[37 Pa.B. 5752]
[Saturday, October 27, 2007]
[Continued from previous Web Page]
CHAPTER 436. (Reserved) §§ 436.1--436.7. (Reserved).
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 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--Any 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 posted on the Board's website (pgcb.state.pa.us).
(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.
(e) 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.
(f) 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 any 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 any 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 posted on the Board's website (pgcb.state.pa.us).
(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.
(e) Renewals will be valid for 1 year and shall be filed at least 60 days prior to the expiration of the current permit.
(f) 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.
(g) 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.
(h) 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 under 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 all 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 436a. (Reserved) §§ 436a.1--436a.6. (Reserved).
CHAPTER 436b. USE OF FUNDS ALLOCATED TO HORSEMEN'S ORGANIZATIONS--STATEMENT OF POLICY Sec.
436b.1. Scope. 436b.2. Definitions. 436b.3. Responsibilities of horsemen's organizations. 436b.4. Audits of horsemen's organizations. 436b.5. Reports. 436b.6. Responsibilities of Category 1 licensees. § 436b.1. Scope.
The act requires the Board to:
(1) Establish guidelines that ensure that funds distributed from the Fund and which are allocated to horsemen's organizations, as defined by the act, are used to finance programs that benefit the horsemen of this Commonwealth. (See 4 Pa.C.S. § 1406(b) (relating to distributions from Pennsylvania Race Horse Development Fund).)
(2) Ensure that funds allocated to the horsemen's organizations are used to finance programs which benefit the horsemen of this Commonwealth. (See 4 Pa.C.S. § 1406(c).)
(3) Ensure that no more than 15% of funds available annually for benevolent programs, including pension, health and insurance plans, are used to administer the programs.
(4) Ensure that the horsemen's organizations that receive funds from the Fund file an annual audit prepared by a certified public accountant. (See 4 Pa.C.S. § 1406(e).)
(5) Approve the health and pension benefit contracts entered into by the horsemen's organizations. (See 4 Pa.C.S. § 1406(f).)
§ 436b.2. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Fund--The Pennsylvania Race Horse Development Fund.
Registered horsemen's organization--A horsemen's organization that receives funds from the Fund and which shall register with the Board under § 436a.2 (relating to horsemen's organization registration).
§ 436b.3. Responsibilities of horsemen's organizations.
(a) A horsemen's organization shall register with the Board under § 436a.2 (relating to horsemen's organization registration).
(b) Registered horsemen's organizations shall ensure that funds received from the Fund are used to benefit all horsemen and are kept apart from funds acquired from other sources. Funds that are 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 the horsemen's organization.
(c) Registered horsemen's organizations shall ensure that administrative costs are reasonable as required by 4 Pa.C.S. § 1406(d) (relating to distributions from Pennsylvania Race Horse Development Fund). Costs that do not exceed 15% of the annual total statutory allocation are deemed reasonable.
(d) Registered horsemen's organizations shall ensure that health and pension benefits contracts entered into by the horsemen's organizations are approved by the Board.
(e) The officers, directors, fiduciaries and representatives of a registered horsemen's organization shall file an application for a permit with the Board under § 436a.3 (relating to permitting of officers, directors, representatives and fiduciaries).
(f) The officers, directors, fiduciaries and representatives of a registered horsemen's organization shall comply with §§ 436a.4 and 436a.5 (relating to responsibilities of horsemen's organizations, officers, directors, representatives and fiduciaries; and fiduciaries) relative to the responsibilities of the horsemen's organizations and their officers, directors, representatives and fiduciaries.
§ 436b.4. Audits of horsemen's organizations.
(a) Registered horsemen's organizations that receive funds from the Fund shall file annually, with the appropriate racing commission and the Board, an audit prepared by a certified public accountant of the funds received under 4 Pa.C.S. § 1406(e) (relating to distributions from Pennsylvania Race Horse Development Fund). Audits shall be available for public review.
(b) Audits submitted to the Board must reflect all funds received from the Fund which are used or intended to be used for purse supplements under 4 Pa.C.S. § 1406(a)(1)(i) and health and pension benefits under 4 Pa.C.S. § 1406(a)(1)(iii).
(c) Audits shall be mailed to the Pennsylvania Gaming Control Board, Attn: Director, Racetrack Gaming, P. O. Box 69060, Harrisburg, Pennsylvania 17106-9060 in sufficient time to be received no later than March 30th of each calendar year.
§ 436b.5. Reports.
(a) Registered horsemen's organizations shall file with the Board no later than the 20th day of the month following the end of each calendar quarter the following reports:
(1) Quarterly report of funds received from the Fund through the Category 1 licensee conducting live racing into the account established by and for the benefit of the horsemen under 4 Pa.C.S. § 1406(1)(a)(i) (relating to distributions from Pennsylvania Race Horse Development Fund).
(2) Quarterly report of funds distributed for purse supplements from the account established by and for the benefit of the horsemen under 4 Pa.C.S. § 1406(1)(a)(i).
(3) Quarterly report of funds received for health and pension benefits health and pension benefits under 4 Pa.C.S.§ 1406(1)(a)(iii).
(b) Horsemen's organizations shall ensure that funds allocated for thoroughbred jockeys and standardbred drivers are paid as required by 4 Pa.C.S. § 1406(a)(1)(iii) and that the distribution of these proceeds is reflected in the annual audit required by 4 Pa.C.S. § 1406(e).
§ 436b.6. Responsibilities of Category 1 licensees.
Category 1 licensees conducting live racing and who receive distributions from the Fund for distribution to purses shall file with the Board no later than the 20th day of the month following the end of each calendar quarter the following reports:
(1) Quarterly report of funds received from the Fund.
(2) Quarterly report of funds deposited into a separate, interest-bearing purse account established by and for the benefit of the horsemen under 4 Pa.C.S. § 1406(a)(1)(i) (relating to distributions from Pennsylvania Race Horse Development Fund) and § 441.9(b)(3)(reserved) (relating to responsibilities of licensed organizations).
(3) Quarterly report of funds distributed to the horsemen's organization representing the owners and trainers at the racetrack at which the licensed racing entity operates for health and pension benefits under 4 Pa.C.S. § 1406(a)(1)(iii) and § 441.9(b)(3)(ii).
(4) Quarterly report of expenditures for backside improvements in conformity with 4 Pa.C.S. § 1404 (relating to distributions from licensee's revenue receipts).
CHAPTER 438. (Reserved) §§ 438.1--438.4. (Reserved).
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 who are required to obtain a license, permit or registration from the Board 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 an officer 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 with the Bureau of Licensing.
(b) Labor organizations shall file an updated version of the Labor Organization Notification Form with the Bureau of Licensing 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 posted on the Board's website (pgcb.state.pa.us).
(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.
(e) Renewals will be valid for 1 year and shall be filed no later than 60 days prior to the expiration of the current permit.
(f) 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 439. (Reserved) §§ 439.1--439.11. (Reserved).
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--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.
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).
(d) A person may be selected or approved to participate in a junket on the basis of one or more of the following:
(1) 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 any similar obligation.
(2) 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 paragraph (1).
(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) Use of other means of determining that the person has a tendency to participate in gambling activities.
(e) 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:
(1) Complimentary accommodations.
(2) Complimentary food, entertainment or transportation which has a value of $200 or more.
§ 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) The nonrefundable application fee posted on the Board's website (pgcb.state.pa.us).
(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 is 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) The nonrefundable application fee posted on the Board's website (pgcb.state.pa.us).
(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 any other material change 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 must:
(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 any 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 440. (Reserved) §§ 440.1--440.4. (Reserved).
CHAPTER 440a. MANAGEMENT COMPANIES Sec.
440a.1. General requirements. 440a.2. Applications. 440a.3. Management company license 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) The nonrefundable application fee posted on the Board's website (pgcb.state.pa.us).
(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 may 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 financing 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 pursuant to 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. 07-1981. Filed for public inspection October 26, 2007, 9:00 a.m.]
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