PENNSYLVANIA GAMING CONTROL BOARD
[58 PA. CODE CHS. 401, 403, 407, 421, 423, 427, 431, 433, 435, 451, 461, 471, 481, 491, 495, 497 AND 499]
Draft Temporary Regulations
[35 Pa.B. 2569] The Pennsylvania Gaming Control Board (Board), under authority in 4 Pa.C.S. § 1202 (relating to general and specific powers), has drafted temporary regulations to facilitate the prompt implementation of 4 Pa.C.S. Part II (relating to gaming), enacted by the act of July 5, 2004 (P. L. 572, No. 71). Upon adoption of the regulations by the Board, the Board's temporary regulations will be added in Part VII (relating to Gaming Control Board). By publishing these temporary regulations in draft form, the Board seeks public comment prior to the adoption of the regulations.
Contact Person
Interested persons are invited to submit written comments, suggestions or objections to the draft temporary regulations to the Pennsylvania Gaming Control Board, Office of Communications, P. O. Box 69060, Harrisburg, PA 17106-9060. Comments must be postmarked by May 3, 2005.
THOMAS A. DECKER,
Chairperson
Annex A
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD Subpart
A. GENERAL PROVISIONS B. LICENSING C. RECORDKEEPING D. SLOT MACHINE TESTING AND CERTIFICATION E. FEES F. MINORITY AND WOMEN'S BUSINESS ENTERPRISES G. PRACTICE AND PROCEDURE Subpart A. GENERAL PROVISIONS
Chap.
401. PRELIMINARY PROVISIONS 403. BOARD OPERATIONS AND ORGANIZATION 407. PUBLIC ACCESS TO BOARD RECORDS
CHAPTER 401. PRELIMINARY PROVISIONS Sec.
401.1. Purpose. 401.2. Scope. 401.3. Construction. 401.4. Definitions. 401.5. Jurisdiction. § 401.1. Purpose.
The purpose of this part is to facilitate the implementation of the act.
§ 401.2. Scope.
(a) This subpart governs the practice and procedure before the Board.
(b) This subpart is intended to supersede the applicability of 1 Pa. Code Part II (relating to the General Rules of Administrative Practice and Procedure) to practice and procedure before the Board.
§ 401.3. Construction.
(a) This part shall be liberally construed to secure the just, speedy and inexpensive determination of every action or proceeding to which it is applicable. The Board at any stage of an action or proceeding may disregard an error or defect of procedure which does not affect the substantive rights of the parties.
(b) The Board at any stage of an action or proceeding may waive a requirement of this part when necessary or appropriate, if the waiver does not adversely affect a substantive right of a participant as determined by the Board.
(c) Subsections (a) and (b) supersede 1 Pa. Code § 31.2 (relating to liberal construction).
§ 401.4. Definitions.
The following words and terms, when used in this part, have the following meanings, unless the context clearly indicates otherwise:
Act--The Pennsylvania Race Horse Development and Gaming Act, 4 Pa.C.S. §§ 1101--1904.
Affiliate or affiliated company--A person that directly or indirectly, through one or more intermediaries or controls, is controlled by or is under common control with a specified person.
Applicant--A person, officer, director or key employee, who on his own behalf or on behalf of another, is applying for permission to engage in an act or activity which is regulated under this part. In cases in which the applicant is a corporation, foundation, organization, business trust, estate, limited liability company, trust, partnership, limited partnership, association or a form of legal business entity, the Board will determine the associated persons whose qualifications are necessary as a precondition to the licensing of the applicant.
Application--A written request, in a form approved by the Board, for permission to engage in an act or activity which is regulated under the act. The term includes supplements, reports, documentation or other information requested by the Board as part of the application process.
Application fee--The amount of nonrefundable money required to be paid for an application submitted to the Board.
Approved, approval or approve--When used in reference to an application submitted to the Commissions to conduct harness or thoroughbred race meetings or the Board to authorize and regulate the placement and operation of slot machines, the terms refer to the date that an application to the Commissions or the Board is granted regardless of the pendency of administrative or judicial appeals or other legal action challenging the decision of either Commission or the Board.
Associated equipment--Any equipment or mechanical, electromechanical or electronic contrivance, component or machine used in connection with gaming, including linking devices which connect to progressive slot machines or slot machines, replacement parts, equipment which affects the proper reporting of gross revenue, computerized systems for controlling and monitoring slot machines, including the central control computer and devices for weighing or counting money.
Authority--An authority created by the Commonwealth which purchases State gaming receipts under section 1202 of the act (relating to general and specific powers).
Authorized personnel--A member or designated employee of the Board or a designated employee or agent of the Bureau.
Background investigation--A security, criminal, credit and suitability investigation of a person as provided for in this part. The investigation shall include the status of taxes owed to the United States and to the Commonwealth and its political subdivisions.
Backside area--Areas of the racetrack facility that are not generally accessible to the public and which include facilities commonly referred to as barns, track kitchens, recreation halls, backside employee quarters and training tracks, and roadways providing access thereto. The term does not include areas of the racetrack facility which are generally accessible to the public, including the various buildings commonly referred to as the grandstand or the racing surfaces, paddock enclosures and walking rings.
Board--The Pennsylvania Gaming Control Board established under section 1201 of the act (relating to Pennsylvania Gaming Control Board established).
Bonds--Bonds, notes, instruments, refunding notes and bonds and other evidences of indebtedness or obligations, which an authority issues to fund the purchase of State gaming receipts.
Bureau--The Bureau of Investigations and Enforcement of the Board.
Central control computer--A central site computer controlled by the Department and accessible by the Board to which all slot machines 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 slot machine, including coin in, coin out, ticket in, ticket out, jackpots, machine door openings and power failure, and remote machine activation and disabling of slot machines.
Cheat--
(i) To alter without authorization the elements of chance, method of selection or criteria which determine:
(A) The result of a slot machine game.
(B) The amount or frequency of payment in a slot machine game.
(C) The value of a wagering instrument.
(D) The value of a wagering credit.
(ii) The term does not include altering for required maintenance and repair.
Clerk--The Clerk to the Board.
Commission or Commissions--The State Horse Racing Commission or the State Harness Racing Commission, or both, as the context may require.
Complainants--Persons who complain to the Board or Bureau of an act or omission by an applicant licensee, permittee or person, or claimed violation of the act, or of this part, or of an order of the Board.
Confidential information--
(i) Background investigation information, including all information provided under section 1310(a) of the act (relating to slot machine license application character requirements), submitted in connection with an application required for the issuance of a license or permit under this part, Board rules, discovery procedures, or cross-examination or that is provided as a courtesy to a party in a formal proceeding received by the Board or the Department as well as records obtained or developed by the Board or the Department as part of an investigation related to an applicant or licensee containing the following:
(A) Personal information, including home addresses, telephone numbers, Social Security numbers, educational records, memberships, medical records, tax returns and declarations, actual or proposed compensation, financial account records, credit-worthiness, or financial condition relating to an applicant or permittee or the immediate family thereof.
(B) Business information shall be documents and information relating to proprietary information, trade secrets, patents or exclusive licenses, architectural and engineering plans, security information, and information relating to competitive marketing materials and strategy which may include customer-identifying information or customer prospects for services subject to competition.
(C) Security information, including risk prevention plans, detection and countermeasures, emergency management plans, security and surveillance plans, equipment and usage protocols, and theft and fraud prevention plans and countermeasures.
(D) Information with respect to which there is a reasonable possibility that public release or inspection of the information would constitute an unwarranted invasion into personal privacy as determined by the Board.
(E) Record or information that is designated confidential by statute or the Board.
(F) Records of an applicant or licensee not required to be filed with the United States Securities and Exchange Commission by issuers that either have securities registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C.A. § 781) or are required to file reports under section 15D of the act (15 U.S.C.A. § 78o-6) of that act.
(G) Records considered nonpublic matters or information by the United States Securities and Exchange Commission as provided by 17 CFR 200.80 (relating to Commission records and information).
(ii) The following information is exempted from the definition of confidential information:
(A) Records containing information received by the Board or the Department or information obtained or developed as part of an investigation related to the applicant or licensee may be disclosed to state or Federal law enforcement agencies or entities when the Attorney General or a court of competent jurisdiction determines that the information contains evidence of a possible violation of laws, rules or regulations enforced by those agencies or entities.
(B) Records from an applicant may be disclosed to the applicant, licensee or permittee upon written request. Records from an applicant may be disclosed to a person with the written consent of the applicant, licensee or permittee.
(C) Records containing information from an applicant that is already in the public domain or subsequently becomes a part of the public domain by an action by the applicant.
Controlling interest--A person shall be deemed to have the ability to control a publicly traded corporation, or to elect one or more of the members of its board of directors, if the holder owns or beneficially holds 5% or more of the securities of the publicly traded domestic or foreign corporation, partnership, limited liability company or other form of legal entity, unless the presumption of control or ability to elect is rebutted by clear and convincing evidence. A person who is a holder of securities of a privately held domestic or foreign corporation, partnership, limited liability company or other form of legal entity shall be deemed to possess a controlling interest unless the presumption of control is rebutted by clear and convincing evidence.
Conviction--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. The term does not include a conviction that has been expunged or overturned or for which an individual has been pardoned or an order of Accelerated Rehabilitative Disposition.
Department--The Department of Revenue of the Commonwealth.
Federal tax identification number--The Social Security number of an individual or the Employer Identification Number of a business, fiduciary or other person.
Final order--Includes the following:
(i) An order by the Board which approves, issues, renews, revokes, suspends, conditions, denies issuance or renewal of a license,
(ii) An action by the Board which affects personal or property rights, privileges, immunities, duties, liabilities or obligations, disposes of all claims and of all parties before the Board.
(iii) An action by the Board which is designated by the Board as final.
Financial backer--An investor, mortgagee, bondholder, note holder or other sources of equity or capital provided to an applicant or licensed entity.
Formal record--The pleadings in a matter or proceeding, a notice or Board order initiating the matter or proceeding, and if a hearing is held, the following shall be included in the formal record: transcript of hearing, exhibits received in evidence, exhibits offered but not received in evidence, offers of proof, motions, stipulations, subpoenas, proofs of service, determinations made by the Board thereon, and certifications to the Board.
Fund--The State Gaming Fund established under section 1403 of the act (relating to establishment of State Gaming Fund and net slot machine revenue distribution).
Gaming employee--
(i) An employee of a slot machine licensee, including:
(A) Cashiers.
(B) Change personnel.
(C) Counting room personnel.
(D) Slot attendants.
(E) Hosts or other persons authorized to extend complimentary services.
(F) Machine mechanics or computer machine technicians.
(G) Security personnel.
(H) Surveillance personnel.
(I) Supervisors and managers.
(ii) The term includes employees of a person holding a supplier's license whose duties are directly involved with the repair or distribution of slot machines and associated equipment sold or provided to the licensed facility within this Commonwealth as determined by the Board. The term does not include bartenders, cocktail servers or other persons engaged solely in preparing or serving food or beverages, clerical or secretarial personnel, parking attendants, janitorial, stage, sound and light technicians and other nongaming personnel as determined by the Board under section 1322(c) of the act (relating to slot machine accounting controls and audits).
Gross terminal revenue--The total of wagers received by a slot machine minus the total of:
(i) Cash or cash equivalents paid out to patrons as a result of playing a slot machine which are paid to patrons either manually or paid out by the slot machine.
(ii) Cash paid to purchase annuities to fund prizes payable to patrons over a period of time as a result of playing a slot machine.
(iii) Personal property distributed to a patron as the result of playing a slot machine. This does not include travel expenses, food, refreshments, lodging or services.
(iv) The term does not include counterfeit money or tokens, coins or currency of other countries which are received in slot machines, except to the extent that they are readily convertible to United States currency, cash taken in fraudulent acts perpetrated against a slot machine licensee for which the licensee is not reimbursed or cash received as entry fees for contests or tournaments in which the patrons compete for prizes.
Horsemen of this Commonwealth--A thoroughbred or standardbred horse owner or trainer who enters and runs his horse at a licensed racing entity in the current or prior calendar year and meets the requirements of the horsemen's organization of which he is a member to participate in the receipt of benefits therefrom. The term includes an employee of a trainer who meets the requirements of the horsemen's organization of which he is a member to participate in the receipt of benefits therefrom.
Horsemen's organization--A trade association which represents the majority of owners and trainers who own and race horses at a licensed racetrack.
IRS--The Internal Revenue Service of the United States.
Institutional investor--A retirement fund administered by a public agency for the exclusive benefit of Federal, state or local public employees, investment company registered under the Investment Company Act of 1940 (15 U.S.C.A. §§ 80a-1--80a-64), collective investment trust organized by banks under Part Nine of the Rules of the Comptroller of the Currency, closed end investment trust, chartered or licensed life insurance company or property and casualty insurance company, banking and other chartered or licensed lending institution, investment advisor registered under the Investment Advisors Act of 1940 (15 U.S.C.A. §§ 80b-1--80b-21), and other persons as the Board may determine consistent with this part.
Issued, issuance or issue--When used in reference to an application submitted to the State Horse Racing Commission or the State Harness Racing Commission to conduct harness or thoroughbred race meetings or the Board to authorize the placement and operation of slot machines, the terms refer to the date when a determination by the Commissions or the Board approving an application brought before the agencies becomes final, binding and nonappealable and is not subject to a pending legal challenge.
Key employee--An individual who is employed in a director or department head capacity and who is empowered to make discretionary decisions that regulate slot machine operations, including the general manager and assistant manager of the licensed facility, director of slot operations, director of cage and credit operations, director of surveillance, director of marketing, director of management information systems, director of security, comptroller and any employee who supervises the operations of these departments or to whom these department directors or department heads report and other positions which the Board will determine based on detailed analyses of job descriptions as provided in the internal controls of the licensee as approved by the Board under section 1322(c) of the act. All other gaming employees unless otherwise designated by the Board, will be classified as non-key employees.
Key employee qualifier--An individual employed by a person who is a slot machine licensee, manufacturer licensee or supplier licensee who holds a management or supervisory position or who controls the operations of the licensee. The term includes: officers; directors; persons who directly or indirectly hold any beneficial interest in or ownership of the securities of a licensee; a person who has the ability to control the licensee, has a controlling interest in the licensee, elects a majority of the board of directors of the licensee, or otherwise has the ability to control the licensee; a lender, 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; an underwriter; and an employee of a slot machine licensee, manufacturer licensee or supplier licensee required to be licensed by the Board.
Licensed entity--A slot machine licensee, manufacturer licensee, supplier licensee or other person licensed by the Board under this part.
Licensed facility--The physical land-based location and associated areas at which a licensed gaming entity is authorized to place and operate slot machines.
Licensed gaming entity or slot machine licensee--A person that holds a slot machine license under this part.
Licensed racetrack or racetrack--The term includes the physical facility and grounds where a person has obtained a license from either the State Horse Racing Commission or the State Harness Racing Commission to conduct live thoroughbred or harness race meetings respectively with pari-mutuel wagering.
Licensed racing entity--A legal entity that has obtained a license to conduct live thoroughbred or harness horse race meetings respectively with pari-mutuel wagering from either the State Horse Racing Commission or the State Harness Racing Commission under the Race Horse Industry Reform Act.
License fee--The amount of money required to be paid for the application, issuance or renewal of any type of license required by the act, this part, or as directed by the Board.
Manufacturer--A person who manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs or otherwise makes modifications to slot machines or associated equipment for use or play of slot machines in this Commonwealth for gaming purposes.
Manufacturer license--A license issued by the Board authorizing a manufacturer to manufacture or produce slot machines or associated equipment for use in this Commonwealth for gaming purposes.
Manufacturer licensee--A manufacturer that obtains a manufacturer license.
Manufacturer's serial number--The unique number permanently assigned to a slot machine by a slot machine manufacturer for identification and control purposes, which number shall be affixed to the outside of the slot machine cabinet in a location as approved by the Board.
Municipality--A city, borough, incorporated town or township.
Net terminal revenue--The amount of the gross terminal revenue less the tax and assessments imposed by sections 1402, 1403, 1405 and 1407 of the act.
Nonprimary location--A facility in which pari-mutuel wagering is conducted by a licensed racing entity other than the racetrack where live racing is conducted.
Occupation permit--A permit authorizing an individual to be employed or work as a gaming employee at a licensed facility.
Permit fee--The amount of money required to be paid for the application, issuance or renewal of any type of permit required by the act, this part, or as directed by the Board.
Permittee--A holder of a permit issued under this part.
Person--A natural person, corporation, foundation, organization, business trust, estate, limited liability company, licensed corporation, trust, partnership, limited liability partnership, association or a form of legal business entity.
Progressive payout--A slot machine wager payout that increases in a monetary amount based on the amounts wagered in a progressive system.
Progressive system--A computerized system linking slot machines in one or more licensed facilities within this Commonwealth and offering one or more common progressive payouts based on the amounts wagered.
Qualified majority--A vote by the Board consisting of at least one member of the Board who is a gubernatorial appointee and each of the four legislative appointees.
Race Horse Industry Reform Act--45 P. S. §§ 325.101--325.402.
Respondents--Persons subject to the jurisdiction of the Board, who are required to respond to an order or notice issued by the Board or the Bureau instituting a proceeding or investigation.
Revenue- or tourism-enhanced location--A location within this Commonwealth determined by the Board, which will maximize net revenue to the Commonwealth or enhance year-round recreational tourism within this Commonwealth, in comparison to other proposed facilities and is otherwise consistent with this part and its declared public policy purposes.
SEC--The United States Securities and Exchange Commission.
Securities--As defined in the Pennsylvania Securities Act of 1972 (70 P. S. §§ 1-101--1-703).
Slot machine--
(i) A mechanical or electrical contrivance, terminal, machine or other device approved by the Board which, upon insertion of a coin, bill, ticket, token or similar object therein or upon payment of consideration, including the use of an electronic payment system, except a credit card or debit card, is available to play or operate, the play or operation of which, whether by reason of skill or application of the element of chance, or both, may deliver or entitle the person playing or operating the contrivance, terminal, machine or other device to receive cash, billets, tickets, tokens or electronic credits to be exchanged for cash or to receive merchandise or anything of value, whether the payoff is made automatically from the machine or manually. A slot machine:
(A) May utilize spinning reels or video displays, or both.
(B) May or may not dispense coins, tickets or tokens to winning patrons.
(C) May use an electronic credit system for receiving wagers and making payouts.
(ii) The term includes associated equipment necessary to conduct the operation of the contrivance, terminal, machine or other device.
Slot machine license--A license issued by the Board authorizing a person to place and operate slot machines under this part.
Slot machine licensee--A person that holds a slot machine license.
State gaming receipts--Revenues and receipts required by this part to be paid into the State Gaming Fund, the Pennsylvania Race Horse Development Fund and the Pennsylvania Gaming Economic Development and Tourism Fund, and all rights, existing on _____ (Editor's Note: The blank refers to the effective date of adoption of these temporary regulations.) or coming into existence after _____ , (Editor's Note: The blank refers to the effective date of adoption of these temporary regulations) to receive any of those revenues and receipts.
State Treasurer--The State Treasurer of the Commonwealth.
Supplier--A person that sells, leases, offers or otherwise provides, distributes or services slot machines or associated equipment for use or play of slot machines in this Commonwealth at a licensed gaming facility.
Supplier license--A license issued by the Board authorizing a supplier to provide products or services related to slot machines or associated equipment to licensed gaming entities.
Supplier licensee--A supplier that holds a supplier license.
Trade secret--A private formula, pattern, device, cost study or compilation of information which is used in a business and which, if disclosed, would provide the opportunity to obtain an advantage over competitors who do not know or use it.
§ 401.5. Jurisdiction.
The Board will have exclusive jurisdiction over all matters within the scope of its powers under the act.
CHAPTER 403. BOARD OPERATIONS AND ORGANIZATION Sec.
403.1. Participation at meetings and voting. 403.2. Meetings. 403.3. Board office hours. 403.4. Public communication. § 403.1. Participation at meetings and voting.
(a) Qualified majority vote. Action by the Board including the approval, issuance, denial or conditioning of a license or the making of an order or the ratification of a permissible act done or order made by one or more of the members of the Board shall require a qualified majority vote.
(b) Majority vote. Action by the Board to suspend, revoke, not renew, void or require forfeiture of a license or permit previously issued by the Board, to impose an administrative fine or penalty or to issue cease and desist orders under section 1201 of the act (relating to Pennsylvania Gaming Control Board established), shall require a majority vote of all the Board members.
(c) Member abstention. If a Board member has a disqualifying interest in a voting matter, a member shall disclose the nature of his disqualifying interest, disqualify himself and abstain from voting in a proceeding in which his impartiality may be reasonably questioned, including instances when he knows that he possesses a substantial financial interest in the subject matter of the proceeding or an interest that could be substantially affected by the outcome of the proceeding. If it is a legislative appointee member that has disqualified himself, the qualified majority shall consist of the remaining three legislative appointees and at least two gubernatorial appointees.
(d) Disqualifying interest. When a member has disqualified himself, his abstention from voting shall apply only to the singular voting matter that led to his disqualification and not apply to other matters under consideration by the Board for which he is otherwise qualified.
§ 403.2. Meetings.
(a) Public sessions. The proceedings of all public sessions shall be conducted in accordance with 65 Pa.C.S. Chapter 7 (relating to Sunshine Act) and the act of June 21, 1957 (P. L. 390, No. 212) (65 P. S. §§ 66.1--66.9), known as the Right-to-Know Law.
(b) Regularly scheduled meetings. The Board will meet in Harrisburg once a month, and on other dates, times and locations as the Chairperson of the Board determines.
(c) Record of proceedings. The Board will cause to be kept a record of all proceedings held at public meetings of the Board. A verbatim transcript of those proceedings will be prepared by the Board.
§ 403.3. Board office hours.
Board offices will be open from 9 a.m. to 5 p.m. on business days except Saturdays, Sundays and legal holidays or unless otherwise directed by the Chairperson.
§ 403.4. Public communication.
Requests for information regarding the Board may be directed to:
Office of Communications
Pennsylvania Gaming Control Board
P. O. Box 69060
Harrisburg, Pennsylvania 17106-9060
CHAPTER 407. PUBLIC ACCESS TO BOARD RECORDS Sec.
407.1. Case files. 407.2. Minutes of public meeting and annual report. 407.3. Extensions of time to review folders. § 407.1. Case files.
(a) Records. Formal records in proceedings before the Board or the Bureau shall contain a file for nonconfidential records and a file for confidential records.
(b) Contents. Contents of folders containing records relating to a particular proceeding shall conform to the following:
(1) A nonconfidential file shall contain formal records, complaints, petitions, answers, replies, motions, briefs, orders and opinions that are subject to disclosure. The file shall also include correspondence, reports and other materials that are subject to disclosure.
(2) A confidential folder shall contain confidential information, as defined in § 401.4 (relating to definitions), which may include formal records, complaints, petitions, answers, replies, motions, briefs, orders and opinions. The file shall also include correspondence, reports and other materials that are not subject to disclosure.
(c) Access. Access to formal records shall conform to the following:
(1) Nonconfidential formal records shall be available for inspection upon request made during normal Board business hours.
(2) Requests for confidential formal records shall be made to determine if the material may be released for inspection. The Board or the Bureau will review the request and provide its determination and notice to the requestor within 30 days of the request.
§ 407.2. Minutes of public meeting and annual report.
Minutes of public meetings and annual reports shall be available for public inspection and copying upon request to the Office of the Clerk during normal Board business hours and for a certain cost for copying as the Board may determine through a schedule published in the Pennsylvania Bulletin.
§ 407.3. Extensions of time to review folders.
For good cause, the Board may extend the time limits applicable to requests for access to documents. In the case of documents displaying no need for confidentiality, or, conversely, documents containing information which the Board considers improper for public inspection, the Board may direct the appropriate treatment thereof.
Subpart B. LICENSING Chap.
421. GENERAL PROVISIONS 423. APPLICATIONS 427. MANUFACTURER LICENSES 431. SUPPLIER LICENSES 433. LICENSE RENEWAL 435. EMPLOYEES
CHAPTER 421. GENERAL PROVISIONS Sec.
421.1. General requirements. 421.2. Licensed entities. 421.3. Disqualification criteria. 421.4. Investigations; supplementary information. § 421.1. General requirements.
(a) A license issuance, renewal or other licensing approval issued by the Board is deemed a revocable privilege. No person holding a license, renewal, or other licensing approval is deemed to have any rights therein.
(b) An application submitted under the act constitutes the seeking of a privilege, and the burden of proving qualification is on the applicant.
(c) An application for license, renewal or other licensing approval from the Board will constitute a request to the Board for a decision on the applicant's general suitability, financial suitability, character, integrity, and ability to engage in, or be associated with, gaming activity in this Commonwealth. By filing an application with the Board, the applicant specifically consents to investigation to the extent deemed appropriate by the Board. The investigation may include a background investigation of the applicant, employees of the applicant, all persons having a controlling interest in the applicant and other persons as determined by the Board.
(d) By applying for a license, renewal or other licensing approval from the Board, the applicant agrees to abide by all provisions of the act.
(e) An applicant shall waive liability as to the Board, its members, its employees, the Commonwealth and its instrumentalities for damages resulting from disclosure or publication in any manner, other than a willfully unlawful disclosure or publication, or material or information acquired during an investigation of the individual.
(f) The applicant agrees to consent to executing all releases required by the Board.
§ 421.2. Licensed entities.
Licenses that may be issued by the Board include:
(1) Manufacturer's license, which authorizes the approved licensee to manufacture, build, rebuild, fabricate, assemble, produce, program, design or otherwise make modifications to slot machines or associated equipment for use or play of slot machines in this Commonwealth in accordance with the act.
(2) Supplier's license, which authorizes the approved licensee to sell, lease, offer or otherwise provide, distribute or service slot machines or associated equipment for use or play of slot machines in this Commonwealth in accordance with the act.
(3) Slot machine license, which authorizes the approved licensee to place and operate slot machines in this Commonwealth in accordance with the act.
(4) Key employee qualifier license, which authorizes the approved key employee qualifier, as defined in § 401.4 (relating to definitions), to be employed in a designated position by an applicant or holder of a manufacturer license, a supplier license or a slot machine license.
(5) Key employee license, which authorizes the approved key employee, as defined in § 401.4, to be employed in a designated position by an applicant or holder of a manufacturer license, supplier license or slot machine license.
§ 421.3. Disqualification criteria.
A manufacturer license, a supplier license or a slot machine license or a renewal thereof, may be denied, suspended or revoked to or from a person or applicant who has failed to provide to the satisfaction of the Board that the person or applicant or any of the persons required to be qualified, are in fact qualified in accordance with the act and with this part, who has violated the act or this part, who is disqualified under the criteria set forth in the act, who has materially departed from representation made in the application for licensure, or who has failed to comply with applicable Federal or state laws or regulations. A suspension, nonrenewal or denial of a license or license application may be made for a sufficient cause consistent with the act and the public interest.
§ 421.4. Investigations; supplementary information.
The Board may make an inquiry or investigation concerning an applicant, licensee or any person involved with an applicant or licensee as it may deem appropriate either at the time of the initial application and licensure or at any time thereafter. It shall be the continuing duty of all applicants and licensees to provide full cooperation to the Board in the conduct of the inquiry or investigation and to provide supplementary information requested by the Board.
CHAPTER 423. APPLICATIONS Sec.
423.1. General requirements. 423.2. Application processing. 423.3. License issuance. 423.4. Incomplete applications. 423.5. Application withdrawal. § 423.1. General requirements.
(a) Every application shall be submitted on forms supplied or approved by the Board and shall contain all information and documents as required by the Board.
(b) The applicant shall file with the application all supplemental forms provided by the Board. The forms require full disclosure of all details relative to the applicant's suitability to conduct business in this Commonwealth.
(c) Upon request of the Board, the applicant shall further supplement any information provided in the application. The applicant shall provide all requested documents, records, supporting data and other information within the time period specified in the request, or if no time is 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) An applicant shall submit evidence to the Board of the applicant's financial stability, integrity and responsibility. In determining an applicant's financial fitness, the Board's review will include, but not be limited to: the applicant's bank references, business and personal income and disbursement schedules, annual financial statements and tax returns, whether the applicant has adequate financing available to pay all current obligations, and whether the applicant is likely to be able to adequately cover all existing and foreseeable obligations in the future.
(e) All information provided to the Board shall be true and complete. If there is any change in the information provided to the Board, the applicant shall promptly file a written amendment in a form prescribed by the Board.
(f) The application and any amendments or supplements shall be sworn to or affirmed by the applicant before a notary public.
(g) The Board will automatically deny the application of an applicant that refuses to submit to a background investigation or provide requested information as required under the act.
(h) Neither the Commonwealth, the Board, Pennsylvania State Police, any agency or authorized designee or agent of the Board that the Board requests to conduct background investigations, nor the employees of any of the foregoing, may be held liable for any inaccurate or incomplete information obtained through an investigation.
(i) An applicant that submits a document which is in a language other than English to the Board with an application or in response to a request for information from the Board or the Board's agents shall also submit an English translation of the non-English language document. The translation shall include the signature, printed name, address and telephone number of the translator and a verification by the translator of the truth and accuracy of the translation.
§ 423.2. Application processing.
(a) Upon a determination that all prerequisites for filing have been met, the Board will:
(1) Accept the application for filing and cause it to be docketed.
(2) Notify the applicant or the applicant's attorney, if any, in writing of the fact that the application has been accepted for filing and docketed, the date of the acceptance for filing and the docket number assigned to the applicant. The Board will also notify the applicant that the acceptance for filing and docketing of the application will not constitute evidence that any requirement of the act has been satisfied.
(3) Obtain and evaluate information as may be necessary to determine the qualifications of the applicant and a matter relating to the application.
(4) Request the Bureau to promptly conduct an investigation and provide the information necessary to determine the qualifications of the applicant and a matter relating to the application.
(5) Request the Pennsylvania State Police to provide criminal history background investigations, determine employee eligibility consistent with § 435.1 (relating to general provisions), conduct fingerprinting, receive handwriting exemplars, photograph applicants and perform duties as directed by the Board.
(6) Request the Department to promptly conduct a tax clearance review.
(7) Request the Department of Labor and Industry to perform an unemployment compensation tax clearance review and a workers compensation tax clearance review.
(8) Make requests of any agencies, entities or persons to conduct investigations or evaluations on behalf of the Board or the Bureau or to provide information, as deemed necessary by the Board.
(b) The Board will keep and maintain a list of all applicants for licenses under this part together with a record of all actions taken with respect to applicants.
§ 423.3. License issuance.
(a) In addition to criteria provided under the act, the Board will not issue or renew a license to an applicant or licensee unless the Board finds that the applicant has established it has met the following criteria:
(1) The applicant has developed and implemented or agreed to develop and implement a diversity plan to assure that all persons are accorded equality of opportunity in employment and contracting by the applicant, its contractors, subcontractors, assignees, lessees, agents, vendors and suppliers.
(2) The applicant has paid all required fees.
(3) The applicant has fulfilled any conditions required by the Board or provided by the act.
(4) The applicant in all other respects is found suitable consistent with the laws of the Commonwealth and is otherwise qualified to be issued a license or permit.
(b) Nothing contained in the act is intended or may be construed to create an entitlement to a license by any person.
§ 423.4. Incomplete applications.
(a) The Board will not consider an application that is incomplete. An application will be deemed incomplete if it fails to include one or more of the following requirements:
(1) Applicable fees paid.
(2) Information and accompanying documentation required by the Board.
(b) If an application is deemed incomplete, the Board will notify the applicant of the deficiencies in the application and permit the applicant to revise the application and resubmit the application to the Board within a time period prescribed by the Board.
(c) Refusal to provide information as requested by the Board, its designees or agents or the Pennsylvania State Police shall result in the immediate denial of a license or permit.
§ 423.5. Application withdrawal.
(a) Except as provided in subsection (e), a written notice of withdrawal of application may be filed by an applicant at any time prior to the Board's final decision.
(b) No application will be permitted to be withdrawn unless the applicant first establishes to the satisfaction of the Board that withdrawal of the application would be consistent with the public interest and the policies of the act.
(c) The Board has the authority to direct that an applicant permitted to withdraw his application is not eligible to apply again for licensure, permit or registration until a designated time as the Board determines.
(d) Unless the Board otherwise directs, no fee or other payment relating to an application shall become refundable by reason of withdrawal of the application.
(e) When a hearing on an application has been requested by a party or directed by the Board, the Board will not permit withdrawal of the application after either of the following:
(1) The application matter has been assigned to a hearing examiner authorized by law to hear a matter.
(2) The Board has made a determination to hear the application matter directly.
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