RULES AND REGULATIONS
Title 58—RECREATION
PENNSYLVANIA GAMING CONTROL BOARD
[ 58 PA. CODE CHS. 1101—1120 ]
Video Gaming at Licensed Truck Stop Establishments; Temporary Regulations
[48 Pa.B. 1524]
[Saturday, March 17, 2018]The Pennsylvania Gaming Control Board (Board), under the general authority in 4 Pa.C.S. §§ 3301 and 3302 (relating to powers of board; and regulatory authority of board) and the specific authority in 4 Pa.C.S. § 3303 (relating to temporary regulations), promulgates temporary regulations governing the licensing, conduct and regulatory oversight of video gaming in this Commonwealth to read as set forth in Annex A.
Purpose of this Temporary Rulemaking
This temporary rulemaking will provide a regulatory oversight structure for the conduct of video gaming at licensed truck stop establishments in this Commonwealth.
This temporary rulemaking is necessary to implement 4 Pa.C.S. Part III (relating to video gaming). The intent of 4 Pa.C.S. Part III is to provide truck stops that meet certain eligibility criteria the option of providing video gaming through a terminal operator licensee on the premises of the licensed truck stop establishment, and to ensure the integrity of the acquisition and operation of the video gaming terminals, redemption terminals and associated equipment. See 4 Pa.C.S. § 3301.
Explanation
Subpart N (relating to video gaming) establishes the complete regulatory package necessary for the Board to begin licensing truck stop establishments that elect to host video gaming activities, terminal operators who place and operate video gaming terminals in truck stop establishments, manufacturers, suppliers and gaming service providers. In addition, Subpart N provides for testing of all equipment used in video gaming operations, and establishes rules for the possession of video gaming terminals, accounting, internal controls and the conduct of video gaming in this Commonwealth. Finally, Subpart N addresses compulsive and problem gambling, self-exclusion and Board-imposed exclusion upon persons whose presence in a video gaming area would be inimical to the Commonwealth's interests.
Subpart N establishes a broad regulatory oversight structure for video gaming. Section 1101.2 (relating to definitions) provides the relevant definitions used throughout Subchapter N for the conduct of video gaming.
Subpart N identifies six categories of licensees based upon the statutory criteria for licensure in 4 Pa.C.S. Part III. See generally 4 Pa.C.S. §§ 3502—3520. The categories of persons subject to licensure include terminal operators, establishment licensees, principals, key employees, suppliers, manufacturers and occupation permittees. Chapters 1102—1109 establish the application and general requirements under which a terminal operator, establishment licensee, principal, key employee supplier, manufacturer and video gaming terminal occupation permittees shall apply to the Board for approval to participate in the regulated conduct of video gaming.
Chapters 1101—1111 provide for a preliminary review of applications, followed by the processing of applications by Board staff, addressing deficient and abandoned applications, avenues for withdrawing an application from consideration, and the terms and renewal periods for licenses.
Chapter 1112 (relating to video gaming terminal, redemption terminal and associated equipment testing and certification—temporary regulations) addresses the testing and certification standards and processes for video gaming terminals, redemption terminals and associated equipment used in the conduct of video gaming. Testing of the video gaming terminals, redemption terminals and associated equipment is vital to assuring the proper operation of the machines within statutorily mandated guidelines as well as to assure fairness to patrons utilizing video gaming terminals.
Chapters 1113—1115 (relating to possession of video gaming terminals—temporary regulations; accounting and internal controls—temporary regulations; and record retention—temporary regulations) address the possession of video gaming terminals and establish video gaming accounting and internal control, as well as record retention requirements. The purpose of these chapters is to ensure accountability for revenues, play of games and overall integrity of the video gaming product.
Chapter 1116 (relating to conduct of video gaming—temporary regulations) establishes standards for the video gaming area, video gaming terminals, redemption terminals, automated teller machines, and restrictions on terminal operators, establishment licensees and employees of licensees in relation to the operation and conduct of video gaming.
Chapter 1117 (relating to video terminal placement agreements—temporary regulations) requires that video terminal placement agreements between terminal operators and establishment licensees be approved by the Board. It also establishes the standards which those agreements must satisfy to achieve Board approval.
Chapters 1118 and 1119 (relating to compulsive and problem gaming—temporary regulations; and self-exclusion—temporary regulations) relate to problem and compulsive gaming, establish requirements for signage in video gaming areas, the provision of problem gaming information and training, as well as for the creation of a video gaming self-exclusion list and procedures by which individuals may self-exclude from the conduct of video gaming as well as removing oneself from the self-exclusion list.
Chapter 1120 (relating to exclusion of persons from video gaming—temporary regulations) provides a mechanism establishing the Board's mandatory exclusion list and lists the basis upon which exclusion can be imposed, that is, generally if the person's conduct and presence at an establishment licensee's premises would be inimical to the interests of the Commonwealth and licensed gaming therein. This chapter further establishes the process which shall be undertaken to initiate proceedings to exclude a person, including notice and a right to be heard, outlines a licensed establishments obligation to exclude the person, and provides an opportunity for an excluded person to seek his removal from the list of excluded persons.
Fiscal Impact
Commonwealth
The Board expects that this temporary rulemaking will have a relatively minimal fiscal impact on the Board and other Commonwealth agencies, which primarily is the result of the need for some additional personnel needed to process applications and review, monitor and regulate the conduct of video gaming. Some of the additional duties will be absorbed by existing Board staff. The costs of this temporary rulemaking will be paid for by an assessment against the gross terminal revenue generated by terminal operator licensees.
Political subdivisions
This temporary rulemaking will not have fiscal impact on political subdivisions of this Commonwealth.
Private sector
This temporary rulemaking is not anticipated to impose a negative fiscal impact on the regulated entities. The decision to participate in video gaming by an eligible truck stop establishment is not mandated by 4 Pa.C.S. Part III but is left to the discretion of those qualifying establishments.
If pursued, there will be some equipment costs for video gaming terminals, redemption terminals, and surveillance and security-related equipment, as well as some limited renovation within the truck stop premises to obtain a segregated video gaming area. In addition, regulated video gaming terminal operators and establishment licensees may need to hire, train and license a limited number of staff in the conduct of video gaming. Costs incurred to hire, train and license employees or purchase/lease equipment should be offset by the proceeds of the video gaming activity.
General public
This temporary rulemaking will not have fiscal impact on the general public.
Paperwork Requirements
A terminal operator, establishment licensee, manufacturer, supplier and person employed by those entities will be required to file applications with the Board providing information regarding the person's proposed activity, security and surveillance, accounting and internal control protocols and background information of each individual sufficient to permit the Board to determine the individual's suitability for licensure.
Effective Date
This temporary rulemaking will become effective upon publication in the Pennsylvania Bulletin and expire 2 years after publication.
Public Comments
Interested persons are invited to submit written comments, suggestions or objections regarding this temporary rulemaking within 30 days after the date of publication in the Pennsylvania Bulletin. Public comments should be addressed to R. Douglas Sherman, Chief Counsel, Attention: Regulation # 125-211 Public Comment, Pennsylvania Gaming Control Board, P.O. Box 69060, Harrisburg, PA 17106-9060.
Contact Person
The contact person for questions about this temporary rulemaking is R. Douglas Sherman, Chief Counsel, (717) 346-8300.
Regulatory Review
Under 4 Pa.C.S. § 3303, the Board is granted the authority to promulgate temporary regulations which shall expire no later than 2 years following publication of in the Pennsylvania Bulletin. The temporary regulations are not subject to sections 201—205 of the act of July 31, 1968 (P.L. 769, No. 240) (45 P.S. §§ 1201—1205), known as the Commonwealth Documents Law, the Regulatory Review Act (71 P.S. §§ 745.1—745.14) and section 204(b) of the Commonwealth Attorneys Act (71 P.S. § 732-204(b)). The authority to adopt temporary regulations expires 2 years after the publication of the temporary regulations, after which regulations adopted by the Board will be promulgated as provided by law.
Findings
The Board finds that:
(1) Under 4 Pa.C.S. § 3303, the temporary regulations are exempt from the requirements of the Regulatory Review Act, sections 201—205 of the Commonwealth Documents Law and section 204(b) of the Commonwealth Attorneys Act.
(2) The adoption of the temporary regulations is necessary and appropriate for the administration and enforcement of 4 Pa.C.S. Part III.
Order
The Board, acting under 4 Pa.C.S. Part III, orders that:
(1) The regulations of the Board, 58 Pa. Code, are amended by adding temporary §§ 1101.1, 1101.2, 1102.1—1102.3, 1103.1—1103.3, 1104.1, 1105.1, 1106.1, 1107.1, 1108.1—1108.3, 1109.1, 1109.2, 1110.1—1110.4, 1111.1, 1112.1—1112.17, 1113.1—1113.5, 1113.7, 1114.1, 1115.1, 1116.1—1116.8, 1117.1, 1117.2, 1118.1—1118.5, 1119.1—1119.5 and 1120.1—1120.9 to read as set forth in Annex A.
(2) The temporary regulations will be posted on the Board's web site.
(3) The temporary regulations are subject to amendment as deemed necessary by the Board.
(4) The Chairperson of the Board has certified this order and Annex A and shall deposit them with the Legislative Reference Bureau as required by law.
(5) These temporary regulations are effective upon publication in the Pennsylvania Bulletin and expire on March 17, 2020.
DAVID M. BARASCH,
ChairpersonFiscal Note: 125-211. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD
Subpart N. VIDEO GAMING Chap.
1101. VIDEO GAMING GENERALLY—TEMPORARY
REGULATIONS1102. TERMINAL OPERATOR LICENSEES—TEMPORARY REGULATIONS 1103. ESTABLISHMENT LICENSEES—TEMPORARY
REGULATIONS1104. PRINCIPALS—TEMPORARY REGULATIONS 1105. KEY EMPLOYEES—TEMPORARY REGULATIONS 1106. SUPPLIERS—TEMPORARY REGULATIONS 1107. MANUFACTURERS—TEMPORARY REGULATIONS 1108. GAMING SERVICE PROVIDERS—TEMPORARY
REGULATIONS1109. OCCUPATION PERMITS—TEMPORARY REGULATIONS 1110. APPLICATIONS GENERALLY—TEMPORARY
REGULATIONS1111. LICENSE TERMS AND RENEWALS—TEMPORARY REGULATIONS 1112. VIDEO GAMING TERMINAL, REDEMPTION TERMINAL AND ASSOCIATED EQUIPMENT TESTING AND
CERTIFICATION—TEMPORARY REGULATIONS1113. POSSESSION OF VIDEO GAMING TERMINALS—
TEMPORARY REGULATIONS1114. ACCOUNTING AND INTERNAL CONTROLS—
TEMPORARY REGULATIONS1115. RECORD RETENTION—TEMPORARY REGULATIONS 1116. CONDUCT OF VIDEO GAMING—TEMPORARY
REGULATIONS1117. VIDEO TERMINAL PLACEMENT AGREEMENTS—
TEMPORARY REGULATIONS1118. COMPULSIVE AND PROBLEM GAMING—TEMPORARY REGULATIONS 1119. SELF-EXCLUSION—TEMPORARY REGULATIONS 1120. EXCLUSION OF PERSONS FROM VIDEO GAMING—
TEMPORARY REGULATIONS
CHAPTER 1101. VIDEO GAMING GENERALLY—
TEMPORARY REGULATIONSSec.
1101.1. Scope. 1101.2. Definitions. § 1101.1. Scope.
The purpose of this subpart is to govern the operation of video gaming terminals in this Commonwealth. Parts I, II and III of 4 Pa.C.S. (relating to amusements generally; gaming; and video gaming) and the Board's regulations promulgated thereunder otherwise apply when not in conflict with this subpart.
§ 1101.2. Definitions.
The following words and terms, when used in this subpart, have the following meanings, unless the context clearly indicates otherwise:
Applicant—A person who, on his own behalf or on behalf of another, applies for permission to engage in an act or activity that is regulated under this subpart.
Associated equipment—Equipment or a mechanical, electromechanical or electronic contrivance, component or machine used in connection with video gaming terminals or redemption terminals, including replacement parts, hardware and software.
Background investigation—A security, criminal, credit and suitability investigation of a person as provided for in this part that includes the status of taxes owed to the United States, the Commonwealth and political subdivisions.
Bureau—The Bureau of Investigations and Enforcement of the Board.
Bureau of Licensing—The Bureau of Licensing of the Board.
Cash—United States currency and coin.
Cash equivalent—A ticket, token, chip, card or other similar instrument or representation of value that the Board deems a cash equivalent in accordance with this part.
Central control computer—A central site computer controlled by the Department and accessible by the Board to which all video gaming terminals communicate for the purpose of auditing capacity, real-time information retrieval of the details of a financial event that occurs in the operation of a video gaming terminal or redemption terminal, including coin in, coin out, ticket in, ticket out, jackpots, video gaming terminal and redemption terminal door openings and power failure, and remote video gaming terminal or redemption terminal activation, and disabling of video gaming terminals or redemption terminals.
Cheat—
(i) To defraud or steal from a player, terminal operator licensee, establishment licensee or the Commonwealth while operating or playing a video gaming terminal, including causing, aiding, abetting or conspiring with another person to do so.
(ii) The term also means to alter or causing, aiding, abetting or conspiring with another person to alter the elements of chance, method of selection or criteria that determine:
(A) The result of a video gaming terminal game.
(B) The amount or frequency of payment in a video gaming terminal game.
(C) The value of a wagering instrument.
(D) The value of a wagering credit.
(iii) The term does not include altering a video gaming terminal or associated equipment for maintenance or repair with the approval of a terminal operator licensee and the Board.
Cheating or thieving device—A device, software or hardware used or possessed with the intent to be used to cheat during the operation or play of a video gaming terminal. The term includes any device, software or hardware used to alter a video gaming terminal without the terminal operator licensee's and the Board's approval.
Commercial motor vehicle—As defined in 75 Pa.C.S. § 1603 (relating to definitions).
Conduct of video gaming—The licensed placement, operation and play of video gaming terminals under this subpart as authorized and approved by the Board.
Convenience store—A retail establishment which sells a limited selection of packaged foods, drug store items, food for consumption on or off the premises, and basic supplies for the home and table, which may include the retail sale of liquid fuels.
Conviction—
(i) A finding of guilt or a plea of guilty or nolo contendere, whether or not a judgment of sentence has been imposed as determined by the law of the jurisdiction in which the prosecution was held.
(ii) The term does not include a conviction that has been expunged or overturned or for which an individual has been pardoned or had an order of accelerated rehabilitative disposition entered.
Corporation—The term includes a publicly traded corporation.
Establishment license—A license issued by the Board authorizing a truck stop establishment to permit a terminal operator licensee to place and operate video gaming terminals on the truck stop establishment's premises under this part.
Establishment licensee—A truck stop establishment that holds an establishment license.
Financial backer—An investor, mortgagee, bondholder, noteholder, or other sources of equity or capital provided to an applicant or licensed entity.
Gaming employee—
(i) Any of the following individuals:
(A) An employee of a terminal operator licensee, establishment licensee or supplier licensee that is not a key employee who is involved in the conduct of video gaming, including servicing and maintaining video gaming terminals, redemption terminals, and security and surveillance equipment, and monitoring the conduct of video gaming and patrons in the video gaming area of an establishment licensee.
(B) An employee of a supplier or manufacturer licensee whose duties are directly involved with the repair or distribution of video gaming terminals or associated equipment sold or provided to a terminal operator licensee in this Commonwealth as determined by the Board.
(C) An employee of a gaming service provider who, in connection with the performance of his duties, has access to a video gaming area, video terminals, redemption terminals, and the security and surveillance systems monitoring a video gaming area.
(ii) The term does not include nongaming personnel as determined by the Board or an employee of an establishment licensee who does not have duties involving the conduct or monitoring of video gaming.
Gaming service provider—
(i) A person who is not required to be licensed as a terminal operator, manufacturer, supplier or establishment licensee who provides goods or services to a terminal operator licensee that directly relates to the operation and security of a video gaming terminal or redemption terminal.
(ii) The term does not include a person who supplies goods or services that, at the discretion of the Board, does not impact the integrity of video gaming, video gaming terminals or the connection of video gaming terminals to the central control computer system, including all of the following:
(A) Seating to accompany video gaming terminals.
(B) Structural or cosmetic renovations, improvements or other alterations to a video gaming area.
Gross terminal revenue—
(i) The total of cash or cash equivalents received by a video gaming terminal minus the total of cash or cash equivalents paid out to players as a result of playing a video gaming terminal.
(ii) The term does not include counterfeit cash or cash taken in a fraudulent act perpetrated against a terminal operator licensee for which the terminal operator licensee is not reimbursed.
Incentive—Consideration, including a promotion or prize, provided to a player or potential player as an enticement to play a video gaming terminal.
Inducement—
(i) Any of the following:
(A) Consideration paid directly or indirectly, from a manufacturer, supplier, terminal operator, procurement agent, gaming employee, employee or another person on behalf of an applicant or anyone licensed under this part, to a truck stop establishment, establishment licensee, establishment licensee owner or an employee of the establishment licensee, directly or indirectly, as an enticement to solicit or maintain the establishment licensee or establishment licensee owner's business.
(B) Cash, incentive, marketing and advertising cost, gift, food, beverage, loan, prepayment of gross terminal revenue and other contribution or payment that offsets an establishment licensee's operational costs, or as otherwise determined by the Board.
(ii) The term does not include costs paid by a terminal operator applicant or terminal operator licensee related to making video gaming terminals operate at the premises of an establishment licensee, including for improvements and renovations to the video gaming area, wiring and rewiring, software updates, ongoing video gaming terminal maintenance, redemption terminals, network connections, site controllers and costs associated with communicating with the central control computer system.
Key employee—An individual who is employed by a manufacturer licensee, supplier licensee or terminal operator licensee who is determined by the Board to be a director or department head or otherwise empowered to make discretionary decisions that regulate the conduct of video gaming.
Key employee licensee—An individual who holds a key employee license.
Key employee qualifier—An individual required to be qualified as part of the truck stop establishment who is determined by the Board to be a director or department head or otherwise empowered to make discretionary decisions that regulate the conduct of video gaming.
Law enforcement authority—The power to conduct investigations of or to make arrests for criminal offenses.
Licensed entity—A terminal operator licensee, establishment licensee, manufacturer licensee or supplier licensee under this part.
Licensed facility—As defined in section 1103 of the act (relating to definitions).
Licensed gaming entity—As defined in section 1103.
Licensee—A person listed under this part.
Manufacturer—A person who manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs or otherwise makes modifications to a video gaming terminal, redemption terminal or associated equipment for use or play of video gaming terminals in this Commonwealth for video gaming purposes.
Manufacturer license—A license issued by the Board authorizing a manufacturer to manufacture or produce video gaming terminals, redemption terminals or associated equipment for use in this Commonwealth for video gaming purposes.
Manufacturer licensee—A person that holds a manufacturer license.
Minor—An individual under 21 years of age.
Nongaming employee—An individual who is employed by a terminal operator licensee, manufacturer licensee, supplier licensee, gaming service provider or establishment licensee and whose duties do not involve the conduct of video gaming or the monitoring of a video gaming area, either directly or through surveillance.
Nonkey employee—An individual employed by a terminal operator licensee who, unless otherwise designated by the Board, is not a key employee.
Occupation permit—A permit authorizing an individual to be employed or to work as a gaming employee for a terminal operator licensee, an establishment licensee, a gaming service provider, a supplier licensee or as an employee of a manufacturer who performs duties at the premises of a terminal operator or establishment licensee relating to video gaming terminals or redemption terminals.
Permittee—A holder of a permit issued under this part.
Person—A natural person, corporation, foundation, organization, business trust, estate, limited liability company, trust, partnership, limited liability partnership, association or other form of legal business entity.
Player—An individual who wagers cash or a cash equivalent in the play or operation of a video gaming terminal and the play or operation of which may deliver or entitle the individual playing or operating the video gaming terminal to receive cash or a cash equivalent from a terminal operator licensee.
Principal—An officer, director or person who directly holds a beneficial interest in or ownership of the securities of an applicant or licensee under this part as a terminal operator, manufacturer or supplier or who has a controlling interest in an applicant or licensee as a terminal operator, manufacturer or supplier under this part or has the ability to elect a majority of the board of directors of a terminal operator, manufacturer or supplier licensee or to otherwise control anyone licensed under this part, procurement agent, lender or other licensed financial institution of an applicant or a terminal operator, manufacturer or supplier licensee under this part, other than a bank or lending institution which makes a loan or holds a mortgage or other lien acquired in the ordinary course of business, underwriter of an applicant or anyone licensed under this part or other person or employee of a terminal operator licensee, establishment licensee, manufacturer licensee or supplier licensee deemed to be a principal by the Board, including a procurement agent.
Principal qualifier—Each owner, officer and director of the truck stop establishment who is required to be qualified as part of the truck stop establishment application. For purposes of this definition, an owner is each individual who has a direct or indirect ownership or beneficial interest of 10% or more in the truck stop establishment or other person as determined by the Board. An officer is 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.
Procurement agent—A person that shares in the gross terminal revenue or is otherwise compensated for the purpose of soliciting or procuring a terminal placement agreement.
Progressive payout—A video game terminal wager payout that increases in a monetary amount based on the amounts wagered in a progressive system.
Progressive system—A computerized system linking video gaming terminals on the premises of an establishment licensee and offering one or more common progressive payouts based on the amounts wagered.
Publicly traded corporation—A person, other than an individual, who:
(1) Has a class or series of securities registered under the Securities Exchange Act of 1934 (15 U.S.C.A. §§ 78a—78qq).
(2) Is a registered management company under the Investment Company Act of 1940 (15 U.S.C.A. §§ 80a-1—80a-64).
(3) Is subject to the reporting obligations imposed by section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C.A. § 78o(d)) by reason of having filed a registration statement that has become effective under the Securities Act of 1933 (15 U.S.C.A. §§ 77a—77aa).
Redemption terminal—The collective hardware, software, communications technology and other ancillary equipment used to facilitate the payment of cash or a cash equivalent to a player as a result of playing a video gaming terminal.
Registrant—A holder of a nongaming registration under this part.
Security—As defined in the Pennsylvania Securities Act of 1972 (70 P.S. §§ 1-101—1-703.1).
Subsidiary—As defined in section 1103 of the act.
Supplier—A person that sells, leases, offers or otherwise provides, distributes or services any video gaming terminal, redemption terminal or associated equipment to a terminal operator licensee for use or play in this Commonwealth.
Supplier license—A license issued by the Board authorizing a supplier to provide products or services related to video gaming terminals, redemption terminals or associated equipment to terminal operator licensees for use in this Commonwealth for the conduct of video gaming.
Supplier licensee—A person that holds a supplier license.
Terminal operator—A person that owns, services or maintains video gaming terminals for placement and operation on the premises of an establishment licensee.
Terminal operator license—A license issued by the Board authorizing a terminal operator to place and operate video gaming terminals in an establishment licensee's premises under this part.
Terminal operator licensee—A person that holds a terminal operator license.
Terminal placement agreement—The formal written agreement or contract between an applicant for a terminal operator license or terminal operator licensee and an applicant for an establishment license or establishment licensee that establishes the terms and conditions regarding the conduct of video gaming.
Truck stop establishment—A premises that:
(i) Is equipped with diesel islands used for fueling commercial motor vehicles.
(ii) Has sold on average 50,000 gallons of diesel or biodiesel fuel each month for the previous 12 months or is projected to sell an average of 50,000 gallons of diesel or biodiesel fuel each month for the next 12 months.
(iii) Has at least 20 parking spaces dedicated for commercial motor vehicles as defined in 75 Pa.C.S. § 1603.
(iv) Has a convenience store.
(v) Is situated on a parcel of land of not less than 3 acres that the truck stop establishment owns or leases.
(vi) Is not located on any property owned by the Pennsylvania Turnpike Commission.
Video gaming area—The area of an establishment licensee's premises where video gaming terminals and redemption terminals are installed for operation and play.
Video gaming employees—The term includes gaming employees, key employees and nonkey employees.
Video gaming terminal—
(i) A mechanical or electrical contrivance, terminal, machine or other device approved by the Board that, upon insertion of cash or cash equivalents, is available to play or operate one or more gambling games, the play of which utilizes a random number generator and:
(A) May award a winning player either a free game or credit that shall only be redeemable for cash or cash equivalents at a redemption terminal.
(B) May utilize video displays.
(C) May use an electronic credit system for receiving wagers and making payouts that are only redeemable at a redemption terminal.
(ii) Associated equipment necessary to conduct the operation of the contrivance, terminal, machine or other device.
(iii) The term does not include a slot machine operated at a licensed facility in accordance with the act or a coin-operated amusement game.
(iv) The term does not include ''lottery'' as defined in section 302 of the State Lottery Law (72 P.S. § 3761-302).
CHAPTER 1102. TERMINAL OPERATOR LICENSEES—TEMPORARY REGULATIONS Sec.
1102.1. Terminal operator licenses. 1102.2. Terminal operator license issuance and statement of conditions. 1102.3. Conditional terminal operator licenses. § 1102.1. Terminal operator licenses.
(a) An applicant for a terminal operator license may conduct video gaming upon approval by the Board and in accordance with 4 Pa.C.S. Part III (relating to video gaming) and this chapter.
(b) An applicant shall submit all of the following:
(1) An original and one copy of the Enterprise Entity Application and Disclosure Information Form shall be submitted on forms approved by the Board.
(2) The nonrefundable application fee of $25,000 in accordance with 4 Pa.C.S. § 4101(a) (relating to fees).
(3) A diversity plan as set forth in 4 Pa.C.S. § 3307 (relating to diversity).
(4) A current tax lien certificate issued by the Department.
(5) An application for each proposed key employee under Chapter 1105 (relating to key employees—temporary regulations) and principal under Chapter 1104 (relating to principals—temporary regulations) as specified in the Enterprise Entity Application and Disclosure Information Form.
(6) A sworn or affirmed statement that the applicant has developed and implemented internal safeguards and policies to prevent a violation of 4 Pa.C.S. § 4305 (relating to political influence) and a copy of the safeguards and policies.
(7) Details of any loans or other financial commitments to fund license costs and costs of operating video gaming.
(8) Information and documentation concerning financial background and resources, as the Board or the Bureau may require, to establish by clear and convincing evidence the financial stability, integrity and responsibility of the applicant.
(9) A consent authorizing the Board to conduct a background investigation, the scope of which is to be determined by the Bureau, in its discretion consistent with 4 Pa.C.S. Part III (relating to video gaming), and a release signed by all persons subject to investigation of all information required to complete the investigation.
(10) Information concerning maintenance and operation of video gaming terminals in other jurisdictions.
(11) Proof that the applicant has or will establish a place of business in this Commonwealth.
(12) A copy of, or a detailed description of, the terms and conditions of any terminal placement agreement entered into with an establishment licensee applicant or licensee.
(13) Any other information as the Board or the Bureau may require.
(c) Upon request of the Board or the Bureau, the applicant shall cooperate and provide supplemental information in support of its application. The applicant shall provide requested documents, records, supporting data and other information within the time period specified in the request or, if a time is not specified, within 30 days of the date of the request. If the applicant fails to provide the requested information within the required time period as set forth in the request, the Board may deny the application.
(d) The application, and amendments thereto, and other specific documents designated by the Board will be sworn to or affirmed by the applicant before a notary public which shall be filed promptly with the application or amendments thereto.
(e) An application and related materials that have been submitted to the Board will become the property of the Board and will not be returned.
§ 1102.2. Terminal operator license issuance and statement of conditions.
(a) Criteria. In addition to the criteria in 4 Pa.C.S. Part III (relating to video gaming), the Board will not issue a terminal operator license unless all of the following criteria have been established by the applicant:
(1) The applicant has fulfilled each condition set by the Board, including the execution of a statement of conditions.
(2) The applicant is found suitable consistent with the laws of the Commonwealth and is otherwise qualified to be issued a terminal operator license.
(b) Statement of conditions.
(1) The applicant, as a condition precedent to the issuance of a terminal operator license, shall execute a Statement of Conditions in the manner and form required by the Board. Execution of the Statement of Conditions constitutes the acceptance of each provision contained in the Statement of Conditions by the applicant.
(2) Failure to fully comply with any provision contained in an executed Statement of Conditions constitutes a violation and may result in Board-imposed administrative sanctions, up to and including revocation of the license.
§ 1102.3. Conditional terminal operator licenses.
(a) Upon accepting a terminal operator application for filing, the Board will issue a conditional terminal operator license if the applicant has satisfied, as determined by the Board, all of the following:
(1) The applicant has submitted a completed application for a terminal operator license.
(2) The applicant has never had a similar gaming license denied or revoked in another jurisdiction.
(3) The applicant has never been convicted of a felony in any jurisdiction.
(4) The applicant has never been convicted of a gambling law violation in any jurisdiction.
(5) The applicant is current on all State taxes.
(6) The applicant attests by affidavit under penalty of perjury that the applicant is not otherwise prohibited from licensure under 4 Pa.C.S. Part III (relating to video gaming).
(b) The Board will issue a conditional terminal operator license within 60 days after the completed application has been received by the Board, and the Board has determined that the criteria in subsection (a) have been satisfied.
(c) If the Board determines that the criteria in subsection (a) have not been satisfied, the Board will give the applicant written notice and explanation of that determination.
(d) A conditional license issued under this section will be valid until:
(1) The Board approves or denies the application for a terminal operator license.
(2) The conditional license is terminated for a violation of the act or this part.
(3) One calendar year has passed since the conditional license has been issued.
(e) The Board may extend the duration of a conditional license for one year.
(f) A request for conditional licensure must include a $100 fee in addition to the applicable fee required under 4 Pa.C.S. § 4101 (relating to fees).
CHAPTER 1103. ESTABLISHMENT LICENSEES—TEMPORARY REGULATIONS Sec.
1103.1. Establishment licenses. 1103.2. Establishment principal and key employee qualification. 1103.3. Conditional establishment licenses. § 1103.1. Establishment licenses.
(a) A truck stop establishment in this Commonwealth seeking to offer video gaming terminals through a licensed terminal operator on its premises shall apply for an establishment license by filing an Enterprise Entity Application and Disclosure Information Form with the Board.
(b) To be eligible to file an application for an establishment license, the truck stop establishment must meet all of the following requirements:
(1) Be equipped with diesel islands for the fueling of commercial motor vehicles and have sold on average 50,000 gallons of diesel or biodiesel fuel each month for the previous 12 months or is projected to sell an average of 50,000 gallons of diesel or biodiesel fuel each month for the next 12 months.
(2) Have at least 20 parking spaces dedicated for commercial motor vehicles. For purposes of this paragraph, ''parking spaces dedicated for commercial motor vehicles'' must be of sufficient size to accommodate vehicles which are 8 feet in width and 53 feet in length or which otherwise have a gross combination weight rating or gross combination weight of 26,000 pounds inclusive of a tow unit with a gross vehicle weight rating or gross vehicle weight of more than 10,000 pounds, whichever is greater.
(3) Have a convenience store.
(4) Be situated on a parcel of land not less than 3 acres and which is not located on property owned by the Pennsylvania Turnpike Commission.
(5) Be licensed as a lottery sales agent under section 305 of the State Lottery Law (72 P.S. § 3761-305).
(c) An applicant for an establishment license shall submit all of the following:
(1) An original and one copy of the Enterprise Entity Application and Disclosure Information Form.
(2) The nonrefundable application fee of $1,000 in accordance with 4 Pa.C.S. § 4101(a) (relating to fees).
(3) Documentation to establish its eligibility to apply to be an establishment licensee as set forth in subsection (b).
(4) A to-scale schematic or architectural rendering of the floor plan of the establishment which shows all of the following:
(i) Total square footage of the video gaming area.
(ii) A depiction of the video gaming area where video gaming will be offered in relation to the overall facility.
(iii) Location of the video gaming terminals and redemption terminals, and security and surveillance equipment locations.
(iv) A detailed description of the surveillance to be utilized.
(5) A description of the proposed surveillance and security measures to ensure the security of the proposed video gaming area.
(6) A diversity plan as set forth in 4 Pa.C.S. § 3307 (relating to diversity).
(7) A current tax lien certificate issued by the Department.
(8) Information for each key employee qualifier and principal qualifier as specified in the Enterprise Entity Application and Disclosure Information Form.
(9) The consent to a background investigation by the Bureau of the applicant, its principal qualifiers and key employee qualifiers or other persons required by the Board and a release to obtain the information necessary for the completion of the background investigation.
§ 1103.2. Establishment principal and key employee qualification.
(a) In addition to the information required under § 1103.1(c)(8) (relating to establishment licenses), a principal qualifier and key employee qualifier shall apply for qualification as follows:
(1) Submit fingerprints in a manner prescribed by the Bureau.
(2) Consent to a background investigation by the Bureau of the principal qualifier and key employee qualifier and a release to obtain the information necessary for the completion of the background investigation.
(3) Provide any other information required by the Board.
(b) In addition to individuals meeting the definition of principal qualifier and key employee qualifier, the Board may require the submission of fingerprints or any other information required by the Board from a person who holds any direct or indirect ownership or beneficial interest in a truck stop establishment, or has the right to any profits or distributions directly or indirectly, from the truck stop establishment 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.
(c) Each of the individuals required to submit fingerprints under subsection (a) and (b) 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).
§ 1103.3. Conditional establishment licenses.
(a) Upon accepting an establishment license application for filing, the Board will issue a conditional establishment license if the applicant has satisfied, as determined by the Board, all of the following:
(1) The applicant has submitted a completed application for an establishment license.
(2) The applicant has never been convicted of a felony in any jurisdiction.
(3) The applicant has never been convicted of a gambling law violation in any jurisdiction.
(4) The applicant is current on all State taxes.
(5) The applicant attests by affidavit under penalty of perjury that the applicant is not otherwise prohibited from licensure under 4 Pa.C.S. Part III (relating to video gaming).
(b) The Board will issue a conditional license within 60 days after the completed application has been received by the Board, and the Board has determined that the criteria in subsection (a) have been satisfied.
(c) If the Board determines that the criteria in subsection (a) have not been satisfied, the Board will give the applicant written notice and explanation of that determination.
(d) A conditional license issued under this section will be valid until:
(1) The Board approves or denies the application for an establishment license.
(2) The conditional license is terminated for a violation of this part.
(3) One calendar year has passed since the conditional license has issued.
(e) The Board may extend the duration of a conditional license for 1 year.
(f) A request for a conditional license must include a $100 fee which shall be in addition to the applicable fee required under 4 Pa.C.S. § 4101 (relating to fees).
CHAPTER 1104. PRINCIPALS—
TEMPORARY REGULATIONSSec.
1104.1. Principal licenses. § 1104.1. Principal licenses.
(a) A principal as defined in this subpart shall apply for licensure as a principal in accordance with § 433a.8 (relating to principal applications).
(b) In addition to information required under § 433a.8, an individual required to be licensed as a principal, unless otherwise directed by the Board, shall file all of the following:
(1) Verification of status as a principal from a terminal operator licensee, an establishment licensee, a manufacturer licensee or supplier licensee.
(2) A description of responsibilities as a principal.
(3) Details relating to a similar license, permit or other authorization obtained in another jurisdiction.
(4) The consent to a background investigation by the Bureau of the principal applicant and a release to obtain the information necessary for the completion of the background investigation.
(5) Other information required by the Board.
(c) Following review of the application and background investigation, the Board may issue a principal license if the applicant has proven by clear and convincing evidence that the applicant is a person of good character, honesty and integrity, and is eligible and suitable to be licensed as a principal.
(d) A principal license is not transferable.
(e) A temporary credential, which may be valid up to 270 days, may be issued by the Board to a principal if the Board determines additional time is needed to complete an investigation for licensure.
CHAPTER 1105. KEY EMPLOYEES—
TEMPORARY REGULATIONSSec.
1105.1. Key employee licenses. § 1105.1. Key employee licenses.
(a) A key employee as defined in this subpart shall apply for licensure as a key employee in accordance with § 435a.2 (relating to key employee license).
(b) In addition to information required under § 435a.2, an individual required to be licensed as a key employee, unless otherwise directed by the Board, shall file all of the following:
(1) Verification of status as a key employee from a terminal operator licensee, an establishment licensee, manufacturer licensee or supplier licensee.
(2) A description of employment responsibilities.
(3) The consent to a background investigation by the Bureau of the applicant, and a release to obtain the information necessary for the completion of the background investigation, including information from governmental agencies, employers and other organizations.
(4) Details relating to a similar license or other authorization obtained in another jurisdiction.
(5) Other information required by the Board.
(c) Following review of the application and background investigation, the Board may issue a key employee license if the applicant has proven by clear and convincing evidence that the applicant 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 is not transferable.
(e) A temporary credential, which may be valid up to 270 days, may be issued by the Board to a key employee if the Board determines additional time is needed to complete an investigation for licensure.
(f) 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.
CHAPTER 1106. SUPPLIERS—
TEMPORARY REGULATIONSSec.
1106.1. Supplier licenses. § 1106.1. Supplier licenses.
(a) Application for licensure. A supplier as defined in this subpart shall apply for licensure in accordance with § 431a.2 (relating to supplier license applications and standards).
(b) Submittals. In addition to the information submitted under § 431a.2, an applicant for a supplier license shall submit all of the following:
(1) The name and business address of the applicant and the applicant's affiliates, intermediaries, subsidiaries and holding companies, the principals and key employees of each business, and a list of employees and their positions within each business, as well as financial information required by the Board.
(2) A statement that the applicant and each affiliate, intermediary, subsidiary or holding company of the applicant are not terminal operator licensees or establishment licensees.
(3) Proof that the applicant has or will establish a place of business in this Commonwealth. A supplier licensee shall maintain a place of business in this Commonwealth to remain eligible for licensure.
(4) The consent to a background investigation by the Bureau of the applicant, its principals and key employees or other persons required by the Board and a release to obtain the information necessary for the completion of the background investigation.
(5) The details of any supplier license issued by the Board to the applicant under section 1317 of the act (relating to supplier licenses), if applicable.
(6) The details of any equivalent license granted or denied by other jurisdictions where gaming activities as authorized by the act or this part are permitted.
(7) The type of products and services to be supplied and whether those products and services will be provided through purchase, lease, contract or otherwise.
(8) Other information determined by the Board to be appropriate.
(c) Approval and issuance of license. Upon being satisfied that the requirements in subsection (a) and (b) have been met, the Board may approve the application and issue the applicant a supplier license consistent with all of the following:
(1) A licensee shall have an affirmative duty to notify the Board of a change relating to the status of its license or to information in the application materials on file with the Board.
(2) The license is nontransferable.
(3) Other conditions established by the Board.
(d) Considerations. In determining whether an applicant is suitable to be licensed as a supplier under this section, the Board will consider all of the following:
(1) The financial fitness, good character, honesty, integrity and responsibility of the applicant.
(2) If all principals and key employees of the applicant are eligible and suitable for licensure.
(3) The integrity of financial backers.
(4) The suitability of the applicant and principals and key employees of the applicant based on the satisfactory results of:
(i) A background investigation of the applicant and its principals and key employees.
(ii) A current tax clearance review performed by the Department.
(iii) A current Unemployment Compensation Tax clearance review and a Workers Compensation Tax clearance review performed by the Department of Labor and Industry.
(e) Submittal of agreements. A supplier shall submit to the Bureau of Licensing for review any agreements with a licensed manufacturer or with a terminal operator licensee. The review may include financing arrangements, inventory requirements, warehouse requirements, warehouse space, technical competency, compensative agreements and other terms or conditions to ensure the financial independence of the supplier licensee from any licensed manufacturer or terminal operator.
(f) Occupation permit or nongaming registration. An employee of a supplier licensee who is a gaming employee or nongaming employee as defined in § 1101.2 (relating to definitions) shall obtain an occupation permit under § 1109.1 (relating to gaming employee occupation permits) or a nongaming registration under § 1109.2 (relating to nongaming employee registrations).
(g) Change of control of a supplier licensee.
(1) For purposes of this subsection, a change of control of a supplier licensee will be deemed to have occurred when a person or group of persons acquires:
(i) More than 20% of a supplier licensee's securities, assets or other ownership interests.
(ii) More than 20% 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 interests of the supplier licensee.
(iii) Any other interest in a supplier licensee which allows the acquirer to control the supplier licensee.
(2) A supplier licensee shall notify the Bureau and the Bureau of Licensing by filing a Notification of Proposed Transfer of Interest Form immediately upon becoming aware of any proposed or contemplated change of control of the supplier licensee.
(3) Prior to acquiring a controlling interest in a supplier licensee, the acquirer shall file a petition in accordance with § 493a.4 (relating to petitions generally) requesting Board approval of the acquisition. The petition must include all of the following:
(i) A copy of all documents governing the acquisition.
(ii) Completed applications for the acquiring company, as required under this chapter, principals as required under § 1104.1 (relating to principal licenses) and key employees as required under § 1105.1 (relating to key employee licenses).
(iii) An affirmation that neither the acquirer nor any of its affiliates, intermediaries, subsidiaries or holding companies is a terminal operator licensee or establishment licensee.
(4) A person or group of persons seeking to acquire a controlling interest in a supplier licensee shall promptly provide any additional information requested by the Board and Board staff and cooperate with the Bureau in any investigations related to the petition filed under this subsection.
(5) A person or group of persons may not acquire a controlling interest in a supplier licensee until the petition required under this subsection, has been approved. A person or group of persons seeking to acquire a controlling interest in a supplier licensee and the supplier licensee may enter into a sales agreement that is contingent on Board approval of the petition.
CHAPTER 1107. MANUFACTURERS—
TEMPORARY REGULATIONSSec.
1107.1. Manufacturer licenses. § 1107.1. Manufacturer licenses.
(a) Application for licensure. A manufacturer as defined in this subpart who seeks to manufacture video gaming terminals, redemption terminals and associated equipment for use in this Commonwealth shall apply for licensure in accordance with §§ 427a.1 and 427a.2 (relating to manufacturer general requirements; and manufacturer license applications and standards).
(b) Submittals. In addition to the completed Manufacturer Application and Disclosure Information Form required under § 427a.2 an applicant shall include all of the following:
(1) The name and business address of the applicant and the applicant's affiliates, intermediaries, subsidiaries and holding companies, the principals and key employees of each business, and a list of employees and their positions within each business, as well as financial information required by the Board.
(2) A statement that the applicant and each affiliate, intermediary, subsidiary or holding company of the applicant are not terminal operator licensees or establishment licensees.
(3) The consent to a background investigation by the Bureau of the applicant, its principals and key employees or other persons required by the Board and a release to obtain the information necessary for the completion of the background investigation.
(4) The details of any equivalent manufacturer license granted or denied by other jurisdictions where gaming activities as authorized by this part are permitted.
(5) The details of any manufacturer license issued by the Board to the applicant under section 1317.1 of the act (relating to manufacturer licenses), if applicable.
(6) The type of video gaming terminals, redemption terminals or associated equipment to be manufactured or repaired.
(7) Other information determined by the Board or the Bureau to be appropriate.
(c) Approval and issuance of license. Upon being satisfied that the requirements in subsection (a) and (b) have been met, the Board may approve the application and issue the applicant a manufacturer license consistent with all of the following:
(1) A licensee shall have an affirmative duty to notify the Board of a change relating to the status of its license or to information in the application materials on file with the Board.
(2) The license shall be nontransferable.
(3) Other conditions established by the Board.
(d) Considerations. In determining whether an applicant is suitable to be licensed as a manufacturer under this section, the Board will consider all of the following:
(1) The financial fitness, good character, honesty, integrity and responsibility of the applicant.
(2) If all principals and key employees of the applicant are eligible and suitable for licensure.
(3) The integrity of financial backers.
(4) The suitability of the applicant and principals and key employees of the applicant based on the satisfactory results of:
(i) A background investigation of principals and key employees.
(ii) A current tax clearance review performed by the Department.
(iii) A current Unemployment Compensation Tax clearance review and a Workers Compensation Tax clearance review performed by the Department of Labor and Industry.
(e) Submittal of agreements. A manufacturer shall submit to the Bureau of Licensing for review any agreements with a licensed supplier or with a terminal operator licensee. The review may include financing arrangements, inventory requirements, warehouse requirements, warehouse space, technical competency, compensative agreements and other terms or conditions to ensure the financial independence of the licensed manufacturer from any licensed supplier, terminal operator or establishment licensee.
(f) Occupation permit or nongaming registration. An employee of a manufacturer licensee who is a gaming employee or nongaming employee as defined in § 1101.2 (relating to definitions) shall obtain an occupation permit under § 1109.1 (relating to gaming employee occupation permits) or a nongaming registration under § 1109.2 (relating to nongaming employee registrations).
(g) Change of control of a manufacturer licensee.
(1) For purposes of this subsection, a change of control of a manufacturer licensee will be deemed to have occurred when a person or group of persons acquires:
(i) More than 20% of a manufacturer licensee's securities, assets or other ownership interests.
(ii) More than 20% 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 interests of the manufacturer licensee.
(iii) Any other interest in a manufacturer licensee which allows the acquirer to control the manufacturer licensee.
(2) A manufacturer licensee shall notify the Bureau and the Bureau of Licensing by filing a Notification of Proposed Transfer of Interest Form immediately upon becoming aware of any proposed or contemplated change of control of the manufacturer licensee.
(3) Prior to acquiring a controlling interest in a manufacturer licensee, the acquirer shall file a petition in accordance with § 493a.4 (relating to petitions generally) requesting Board approval of the acquisition. The petition must include all of the following:
(i) A copy of all documents governing the acquisition.
(ii) Completed applications for the acquiring company, as required under this chapter, principals as required under Chapter 433a (relating to principal licenses) and key employees as required under § 435a.2 (relating to key employee license).
(iii) An affirmation that neither the acquirer nor any of its affiliates, intermediaries, subsidiaries or holding companies is a terminal operator licensee or establishment licensee and that the acquirer has neither applied for nor holds a terminal operator license or establishment license.
(4) A person or group of persons seeking to acquire a controlling interest in a manufacturer licensee shall promptly provide any additional information requested by the Board and Board staff and cooperate with the Bureau in any investigations related to the petition filed under subsection (a).
(5) A person or group of persons may not acquire a controlling interest in a manufacturer licensee until the petition required under subsection (g) has been approved. A person or group of persons seeking to acquire a controlling interest in a manufacturer licensee and the manufacturer licensee may enter into an agreement of sale that is contingent on Board approval of the petition.
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