[45 Pa.B. 2829]
[Saturday, June 13, 2015]
[Continued from previous Web Page]
CHAPTER 435a. KEY, GAMING AND NONGAMING EMPLOYEES; BOARD-ISSUED 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 comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(c) The holder of a key employee license, occupation permit or nongaming employee registration shall provide an updated photograph at the request of Board staff.
(d) An applicant for an occupation permit or nongaming employee registration shall be at least 18 years of age.
(e) Slot machine licensees, manufacturers, manufacturer designees, suppliers, gaming service providers and gaming related gaming service providers that hire an individual who holds a key employee license, permit or registration issued by the Board shall contact the Bureau of Licensing to confirm that the individual's key employee license, permit or registration is in good standing prior to allowing the individual to work in the licensed facility.
§ 435a.2. Key employee license.
(a) An individual may not perform duties associated with a position that requires a key employee license prior to receiving a temporary or permanent credential unless otherwise authorized by the Board. An applicant for a key employee license shall submit:
(1) An original and one copy of a completed Multi-Jurisdictional Personal History Disclosure Form.
(2) An original and one copy of a completed Principal/Key Employee Form—Pennsylvania Supplement to the Multi-Jurisdictional Personal History Disclosure Form.
(3) The nonrefundable application fee posted on the Board's web site.
(b) In addition to the materials required under subsection (a), an applicant for a key employee license shall comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(c) After reviewing the application and the results of the applicant's background investigation, the Board may issue a key employee license if the individual has proven that he is a person of good character, honesty and integrity and is eligible and suitable to be licensed as a key employee.
(d) A key employee license issued will be valid for employment with any licensed entity.
§ 435a.3. Occupation permit.
(a) An applicant for a gaming employee occupation permit shall submit:
(1) An original and one copy of the Gaming Employee Application and Disclosure Information Form or an electronic application using the SLOTS Link system. When an application for an occupation permit is filed using SLOTS Link, any additional documents required, including releases, shall be submitted to the Board:
(i) Within 5 days of the submission of the SLOTS Link application by an applicant for or holder of a slot machine license.
(ii) Within 10 days of the submission of the SLOTS Link application by an applicant for or holder of a manufacturer, manufacturer designee, or supplier license or a gaming related gaming service provider certification or gaming service provider registration, certification or authorization.
(2) The nonrefundable application fee posted on the Board's web site.
(3) Verification of an offer of employment from a licensed entity.
(b) In addition to the materials required under subsection (a), an applicant for a gaming employee occupation permit shall comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(c) After reviewing the application and the results of the applicant's background investigation, the Board may issue a gaming employee occupation 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.
(d) An individual who wishes to receive a gaming employee 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 gaming related gaming service provider certification or gaming service provider registration, certification or authorization to file an application on the individual's behalf.
(e) A gaming employee occupation permit issued under this section will be valid for employment with any licensed entity, any certified gaming related gaming service provider or any registered or certified gaming service provider.
§ 435a.5. Nongaming employee registration.
(a) An applicant for a nongaming employee registration shall submit:
(1) An original and one copy of the Nongaming Employee Registration Form or an electronic application using the SLOTS Link system. When an application for a nongaming employee registration is filed using SLOTS Link, any additional documents required, including releases, shall be submitted to the Board:
(i) Within 5 days of the submission of the SLOTS Link application by an applicant for or holder of a slot machine license.
(ii) Within 10 days of the submission of the SLOTS Link application by an applicant for or holder of a manufacturer, manufacturer designee, or supplier license or an applicant for or holder of a gaming service provider registration or certification.
(2) The nonrefundable application fee posted on the Board's web site.
(b) In addition to the materials required under subsection (a), an applicant for a nongaming employee registration shall comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(c) After review of the application, 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, manufacturer, manufacturer designee or supplier license or a gaming service provider registration or certification to file an application on the individual's behalf.
(e) A registration issued under this section is valid for employment with any slot machine, manufacturer, manufacturer designee or supplier licensee or registered, certified or authorized gaming service provider.
(f) A registration issued under this section will be valid for 4 years from the date of Board approval.
(g) A renewal application shall be submitted to the Board at least 60 days prior to the expiration of a registration credential.
(h) 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 holder of the registration that the Board has approved or denied the renewal registration.
§ 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 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.
(d) An individual who is not a State employee, who is required to obtain a Board credential and whose duties:
(1) Do not require the individual to be on the gaming floor or in a restricted area, 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.
(2) Require the individual to be on the gaming floor or in a restricted area, 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. A food and beverage employee of a slot machine licensee who is required to obtain a Board credential and whose duties require the individual to be on the gaming floor may carry, instead of display, the employee's Board credential if:
(i) The employee displays the access badge required under § 465a.12 (relating to access badges and temporary access credentials).
(ii) The access badge displays a unique identification number that has been assigned to that employee and which can be read by the slot machine licensee's surveillance system.
(e) Slot machine and management company licensees are prohibited from allowing a principal who is required to obtain a credential, a key employee, gaming employee or nongaming employee registrant to perform his duties on the premises of a licensed facility unless the employee is in possession of a Board-issued credential.
(f) An employee whose license, permit or registration has been suspended or revoked by the Board shall surrender the Board credential to Board staff.
§ 435a.8. Temporary credentials.
(a) A temporary credential may be issued by the Board to a principal, key employee or gaming employee.
(b) A temporary credential issued to a principal, key employee or gaming employee is valid for up to 270 days from the date of its issuance.
(c) The Board may extend the expiration date of a temporary credential issued to a principal, key employee or gaming employee if the Board determines additional time is needed to complete an investigation for licensure.
(d) A temporary credential may be issued by the Bureau of Licensing 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.
(e) A temporary credential issued to a nongaming employee will be valid for 30 days.
(f) Board staff may impose conditions on the holders of temporary credentials.
§ 435a.9. (Reserved).
§ 435a.9a. Gaming service provider employee temporary access credentials.
(a) The Board's casino compliance representatives at a licensed facility may issue a Gaming Service Provider Employee Temporary Access Credential to an employee of a registered or certified gaming service provider that is a construction company that is completing work on the gaming floor or in a restricted area under the registered or certified gaming service provider's original contract, change orders or punch lists, or to complete periodic repairs or warranty work if:
(1) The employee's duties of employment do not require the employee to touch or have contact with a slot machine, table game device or associated equipment other than exterior contact that does not affect the play of the game.
(2) The employee signs in with the security department of the licensed facility and will be escorted and under the constant supervision of an employee of the slot machine licensee who is authorized to have access to the area where the work is being performed.
(3) The gaming service provider employee and the employee of the slot machine licensee who will escort and supervise both sign in with the Board's casino compliance representatives.
(b) To receive a Gaming Service Provider Employee Temporary Access Credential, the employee of the registered or certified gaming service provider that is a construction company shall surrender his driver's license or other photo identification.
(c) A Gaming Service Provider Employee Temporary Access Credential will not be issued to an employee of a registered or certified gaming service provider that is a construction company for more than 12 days in a 12-month period. The time period may be extended for good cause as determined by the Bureau of Licensing.
(d) As provided in § 437a.10(c) (relating to emergency gaming service provider), an employee of an emergency gaming service provider shall obtain a temporary access credential in accordance with subsections (a) and (b) to enable the employee to perform emergency services at the licensed facility.
§ 435a.10. Loss, theft or destruction of credentials.
(a) As soon as possible, but no later than 24 hours following the loss, theft or destruction of a Board credential, emergency credential or temporary credential, the person to whom the credential was issued shall notify the Board's casino compliance representatives at the licensed facility.
(b) The slot machine licensee, on behalf of an employee whose Board-issued credential was lost, stolen or destroyed, may request a replacement Board credential by submitting a Request for Duplicate PGCB Credential Form and the fee established by the Board to the Bureau of Licensing.
CHAPTER 437a. GAMING SERVICE PROVIDER CERTIFICATION AND REGISTRATION § 437a.1. General gaming service provider requirements.
(a) Except as provided in § 437a.10 (relating to emergency gaming service provider), a gaming service provider or person seeking to conduct business with a slot machine applicant or licensee shall apply to the Board for registration if:
(1) The total dollar amount of the goods or services to be provided to a single slot machine applicant or licensee or to multiple slot machine applicants or licensees will be or is anticipated to be equal to or greater than $100,000 but less than or equal to $500,000 within a consecutive 12-month period.
(2) The employees of the gaming service provider or person seeking to conduct business with a slot machine applicant or licensee will be working either:
(i) In a restricted area of the licensed facility.
(ii) On the gaming floor unless all of the following conditions are met:
(A) The employees will be on the gaming floor for less than 24 hours within a 72-hour period no more than once in any consecutive 3-month period.
(B) The employees sign-in with the security department at the licensed facility and the Board's casino compliance representatives prior to entering the gaming floor.
(C) The gaming service provider has received written approval from the Bureau of Licensing for the gaming service provider's employees to be on the gaming floor.
(b) Except as provided in § 437a.10, a gaming service provider or person seeking to conduct business with a slot machine applicant or licensee shall apply to the Board for certification if the total dollar amount of the goods or services to be provided to a single slot machine applicant or licensee or to multiple slot machine applicants or licensees will be or is anticipated to be greater than $500,000 within a consecutive 12-month period.
(c) A person that provides goods or services indirectly to a slot machine applicant or licensee through an intermediary, holding company or affiliate of the slot machine applicant or licensee shall be required to be registered or certified if the cost of the goods or services provided to the slot machine applicant or licensee exceeds the monetary thresholds in subsections (a) and (b).
(d) The following persons are exempt from the gaming service provider registration and certification requirements of this chapter:
(1) Public utilities which provide 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 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, when acting in their respective professional capacities.
(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) Schools regulated by the Department of 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.
(15) Professional sports teams of Major League Baseball, the National Hockey League, the National Football League and the National Basketball Association.
(16) Any person not otherwise exempt under this subsection that is licensed by a Federal or state agency if the agency's licensing requirements are determined by the Bureau of Licensing to be substantially similar to those of the Board.
(e) The Board may request information or assurances from any person listed in subsection (d) to determine the validity of the person's exempt status.
(f) Subsection (d) does not relieve a slot machine applicant or licensee of reporting obligations required under §§ 441a.12 and 441a.14 (relating to maintaining agreements; filing of agreements; and master purchasing and disbursement report).
(g) Notwithstanding subsections (a) and (b), a publicly traded corporation or subsidiary thereof will not be required to be registered or certified as a gaming service provider if the publicly traded corporation or subsidiary thereof submits a completed Publicly Traded Gaming Service Provider Form to the Bureau of Licensing accompanied by the filing fee posted on the Board's web site and is authorized. A publicly traded corporation or subsidiary thereof that is authorized to provide goods and services under this subsection shall be required to:
(1) Comply with § 437a.7 (relating to registered, certified and authorized gaming service provider responsibilities).
(2) Immediately notify the Bureau of Licensing if the publicly traded corporation or subsidiary thereof ceases to meet the definition of a publicly traded corporation.
(h) A slot machine applicant or licensee shall complete and submit to the Bureau of Licensing a Notification of Material Gaming Service Provider Form prior to compensating a gaming service provider $15,000 or more within a consecutive 12-month period. A slot machine applicant or licensee will not be required to submit a Notification of Material Gaming Service Provider Form to the Bureau of Licensing if either of the following apply to the gaming service provider to be compensated:
(1) The gaming service provider is exempt under subsection (d).
(2) The gaming service provider is listed on the Board's authorized gaming service provider list.
(i) A gaming service provider of a slot machine applicant or licensee whose compensation does not exceed the monetary thresholds contained in this section or who is otherwise not required to be registered or certified under subsection (d) or (g) may be required to be registered or certified if the Board determines that registration or certification is necessary to protect the integrity of gaming.
§ 437a.2. Gaming service provider registration applications.
(a) A gaming service provider seeking registration shall do one of the following:
(1) If the gaming service provider has or will be entering into an agreement to provide goods or services to a specific slot machine applicant or licensee, the gaming service provider shall complete an original and one copy of a Gaming Service Provider Registration Form—Spon-sored. The original copy and the fee toward the cost of the investigation of the applicant posted on the Board's web site shall be submitted to the Bureau of Licensing by the slot machine applicant or licensee for whom the gaming service provider will provide goods or services unless otherwise directed by the Bureau of Licensing.
(2) If a gaming service provider does not have an agreement to provide goods or services to a specific slot machine applicant or licensee but is seeking to conduct business with slot machine applicants or licensees, the gaming service provider shall complete an original and one copy of a Gaming Service Provider Registration Form—Unsponsored. The original, copy and the fee toward the cost of the investigation of the applicant, as posted on the Board's web site, shall be submitted to the Bureau of Licensing by the gaming service provider unless otherwise directed by the Bureau of Licensing.
(b) In addition to the materials required under subsection (a), an applicant for a gaming service provider registration shall:
(1) Submit the nonrefundable application fee posted on the Board's web site.
(2) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(3) Submit fingerprints of the following individuals in a manner prescribed by the Bureau:
(i) Each officer and director of the registered gaming service provider applicant. For purposes of this subparagraph, ''officer'' means a president, 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.
(ii) Each individual who has a direct or indirect ownership or beneficial interest of 10% or more in the registered gaming service provider applicant.
(iii) Each salesperson of a registered gaming service provider applicant who solicits business from, or has regular contact with, any representatives of a slot machine applicant or licensee or any employee of a registered gaming service provider applicant who will be engaging in that conduct.
(c) A person who holds any direct or indirect ownership or beneficial interest in a registered gaming service provider or applicant for gaming service provider registration, or has the right to any profits or distributions directly or indirectly, from the registered gaming service provider or applicant for gaming service provider registration may be required to submit fingerprints if the Bureau determines that the submission of fingerprints of the person is necessary to protect the public interest or to enhance the integrity of gaming in this Commonwealth.
(d) Each of the individuals required to submit fingerprints under subsection (b)(3) must be found qualified by the Board. An individual who is found qualified and is also a gaming or nongaming employee as defined in § 401a.3 (relating to definitions) shall obtain a gaming employee occupation permit in accordance with § 435a.3 (relating to occupation permit) or a nongaming employee registration in accordance with § 435a.5 (relating to nongaming employee registration).
(e) An applicant for a gaming service provider registration shall reimburse the Board for costs incurred in conducting the investigation of the applicant.
(f) A gaming service provider registration will not be issued until all fees and costs have been paid.
§ 437a.3. Gaming service provider certification applications.
(a) A gaming service provider seeking certification shall complete and the slot machine applicant or licensee for whom the gaming service provider will provide goods or services shall submit:
(1) An original and one copy of a Gaming Service Provider Certification Application and Disclosure Information Form unless otherwise directed.
(2) The nonrefundable application fee posted on the Board's web site.
(3) Applications and release authorizations for each individual required to be qualified under § 437a.4 (relating to qualification of individuals and entities).
(b) In addition to the requirements of subsection (a), an applicant for a gaming service provider certification shall comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(c) An applicant for a gaming service provider certification shall reimburse the Board for costs incurred in conducting the investigation of the applicant.
(d) A gaming service provider certification will not be issued until all fees and costs have been paid.
§ 437a.3a. Single transaction waiver.
(a) A gaming service provider required to be registered or certified under this chapter may request that the Board waive its obligation to be registered or certified by filing a Single Transactional Waiver Form. To be eligible to receive a waiver, the gaming service provider shall demonstrate that it is proposing to engage in a single transaction and satisfies the following requirements:
(1) The gaming service provider's required performance under the contract with the slot machine licensee does not require the gaming service provider's employees to be on the gaming floor or in a restricted area.
(2) The gaming service provider has not filed a Single Transactional Waiver Form within 2 years of the current waiver request.
(3) The gaming service provider will not have a continuing business relationship with the slot machine licensee or have a continuing onsite presence at the licensed facility.
(b) 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 gaming service provider registration or certification requirements of this chapter.
(c) A gaming service provider that 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 gaming service provider's waiver request.
§ 437a.4. Qualification of individuals and entities.
(a) The following individuals shall be required to submit a Pennsylvania Personal History Disclosure Form and be found qualified by the Board:
(1) Each officer and director of a certified gaming service provider or applicant for gaming service provider certification. For the purposes of this paragraph, ''officer'' means a president, 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.
(2) Each individual who has a direct or indirect ownership or beneficial interest of 10% or more in the certified gaming service provider or applicant for gaming service provider certification. A certified gaming service provider or applicant for gaming service provider certification shall provide information or documentation requested by the Board necessary to determine compliance with this paragraph.
(3) Each salesperson of a certified gaming service provider or applicant for gaming service provider certification who solicits business from, or has regular contact with, any representatives of a slot machine applicant or licensee or any employee of a certified gaming service provider or applicant for gaming service provider certification who will be engaging in that conduct.
(b) Each entity that directly owns 20% or more of the voting securities of a certified gaming service provider or person applying for gaming service provider certification shall file a Gaming Service Provider Certification Form—Private Holding Company with the Bureau of Licensing and be found qualified by the Board.
(c) The following persons may be required to submit a Gaming Service Provider Certification Form—Private Holding Company or a Pennsylvania Personal History Disclosure Form and be found qualified by the Board if the Bureau of Licensing determines that the qualification of the person is necessary to protect the public interest or to enhance the integrity of gaming in this Commonwealth:
(1) An intermediary or holding company of a certified gaming service provider or applicant for gaming service provider certification not otherwise required to be qualified.
(2) An officer or director of an intermediary or holding company of a certified gaming service provider or applicant for gaming service provider certification.
(3) An employee of a certified gaming service provider or applicant for gaming service provider certification.
(4) A person who holds any direct or indirect ownership or beneficial interest in a certified gaming service provider or applicant for gaming service provider certification, or has the right to any profits or distribution, directly or indirectly, from the certified gaming service provider or applicant for gaming service provider certification.
(5) A trustee of a trust that is required to be found qualified under this section.
(d) The Bureau of Licensing may issue a temporary credential to an individual who is required to be qualified by the Board under this section if:
(1) The individual's presence in the licensed facility is needed.
(2) The company with which the individual is associated is on the authorized gaming service provider list.
(e) Upon request, the Bureau of Licensing will issue a credential to an individual who has been found qualified under this section if the gaming service provider has been certified.
§ 437a.5. Construction subcontractors.
(a) Instead of filing for registration or certification, a construction subcontractor that is otherwise required to be certified or registered may elect to file an On-site Subordinate Pre-Opening Construction Notification Form with the Bureau of Licensing 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 a first-tier subcontractor providing goods or services to the general contractor that has entered into a contract with a slot machine applicant or licensee for the construction of a licensed facility.
(b) The On-site Subordinate Gaming Service Provider Notification Form will be valid for the construction of only one licensed facility, and will expire upon completion of the contract.
(c) A subcontractor that elects to file an On-site Subordinate Gaming Service Provider Notification Form as outlined in subsection (a) shall be prohibited from:
(1) Employing any person to work in a restricted area of a licensed facility or on the gaming floor after onsite Board staff designates the area as a gaming floor.
(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 Gaming Service Provider Notification Form.
§ 437a.6. Registration and certification term and renewal.
(a) Gaming service provider certifications, registrations and renewals issued under this chapter will be valid for 4 years from the date of Board approval.
(b) Publicly traded gaming service provider authorizations approved under § 437a.1(g) (relating to general gaming service provider requirements) will be valid for 4 years from the date of authorization.
(c) Registered, certified and authorized publicly traded gaming service providers shall submit to the Board a completed renewal application or form and renewal fee at least 60 days prior to the expiration of a certification, registration or authorization.
(d) A certification or registration for which a completed renewal application and fee has been received by the Bureau of Licensing will continue to be 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.
(e) A publicly traded gaming service provider authorization for which a completed renewal form and fee has been received by the Bureau of Licensing will continue in effect unless the Bureau of Licensing sends written notification to the publicly traded gaming service provider that the authorization has been rescinded.
§ 437a.7. Registered, certified and authorized gaming service provider responsibilities.
(a) A holder of a gaming service provider certification, registration or authorization shall have a continuing duty to comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(b) An employee of a gaming service provider 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 gaming employees, as defined in § 401a.3 (relating to definitions), of the gaming service provider.
(2) The employee is a gaming employee as defined in § 401a.3.
(c) An employee of a gaming service provider who 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:
(i) Other nongaming employees as defined in § 401a.3.
(ii) Employees of the gaming service provider who are involved in the construction of the licensed facility.
(2) The employee is a nongaming employee as defined in § 401a.3.
(d) Employees of a gaming service provider 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.
(e) Workers employed by a gaming service provider that is a construction company, who are completing work on the gaming floor or in a restricted area under their original contract, change orders, punch lists, periodic repairs or warranty work, will not be required to comply with the requirements in subsection (b) or (c) if the conditions in § 435a.9a(a) and (b) (relating to gaming service provider employee temporary access credentials) are met.
(f) A certified, registered or authorized gaming service provider operating within a licensed facility that cashes personal checks shall comply with § 465a.20 (relating to personal check cashing).
§ 437a.8. Authorized gaming service providers list; prohibited gaming service providers.
(a) The Board will maintain a list of authorized gaming service providers and a list of prohibited gaming service providers. The authorized list will contain the names of persons who:
(1) Have been registered or certified.
(2) Are eligible to file and have filed a completed publicly traded gaming service provider form under § 437a.1(g) (relating to general gaming service provider requirements).
(3) Have been authorized to conduct business with a slot machine licensee or applicant under § 437a.9 (relating to permission to conduct business prior to certification or registration).
(b) Except as permitted under § 437a.1(a)(2), (d) and (g) and § 437a.10 (relating to emergency gaming service provider), a slot machine licensee or applicant may not purchase goods or services from a gaming service provider, when the employees of the gaming service provider will be working on the gaming floor or in a restricted area or compensate a gaming service provider $100,000 or more within a consecutive 12-month period, unless the gaming service provider is on the authorized gaming service provider list. A slot machine licensee or applicant or any affiliate, intermediary, subsidiary or holding company thereof acting on behalf of the slot machine licensee or applicant may not enter into an agreement or continue to do business with a gaming service provider on the prohibited gaming service providers list.
(c) The Board may place a person on the prohibited gaming service providers list if:
(1) The gaming service provider has failed to comply with this chapter.
(2) The gaming service provider has failed to cooperate with Board staff in its review and investigation of the gaming service provider's application.
(3) The gaming service provider's application for certification or registration has been denied or withdrawn with prejudice or the gaming service provider has had its gaming service provider certification or registration suspended or revoked.
(4) The gaming service provider has failed to provide information to a slot machine applicant or licensee that is necessary for the slot machine applicant or licensee to comply with this chapter.
(d) A person seeking to be removed from the list of prohibited gaming service providers shall file a petition for removal in accordance with § 493a.4 (relating to petitions generally) and shall be responsible for all costs associated with the person's petition for removal from the list of prohibited gaming service providers. The petition must state the specific grounds believed by the petitioner to constitute good cause for removal from the prohibited gaming service providers list and how the gaming service provider has cured any deficiencies that led to the gaming service provider being placed on the prohibited gaming service providers list.
(e) The Board may impose a monetary penalty or other appropriate sanction in connection with the removal of a person from the list of prohibited gaming service providers, or attach any reasonable condition to the removal of a person from the list of prohibited gaming service providers.
§ 437a.10. Emergency gaming service provider.
(a) A slot machine licensee may utilize a gaming service provider that is not registered, certified or authorized to conduct business in accordance with § 437a.8 (relating to authorized gaming service providers list; prohibited gaming service providers) when a threat to public health, welfare or safety of the building or its occupants exists or circumstances outside the control of the slot machine licensee create an urgency of need which does not permit the delay involved in using the formal method of gaming service provider certification or registration. A slot machine licensee may not use a gaming service provider on the prohibited list.
(b) When using a gaming service provider that is not registered, certified or authorized to conduct business to respond to an emergency, the slot machine licensee shall:
(1) Immediately notify the onsite casino compliance representatives in the licensed facility of the emergency and the gaming service provider that was selected to provide emergency services.
(2) File a Gaming Service Provider Emergency Notification Form with the Bureau of Licensing within 72 hours after commencement of the gaming service provider's services and a written explanation of the basis for the procurement of the emergency gaming service provider.
(c) An employee of the emergency gaming service provider who is providing emergency services in the licensed facility shall obtain a temporary access credential in accordance with § 435a.9a(d) (relating to gaming service provider employee temporary access credentials) prior to performing any work.
(d) If the slot machine licensee continues to utilize the gaming service provider after the emergency circumstances have passed or if the Bureau of Licensing determines that the circumstances did not necessitate the use of an emergency gaming service provider that was not registered, certified or on the authorized list, the slot machine license and gaming service provider shall comply with the requirements in this chapter.
§ 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 gaming service provider 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 persons applying for gaming service provider registration or certification whose background or associations are injurious to the public health, safety, morals, good order and general welfare of the people of this Commonwealth, or who threaten the integrity of gaming in this Commonwealth.
(c) An applicant for or holder of a slot machine license shall have a duty to inform the Board of an action by an applicant for or holder of a gaming service provider registration or certification or a gaming service provider that is eligible to file and has filed a completed publicly traded gaming service provider form under § 437a.1(g) (relating to general gaming service provider requirements), which the applicant for or holder of a slot machine license believes would constitute a violation of the act or this part.
CHAPTER 440a. MANAGEMENT COMPANIES § 440a.1. General requirements.
(a) A management company shall obtain a management company license from the Board prior to the commencement of gaming operations. If a slot machine licensee has already started gaming operations, a management company may not provide services to the slot machine licensee prior to obtaining a license from the Board.
(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 application and disclosure form.
(2) The nonrefundable application fee posted on the Board's web site.
(b) In addition to the application required under subsection (a), an applicant for a management company license shall comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
§ 440a.3. Management company license term and renewal.
(a) A management company license or renewal will be valid for 3 years from the date on which the initial license is issued or the renewal is approved by the Board. The management company license will not be issued or renewed until all fees and costs have been paid.
(b) A renewal application shall be submitted to the Bureau of Licensing 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 Bureau of Licensing 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.
(d) A management company license issued by the Board is nontransferable.
§ 440a.5. Management contracts.
(a) A management contract between a slot machine applicant or licensee and management company licensee will not become effective until the Board has approved 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 will not become effective until a petition is submitted and the Board has approved 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.
(d) A management company that requests Board approval of a management contract shall disclose its financial interests in the slot machine applicant or licensee and, if applicable, any exercisable option that may constitute a change in ownership or control of a slot machine licensee as described in § 441a.17 (relating to change in ownership or control of slot machine licensee and multiple slot machine license prohibition).
(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 approval must specify the terms and conditions of the management contract and the responsibilities of the slot machine applicant or licensee and management company. 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.
(vii) Table games.
(2) Design, construction, improvement and maintenance of the licensed facility.
(3) Sources of operating capital and financing for the development of the licensed facility.
(4) Payment of the slot machine license fee and the table games operation certificate fee, if applicable.
(5) Purchase or lease of slot machines, table games, table game devices or associated equipment.
(6) Design, implementation and amendment of the system of internal controls required under section 1322 of the act (relating to slot machine accounting controls and audits) and this part including the financial reporting requirements.
(7) Hiring, terminating, training and promoting of employees and the employment practices attendant thereto.
(8) The payment of local, State and Federal taxes and slot machine license deposit required under the act and this part and any penalties imposed by the Board for violations thereof.
(9) Advertising, player incentive or marketing programs.
(10) Compliance with section 1325(b)(1) of the act (relating to license or permit issuance).
(11) Obtaining and maintaining insurance coverage, including coverage of public liability and property loss or damage.
(12) Procurement of gaming service providers and gaming junket enterprises.
(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.
§ 440a.6. Change in ownership or control of a management company licensee.
(a) A management company licensee shall notify the Bureau and the Bureau of Licensing by filing a Notification of Proposed Transfer of Interest Form prior to or immediately upon becoming aware of a proposed or contemplated change in ownership or control of the management company licensee by a person or group of persons acting in concert which involves any of the following:
(1) More than 5% of a management company licensee's securities or other ownership interests.
(2) More than 5% of the securities or other ownership interests of a corporation or other form of business entity that owns, directly or indirectly, at least 20% of the voting or other securities or other ownership interest of the management company licensee.
(3) Any other interest in a management company licensee which allows the acquirer to control the management company license.
(b) A transaction in subsection (a) may not be consummated without:
(1) Obtaining the prior approval of the Board.
(2) Each principal involved in the transaction obtaining a license in accordance with Chapter 433a (relating to principal licenses).
(c) A request for approval required under subsection (b)(1) shall be made by filing a petition with the Board in accordance with § 493a.4 (relating to petitions generally).
(d) Notwithstanding the requirement in subsection (b)(2), the Board may approve a transaction under subsection (a) prior to the licensure of the person or group of persons acting in concert if all of the following apply:
(1) The person or group of persons acting in concert are proposing to acquire 20% or less of the voting securities of a publicly traded holding company of a management company licensee.
(2) The person or group of persons acting in concert affirm that the person or group of persons will not control or influence the affairs of or benefit from the management company or slot machine licensee prior to being licensed as principals in accordance with Chapter 433a.
(3) The person or group of persons have filed applications with the Board for licensure as principals in accordance with Chapter 433a.
(4) The approval of the transaction is expressly conditioned upon the person or group of persons being licensed as principals in accordance with Chapter 433a.
(e) The Board will not approve a transaction under subsection (a) which involves a change in control unless the person or group of persons acting in concert demonstrates by clear and convincing evidence that the slot machine licensee's gaming facility will remain or become a financially successful, suitable and efficient business operation.
(f) The following transactions are not be subject to subsections (a)—(c):
(1) A transaction through which an underwriter will possess a security for less than 90 days.
(2) A transaction through which an institutional investor acquires less than 20% of the securities of a management company licensee's holding company, provided that the securities were acquired for investment purposes only and the institutional investor complies with § 433a.5 (relating to institutional investors).
Subpart C. SLOT MACHINE LICENSING
CHAPTER 441a. SLOT MACHINE LICENSES § 441a.1. Definitions.
For purposes of this subpart, the following words and terms have the following meanings, unless the context clearly indicates otherwise:
Amenities—Ancillary activities, services or facilities in which a registered guest or the transient public, in return for non-de minimis consideration, may participate at a resort hotel, including, but not limited to:
(i) Sports and recreational activities and facilities such as a golf course, golf driving range, tennis court or swimming pool.
(ii) Health spa.
(iii) Convention, meeting and banquet facilities.
(iv) Entertainment facilities.
(v) Restaurant facilities.
Applicant—A person who applies to the Board to receive a slot machine license as defined in this section.
Developer—A person engaged by a slot machine applicant or licensee to construct a proposed licensed facility or to otherwise make land or buildings suitable for use as a licensed facility.
Guest rooms under common ownership—A room or group of rooms, including timeshare units, that are owned by a well-established resort hotel and that are available for rental.
Initial plan of development—The slot machine licensee's financing, construction schedule, comprehensive design plan and projected expenditure for the licensed facility as described by the licensee in its application and presented at the licensee's initial suitability hearing before the Board.
Licensing hearing—A hearing before the Board in which an applicant for a slot machine license will have an opportunity to present to the Board:
(i) Evidence concerning its eligibility for a license.
(ii) Evidence concerning its suitability for a license.
(iii) Evidence of how its proposed facility and operation addresses the criteria identified in section 1325(c) of the act (relating to license or permit issuance).
(iv) For applicants seeking licensure under section 1304 of the act (relating to Category 2 slot machine license), evidence which sets forth a comparison between the applicant and other applicants within the same category of licensure on the standards and criteria in the act.
Modified plan of development—An alteration to a slot machine licensee's initial plan of development.
Non-de minimis consideration—A payment of fair market value of at least $10 per patron paid to the resort hotel for use of one or more amenities.
Organization—Legal business entities that are under common ownership or control, including, but not limited to, affiliates, subsidiaries, intermediaries and holding companies.
Patron of amenities—An individual who is a registered attendee of a convention, meeting or banquet event or a participant in a sport or recreational event or any other social, cultural or business event held at a resort hotel or who participates in one or more of the amenities provided to registered guests of the resort hotel.
Slot machine license—A Category 1 slot machine license under section 1302 of the act (relating to Category 1 slot machine license), a Conditional Category 1 slot machine license under section 1315 of the act (relating to conditional Category 1 licenses), a Category 2 slot machine license under section 1304 of the act (relating to Category 2 slot machine license) and a Category 3 slot machine license under section 1305 of the act (relating to Category 3 slot machine license).
Well-established resort hotel—A resort hotel having at least 275 guest rooms under common ownership at the time of application for a Category 3 slot machine license and having substantial year-round recreational guest amenities.
§ 441a.2. Slot machine application deadlines.
The Board will initiate the formal procedure for the acceptance, consideration and final resolution of applications for slot machine licenses by setting a filing period for filing of Category 1, 2 or 3 slot machine license applications. The filing period set by the Board will be posted on the Board's web site.
§ 441a.3. Slot machine license application.
(a) An applicant for a slot machine license shall submit an application which includes the following:
(1) An original and one copy of the Category 1, Category 2, or Category 3 Application and Disclosure Information Form.
(2) The nonrefundable application fee posted on the Board's web site.
(3) An application for each principal under Chapter 433a (relating to principal licenses).
(4) Fingerprints for each principal.
(5) A diversity plan as set forth in section 1325(b) of the act (relating to license or permit issuance) and Chapter 481a (relating to diversity), which shall be signed by the chief executive officer of the applicant or authorized designee.
(6) If a temporary land-based facility is to be licensed, a plan for how the licensee will transition to a permanent facility, including a date for completion of the permanent facility. A permanent facility shall be the facility proposed by the applicant, which is designated, identified and made part of the evidentiary record by the applicant at the applicant's licensing hearing. Modifications to the approved permanent facility following the applicant's licensing hearing require approval of the Board in accordance with § 441a.20a (relating to changes to a slot machine licensee's initial or modified plan of development).
(7) A sworn or affirmed statement that the applicant has developed and implemented internal safeguards and policies to prevent a violation of section 1513 of the act (relating to political influence).
(8) A statement demonstrating compliance with the geographical requirements of section 1302, 1304 or 1305 of the act (relating to Category 1 slot machine license; Category 2 slot machine license; and Category 3 slot machine license).
(b) Failure to provide the information required in subsection (a) may result in the application being deemed incomplete.
(c) In addition to the materials required under subsection (a), an applicant for a slot machine license shall comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications; statement of conditions; wagering restrictions).
(d) A copy of the local impact report required as part of the application shall be provided to the political subdivisions in which the licensed facility will be located at the same time as the filing of the application for a slot machine license. The applicant shall file a proof of service with the Bureau of Licensing within 5 business days after filing the application for a slot machine license.
§ 441a.4. Alternative Category 1 licensing standards.
(a) If an applicant for a Category 1 license, or its affiliate, intermediary, subsidiary or holding company holds a similar license in another jurisdiction in the United States or Canada, the applicant may submit a written request with its application required under § 441a.3 (relating to slot machine license application) for the Board to adopt an abbreviated licensing process under section 1314(b) of the act (relating to alternative Category 1 licensing standards).
(b) The Board may use the abbreviated process if:
(1) The Board determines, after investigation, that the licensing standards in the other jurisdiction in which the applicant or its affiliate, intermediary, subsidiary or holding company is licensed is similarly comprehensive and thorough and provides safeguards that are equal to or greater than those provided in the act and granting the request would be in the public interest.
(2) A completed application for a Category 1 license has been filed with the Bureau of Licensing which includes the name and address of the regulatory agency in the other jurisdiction.
(3) The Bureau of Licensing has received a copy of the completed application, renewal applications and accompanying documents filed in the other jurisdiction.
(4) The applicant has provided current, updated information to the Bureau of Licensing and the Bureau regarding the license in the other jurisdiction and information relating to its financial viability and suitability and good character.
(5) The applicant has no administrative or enforcement actions pending in other jurisdictions that could render the applicant ineligible or unsuitable for licensure or the applicant has disclosed and explained these actions to the satisfaction of the Board.
(6) There are no pending or ongoing investigations of possible violations by the applicant in other jurisdictions that could render the applicant ineligible or unsuitable for licensure or the applicant has disclosed and explained these investigations to the satisfaction of the Board.
(c) The abbreviated process does not waive fees associated with obtaining a Category 1 license.
(d) The Board may determine to use an abbreviated process requiring only that information determined by the Board to be necessary to consider the issuance of the license, including the financial viability of the applicant.
(e) Following the issuance of a Category 1 license under this section, the Bureau will initiate a complete review of the information submitted under this subpart. If the applicant does not meet the requirements of the act or this part, the Board may revoke, suspend or condition the license until the applicant meets the requirements of the act.
§ 441a.5. License fee payment bond or letter of credit requirements.
(a) An application for a slot machine license shall at all times throughout the period in which the application is on file with the Board include original payment bonds or original irrevocable letters of credit, or some combination thereof, that include draw instructions guaranteeing the applicant's payment of the slot machine license fee required by sections 1209(a) and 1305(d) of the act (relating to slot machine license fee; and Category 3 slot machine license) if the license is approved and issued.
(1) Payment bonds or irrevocable letters of credit shall be submitted to the Bureau of Licensing for review before an application may be accepted for filing. The review of the payment bond or irrevocable letter of credit will include an assessment of both the proposed terms and the surety or financial institution that will issue the payment bond or irrevocable letter of credit. An application will be deemed incomplete if at any time during the period the application is on file with the Board payment bonds or letters of credit in the amounts required in paragraph (2) are not in full force and effect.
(2) Payment bonds or irrevocable letters of credit must aggregate to the following amounts:
(i) $50,000,000 for each application for a Category 1 or Category 2 license.
(ii) $5,000,000 for each application for a Category 3 license.
(b) Unless otherwise permitted by the Board, a payment bond provided under this section must be issued by a surety company that is both licensed by the Insurance Department and assigned a credit rating within the three highest categories, without regard to numerics or other modifiers, by Moody's or Standard & Poor's, or upon the discontinuance of Moody's or Standard & Poor's, by another Nationally-recognized rating service. Proof that the surety is licensed by the Insurance Department and has been assigned the required credit rating must accompany any payment bond submitted under this section.
(c) Unless otherwise required by the Board, a letter of credit must be issued by a bank, trust company, National banking association or corporation which is both subject to regulation by the Federal Reserve System under the Bank Holding Company Act of 1956 (12 U.S.C.A. §§ 1841—1852) and assigned a credit rating within the three highest rating categories, without regard to numerics or other modifiers, by Moody's or Standard & Poor's, or upon the discontinuance of Moody's or Standard & Poor's, by another Nationally-recognized rating service. Proof that the bank, trust company, National banking association or corporation is subject to regulation by the Federal Reserve System under the Bank Holding Company Act of 1956 and that the issuer has been assigned the required credit rating must accompany any letter of credit submitted under this section.
(d) The payment bond or irrevocable letter of credit provided under this section must state that it is payable to the ''Commonwealth of Pennsylvania'' as the obligee.
(e) The payment bond or irrevocable letter of credit provided under this section must provide that if the slot machine license has been approved by the Board and the license fee has not been paid in full within 5 business days following the deadline for payment set by the Board or Board staff, the Commonwealth will have the right to request immediate payment under the payment bond or irrevocable letter of credit for payment of the slot machine license fee.
(f) The payment bond or irrevocable letter of credit provided under this section must state that it will expire upon the earlier to occur of the following:
(1) A specified expiry date or any automatically extended expiry date.
(2) Receipt by the issuer of the Board's signed statement that:
(i) The application has been denied.
(ii) The slot machine license has been issued and 10 business days have elapsed following the issuance of the license.
(iii) The license fee has been paid.
(iv) The applicant has been permitted by the Board to withdraw its application under § 423a.5 (relating to application withdrawal and surrender).
(g) An expiry date applicable to a payment bond or letter of credit provided under this section must be at least 12 months from the date of issuance of the payment bond or letter or credit. Any provision automatically renewing or extending a payment bond or letter of credit must do so at intervals of at least 3 months. Notice provisions to the Board in a payment bond or letter of credit applicable to an election by an issuer not to renew or extend a then current expiry date must provide that the Board will receive at least 60 days written notice, by registered mail or overnight courier service, of an election not to renew or extend.
(h) This section does not preclude a slot machine license applicant from substituting or replacing a payment bond or letter of credit during the period the application is on file with the Board provided the replacement payment bond or letter of credit is reviewed by the Bureau of Licensing.
§ 441a.6. Public input.
(a) Prior to granting a slot machine license, the Board will conduct at least one public input hearing.
(b) Public input hearings relating to an application for a slot machine license shall be held in the municipality where the licensed facility will be located. The public input hearings will be organized in cooperation with the municipality.
(c) The Board will develop and post the procedures that will be used to conduct public input hearings on the Board's web site.
(d) The Board will make public a list of all witnesses scheduled to testify at a public input hearing at least 7 days prior to the hearing. The list of witnesses will be updated at least 3 days prior to the hearing. Additional witnesses will be posted on the Board's web site as they are added to the witness list.
[Continued on next Web Page]
No part of the information on this site may be reproduced for profit or sold for profit.This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.
