permit.
CHAPTER 439a. JUNKET ENTERPRISES Sec.
439a.1. Definitions. 439a.2. Junket enterprise general requirements. 439a.3. Junket enterprise license applications. 439a.4. Junket enterprise license term and renewal. 439a.5. Junket representative general requirements. 439a.6. Junket representative registration. 439a.7. Junket schedules. 439a.8. Junket arrival reports. 439a.9. Junket final reports. 439a.10. Monthly junket reports. 439a.11. Purchase of patron lists. 439a.12. Junket enterprise and representative prohibitions. § 439a.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Junket--
(i) An arrangement made between a slot machine licensee and a junket enterprise or a junket representative, the purpose of which is to induce a person, selected or approved, to come to a licensed facility for the purpose of gambling and pursuant to which, and as consideration for which, some or all of the cost of transportation, food, lodging and entertainment for that person is directly or indirectly paid by a slot machine licensee. The person shall be selected or approved on the basis of one or more of the following:
(A) The ability to satisfy a financial qualification obligation related to the person's ability or willingness to gamble, which shall be deemed to occur whenever a person, as an element of the arrangement is required to perform one or more of the following:
(I) Establish a customer deposit with a slot machine licensee.
(II) Demonstrate to a slot machine licensee the availability of a specified amount of cash or cash equivalent.
(III) Gamble to a predetermined level at the licensed facility.
(IV) Comply with similar obligations.
(B) The propensity to gamble, which shall be deemed to occur whenever a person has been selected or approved on the basis of one or more of the following:
(I) The previous satisfaction of a financial qualification obligation in accordance with the provisions of clause (A).
(II) An evaluation that the person has a tendency to participate in gambling activities as the result of:
(-a-) An inquiry concerning the person's tendency to gamble.
(-b-) The use of other means of determining that the person has a tendency to participate in gambling activities.
(ii) A rebuttable presumption that a person has been selected or approved for participation in an arrangement on a basis related to the person's propensity to gamble shall be created whenever the person is provided, as part of the arrangement, with one or more of the following:
(A) Complimentary accommodations.
(B) Complimentary food, entertainment or transportation which has a value of $200 or more.
Junket enterprise--A person, other than a slot machine licensee, who employs or otherwise engages the services of a junket representative in connection with a junket to a licensed facility, regardless of whether or not the activities occur within this Commonwealth.
Junket representative--
(i) A natural person who negotiates the terms of, engages in the referral, procurement or selection of persons who may participate in a junket to a licensed facility, regardless of whether or not those activities occur within this Commonwealth.
(ii) A gaming employee of a slot machine licensee who performs the duties and functions listed in subparagraph (i) for the licensed facility is not a junket representative.
§ 439a.2. Junket enterprise general requirements.
(a) A slot machine licensee seeking to conduct business with a junket enterprise or a junket enterprise seeking to conduct business with a slot machine licensee shall file a Junket Enterprise License Form with the Board.
(b) A junket enterprise shall be licensed as a junket enterprise prior to a slot machine licensee permitting a junket involving that junket enterprise to arrive at its licensed facility. A junket enterprise shall be considered ''involved'' in a junket to a licensed facility if it receives any compensation whatsoever from any person as a result of the conduct of the junket. A slot machine licensee may not engage the services of any junket enterprise which has not been licensed.
(c) A junket enterprise may not employ or otherwise engage the services of a junket representative except in accordance with § 439a.5 (relating to junket representative general requirements).
§ 439a.3. Junket enterprise license applications.
(a) A Junket Enterprise License Form shall be submitted by a slot machine licensee or junket enterprise applicant with a verification provided by the slot machine licensee that the junket enterprise's services will be utilized at the licensed facility.
(b) In addition to the Junket Enterprise License Form, an applicant for a junket enterprise license shall submit:
(1) A nonrefundable application fee.
(2) A Junket Enterprise License Form for any principal that is an entity, and for each affiliate, intermediary, subsidiary and holding company of the applicant.
(3) A Junket Enterprise Representative Registration for each principal who is a natural person and for each key employee.
(c) In addition to the materials required under subsections (a) and (b), an applicant for a junket enterprise license shall:
(1) Promptly provide information requested by the Board relating to its application or regulation and cooperate with the Board in investigations, hearings and enforcement and disciplinary actions.
(2) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications).
(d) An applicant for a junket enterprise license will be required to reimburse the Board for any additional costs, based on the actual expenses incurred by the Board, in conducting the background investigation.
§ 439a.4. Junket enterprise license term and renewal.
(a) A junket enterprise license issued under this chapter will be valid for 1 year from the date of Board approval.
(b) A renewal application shall be submitted to the Board at least 60 days prior to the expiration of a junket enterprise license.
(c) A junket enterprise license for which a completed renewal application and fee has been received by the Board will continue in effect until the Board sends written notification to the holder of the junket enterprise license that the Board has approved or denied the junket enterprise license.
§ 439a.5. Junket representative general requirements.
(a) A person may not act as a junket representative in connection with a junket to a licensed facility unless the person has been registered as a junket representative and is employed by a junket enterprise that has been licensed by the Board.
(b) A junket representative may only be employed by one junket enterprise at a time. For the purposes of this section, to qualify as an employee of a junket enterprise, a junket representative shall:
(1) Receive all compensation for his services as a junket representative within this Commonwealth through the payroll account of the junket enterprise.
(2) Exhibit other appropriate indicia of genuine employment, including Federal and State taxation withholdings.
§ 439a.6. Junket representative registration.
(a) A natural person applying for a junket representative registration shall submit:
(1) A Junket Representative Registration Form.
(2) A nonrefundable application fee.
(b) In addition to the materials required under subsection (a), an applicant for a junket representative registration shall:
(1) Promptly provide information requested by the Board relating to its application or regulation and cooperate with the Board in investigations, hearings and enforcement and disciplinary actions.
(2) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications).
(c) After review of the information submitted under subsections (a) and (b), including a background investigation, the Board may issue a junket representative registration if the individual has proven that he is a person of good character, honesty and integrity and is qualified to hold a junket representative registration.
(d) An individual who wishes to receive a junket representative registration under this chapter may provide the junket enterprise with written authorization to file an application on the individual's behalf.
(e) A junket representative registration issued under this section does not require renewal and is nontransferable.
§ 439a.7. Junket schedules.
(a) A junket schedule shall be prepared by a slot machine licensee for each junket that is arranged through a junket enterprise or its junket representative.
(b) A junket schedule shall be filed with the Bureau of Corporate Compliance and Internal Controls by a slot machine licensee by the 15th day of the month preceding the month in which the junket is scheduled. If a junket is arranged after the 15th day of the month preceding the arrival of the junket, an amended junket schedule shall be filed with the Bureau of Corporate Compliance and Internal Controls by the slot machine licensee by the close of the next business day.
(c) Junket schedules shall be certified by an employee of the slot machine licensee and include the following:
(1) The origin of the junket.
(2) The number of participants in the junket.
(3) The arrival time and date of the junket.
(4) The departure time and date of the junket.
(5) The name and registration number of all junket representatives and the name and license number of all junket enterprises involved in the junket.
(d) Changes in the information which occur after the filing of a junket schedule or amended junket schedule with the Bureau of Corporate Compliance and Internal Controls shall be reported in writing to the Bureau of Corporate Compliance and Internal Controls by the slot machine licensee by the close of the next business day. These changes, plus other material changes in the information provided in a junket schedule, shall also be noted on the arrival report.
§ 439a.8. Junket arrival reports.
(a) A junket arrival report shall be prepared by a slot machine licensee for each junket arranged through a junket enterprise or its junket representative with whom the slot machine licensee does business.
(b) Junket arrival reports shall:
(1) Include a junket guest manifest listing the names and addresses of the junket participants.
(2) Include information required under § 439a.7 (relating to junket schedules) that has not been previously provided to the Bureau of Corporate Compliance and Internal Controls in a junket schedule pertaining to the particular junket, or an amendment thereto.
(3) Be certified by an employee of the slot machine licensee.
(c) Junket arrival reports shall be prepared by a slot machine licensee in compliance with the following:
(1) A junket arrival report involving complimentary accommodations shall be prepared within 12 hours of the arrival of the junket participant.
(2) A junket arrival report involving complementary services that does not involve complementary accommodations shall be filed by 5 p.m. of the next business day following arrival. A junket arrival which occurs after 12 a.m. but before the end of the gaming day shall be deemed to have occurred on the preceding calendar day.
(3) Junket arrival reports shall be maintained on the premises of the licensed facility and made available to the Board for inspection during normal business hours.
§ 439a.9. Junket final reports.
(a) A junket final report shall be prepared by a slot machine licensee for each junket for which the slot machine licensee was required to prepare either a junket schedule or a junket arrival report.
(b) A junket final report must include the actual amount of complimentary services provided to each junket participant.
(c) A junket final report shall be:
(1) Prepared within 7 days of the completion of the junket.
(2) Maintained on the premises of its licensed facility and made available to the Board for inspection during normal business hours.
§ 439a.10. Monthly junket reports.
(a) Each slot machine licensee shall, on or before the 15th day of the month, prepare and file with the Bureau of Corporate Compliance and Internal Controls a monthly junket report listing the name and registration number of each person who performed the services of a junket representative during the preceding month.
(b) Copies of the monthly junket reports shall be maintained by the slot machine licensee on the premises of its licensed facility and made available to the Board for inspection during normal business hours.
§ 439a.11. Purchase of patron lists.
(a) Each slot machine licensee, junket representative and junket enterprise shall prepare and maintain a report with respect to each list of names of junket patrons or potential junket patrons purchased from or for which compensation was provided to any source whatsoever.
(b) The report required by subsection (a) must include:
(1) The name and address of the person or enterprise selling the list.
(2) The purchase price paid for the list or any other terms of compensation related to the transaction.
(3) The date of purchase of the list.
(c) The report required by subsection (a) shall be filed with the Bureau of Corporate Compliance and Internal Controls, no later than 7 days after the receipt of the list by the purchaser.
§ 439a.12. Junket enterprise and representative prohibitions.
A junket enterprise or junket representative may not:
(1) Engage in collection efforts.
(2) Individually receive or retain a fee from a patron for the privilege of participating in a junket.
(3) Pay for services, including transportation or other items of value, provided to or for the benefit of a patron participating in a junket, unless otherwise disclosed to and approved by the Board.
(4) Extend credit to or on behalf of a patron participating in a junket.
CHAPTER 440a. MANAGEMENT COMPANIES Sec.
440a.1. General requirements. 440a.2. Applications. 440a.3. Management company license and term and renewal. 440a.4. Management company responsibilities. 440a.5. Management contracts. § 440a.1. General requirements.
(a) A management company shall be required to obtain a management company license from the Board prior to providing any service to a slot machine applicant or licensee under this chapter.
(b) An applicant for or holder of a management company license or any of the applicant's or holder's affiliates, intermediaries, subsidiaries or holding companies, may not apply for or hold a manufacturer or supplier license.
§ 440a.2. Applications.
(a) An applicant for a management company license shall file:
(1) A completed applicable Category 1, Category 2 or Category 3 slot machine license application and disclosure information forms with the applicable appendices as if the management company license applicant were an affiliated entity of the slot machine applicant or licensee.
(2) A nonrefundable application fee.
(b) In addition to the materials required under subsection (a), an applicant for a management company license shall:
(1) Promptly provide information requested by the Board relating to its application or regulation and cooperate with the Board in investigations, hearings, and enforcement and disciplinary actions.
(2) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications).
§ 440a.3. Management company license and term and renewal.
(a) A management company license issued under this chapter will be valid for 1 year from the date of Board approval.
(b) A renewal application shall be submitted to the Board at least 60 days prior to the expiration of a management company license.
(c) A management company license for which a completed renewal application and fee has been received by the Board will continue in effect until the Board sends written notification to the holder of the management company license that the Board has approved or denied the management company license.
§ 440a.4. Management company responsibilities.
(a) Notwithstanding any provision to the contrary in a management contract, a management company will be deemed to be an agent of the slot machine licensee for purposes of imposing liability for any act or omission of the management company in violation of the act or this part.
(b) Notwithstanding any provision to the contrary in a management contract, a management company shall be jointly and severally liable for any act or omission by the slot machine licensee in violation of the act or this part, regardless of actual knowledge by the management company of the act or omission.
§ 440a.5. Management contracts.
(a) A management contract between a slot machine applicant or licensee and management company licensee may not become effective until the Board has reviewed and approved the terms and conditions of the management contract.
(b) A management company licensee shall submit any amendment to a management contract 30 days prior to the effective date of the proposed amendment. The amendment may not become effective until the Board has reviewed and approved the terms and conditions of the amendment.
(c) A management contract or amendment will not be approved by the Board unless the management company proves by clear and convincing evidence that the approval of the contract would not create a monopoly on the control of licensed gaming facilities in this Commonwealth. A management company that seeks Board approval of a management contract shall disclose its financial interests in the slot machine licensee or applicant and, if applicable, proposed or contemplated changes in ownership or control of a slot machine licensee.
(d) Requests for approval of a management contract must include a business plan which sets forth the parties' goals and objectives for the term of the management contract.
(e) A management contract, submitted to the Board for approval, must contain the following:
(1) A provision that provides the grounds and mechanisms for modifying or terminating the contract.
(2) A provision that states that the contract will not be effective unless it is approved by the Board.
(3) A provision that describes with particularity the method of compensating and reimbursing the management company.
(4) Provisions that contain a mechanism to resolve patron disputes and disputes between the slot machine licensee and the management company.
(5) A provision that indicates whether and to what extent contract assignments and subcontracting are permissible.
(6) A provision that specifies the duration of the management contract. A management contract may not contain a provision that provides for the automatic renewal of the management contract.
(f) A management contract submitted for Board review and approval must enumerate with specificity the responsibilities of the slot machine applicant or licensee and management company under the terms and conditions of the management contract. At a minimum, the terms should address whether, and to what extent, the management company is involved in the following:
(1) Operation of the following departments:
(i) Information technology.
(ii) Internal audit.
(iii) Slot accounting.
(iv) Slot management.
(v) Security.
(vi) Surveillance.
(2) Design, construction, improvement or maintenance, or both, of the licensed facility.
(3) Provision of operating capital and finance for the development of the licensed facility.
(4) Payment of the slot machine license fee.
(5) Purchase or lease of slot machines or associated equipment.
(6) Design, implementation or amendment, or both, of the system of internal controls required under section 1322 of the act (relating to slot machine accounting controls and audits) and this part including the financial reporting requirements.
(7) Hiring, terminating, training and promoting of employees and the employment practices attendant thereto.
(8) The payment of local, State and Federal taxes and slot machine license deposit required under the act and this part and any penalties imposed by the Board for violations thereof.
(9) Advertising, player incentive or marketing programs.
(10) Compliance with section 1325(b)(1) of the act (relating to license or permit issuance).
(11) Obtaining and maintaining insurance coverage, including coverage of public liability and property loss or damage.
(12) Procurement of vendors and junkets.
(13) Selection of the licensed facility's independent auditor.
(g) Notwithstanding subsections (a)--(f), a slot machine licensee and licensed management company may not contract for the delegation of any benefits, duties or obligations specifically granted to or imposed upon the slot machine licensee by the act.
[Pa.B. Doc. No. 07-841. Filed for public inspection May 11, 2007, 9:00 a.m.]
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