[37 Pa.B. 6265]
[Saturday, December 1, 2007]
[Continued from previous Web Page]
CHAPTER 433. [Reserved] §§ 433.101--433.109. [Reserved].
CHAPTER 433a. PRINCIPAL LICENSES Sec.
433a.1. Definitions. 433a.2. Directors or officers. 433a.3. Individual ownership. 433a.4. Entity ownership. 433a.5. Institutional investors. 433a.6. Lenders and underwriters. 433a.7. Trusts. 433a.8. Principal applications. 433a.9. Principal license term and renewal. § 433a.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Applicant--A person that has submitted an application to the Board for a slot machine license, manufacturer license, manufacturer designee license, supplier license, management company license or junket enterprise license.
Director--A director of a corporation, member of an audit committee or any person performing similar functions with respect to an entity, whether incorporated or unincorporated.
Entity--A person, other than an individual.
Indirect ownership interest--An ownership interest in an entity that has a direct ownership interest in an applicant or licensee, or a direct ownership interest in an entity that has an ownership interest in an applicant or licensee through one or more intervening entities.
Individual--A natural person.
Lending institution--A person who has been issued a license to lend money by a state or Federal agency or a person who satisfies the definition of ''qualified institutional buyer'' under 17 CFR 230.144a (relating to private resales of securities to institutions).
Licensee--A person who has been issued a slot machine license, manufacturer license, manufacturer designee license, supplier license, management company license or junket enterprise license.
Officer--A president, chief executive officer, chief operating officer, secretary, treasurer, principal legal officer, principal compliance officer, principal financial officer, comptroller, principal accounting officer, chief engineer or technical officer of a manufacturer, or principal slot operations officer of a slot machine licensee and any person routinely performing corresponding functions with respect to an entity whether incorporated or unincorporated.
Principal affiliate--An intermediary or holding company of an applicant or licensee.
Principal entity--An entity that meets the definition of ''principal'' in section 1103 of the act (relating to definitions) or is otherwise required to be licensed as a principal and is not an intermediary or holding company of an applicant or licensee.
Private investment fund--An entity that meets the definition of ''investment company'' under section 3(a)(1) of the Investment Company Act of 1940 (15 U.S.C. § 80a-3(a)(1)), but is otherwise exempt from the definition of ''investment company'' under section 3(c)(7) of the Investment Company Act of 1940.
Registered investment adviser--An investment adviser that has registered with the SEC under the Investment Advisers Act of 1940 (15 U.S.C.A. §§ 80b-1--80b-21).
Registered investment company--An investment company that has registered with the SEC under the Investment Company Act of 1940 (15 U.S.C.A. §§ 80a-1--80a-64).
Voting security--A security or other interest which entitles the owner to vote for the election of:
(i) A director of a corporation.
(ii) A person performing functions similar to a director with respect to an organization, whether incorporated or unincorporated.
§ 433a.2. Directors or officers.
(a) Each officer and director of an applicant or licensee shall be licensed as a principal.
(b) Each officer and director of an intermediary, subsidiary or holding company of a slot machine applicant or licensee shall be licensed as a principal.
(c) Each officer and director of an intermediary or holding company of a licensed supplier, licensed manufacturer, licensed manufacturer designee, licensed junket enterprise or licensed management company shall be licensed as a principal.
(d) The senior surveillance or internal audit executives of a holding or intermediate company which has authority to direct the operations of a slot machine licensee shall be licensed as a principal if the most senior executive in the reporting line reports directly to the independent audit committee of the board of directors of the holding or intermediary company
(e) Notwithstanding subsection (b), an officer or director of a publicly traded intermediary or holding company of a slot machine applicant or licensee, who is not a member of the audit committee, may request that the Board waive his requirement to be licensed as a principal if he is not actively involved in the affairs of the slot machine applicant or licensee. The waiver request shall be submitted on a Principal/Key Employee Waiver Form, and require that the officer or director certify that he is not actively involved in the affairs of the slot machine applicant or licensee.
(f) Notwithstanding subsection (c), an outside director of a publicly traded intermediary or holding company of a licensed supplier, licensed manufacturer, licensed manufacturer designee, licensed junket enterprise or licensed management company who is not a member of the audit committee or chairperson of the board of directors of the intermediary or holding company will not be required to be licensed as a principal unless the Board determines that the licensure of the individual is necessary to protect the integrity of gaming in this Commonwealth.
(g) Notwithstanding subsection (c), an officer of a publicly traded intermediary or holding company of a licensed supplier, licensed manufacturer, licensed manufacturer designee, licensed junket enterprise or licensed management company may request that the Board waive the requirement to be licensed as a principal if the officer is not actively involved in the affairs of the applicant or licensee. The waiver request shall be submitted on a Principal/Key Employee Waiver Form and require that the officer certify that he is not actively involved in the affairs of the applicant or licensee.
§ 433a.3. Individual ownership.
(a) An individual who has a direct ownership interest in, or has a right to any profit, distribution or benefit directly from, an applicant or licensee shall be licensed as a principal.
(b) An individual who, directly or indirectly, has the power to control or direct the management or policies of an applicant or licensee shall be licensed as a principal.
(c) An individual who has a direct ownership interest in, or has a right to any profit, distribution or benefit directly from, an intermediary or holding company of a slot machine applicant or licensee shall be licensed as a principal.
(d) An individual that has a 1% or greater indirect ownership interest in an applicant or licensee shall be licensed as a principal. An ownership interest that is held indirectly by an individual through one or more intervening entities will be determined by successive multiplication of the ownership percentages for each link in the vertical chain.
(e) Notwithstanding any provision to the contrary in this section, an individual who holds less than 5% of the voting securities of an applicant or licensee or an intermediary or holding company of an applicant or licensee that is a publicly traded company will not be required to be licensed as a principal.
(f) Each individual who is a grantor, trustee or beneficiary of a trust that is required to be licensed as a principal under this chapter shall be licensed as a principal.
(g) The Board may require any individual who has a financial interest in, or receives an economic benefit from, an applicant or licensee to be licensed as a principal.
§ 433a.4. Entity ownership.
(a) An intermediary, subsidiary or holding company of an applicant or licensee shall be licensed as a principal.
(b) An entity that, indirectly or directly, has the power to control or direct the management or policies of an applicant or licensee shall be licensed as a principal.
(c) An entity that has a direct ownership interest in, or has a right to any profit, distribution or benefit directly from, an applicant or licensee shall be licensed as a principal.
(d) An entity that has a direct ownership interest in, or has a right to any profit, distribution or benefit directly from, an intermediary, subsidiary or holding company of a slot machine applicant or licensee, shall be licensed as a principal.
(e) An entity that has an indirect ownership interest of 5% or greater in an applicant or licensee shall be licensed as a principal. An ownership interest that is held indirectly by an entity through one or more intervening entities will be determined by successive multiplication of the ownership percentages for each link in the vertical chain.
(f) Notwithstanding subsection (e), a private investment fund, including its feeder funds, that has an indirect ownership interest in an applicant or licensee, shall be exempt from obtaining a principal license if the following apply:
(1) Neither the private investment fund, nor the investors in the private investment fund have any voting rights or any other power to control or to influence the applicant or licensee.
(2) At least 20% of the investors in the private investment fund are ''institutional investors'' as defined in § 401a.3 (relating to definitions).
(3) No investor in the private investment fund has a right to redeem his interest in the private investment fund within 2 years of the purchase of the interest.
(4) Each individual and entity that has the ability to control the management of the private investment fund is licensed as a principal.
(5) The private investment fund agrees to provide the Board with information the Board deems necessary to evaluate the integrity of the private investment fund and its investors, and its compliance with this section. Information provided to the Board will be confidential.
(6) Each individual required to be licensed as a principal in paragraph (4) shall as part of his principal license application sign a notarized statement affirming, at a minimum, the following:
(i) The private investment fund's investment in the applicant or licensee will not violate applicable United States, Commonwealth or international laws and regulations, including anti-money laundering regulations or conventions, the Internal Revenue Code of 1986, the Employee Retirement Income Security Act of 1974, the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940 and the Investment Advisers Act of 1940.
(ii) To his best knowledge, no investor in the private investment fund:
(A) Holds an interest in the private investment fund in contravention of any applicable United States, Commonwealth or international laws and regulations, including anti-money laundering regulations or conventions, the Internal Revenue Code of 1986, the Employee Retirement Income Security Act of 1974, the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940 and the Investment Advisers Act of 1940.
(B) Is directly or indirectly affiliated with, a prohibited country, territory, individual or entity on the List of Specially Designated Nationals and Blocked Persons maintained by the United States Treasury Department's Office of Foreign Asset Control.
(C) Is currently charged with or is under indictment for any felony or gambling offense in any jurisdiction.
(D) Has been convicted of a felony when 15 years have not elapsed from the date of expiration of the sentence for the offense.
(g) A private investment fund that does not qualify for the exemption under subsection (f) solely on the basis that it fails to satisfy paragraph (3), may still qualify for an exemption from licensure if the private investment fund satisfies the other conditions under subsection (f) and its indirect ownership interest in the applicant or licensee is less than 10%.
(h) Notwithstanding any provision to the contrary, the Board may require any entity that has a financial interest in, or receives any economic benefit from, an applicant or licensee to be licensed as a principal.
§ 433a.5. Institutional investors.
(a) Notwithstanding any provision to the contrary in this chapter, an institutional investor that owns less than 15% of the outstanding voting securities of a publicly traded intermediary or holding company of an applicant for or holder of a manufacturer license, manufacturer designee license, supplier license, management company license or junket enterprise license will not be required to be licensed as a principal if the following conditions are satisfied:
(1) The institutional investor or the applicant or licensee files a notice with the Board containing a description of the institutional investor's interests.
(2) The institutional investor has filed a Schedule 13G with the SEC, and the institutional investor continues to be eligible to file the Schedule 13G.
(b) Notwithstanding any provision to the contrary in this chapter, an institutional investor that owns less than 10% of the outstanding voting securities of an intermediary or holding company of a slot machine licensee or applicant shall be eligible to be receive a waiver from the requirements of licensure from the Board by filing a Principal Waiver-Entity Form. The waiver request must include, at a minimum, a certification by the institutional investor stating that the institutional investor has no present involvement in, and no intention of influencing or affecting the affairs of, the slot machine applicant or licensee or an intermediary or holding company of the slot machine applicant or licensee and will give the Board 30 days notice if the institutional investor intends to do so.
(c) Notwithstanding subsection (b), an institutional investor that has been granted a waiver shall be permitted to vote on matters put to the vote of the outstanding security holders.
(d) A holding company of an institutional investor may file a notice or waiver request on behalf of its institutional investor subsidiaries provided that the holding company does not own more than 5% or more of the securities of the intermediary or holding company of the applicant or licensee.
(e) A registered investment adviser or a holding company of a registered investment adviser may file a notice or waiver request, when permitted, on behalf of the registered investment companies that hold securities beneficially owned by the registered investment adviser.
§ 433a.6. Lenders and underwriters.
(a) Each lender and underwriter of a slot machine, manufacturer or supplier applicant or licensee shall be licensed as a principal.
(b) Notwithstanding subsection (a), a lender that is a bank or lending institution which makes a loan to a slot machine, manufacturer or supplier applicant or licensee in the ordinary course of business is not be required to be licensed as a principal. The Board may require a bank or lending institution to provide information or other assurances to verify its eligibility for this exemption.
(c) An underwriter or lender of an intermediary, subsidiary or holding company of a slot machine applicant or licensee shall be required to be licensed as a principal if the Board determines that the suitability of the underwriter or lender is at issue and is necessary to consider a pending application for a slot machine license.
(d) Notwithstanding any provision to the contrary in this section, the Board may require the licensure of any lender or underwriter of an applicant or licensee or any holding or intermediary company or subsidiary of an applicant or licensee if the Board has reason to believe that the lender or underwriter would not satisfy the character requirements of section 1310(a) of the act (relating to slot machine license application character requirements).
§ 433a.7. Trusts.
(a) A trust or similar business entity that holds a direct ownership interest in an applicant or licensee must be licensed as a principal.
(b) A trust or similar business entity that holds a 1% or greater indirect ownership interest in an applicant or licensee must be licensed as a principal. An ownership interest that is held indirectly by an entity through one or more intervening entities will be determined by successive multiplication of the ownership percentages for each link in the vertical chain.
(c) A trust or similar business entity that receives any payment, percentage or share of revenue, profits or receipts directly from an applicant or licensee must be licensed as a principal.
(d) A trust or similar business entity will not be issued a principal license unless each trustee, grantor and beneficiary, including a minor child beneficiary, has been granted a principal license.
(e) Notwithstanding any provision to the contrary in this section, a trust will not be required to be licensed as a principal if the holdings of the trust consist of less than 5% of the voting securities of a publicly traded company.
§ 433a.8. Principal applications.
(a) An individual required to be licensed as a principal shall file a completed Multi Jurisdictional Personal History Disclosure Form and the Pennsylvania Supplement to the Multi Jurisdictional Personal History Disclosure Form and submit the applicable application fee posted on the Board's website (www.pgcb.state.pa.us).
(b) A principal entity required to be licensed as a principal shall file a completed Principal Entity Form and submit the applicable application fee posted on the Board's website (www.pgcb.state.pa.us).
(c) A principal affiliate shall apply for the principal license as if it itself applying for the slot machine license, manufacturer license, manufacturer designee license, supplier license, management company license or junket enterprise license.
(d) In addition to the materials required under subsections (a) or (b), an applicant for a principal license shall:
(1) Promptly provide information requested by the Board relating to the principals' 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).
§ 433a.9. Principal license term and renewal.
(a) A principal 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 principal 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 principal license that the Board has approved or denied the license.
CHAPTER 435. [Reserved] § 435.1. [Reserved].
§§ 435.3--435.6. [Reserved].
§§ 435.8--435.10. [Reserved].
CHAPTER 435a. EMPLOYEES Sec.
435a.1. General provisions. 435a.2. Key employee license. 435a.3. Occupation permit. 435a.4. Key employee license and occupation permit term and renewal. 435a.5. Nongaming employee registration. 435a.6. Board credentials. 435a.7. Emergency credentials. 435a.8. Temporary credentials for principals and key employees. 435a.9. Temporary credentials for nongaming employees. 435a.10. Loss or destruction of credentials. § 435a.1. General provisions.
(a) An individual seeking a key employee license, occupation permit or nongaming employee registration shall apply to the Board as required by this chapter.
(b) In addition to the materials required under §§ 435a.2, 435a.3 and 435a.5 (relating to key employee license; occupation permit; and nongaming employee registration), an applicant 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) An individual who receives a license, permit or registration under this part shall have the continuing duty to report to the Board an arrest, charge, indictment 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.
(d) The holder of a key employee license, occupation permit, or nongaming employee registration shall provide an updated photograph at the request of the Board.
(e) An individual may not be employed in this Commonwealth by an applicant for or holder of a license, certification or registration under this part in any capacity unless the individual 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.
(f) A license or permit will not be issued to an individual who has been convicted of a felony or gambling offense in any jurisdiction unless 15 years have elapsed from the date of expiration of the sentence for the offense.
(g) When considering an application for a registration from an individual who has been convicted of a felony or gaming offense in any jurisdiction or an application for a license or permit from an individual who has been convicted of a felony or gaming offense in any jurisdiction when 15 years have elapsed from the date of expiration of the sentence for the offense, the Board will consider:
(1) The nature and duties of the applicant's position with the licensed entity.
(2) The nature and seriousness of the offense or conduct.
(3) The circumstances under which the offense or conduct occurred.
(4) The age of the applicant when the offense or conduct was committed.
(5) Whether the offense or conduct was an isolated or a repeated incident.
(6) Evidence of rehabilitation, including good conduct in the community, counseling or psychiatric treatment received and the recommendation of persons who have substantial contact with the applicant.
(h) An individual who holds a license or permit may not wager at any licensed facility in this Commonwealth.
(i) A registrant or employee who is not required to obtain a license or permit may not wager at the licensed facility in which the registrant or employee is employed.
(j) A registrant who is an employee of a certified vendor or an employee of a certified vendor who has direct contact with the employees of a licensed facility may not wager at the licensed facility where the vendor is currently providing services.
(k) A licensed, permitted or registered employee shall wait at least 30 days following the date that the employee either leaves employment with a slot machine licensee or is laid off or terminated from employment with a slot machine licensee before the employee may wager at the licensed facility in which the employee was formerly employed.
(l) An individual required to obtain a license or permit by this part shall demonstrate that he is current and not in arrears on any financial obligation owed to the Commonwealth or any subdivision thereof, including court-ordered child-support payments.
(m) An applicant for an occupation permit or nongaming employee registration shall be at least 18 years of age.
§ 435a.2. Key employee license.
(a) An applicant for a key employee license from the Board shall submit:
(1) An original and three copies of the Multi-jurisdictional Personal History Form and the Principal/Key Employee Form--Pennsylvania Supplement to the Multi-jurisdictional Personal History Disclosure Form unless otherwise directed by the Board.
(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 key employee 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).
(c) In addition to the information under subsections (a) and (b), the Board may require letters of reference from law enforcement agencies under section 1310(b) of the act (relating to slot machine application character requirements).
(d) An applicant for a key employee license will be required to reimburse the Board for additional costs, based on the actual expenses incurred by the Board, in conducting the background investigation.
(e) After review of the information submitted under subsections (a), (b) and (c), including the background investigation, the Board may issue a key employee license if the individual applicant has proven that the individual is a person of good character, honesty and integrity and is eligible and suitable to be licensed as a key employee.
(f) A license issued under this section will be valid for employment with any licensed entity.
(g) An individual who is a key employee may request in writing that the Board waive the obligation to be licensed as a key employee by:
(1) Filing an original and three copies of a Principal/Key Employee Waiver Form.
(2) The nonrefundable waiver application fee posted on the Board's website (www.pgcb.state.pa.us).
(h) As part of the waiver request, the individual shall be required to demonstrate one of the following:
(1) The individual is not assigned to an applicant's or licensee's gaming operations in this Commonwealth.
(2) The individual's duties do not have an effect on or require contact with slot machines for use or play in this Commonwealth.
(i) The request for a waiver must include, at a minimum, the following:
(1) A description of the individual's title, duties and responsibilities with the applicant, licensee or with any of its affiliates, intermediaries, subsidiaries or holding companies.
(2) 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.
(j) An applicant for a key employee waiver 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.
§ 435a.3. Occupation permit.
(a) An applicant for an occupation permit shall submit:
(1) An original and three copies of the Gaming Employee Application and Disclosure Information Form or an electronic application using the SLOTS Link system.
(2) The nonrefundable application fee posted on the Board's website (www.pgcb.state.pa.us).
(3) Verification of an offer of employment from a licensed entity.
(b) In addition to the materials required under subsection (a), an applicant for an occupation permit 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) An applicant for an occupation permit may be required to reimburse the Board for additional costs, based on the actual expenses incurred by the Board, in conducting the background investigation.
(d) After review of the information submitted under subsections (a) and (b), including a background investigation, the Board may issue a permit if the individual has proven that the individual is a person of good character, honesty and integrity and is eligible and suitable to hold an occupation permit.
(e) An individual who wishes to receive an occupation permit under this chapter may authorize an applicant for or holder of a slot machine, management company, manufacturer, manufacturer designee or supplier license or vendor certification to file an application on the individual's behalf.
(f) A permit issued under this section shall be valid for employment with any licensed entity or certified vendor.
§ 435a.4. Key employee license and occupation permit term and renewal.
(a) A key employee license or occupation permit issued under this chapter shall 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 key employee license or occupation permit.
(c) A key employee license or occupation 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 holder of the key employee license or occupation permit that the Board has approved or denied the key employee license or occupation permit.
§ 435a.5. Nongaming employee registration.
(a) An applicant for a nongaming employee registration shall submit:
(1) An original and three copies of the Nongaming Employee Registration Form or an electronic application using the SLOTS Link system.
(2) The nonrefundable application fee posted on the Board's website (www.pgcb.state.pa.us).
(b) In addition to the materials required under subsection (a), an applicant for a nongaming employee 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 required under subsections (a) and (b), the Board may register the individual if the individual has proven that he is eligible and suitable to be registered under this section.
(d) An individual who wishes to receive a nongaming employee registration under this chapter may authorize an applicant for or holder of a slot machine license or a vendor certification to file an application on the individual's behalf.
(e) A registration issued under this section is valid for employment with any licensed entity or certified vendor.
§ 435a.6. Board credentials.
(a) The following individuals shall obtain a Board credential:
(1) A principal whose duties are required to be performed at a licensed facility in excess of 12 days in a 12-month period.
(2) Key employees.
(3) Gaming employees.
(4) Nongaming employee registrants.
(5) State employees whose duties require the employee's presence at a licensed facility more frequently than once a month.
(b) The credential will contain the following information:
(1) The name, date of birth, sex, height, weight, hair color and eye color of the licensee, permittee or registrant.
(2) A photograph of the face of the individual to whom the credential has been issued which meets the standards of the Commonwealth Photograph Imaging Network.
(3) The inscription ''Pennsylvania Gaming Control Board.''
(4) The seal of the Commonwealth.
(5) A license, permit or registration number.
(6) The type of license, permit or registration.
(7) An expiration date.
(8) The signature of the employee.
(9) Other security features as determined by the Board.
(c) A State employee or employee of a slot machine licensee required to obtain a Board credential shall carry the Board credential on his person at all times while engaged in the performance of his duties on the premises of a licensed facility. An individual who is not a State employee or employee of a slot machine licensee, who is required to obtain a Board credential, shall display the Board credential on his person at all times while engaged in the performance of his duties on the premises of a licensed facility.
(d) Except as provided in § 435a.7 (relating to emergency credentials), slot machine and management company licensees are prohibited from allowing a principal who is required to obtain a credential, key employee, gaming employee or nongaming employee registrant to perform his duties on the premises of a licensed facility unless the employee has his Board credential.
(e) Notwithstanding subsection (a), the Board may, upon written request by a slot machine or management company licensee and upon a showing of good cause, exempt certain positions, titles or persons from the requirements of this section.
(f) An employee whose license, permit or registration has been suspended or revoked by the Board shall surrender the Board credential to the Board.
§ 435a.7. Emergency credentials.
(a) A principal, key employee, gaming employee or nongaming employee of the slot machine licensee who does not have the credential issued to him on his person, or whose credential has been stolen, lost or destroyed, may obtain an emergency credential from the Board to enable the employee to perform the employee's duties at the licensed facility.
(b) An employee seeking an emergency credential shall present himself to a BIE agent at the Board office at the licensed facility. Prior to issuing the emergency credential, the BIE agent will verify:
(1) The identity of the individual requesting the emergency credential.
(2) That the employee holds a valid license, permit or registration.
(3) That fewer than 12 emergency credentials have been issued to the employee in the past 12 months.
(c) The following provisions apply to emergency credentials:
(1) They will be valid for a time period not to exceed 72 hours.
(2) They shall be returned to the Board office at the licensed facility.
§ 435a.8. Temporary credentials for principals and key employees.
(a) A temporary credential may be issued by the Board to a principal or a key employee whose investigation for licensure by the Board is pending but whose presence is necessary in the licensed facility.
(b) A temporary credential issued under this section is void 120 days after the date of its issuance.
(c) The Board may extend the expiration date of a temporary credential if the Board determines additional time is needed to complete the investigation for licensure.
§ 435a.9. Temporary credentials for nongaming employees.
(a) A temporary credential may be issued by the Board to a nongaming employee if:
(1) The applicant has submitted all of the application materials required under § 435a.5 (relating to nongaming employee registration).
(2) The applicant has been fingerprinted and photographed by the Pennsylvania State Police.
(b) Temporary credentials for nongaming employees will be issued by the Bureau.
(c) A temporary credential issued under this section will be valid for 30 days.
§ 435a.10. Loss or destruction of credentials.
(a) As soon as possible, but no later than 24 hours following the loss or destruction of a Board credential, emergency credential or temporary credential, the person to whom the credential was issued shall notify the security department of the slot machine licensee.
(b) The security department of the slot machine licensee shall notify the Board in writing within 24 hours of receipt of the notice under subsection (a).
(c) An employee who has lost his Board credential may request a duplicate Board credential by submitting a Request for Duplicate PGCB Credential form and the fee established by the Board to the Bureau of Licensing.
CHAPTER 437. [Reserved] §§ 437.1--437.3. [Reserved].
§§ 437.4a--437.5. [Reserved].
§ 437.7. [Reserved].
§ 437.10. [Reserved].
§ 437.13. [Reserved].
CHAPTER 437a. VENDOR CERTIFICATION AND REGISTRATION Sec.
437a.1. General vendor requirements. 437a.2. Vendor registration applications. 437a.3. Vendor certification applications. 437a.4. Individual certifications and investigations. 437a.5. Construction subcontractors. 437a.6. Registration and certification term and renewal. 437a.7. Registered and certified vendor responsibilities. 437a.8. Approved vendors list; prohibited vendors. 437a.9. Permission to conduct business prior to certification or registration. 437a.10. Emergency vendor. 437a.11. Slot machine applicants' and licensees' duty to investigate. § 437a.1. General vendor requirements.
(a) A vendor seeking to conduct business with a slot machine applicant or licensee, except as provided in § 437a.10 (relating to emergency vendor), shall apply to the Board for registration if:
(1) The total dollar amount of business will be or is anticipated to be greater than $15,000 but $200,000 or less with a single slot machine applicant or licensee within a consecutive 12-month period.
(2) The total dollar amount of business will be or is anticipated to be greater than $15,000 but $500,000 or less with multiple slot machine applicants or licensees within a consecutive 12-month period.
(b) A vendor seeking to conduct business with a slot machine applicant or licensee, except as provided in § 437a.10 shall apply to the Board for certification if:
(1) The total dollar amount of business will be or is anticipated to be greater than $200,000 with a single slot machine applicant or licensee within a consecutive 12-month period.
(2) The total dollar amount of business will be or is anticipated to be greater than $500,000 with multiple slot machine applicants or licensees within a consecutive 12-month period.
(3) The vendor's employees will have access to restricted areas or the gaming floor.
(4) The Board notifies the vendor that certification is required, based upon the Board's analysis of the vendor's services, to ensure the integrity of gaming.
(c) The following persons are exempt from the vendor registration and the vendor certification requirements of this chapter:
(1) Public utilities which provide only one or more of the following services to a slot machine applicant or licensee:
(i) Water.
(ii) Sewerage.
(iii) Electricity.
(iv) Natural gas.
(2) Insurance companies providing insurance to a slot machine applicant or licensee and its employees.
(3) Employee benefit and retirement plans including incorporated 401K plans and employee stock purchase programs.
(4) National, state or local professional associations that receive funds from the slot machine applicant or licensee for the cost of enrollment, activities and membership.
(5) State, Federal and municipal operated agencies.
(6) Manufacturers and suppliers of liquor, wine and beer regulated by the Pennsylvania Liquor Control Board.
(7) State and Federally chartered banks or savings and loan associations where funds are deposited by slot machine licensees, notwithstanding those sources or transactions provided to a slot machine licensee which require Board approval.
(8) Providers of professional services including accountants, attorneys, engineers and architects.
(9) Telecommunication service providers.
(10) Shipping services.
(11) Persons that engage in efforts to influence legislative action or administrative action on behalf of a principal for economic consideration.
(12) Public institutions of higher education.
(13) Professional entertainers, sports figures and other celebrities engaged by a slot machine licensee to appear at a slot machine licensee-sponsored special entertainment or promotional event.
(14) Newspapers, television stations, radio stations and providers of simulcast services that contract with slot machine applicants or licensees.
(d) Subsection (c) does not relieve a slot machine applicant or licensee of reporting obligations required by § 441a.12 (relating to maintaining agreements; filing of agreements).
§ 437a.2. Vendor registration applications.
(a) A vendor seeking registration shall complete and the slot machine applicant or licensee for whom the vendor will provide goods or services shall submit an original and four copies of a Vendor Registration Form unless otherwise directed by the Board.
(b) In addition to the materials required under subsection (a), an applicant for a vendor 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) An applicant for a vendor registration will be required to reimburse the Board for costs incurred by the Board in conducting the review of the application.
(d) A vendor registration will not be issued until all fees have been paid.
§ 437a.3. Vendor certification applications.
(a) A vendor seeking certification shall complete and the slot machine applicant or licensee for whom the vendor will provide goods or services shall submit:
(1) An original and four copies of a Vendor Certification Form unless otherwise directed by the Board.
(2) The nonrefundable application fee posted on the Board's website (www.pgcb.state.pa.us).
(3) A Vendor Certification Form--Private Holding Company for each intermediary and holding company of the applicant unless the vendor seeking certification is, directly or indirectly, wholly owned by a publicly traded company.
(4) Applications and Release Authorizations for each individual as required by § 437a.4 (relating to individual certifications and investigations).
(b) In addition to the materials required under subsection (a), an applicant for a vendor certification 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) A vendor certification will not be issued until all fees have been paid.
(d) A person required to be a certified vendor under this chapter may request that the Board waive its obligation to be certified by filing a Single Transactional Waiver Form. To be eligible to receive this waiver from the requirements of certification, the person shall demonstrate that the certified vendor is proposing to engage in a single transaction with a slot machine applicant or licensee and satisfies the following requirements:
(1) The certified vendor's required performance under the contract with the slot machine applicant or licensee does not require that the certified vendor's employees to be on the gaming floor or in a restricted area.
(2) The certified vendor has not filed a Single Transactional Waiver Form with the Board within 2 years of the current waiver request.
(3) The certified vendor will not have a continuing onsite presence at the licensed facility.
(e) A person required to be a certified vendor under this chapter may request that the Board waive its obligation to be certified by filing a Vendor Certification Waiver Form. To be eligible to receive this waiver from the requirements of certification, the person shall demonstrate that the person and the person's involvement or conduct of business with the slot machine applicant or licensee is of such a nature that the certification of the person is not necessary to protect the public interest.
(f) The Board may, in response to misrepresentations or a change in circumstances, revoke a waiver granted under this section and require the recipient of the waiver to comply with the vendor certification requirements of this chapter.
(g) A certified vendor who has requested a waiver under this section may not provide goods or services to a slot machine applicant or licensee prior to Board approval of the certified vendor's waiver request.
§ 437a.4. Individual certifications and investigations.
(a) If a certified vendor or vendor seeking certification is a publicly traded company, the officer of the publicly traded company who is responsible for the conduct of business with the slot machine applicant or licensee shall be required to apply for certification by filing a Pennsylvania Personal History Disclosure Form with the Board.
(b) If a certified vendor or vendor seeking certification is a privately held entity, each officer and director of the entity shall be required to apply for certification by filing a Pennsylvania Personal History Disclosure Form with the Board. For the purposes of this subsection, the term ''officer'' means a chief executive officer, a chief financial officer and a chief operating officer, and any person routinely performing corresponding functions with respect to an organization whether incorporated or unincorporated.
(c) If a certified vendor or vendor seeking certification is a privately held entity, each individual who has a direct or indirect ownership or beneficial interest of 5% or more in the privately held entity shall be required to apply for certification by filing a Pennsylvania Personal History Disclosure Form with the Board.
(d) An individual who is a trustee of a trust that is required to file a Vendor Certification Form--Private Holding Company under § 437a.3 (relating to vendor certification applications) shall be required to apply for certification by filing a Pennsylvania Personal History Disclosure Form with the Board.
(e) Each officer and director of a privately held holding company of a certified vendor or vendor seeking certification shall be required to file a Pennsylvania Personal History Disclosure Form if the Board determines that certification of the individual is necessary to protect the public or to enhance the integrity of gaming in this Commonwealth.
(f) Employees of a certified vendor who have entered into an agreement with a slot machine applicant or licensee on behalf of their certified vendor employer, employees of a certified vendor who will solicit from or conduct business with a slot machine applicant or licensee, and employees of a certified vendor who supervise persons performing the duties in this section, shall be required to file a Pennsylvania Personal History Disclosure Form if the Board determines that certification of the individual is necessary to protect the public or to enhance the integrity of gaming in this Commonwealth.
§ 437a.5. Construction subcontractors.
(a) A construction subcontractor who is otherwise required to be certified or registered may elect to file an On-site Subordinate Vendor Notification Form with the Board in lieu of registration or certification if:
(1) The subcontractor is not providing goods or services through an agreement with a slot machine applicant or licensee.
(2) The subcontractor is not providing goods or services to a person who has entered into a contract with a slot machine applicant or licensee for the construction of a licensed facility.
(b) The On-site Subordinate Vendor Notification Form shall be valid for the construction of only one licensed facility, and shall be valid for only 1 year unless the Board, at its sole discretion, renews the On-site Subordinate Vendor Notification Form after a showing by the subcontractor that its obligations pursuant to the subcontract have not been fully performed and good cause exists for the delay in the performance.
(c) A subcontractor who elects to file an On-site Subordinate Vendor Notification Form as outlined in subsection (a) shall be prohibited from:
(1) Employing any person to work on the gaming floor or in a restricted area of a licensed facility.
(2) Providing, directly or indirectly, goods or service to any other slot machine applicant or licensee other than the slot machine applicant or licensee identified in the On-site Subordinate Vendor Notification Form.
§ 437a.6. Registration and certification term and renewal.
(a) Certifications, registrations and renewals issued under this chapter shall be valid for 4 years from the date of Board approval.
(b) A renewal application and renewal fee shall be submitted to the Board at least 60 days prior to the expiration of a certification or registration.
(c) A certification or 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 holder of the certification or registration that the Board has approved or denied the certification or registration.
§ 437a.7. Registered and certified vendor responsibilities.
(a) A holder of a vendor certification or registration 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 vendor certification or registration ineligible, unqualified or unsuitable to hold a certification or registration under the standards and requirements of the act and of this part.
(b) An employee of a certified vendor shall be required to obtain an occupation permit under § 435a.3 (relating to occupation permit) if:
(1) The employee is the onsite supervisor of other employees of the vendor whose duties of employment or incidental activities related to employment require the employees to be on the gaming floor or in a restricted area.
(2) The employee's duties of employment or incidental activities related to employment require the employee to be on the gaming floor or in a restricted area and require the employee to touch or have contact with a slot machine or associated equipment.
(c) An employee of a certified vendor that is not required to obtain an occupation permit under subsection (b) shall be required to obtain a nongaming employee registration under § 435a.5 (relating to nongaming employee registration) if:
(1) The employee is the onsite supervisor of other employees who are involved in the construction of a licensed facility.
(2) The employee's duties of employment or incidental activities related to employment require the employee to be on the gaming floor but do not require the employee to touch or have contact with a slot machine or associated equipment other than exterior cleaning.
(3) The employee's duties of employment or incidental activities related to employment require the employee to be in a restricted area, do not require the employee to touch or have contact with a slot machine or associated equipment other than exterior cleaning and the employee is under the constant supervision of an employee of the slot machine licensee who is licensed or permitted and who has the appropriate access clearance to be in the restricted area.
(d) Employees of a certified vendor who are not required to obtain an occupation permit or a nongaming employee registration under subsection (b) or (c) may be required to obtain an occupation permit or nongaming employee registration if the Board determines, after a review of the work being performed, that obtaining a permit or registration is necessary for the protection of the integrity of gaming.
§ 437a.8. Approved vendors list; prohibited vendors.
(a) The Board will maintain a list of approved registered or certified vendors and a list of prohibited vendors.
(b) A slot machine licensee or applicant may not enter into an agreement or continue to do business with a vendor on the prohibited vendor list.
(c) The Board will consider the following factors in determining whether a vendor will be listed as a prohibited vendor:
(1) The failure of a vendor to apply for certification or registration after notice from the Board that certification or registration is required.
(2) The failure of a vendor to cooperate with the Board in the Board's review of the application for certification or registration.
(3) The vendor's certification or registration is suspended, revoked or denied.
(4) The vendor is restricted from reapplication by action of the Board.
(5) The vendor is temporarily prohibited from doing business with slot machine license applicants or licensees by action of the Board.
(d) A person or entity seeking to be removed from the list of prohibited vendors shall file a petition for removal in accordance with § 493a.4 (relating to petitions generally). The petition must state the specific grounds believed by the petitioner to constitute good cause for removal from the prohibited vendors list and how the vendor has cured any deficiencies that led to the vendor being placed on the prohibited vendors list.
§ 437a.9. Permission to conduct business prior to certification or registration.
(a) Notwithstanding § 437a.1 (relating to general vendor requirements), the Board may allow an applicant for a vendor certification or registration to conduct business with a slot machine applicant or licensee prior to the certification or registration of the vendor applicant if the following criteria are met:
(1) A completed Vendor Registration Form or Vendor Certification Form has been filed by the slot machine applicant or licensee in accordance with § 437a.2 or § 437a.3 (relating to vendor registration applications; and vendor certification applications).
(2) The slot machine applicant or licensee certifies that it has performed due diligence on the vendor.
(b) Permission to conduct business under this section will be for 6 months.
(c) The Board may extend the relief for additional 6-month periods upon a showing of good cause by the slot machine applicant or licensee.
§ 437a.10. Emergency vendor.
(a) A slot machine licensee may utilize a vendor that is not registered or certified when a threat to public health, welfare or safety exists or circumstances outside the control of the slot machine applicant or licensee create an urgency of need which does not permit the delay involved in using the formal method of vendor certification or registration.
(b) When using a vendor that is not registered or certified to respond to an emergency, the slot machine applicant or licensee shall:
(1) File a Vendor Notification Form with the Board within 72 hours of the vendor's commencement of services.
(2) Provide a written explanation to the Board of the basis for the emergency vendor procurement and for the selection of the particular vendor.
(3) File a Vendor Registration Form or Vendor Certification Form on behalf of the vendor within 20 business days of the filing of the Vendor Notification Form.
§ 437a.11. Slot machine applicants' and licensees' duty to investigate.
(a) An applicant for or holder of a slot machine license shall investigate the background and qualifications of the applicants for vendor registration or certification with whom it intends to have a contractual relationship or enter into an agreement.
(b) An applicant for or holder of a slot machine license shall have an affirmative duty to avoid agreements or relationships with applicants for vendor registration or certification whose background or association is injurious to the public health, safety, morals, good order and general welfare of the people of this Commonwealth, who threaten the integrity of gaming in this Commonwealth or who discredit or tend to discredit the gaming industry in this Commonwealth or the Commonwealth.
(c) An agreement or contract between an applicant for or holder of a slot machine license and an applicant for or holder of a vendor registration or certification shall contain a cancellation clause that allows termination of the agreement or contract in the event that the Board or the slot machine applicant or licensee finds that the agreement or contract fails to meet the requirements of subsection (b). This provision applies to written and oral agreements and contracts.
(d) An applicant for or holder of a slot machine license shall have a duty to inform the Bureau of an action by an applicant for or holder of a vendor registration or certification which the applicant for or holder of a slot machine license believes would constitute a violation of the act or the Board's regulations.
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