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PA Bulletin, Doc. No. 08-350

PROPOSED RULEMAKING

[ 58 PA. CODE CH. 441a ]

Slot Machine Licensing

[38 Pa.B. 1041]
[Saturday, March 1, 2008]

   The Pennsylvania Gaming Control Board (Board), under the general authority in 4 Pa.C.S. § 1202(b)(30) (relating to general and specific powers) and the specific authority in 4 Pa.C.S. § 1202(b)(12) and 4 Pa.C.S. § 1326 (relating to license renewals) proposes to amend Chapter 441a (relating to slot machine licensing) to read as set forth in Annex A.

Purpose of the Proposed Rulemaking

   This proposal amends the provisions related to renewal of slot machine licenses.

Explanation of Amendments to Chapter 441a

   Section 1301 of 4 Pa.C.S. (relating to authorized slot machine licenses) required the Board to consider the initial applications for slot machine licenses collectively and together. Accordingly, the Board approved the initial slot machine licenses on December 20, 2006.

   Most licenses issued by the Board expire 1 year from the date that the license application is approved by the Board. However, for slot machine licenses, the Board tied the term of the initial licenses to the date that the licenses were issued. This was done for two reasons. First, because the statements of conditions for each of the successful applicants are unique and licenses are not issued until all of the conditions are met, the term of the initial licenses would have been for much less than 12 months. For example, Pocono Downs, which was the first licensed facility to open, did not receive its permanent license until October of 2007. If the December 20, 2006, approval date had been used for the starting date for the term of its license, Pocono Downs would have had to file its renewal application in the same month it received its license. This would have placed an unreasonable administrative burden on Pocono Downs and the rest of the slot machine licensees.

   The second reason the Board elected to use the issuance date instead of the approval date was to stagger the due dates of the slot machine license renewals. This allows the Board to more effectively allocate the staff that are needed to conduct the comprehensive renewal application reviews.

   Now that the renewal dates have been staggered, the Board is proposing to tie the 12 month term of slot machine licenses that are renewed to the date that the Board approves the renewal application. This will allow the Board to continue to take advantage of the staggered renewal dates and to coordinate the renewal date of a slot machine licensee with the renewal dates of its principals and key employees. Additionally, the Board does not anticipate that there will be major changes in the statements of conditions for the renewals, so the time period between approval and issuance should be much shorter.

Affected Parties

   The renewal dates for all slot machine licenses will be affected by this proposed rulemaking.

Fiscal Impact

Commonwealth

   There will be no new costs or savings to the Board or other Commonwealth agencies as a result of this regulation.

Political Subdivisions

   This proposed rulemaking will have no fiscal impact on political subdivisions of this Commonwealth.

Private Sector

   The due dates for renewals of slot machine licenses will change but the costs associated with completing a renewal application will not change.

General Public

   This proposed rulemaking will have no fiscal impact on the general public.

Paperwork requirements

   There are no new paperwork or reporting requirements associated with this proposed rulemaking.

Effective Date

   The proposed rulemaking will become effective upon final-form publication in the Pennsylvania Bulletin.

Public Comments

   Interested persons are invited to submit written comments, suggestions or objections regarding the proposed rulemaking, within 30 days after the date of publication in the Pennsylvania Bulletin to Paul Resch, Secretary, Pennsylvania Gaming Control Board, P. O. Box 69060, Harrisburg, PA 17106-9060, Attention: Public Comment on Regulation No. 125-81.

Contact Person

   The contact person for questions about this proposed rulemaking is Richard Sandusky, Director of Regulatory Review, at (717) 214-8111.

Regulatory Review

   Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on February 15, 2008, the Board submitted a copy of this proposed rulemaking and a copy of the Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Gaming Oversight Committee and the Senate Community, Economic and Recreational Development Committee. A copy of this material is available to the public upon request.

   Under section 5(g) of the Regulatory Review Act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Board, the General Assembly and the Governor of comments, recommendations or objections raised.

MARY DIGIACOMO COLINS,   
Chairperson

   Fiscal Note: 125-81. No fiscal impact; (8) recommends adoption.

Annex A

TITLE 58. RECREATION

PART VII. GAMING CONTROL BOARD

Subpart C. SLOT MACHINE LICENSING

CHAPTER 441a. SLOT MACHINE LICENSES

§ 441a.16. Slot machine license term and renewal.

   (a)  [A] The initial slot machine license issued to a slot machine licensee under this chapter will be valid for 1 year from the date of the issuance of the license by the Board. Renewals of a slot machine licensee's license will be valid for 1 year from the date of the approval of the renewal of the license by the Board.

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[Pa.B. Doc. No. 08-350. Filed for public inspection February 29, 2008, 9:00 a.m.]



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