PROPOSED RULEMAKING
PENNSYLVANIA GAMING CONTROL BOARD
[58 PA. CODE CHS. 429a, 433a, 435a, 437a AND 441a]
Manufacturer Designees; Principal Licenses; Employees; Vendor Certification and Registration; Slot Machine Licenses
[37 Pa.B. 2695]
[Saturday, June 16, 2007]The Pennsylvania Gaming Control Board (Board), under the general authority in 4 Pa.C.S. § 1202(b)(30) (relating to general and specific powers) and the specific authority in 4 Pa.C.S. §§ 1202(b)(9), (12), (13)--(20) and (23), 1205, 1209, 1301--1316, 1317.1, 1318, 1321, 1325--1331 and 1802, proposes to add Chapters 429a, 433a, 435a, 437a and 441a to read as set forth in Annex A.
Purpose of the Proposed Rulemaking
Under 4 Pa.C.S. § 1203 (relating to temporary regulations), the Board initially adopted temporary regulations in Chapters 433 and 435 at 35 Pa.B. 4045 (July 16, 2005), Chapter 437 at 35 Pa.B. 6411 (November 19, 2005), Chapters 441 and 443 at 35 Pa.B. 4543 (August 6, 2005) and Chapter 429 at 37 Pa.B. 1862 (April 21, 2007). Under 4 Pa.C.S. Part II (relating to gaming), the temporary regulations expire on July 5, 2007.
The Board is proposing to replace the temporary regulations with the permanent regulations in this proposed rulemaking.
Explanation of Chapters 429a, 433a, 435a, 437a and 441a
Chapter 429a (relating to manufacturer designees) deals with the licensing of manufacturer designees, which is a new category of licensure created by the act of November 1, 2006 (P. L. 1243, No. 135). Section 429a.1 (relating to manufacturer designee general requirements) addresses who must obtain a manufacturer designee license, what a manufacturer designee may do and what restrictions are placed on a manufacturer designee.
Sections 429a.2 and 429a.3 (relating to manufacturer designee license applications and standards; and additional manufacturer designee licenses) lay out the application process for an initial manufacturer designee license and for additional manufacturer designee licenses. The process for additional manufacturer designee licenses is an abbreviated application process because much of the investigative review will already have been completed.
Section 429a.4 (relating to manufacturer designee license term and renewal) sets forth the term of the manufacturer designee license, which is 1 year, and the process for license renewals.
Section 429a.5 (relating to responsibilities of a manufacturer designee) specifies the responsibilities of a manufacturer designee. These include various reporting requirements and the requirement that employees of a manufacturer designee whose duties require them to be on the gaming floor or in a restricted area obtain an occupation permit.
Section 429a.6 (relating to manufacturer designee as agent) states that a manufacturer designee will be deemed to be an agent of the manufacturer and that the manufacturer and the manufacturer designee will be held jointly and severally liable for violations of the regulations and the act committed by the manufacturer designee.
Section 429a.7 (relating to manufacturer designee agreements) requires agreements and amendments thereto to be submitted to the Board for approval. The agreements must specify the responsibilities of the manufacturer and the manufacturer designee and set forth any terms related to compensation of the manufacturer or the manufacturer designee.
Chapter 433a (relating to principal licenses) replaces temporary Chapter 433 (relating to license renewal).
Section 433a.1 (relating to definitions) provides definitions of terms used in this chapter.
Sections 433a.2 and 433a.3 (relating to directors or officers; and individual ownership) specify that officers and directors and individuals who have a direct ownership or have a right to any profit from an applicant for or holder of a license or an intermediary, holding company of the applicant or licensee must be licensed as principals. Additionally, a grantor, trustee or beneficiary of a trust that is required to be licensed as a principal must also be licensed as a principal. Individuals who own less than 5% of the voting securities of an applicant or licensee or an intermediary, holding company of the applicant or licensee that is a publicly traded company are exempted from this licensing requirement.
Section 433a.4 (relating to entity ownership) specifies which entities are required to be licensed as principals. This includes an intermediary or holding company of the applicant or licensee, an entity that directly or indirectly has the power to control the applicant or licensee and an entity which holds an indirect interest in the applicant or licensee of 5% or greater. This section also contains a limited exemption from licensure for private investment funds that meet certain conditions.
Section 433a.5 (relating to institutional investors) specifies limited circumstances under which institutional investors will not be required to be licensed as principals and which institutional investors will be eligible to receive a waiver.
Section 433a.6 (relating to lenders and underwriters) specifies which lending institutions and underwriters must be licensed as principals and set forth exemption criteria.
Section 433a.7 (relating to trusts) sets forth licensing requirements for trusts. Trusts that hold a direct ownership in an applicant or licensee, a 1% or greater indirect ownership or receive a payment, share of revenue or profits must be licensed as principals. Trusts that own less than 5% of the voting securities of an applicant or licensee that is a publicly traded company are exempted from this licensing requirement.
Section 433a.8 (relating to principal applications) specifies the process for filing an application for a principal license and the responsibilities of applicants.
Section 433a.9 (relating to principal license term and renewal) sets forth the term of the principal license, which is 1 year, and the process for renewal of a principal license.
Chapter 435a (relating to employees) replaces temporary Chapter 435 (relating to employees) with one exception. The requirements in temporary § 435.2 (relating to key employee qualifier license) are now included in Chapter 433a.
Section 435a.1 (relating to general provisions) contains a number of general provisions that apply to individuals who are applicants for or holders of a key employee license, occupation permit or nongaming employee registration. These include requirements to provide information and photographs, comply with the general requirements in Chapters 421a and 423a (relating to general provisions; and applications) and be a United States citizen or hold a current work authorization. It also contains criteria the Board will use when reviewing applications from individuals who have been convicted of a felony or gaming offense and restrictions on gaming at licensed facilities in this Commonwealth that apply to various employees.
Section 435a.2 (relating to key employee license) contains the licensing process that is used for key employees. It requires that applicants prove by clear and convincing evidence that they are eligible and suitable to be licensed as key employees. This section also contains a waiver process that includes the process for filing a waiver and the information that must be included.
Section 435a.3 (relating to occupation permit) specifies the process for filing an application for an occupation permit and the responsibilities of applicants. As is the case for key employees, applicants for an occupation permit must prove by clear and convincing evidence that they are eligible and suitable to be permitted. This section also allows employers to file applications for an occupation permit on behalf of applicants.
Section 435a.4 (relating to key employee license and occupation permit term and renewal) sets forth the term of the occupation permit, which is 1 year, and the process for renewal of a permit.
Section 435a.5 (relating to nongaming employee registration) establishes the process for filing an application for a nongaming employee registration and the responsibilities of applicants. Like applicants for occupation permits, applicants for a nongaming employee registration must prove by clear and convincing evidence that they are eligible and suitable to be registered and employers are allowed to file applications for nongaming employee registrations on behalf of applicants.
Section 435a.6 (relating to Board credentials) specifies who must obtain a credential and the information that will be on the credential. These credentials are required to be carried at all times while an individual is performing their duties and must be returned to the Board if an individual's license, permit or registration is suspended or revoked.
Section 435a.7 (relating to emergency credentials) deals with emergency credentials, which are credentials issued by the security department of a licensed facility to individuals who have forgotten or lost their Board credential. This section contains the verification requirements that must be met before an emergency credential can be issued and the information that must be recorded in the emergency credential log. It also establishes that these credentials can only be used for a maximum of 72 hours.
Sections 435a.8 and 435a.9 (relating to temporary credentials for principals and key employees; and temporary credentials for nongaming employees) govern the issuance of temporary credentials for principals, key employees and nongaming employees. These temporary credentials allow these individuals to work at the licensed facility while their applications are being reviewed. Temporary credentials for principals and key employees are valid for 120 days and may be extended; temporary credentials for nongaming employees are valid for 30 days.
Section 435a.10 (relating to loss or destruction of credentials) requires that any lost credential be reported to the slot machine license's security department within 24 hours. The slot machine license's security department, in turn, shall provide written notice to the Board of the lost credential within 24 hours. This section also allows employees to request a duplicate Board credential by submitting a Request for Duplicate PGCB Credential form to the Bureau of Licensing.
Chapter 437a (relating to vendor certification and registration) replaces temporary Chapter 437 (relating to vendor registration and certification). Section 437a.1 (relating to general vendor requirements) contains the criteria that will be used to determine if a vendor is required to obtain a vendor registration or vendor certification. It also contains a list of providers who are exempt from the registration and certification process and allows vendors to seek a waiver of the registration and certification process by filing a Vendor Certification Waiver Application.
Sections 437a.2 and 437a.3 (relating to vendor registration applications; and vendor certification applications) contain the procedures for filing an application for a vendor certification or registration. These sections also require applicants to provide additional information requested and to comply with Chapters 421a and 423a.
Sections 437a.4 and 437a.5 (relating to principal certification; and key employee certification) require principals and key employees of certified vendors to also be certified.
Section 437a.6 (relating to registration and certification term and renewal) sets forth the term of vendor certifications and registrations, which is 4 years, and the process for renewal of a certification or registration.
Section 437a.7 (relating to registered and certified vendor responsibilities) specifies the general responsibilities of certified and registered vendors and which employees of a certified vendor are required to obtain an occupation permit or nongaming employee registration.
Section 437a.8 (relating to approved vendors list; prohibited vendors) provides that the Board will maintain lists of approved and prohibited vendors and bars slot machine applicants and licensees from using a vendor that is on the prohibited list. This section also contains a list of the factors the Board will consider when it is determining whether or not to place a vendor on the prohibited vendor list and specifies the petition process to be used by vendors who are seeking removal from the prohibited vendor list.
Section 437a.9 (relating to permission to conduct business prior to certification or registration) establishes the conditions under which a vendor may request that the Board allow the vendor to provide goods or services prior to completing the application process. The vendor must have filed its application and the slot machine applicant or licensee must have performed a due diligence review and demonstrate good cause as to why the request should be granted. Permission to conduct business will be good for 6 months and may be extended for an additional 6 months.
Section 437a.10 (relating to emergency vendor) contains provisions that allow a slot machine applicant or licensee to use a vendor that is not registered or certified to respond to an emergency involving a threat to public health, welfare or safety or conditions beyond the control of the slot machine applicant or licensee. If a slot machine applicant or licensee uses a vendor that is not registered or certified, they must file a Vendor Notification Form with the Board within 72 hours, provide a written explanation to the Board and file a Vendor Registration Form or Vendor Certification Form for the vendor within 20 business days.
Section 437a.11 (relating to slot machine applicants' and licensees' duty to investigate) set forth the responsibilities of slot machine applicants or licensees to investigate the background and qualifications of vendors they use or intend to use. It also requires contracts between a slot machine applicant or licensee and a vendor to have a cancellation clause that can be invoked if the Board or the slot machine applicant or licensee finds that the vendor is unsuitable.
Chapter 441a (relating to slot machine licenses) replaces the Board's temporary Chapters 441 and 443 (relating to slot machine licenses; and categories of licensure).
Section 441a.1 (relating to definitions) includes the definitions in temporary § 441.1 (relating to definitions), the definition of ''licensing hearing'' in temporary § 441.19 (relating to licensing hearings for slot machine licenses), revised definitions of ''amenities,'' ''non-de minimis consideration,'' ''patron of amenities'' and ''well-established resort hotel'' in temporary Chapter 443 and a new definition of ''guest rooms under common ownership.''
Section 441a.2 (relating to slot machine application restrictions and deadlines) contains provisions that reflect the ownership restrictions in 4 Pa.C.S. § 1304 (relating to Category 2 slot machine license), how the Board will initiate the application process and establish the completion date for applications.
Section 441a.3 (relating to slot machine license application) specifies what materials must be filed in addition to the Conditional/Category 1, Category 2 or Category 3 Application and Disclosure Information Forms. It also includes provisions requiring applicants to provide additional information requested, to comply with Chapters 421a and 423a and to provide a copy of the local impact report to the political subdivisions where the proposed licensed facility is to be located.
Section 441a.4 (relating to Alternative Category 1 licensing standards) contains the provisions that provide alternate licensing standards which can be used for applicants who hold a similar license in another jurisdiction if that jurisdiction's standards are as comprehensive as the Commonwealth's.
Section 441a.5 (relating to license fee payment bond or letter of credit requirements) requires an applicant for a slot machine license to post a bond or letter of credit guaranteeing the payment of the slot machine license fee required by 4 Pa.C.S. § 1209(c) (relating to slot machine license fee). It sets forth the requirements that must be met by the issuing surety company or bank, specifies the amount of the bond and conditions regarding expiration and replacement of the bond.
Section 441a.6 (relating to public input) mandates that the Board hold at least one public hearing on a slot machine license application and that the hearing be held in the municipality where the licensed facility would be located. It also requires the Board to develop and post the procedures for the conduct of public hearings and to publish a list of witnesses who are scheduled to testify.
Section 441a.7 (relating to licensing hearings for slot machine licenses) specifies the procedures that will be used for slot machine licensing hearings. It establishes the time frames for various filings, areas that are to be addressed by applicants, how comparisons to competing applicants can be made and how to file petitions to intervene.
Section 441a.8 (relating to divestiture) establishes the process an applicant can use to allow a principal or other person who holds a direct or indirect interest in the applicant to divest themselves of that interest if the Board finds that the individual is not eligible or suitable for licensure. The terms of the divestiture shall be submitted to and approved by the Board.
Section 441a.9 (relating to approval of a slot machine license) sets forth the general criteria that the Board will use to determine whether or not to grant a license including financial and character criteria that must be met.
Sections 441a.10 and 441a.11 (relating to notification of anticipated or actual changes in principals or key employees; and notification of new financial sources) require slot machine applicants and licensees to notify the Board of changes in principals, key employees or financial sources as soon as it becomes aware of a potential change.
Section 441a.12 (relating to maintaining agreements; filing of agreements) requires slot machine applicants and licensees to maintain copies of written and oral agreements and amendments thereto and to submit copies of these agreements to the Board if the agreement involves a licensed manufacturer, manufacturer designee, supplier and certified vendor or if it involves land or real estate.
Section 441a.13 (relating to Board review of agreements and records of agreements) provides that the Board may review an agreement covered by § 441a.12 and, if certain conditions are met, order the slot machine applicant or licensee to terminate the agreement. This section also contains a provision that deems agreements to contain a provision that termination of agreements in response to a Board order will be without liability to the slot machine applicant or licensee.
Section 441a.14 (relating to master purchasing and disbursement report) sets forth the requirements for the filing and content of the monthly Master Purchasing and Disbursement Report which each slot machine applicant or licensee must submit to the Board.
Section 441a.15 (relating to slot machine license issuance bond requirement) contains provisions governing the posting of the $1 million bond that slot machine licensees must obtain to comply with 4 Pa.C.S. § 1316 (relating to bond for issuance of slot machine license). It specifies the standards for the surety company that issues the bond, that the bond must be payable to the Commonwealth of Pennsylvania and that the slot machine licensee's license will be suspended or revoked if the slot machine licensee fails to keep the bond in effect.
Section 441a.16 (relating to slot machine license term and renewal) sets forth the term of a slot machine license, which is 1 year, and the process for renewal of a slot machine license.
Section 441a.17 (relating to change in ownership or control of slot machine licensee and multiple slot machine license prohibition) contains provisions that implement 4 Pa.C.S. §§ 1328 and 1330 (relating to change in ownership or control of slot machine licensee; and multiple slot machine license prohibition). It requires advance notice and Board approval of changes in ownership that meet the specified criteria. Additionally, slot machine licensees are prohibited from owning more than a 33.3% interest in another slot machine licensee or persons eligible to apply for a Category 1 slot machine license.
Section 441a.18 (relating to employee status report) requires slot machine licensees to submit monthly employee status reports. It specifies when the reports must be filed, what information should be included in the reports and permits the Board to request interim reports if they are needed.
Section 441a.19 (relating to notice of employee misconduct and offenses) requires slot machine licensees to report the termination of an employee within 5 days of the termination if the circumstances surrounding the termination could be cause for suspension or revocation of the employee's license, permit or registration. This report will include detailed information about the employee and a summary of the misconduct. This section also requires that reports be filed with the Board within 24 hours when a person is charged, arrested, indicted or convicted of certain offenses.
Section 441a.20 (relating to slot machine license agreements) mandates that agreements that provide a form of payment related to earnings, profits or receipts from a slot machine licensee must be approved by the Board unless the agreement meets one of the exemptions in this section.
Section 441a.21 (relating to management contracts) provides that a slot machine licensee will be held jointly and severally liable for violations of 4 Pa.C.S. Part II or the Board's regulations committed by its management company.
Section 441a.22 (relating to Category 1 slot machine licensees) contains general provisions that apply just to Category 1 slot machine licensees. These include requirements for payments of funds as required by 4 Pa.C.S. §§ 1404--1406 (relating to distributions from licensee's revenue receipts; Pennsylvania Race Horse Development Fund; and distributions from Pennsylvania Race Horse Development Fund).
Section 441a.23 (relating to Category 3 slot machine licensees) requires that to be considered a well-established resort hotel, a hotel must offer a complement of the listed amenities. It also requires a Category 3 slot machine applicant to submit a plan with its application and as part of its internal controls to control access to the gaming floor to ensure that unauthorized individuals are not permitted to enter the gaming floor and establishes conditions under which holders of memberships for or patrons of amenities will be allowed access to the gaming floor.
Affected Parties
This proposed rulemaking imposes requirements on applicants for and holders of slot machine licenses, manufacturer designee licenses, principal and key employee licenses, vendor certifications or registrations, and on employees required to obtain an occupation permit or nongaming employee registration.
Fiscal Impact
Commonwealth. This proposed rulemaking will impose costs on the Board related to processing initial applications and renewals, conducting hearings and investigations and issuing licenses, permits, certifications and registrations. When applicable, the Pennsylvania State Police will also experience costs associated with investigations of applicants.
Political subdivisions. This proposed rulemaking will have no significant fiscal impact on political subdivisions of the Commonwealth.
Private sector. Applicants for various licenses, permits, certifications and registrations will incur costs to complete the applicable applications and pay the applicable application fees and additional costs associated with investigations.
General public. This proposed rulemaking will have no significant fiscal impact on the general public.
Paperwork Requirements
Applicants for and holders of slot machine licenses, manufacturer designee licenses, principal and key employee licenses, vendor certifications or registrations, and employees required to obtain an occupation permit or nongaming employee registration will be required to complete the applicable initial application and renewal forms.
Effective Date
The proposed rulemaking will become effective upon final-form publication in the Pennsylvania Bulletin.
Public Comments
Interested persons are invited to submit written comments, suggestions or objections regarding the proposed rulemaking within 30 days after the date of publication in the Pennsylvania Bulletin to Paul Resch, Secretary, Pennsylvania Gaming Control Board, P. O. Box 69060, Harrisburg, PA 17106-9060, Attention: Public Comment on Regulation #125-64.
Contact Person
The contact person for questions about this proposed rulemaking is Richard Sandusky, Director of Regulatory Review, (717) 214-8111.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on June 1, 2007, the Board submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Gaming Oversight Committee and the Senate Community, Economic and Recreational Development Committee. A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Board, the General Assembly and the Governor of comments, recommendations or objections raised.
THOMAS A. DECKER,
ChairpersonFiscal Note: 125-64. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD
Subpart B. LICENSING, PERMITTING, CERTIFICATION AND REGISTRATION
CHAPTER 429a. MANUFACTURER DESIGNEES Sec.
429a.1. Manufacturer designee general requirements. 429a.2. Manufacturer designee license applications and standards. 429a.3. Additional manufacturer designee licenses. 429a.4. Manufacturer designee license term and renewal. 429a.5. Responsibilities of a manufacturer designee. 429a.6. Manufacturer designee as agent. 429a.7. Manufacturer designee agreements. § 429a.1. Manufacturer designee general requirements.
(a) A manufacturer designee seeking to supply or repair slot machines and associated equipment for use in this Commonwealth shall apply to the Board for a manufacturer designee license.
(b) In accordance with section 1317.1 of the act (relating to manufacturer licenses), an applicant for or the holder of a manufacturer designee license or any of the applicant's or holder's affiliates, intermediaries, subsidiaries or holding companies, may not apply for or hold a slot machine license or supplier license.
(c) A licensed manufacturer designee may supply or repair slot machines or associated equipment manufactured by a manufacturer with whom the manufacturer designee has an agreement or has executed a contract authorizing the manufacturer designee to do so.
(d) Limitations will not be placed on the number of manufacturer designee licenses issued or when an application for a manufacturer designee license may be filed.
§ 429a.2. Manufacturer designee license applications and standards.
(a) An applicant for a manufacturer designee license shall submit:
(1) An original and three copies of the Manufacturer Designee Application and Disclosure Information Form unless otherwise directed by the Board.
(2) A nonrefundable application fee.
(3) A diversity plan as set forth in section 1325(b) of the act (relating to license or permit issuance) and Chapter 481a (relating to diversity).
(4) An application from every key employee under § 435a.2 (relating to key employee license) and principal under Chapter 433a (relating to principal licenses) as specified by the Manufacturer Designee Application and Disclosure Information Form.
(5) If applicable, copies of all filings required by the SEC during the 2 immediately preceding fiscal years, including all annual reports filed with the SEC, under sections 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C.A. §§ 78m and 78o(d)), quarterly reports filed with the SEC, under sections 13 or 15(d) of the Securities Exchange Act of 1934, current reports filed with the SEC, under sections 13 or 15(d) of the Securities Exchange Act of 1934, and proxy statements issued by the applicant.
(6) An affirmation that neither the applicant nor any of its affiliates, intermediaries, subsidiaries or holding companies, holds any direct or indirect ownership interest in any applicant for or holder of a slot machine license or supplier license, or employs, directly or indirectly, any person who satisfies the definition of a principal or key employee of a slot machine applicant or licensee or supplier applicant or licensee. In applying this provision to an applicant for a manufacturer designee license, the Board will not include interests that are held by individuals in any of the following manners:
(i) In mutual funds when the value of the interest owned does not exceed 1% of the total fair market value of the applicant or licensee and provided that the mutual fund is not a nondiversified fund invested primarily in entities operating in, or connected with, the gaming industry.
(ii) Through defined benefit pension plans.
(iii) Through deferred compensation plans organized and operated under section 457 of the Internal Revenue Code of 1986 (26 U.S.C.A. § 457).
(iv) In blind trusts over which the holder may not exercise managerial control or receive income during the time period the holder is subject to these provisions.
(v) Through tuition account plans organized and operated under section 529 of the Internal Revenue Code of 1986 (26 U.S.C.A. § 529).
(vi) Through plans described in section 401(k) of the Internal Revenue Code of 1986 (26 U.S.C.A. § 401(k)).
(vii) An interest held by a spouse if an action seeking a divorce and dissolution of marital status has been initiated in any jurisdiction by either party to the marriage.
(7) A sworn or affirmed statement that the applicant has developed and implemented internal safeguards and policies to prevent a violation of section 1513 of the act (relating to political influence) and a copy of the safeguards and policies.
(b) In addition to the materials required under subsection (a), an applicant for a manufacturer designee license shall:
(1) Promptly provide information requested by the Board relating to its application or regulation and cooperate with the Board in investigations, hearings and enforcement and disciplinary actions.
(2) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications).
(c) An applicant for a manufacturer designee license will be required to reimburse the Board for additional costs, based on the actual expenses incurred by the Board, in conducting the background investigation.
(d) In determining whether an applicant will be licensed as a manufacturer designee under this section, the Board will consider the following:
(1) The financial fitness, good character, honesty, integrity and responsibility of the applicant.
(2) If all principals of the applicant are individually eligible and suitable under the standards of section 1317.1 of the act.
(3) The integrity of all financial backers.
(4) The suitability of the applicant and all principals and key employees of the applicant based on the satisfactory results of:
(i) A background investigation of all principals and key employees or their equivalent in other jurisdictions.
(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.
§ 429a.3. Additional manufacturer designee licenses.
(a) A licensed manufacturer designee whose license is in good standing may apply for an additional manufacturer designee license for a different licensed manufacturer by submitting:
(1) An original and three copies of the Additional Manufacturer Designee Application and Disclosure Information Form unless otherwise directed by the Board.
(2) A nonrefundable application fee.
(b) An applicant for an additional manufacturer designee license shall also comply with § 429a.2(b)(1), (2) and (c) (relating to manufacturer designee license applications and standards).
§ 429a.4. Manufacturer designee license term and renewal.
(a) A manufacturer designee license or renewal will be valid for 1 year from the date on which the license or renewal is approved by the Board.
(b) A renewal application and renewal fee shall be filed at least 2 months prior to the expiration of the current license.
(c) A manufacturer designee license for which a completed renewal application and fee has been received by the Board will continue in effect for an additional 6-month period or until acted upon by the Board, whichever occurs first.
§ 429a.5. Responsibilities of a manufacturer designee.
(a) A holder of a manufacturer designee license shall have a continuing duty to:
(1) Provide information requested by the Board relating to licensing or regulation; cooperate with the Board in investigations, hearings and enforcement and disciplinary actions; and comply with conditions, restrictions, requirements, orders and rulings of the Board in accordance with the act.
(2) Report a change in circumstances that may render a holder of a manufacturer or manufacturer designee license ineligible, unqualified or unsuitable to hold a license under the standards and requirements of the act and of this part.
(3) Provide a copy of SEC filings listed in § 427a.2 (a)(5) (relating to manufacturer license applications and standards) that are filed after the date of issuance of its license. The copy shall be submitted no later than 30 days after the date of filing with the SEC.
(b) A holder of a manufacturer designee license shall establish a place of business in this Commonwealth.
(c) An employee of a licensed manufacturer designee whose duties of employment or incidental activities related to employment require the employee to be on the gaming floor or in a restricted area shall be required to obtain an occupation permit under § 435a.3 (relating to occupation permit).
§ 429a.6. Manufacturer designee as agent.
(a) Notwithstanding any provision to the contrary in a contract between a licensed manufacturer and a licensed manufacturer designee, the licensed manufacturer designee shall be deemed to be an agent of the licensed manufacturer for the purposes of imposing liability for any act or omission of the licensed manufacturer designee in violation of the act or this part.
(b) Notwithstanding any provision to the contrary in a contract between a licensed manufacturer and a licensed manufacturer designee, the licensed manufacturer shall be jointly and severally liable for any act or omission by the licensed manufacturer designee in violation of the act or this part, regardless of actual knowledge by the licensed manufacturer of the act or omission.
§ 429a.7. Manufacturer designee agreements.
(a) Agreements between a licensed manufacturer and a licensed manufacturer designee shall be submitted to the Bureau of Licensing for approval. An agreement between a licensed manufacturer and a licensed manufacturer designee will not become effective and a manufacturer designee license will not be issued until the Bureau of Licensing has reviewed and approved the terms and conditions of the agreement.
(b) Amendments to agreements between a licensed manufacturer and a licensed manufacturer designee shall be submitted to the Bureau of Licensing for approval at least 30 days prior to the effective date of the proposed amendment. The amendment will not become effective until the Bureau of Licensing has reviewed and approved the terms and conditions of the amendment.
(c) An agreement between a licensed manufacturer and a licensed manufacturer designee submitted for Bureau of Licensing review and approval must enumerate with specificity the responsibilities of the licensed manufacturer and the licensed manufacturer designee.
(d) Agreements must contain a provision that describes with particularity terms related to compensation of the licensed manufacturer or the licensed manufacturer designee.
CHAPTER 433a. PRINCIPAL LICENSES Sec.
433a.1. Definitions. 433a.2. Directors or officers. 433a.3. Individual ownership. 433a.4. Entity ownership. 433a.5. Institutional investors. 433a.6. Lenders and underwriters. 433a.7. Trusts. 433a.8. Principal applications. 433a.9. Principal license term and renewal. § 433a.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Applicant--A person that has submitted an application to the Board for a slot machine license, manufacturer license, manufacturer designee license, supplier license, management company license or junket enterprise license.
Director--A director of a corporation or any person performing similar functions with respect to an entity, whether incorporated or unincorporated.
Entity--A person, other than an individual.
Holding company--A person, other than an individual, that, directly or indirectly, owns, has the power or right to control or has the power or right to vote 20% or more of the outstanding voting securities of a corporation or other entity. A holding company indirectly has, holds or owns the power, right or security if it does so through an interest in a subsidiary or successive subsidiaries.
Indirect ownership interest--An ownership interest in an entity that has a direct ownership interest in an applicant or licensee, or a direct ownership interest in an entity that has an ownership interest in an applicant or licensee through one or more intervening entities.
Individual--A natural person.
Lending institution--A person who has been issued a license to lend money by a state or Federal agency or a person who satisfies the definition of ''qualified institutional buyer'' under 17 CFR 230.144a (relating to private resales of securities to institutions).
Licensee--A person who has been issued a slot machine license, manufacturer license, manufacturer designee license, supplier license, management company license or junket enterprise license.
Officer--A president, chief executive officer, chief operating officer, secretary, treasurer, principal legal officer, principal compliance officer, principal financial officer, comptroller, principal accounting officer, chief engineer or technical officer of a manufacturer, or principal slot operations officer of a slot machine licensee and any person routinely performing corresponding functions with respect to an entity whether incorporated or unincorporated.
Principal affiliate--An intermediary or holding company of an applicant or licensee.
Principal entity--An entity that meets the definition of ''pincipal'' in section 1103 of the act (relating to definitions) or is otherwise required to be licensed as a principal and is not an intermediary or holding company of an applicant or licensee.
Private investment fund--An entity that meets the definition of ''investment company'' under section 3(a)(1) of the Investment Company Act of 1940 (15 U.S.C.A. § 80a-3(a)(1)), but is otherwise exempt from the definition of ''investment company'' under section 3(c)(7) of the Investment Company Act of 1940 (15 U.S.C.A. § 80a-3(c)(7)).
Registered investment adviser--An investment adviser that has registered with the SEC under the Investment Advisers Act of 1940 (15 U.S.C.A. §§ 80a-1--80a-64).
Registered investment company--An investment company that has registered with the SEC under the Investment Company Act of 1940.
Voting security--A security or other interest which entitles the owner to vote for the election of:
(i) A director of a corporation.
(ii) A person performing functions similar to a director with respect to an organization, whether incorporated or unincorporated.
§ 433a.2. Directors or officers.
(a) Each officer and director of an applicant or licensee shall be licensed as a principal.
(b) Each officer and director of an intermediary, subsidiary or holding company of a slot machine applicant or licensee shall be licensed as a principal.
(c) Each officer and director of an intermediary or holding company of a licensed supplier, licensed manufacturer, licensed manufacturer designee, licensed junket enterprise or licensed management company shall be licensed as a principal.
(d) Notwithstanding subsection (b), an officer or director of a publicly traded intermediary or holding company of a slot machine applicant or licensee, who is not a member of the audit committee, may request that the Board waive his requirement to be licensed as a principal if he is not actively involved in the affairs of the slot machine applicant or licensee. The waiver request shall be submitted on a Principal/Key Employee Waiver Form, and require that the officer or director certify that he is not actively involved in the affairs of the slot machine applicant or licensee.
(e) Notwithstanding subsection (c), an outside director of a publicly traded intermediary or holding company of a licensed supplier, licensed manufacturer, licensed manufacturer designee, licensed junket enterprise or licensed management company who is not a member of the audit committee or chairman of the board of directors of the intermediary or holding company may not be licensed as a principal unless the Board determines that the licensure of the individual is necessary to protect the integrity of gaming in this Commonwealth.
(f) Notwithstanding subsection (c), an officer of a publicly traded intermediary or holding company of a licensed supplier, licensed manufacturer, licensed manufacturer designee, licensed junket enterprise or licensed management company may request that the Board waive his requirement to be licensed as a principal if he is not actively involved in the affairs of the applicant or licensee. The waiver request shall be submitted on a Principal/Key Employee Waiver Form and require that the officer certify that he is not actively involved in the affairs of the applicant or licensee.
§ 433a.3. Individual ownership.
(a) An individual who has a direct ownership interest in, or has a right to any profit, distribution or benefit directly from, an applicant or licensee shall be licensed as a principal.
(b) An individual who, directly or indirectly, has the power to control or direct the management or policies of an applicant or licensee shall be licensed as a principal.
(c) An individual who has a direct ownership interest in, or has a right to any profit, distribution or benefit directly from, an intermediary or holding company of a slot machine applicant or licensee shall be licensed as a principal.
(d) An individual that has a 1% or greater indirect ownership interest in an applicant or licensee shall be licensed as a principal. An ownership interest that is held indirectly by an individual through one or more intervening entities will be determined by successive multiplication of the ownership percentages for each link in the vertical chain.
(e) Notwithstanding any provision to the contrary in this section, an individual who holds less than 5% of the voting securities of an applicant or licensee or an intermediary or holding company of an applicant or licensee that is a publicly traded company will not be required to be licensed as a principal.
(f) Each individual who is a grantor, trustee or beneficiary of a trust that is required to be licensed as a principal under this chapter shall be licensed as a principal.
(g) The Board may require any individual who has a financial interest in, or receives an economic benefit from, an applicant or licensee to be licensed as a principal.
§ 433a.4. Entity ownership.
(a) An intermediary, subsidiary or holding company of an applicant or licensee shall be licensed as a principal.
(b) An entity that, indirectly or directly, has the power to control or direct the management or policies of an applicant or licensee shall be licensed as a principal.
(c) An entity that has a direct ownership interest in, or has a right to any profit, distribution or benefit directly from, an applicant or licensee shall be licensed as a principal.
(d) An entity that has a direct ownership interest in, or has a right to any profit, distribution or benefit directly from, an intermediary, subsidiary or holding company of a slot machine applicant or licensee, shall be licensed as a principal.
(e) An entity that has an indirect ownership interest of 5% or greater in an applicant or licensee shall be licensed as a principal. An ownership interest that is held indirectly by an entity through one or more intervening entities will be determined by successive multiplication of the ownership percentages for each link in the vertical chain.
(f) Notwithstanding subsection (e), a private investment fund, including its feeder funds, that has an indirect ownership interest in an applicant or licensee, shall be exempt from obtaining a principal license if the following apply:
(1) Neither the private investment fund, nor the investors in the private investment fund have voting rights or any other power to control or to influence the applicant or licensee.
(2) At least 20% of the investors in the private investment fund are ''institutional investors'' as defined in § 401a.3 (relating to definitions).
(3) No investor in the private investment fund has a right to redeem his interest in the private investment fund within 2 years of the purchase of the interest.
(4) Each individual and entity that has the ability to control the management of the private investment fund is licensed as a principal.
(5) The private investment fund agrees to provide the Board with information the Board deems necessary to evaluate the integrity of the private investment fund and its investors, and their compliance with this section. Information provided to the Board will be confidential.
(6) Each individual required to be licensed as a principal in paragraph (4) shall as part of his principal license application sign a notarized statement affirming, at a minimum, the following:
(i) The private investment fund's investment in the applicant or licensee will not violate applicable United States, Commonwealth or international laws and regulations, including anti-money laundering regulations or conventions, the Internal Revenue Code of 1986, the Employee Retirement Income Security Act of 1974, the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940 and the Investment Advisers Act of 1940.
(ii) To his best knowledge, no investor in the private investment fund:
(A) Holds an interest in the private investment fund in contravention of any applicable United States, Commonwealth or international laws and regulations, including anti-money laundering regulations or conventions, the Internal Revenue Code of 1986, the Employee Retirement Income Security Act of 1974, the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940 and the Investment Advisers Act of 1940.
(B) Is directly or indirectly affiliated with, a prohibited country, territory, individual or entity on the List of Specially Designated Nationals and Blocked Persons maintained by the United States Treasury Department's Office of Foreign Asset Control.
(C) Is currently charged with or is under indictment for a felony or gambling offense in any jurisdiction.
(D) Has been convicted of a felony and 15 years have not elapsed from the date of expiration of the sentence for the offense.
(g) A private investment fund that does not qualify for the exemption under subsection (f) solely on the basis that it fails to satisfy paragraph (3), may still qualify for an exemption from licensure if the private investment fund satisfies the other conditions under subsection (f) and its indirect ownership interest in the applicant or licensee is less than 10%.
(h) Notwithstanding any provision to the contrary, the Board may require any entity that has a financial interest in, or receives any economic benefit from, an applicant or licensee to be licensed as a principal.
§ 433a.5. Institutional investors.
(a) Notwithstanding any provision to the contrary in this chapter, an institutional investor that owns less than 15% of the outstanding voting securities of a publicly traded intermediary or holding company of an applicant for or holder of a manufacturer license, manufacturer designee license, supplier license, management company license or junket enterprise license will not be required to be licensed as a principal if the following conditions are satisfied:
(1) The institutional investor or the applicant or licensee files a notice with the Board containing a description of the institutional investor's interests.
(2) The institutional investor has filed a Schedule 13G with the SEC, and the institutional investor continues to be eligible to file the Schedule 13G.
(b) Notwithstanding any provision to the contrary in this chapter, an institutional investor that owns less than 10% of the outstanding voting securities of an intermediary or holding company of a slot machine licensee or applicant shall be eligible to receive a waiver from the requirements of licensure from the Board by filing a Principal Waiver-Entity Form. The waiver request must include, at a minimum, a certification by the institutional investor stating that the institutional investor has no present involvement in, and no intention of influencing or affecting the affairs of, the slot machine applicant or licensee or an intermediary or holding company of the slot machine applicant or licensee and will give the Board 30 days notice if the institutional investor intends to do so.
(c) Notwithstanding subsection (b), an institutional investor that has been granted a waiver shall be permitted to vote on matters put to the vote of the outstanding security holders.
(d) A holding company of an institutional investor may file a notice or waiver request on behalf of its institutional investor subsidiaries provided that the holding company does not own more than 5% or more of the securities of the intermediary or holding company of the applicant or licensee.
(e) A registered investment adviser or a holding company of a registered investment adviser may file a notice or waiver request, when permitted, on behalf of the registered investment companies that hold securities beneficially owned by the registered investment adviser.
§ 433a.6. Lenders and underwriters.
(a) Each lender and underwriter of a slot machine, manufacturer or supplier applicant or licensee shall be licensed as a principal.
(b) Notwithstanding subsection (a), a lender that is a bank or lending institution which makes a loan to a slot machine applicant or licensee in the ordinary course of business will not be required to be licensed as a principal. The Board may require a bank or lending institution to provide information or other assurances to verify its eligibility for this exemption.
(c) An underwriter or lender of an intermediary, subsidiary or holding company of a slot machine applicant or licensee shall be required to be licensed as a principal if the Board determines that the suitability of the underwriter or lender is at issue and is necessary to consider a pending application for a slot machine license.
(d) Notwithstanding any provision to the contrary in this section, the Board may require the licensure of any lender or underwriter of a licensee or any holding or intermediary company or subsidiary of a licensee to produce information, documentation and assurances concerning the lender or underwriter if the Board has probable cause to believe that the lender or underwriter would not satisfy the character requirements of 4 Pa.C.S. § 1310(a) (relating to slot machine license application character requirements).
§ 433a.7. Trusts.
(a) A trust or similar business entity that holds a direct ownership interest in an applicant or licensee shall be licensed as a principal.
(b) A trust or similar business entity that holds a 1% or greater indirect ownership interest in an applicant or licensee shall be licensed as a principal. An ownership interest that is held indirectly by an entity through one or more intervening entities will be determined by successive multiplication of the ownership percentages for each link in the vertical chain.
(c) A trust or similar business entity that receives any payment, percentage or share of revenue, profits or receipts directly from an applicant or licensee shall be licensed as a principal.
(d) A trust or similar business entity will not be issued a principal license unless each trustee, grantor and beneficiary, including a minor child beneficiary, has been granted a principal license.
(e) Notwithstanding any provision to the contrary in this section, a trust will not be required to be licensed as a principal if the holdings of the trust consist of less than 5% of the voting securities of a publicly traded company.
§ 433a.8. Principal applications.
(a) An individual required to be licensed as a principal shall file a completed Multi-jurisdictional Personal History Disclosure Form and the Pennsylvania Supplement to the Multi-jurisdictional Personal History Disclosure Form and submit the applicable application fee.
(b) A principal entity required to be licensed as a principal shall file a completed Principal Entity Form and submit the applicable application fee.
(c) A principal affiliate shall apply for the principal license as if were itself applying for the slot machine license, manufacturer license, manufacturer designee license, supplier license, management company license or junket enterprise license.
(d) In addition to the materials required under subsections (a) or (b), an applicant for a principal license shall:
(1) Promptly provide information requested by the Board relating to the principals' application or regulation and cooperate with the Board in investigations, hearings and enforcement and disciplinary actions.
(2) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications).
§ 433a.9. Principal license term and renewal.
(a) A principal license or renewal shall be valid for 1 year from the date on which the license or renewal is approved by the Board.
(b) A renewal application and renewal fee shall be filed at least 2 months prior to the expiration of the current license.
(c) A principal license for which a completed renewal application and fee has been received by the Board will continue in effect until the Board sends written notification to the holder of the principal license that the Board has approved or denied the license.
CHAPTER 435a. EMPLOYEES Sec.
435a.1. General provisions. 435a.2. Key employee license. 435a.3. Occupation permit. 435a.4. Key employee license and occupation permit term and renewal. 435a.5. Nongaming employee registration. 435a.6. Board credentials. 435a.7. Emergency credentials. 435a.8. Temporary credentials for principals and key employees. 435a.9. Temporary credentials for nongaming employees. 435a.10. Loss or destruction of credentials. § 435a.1. General provisions.
(a) An individual seeking a key employee license, occupation permit or nongaming employee registration shall apply to the Board as required by this chapter.
(b) In addition to the materials required under §§ 435a.2, 435a.3 and 435a.5 (relating to key employee license; occupation permit; and nongaming employee registration), an applicant shall:
(1) Promptly provide information requested by the Board relating to its application or regulation and cooperate with the Board in investigations, hearings and enforcement and disciplinary actions.
(2) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications).
(c) An individual who receives a license, permit or registration under this part shall have the continuing duty to report to the Board an arrest, charge, indictment or conviction for an offense under 18 Pa.C.S. (relating to crimes and offenses), or an offense under 75 Pa.C.S. § 3802 (relating to driving under influence of alcohol or controlled substance) or of comparable offenses in other states or foreign jurisdictions.
(d) The holder of a key employee license, occupation permit or nongaming employee registration shall provide an updated photograph at the request of the Board.
(e) An individual may not be employed in this Commonwealth by an applicant for or holder of a license, certification or registration under this part in any capacity unless the individual is a citizen of the United States or can demonstrate that he holds a current and valid work authorization and is not restricted from working in the capacity for which employment is sought or held. Authorization to work in the United States may be demonstrated by submitting one of the following:
(1) A permanent resident alien card.
(2) A temporary employment authorization card.
(3) A document which the Board deems to be sufficient evidence or authorization.
(f) A license or permit will not be issued to an individual who has been convicted of a felony or gambling offense in any jurisdiction unless 15 years have elapsed from the date of expiration of the sentence for the offense.
(g) When considering an application for a registration from an individual who has been convicted of a felony or gaming offense in any jurisdiction or an application for a license or permit from an individual who has been convicted of a felony or gaming offense in any jurisdiction when 15 years have elapsed from the date of expiration of the sentence for the offense, the Board will consider:
(1) The nature and duties of the applicant's position with the licensed entity.
(2) The nature and seriousness of the offense or conduct.
(3) The circumstances under which the offense or conduct occurred.
(4) The age of the applicant when the offense or conduct was committed.
(5) Whether the offense or conduct was an isolated or a repeated incident.
(6) Evidence of rehabilitation, including good conduct in the community, counseling or psychiatric treatment received and the recommendation of persons who have substantial contact with the applicant.
(h) An individual who holds a license or permit may not wager at any licensed facility in this Commonwealth.
(i) A registrant or employee who is not required to obtain a license or permit may not wager at the licensed facility in which the registrant or employee is employed.
(j) A licensed, permitted or registered employee shall wait at least 30 days following the date that the employee either leaves employment with a slot machine licensee or is laid off or terminated from employment with a slot machine licensee before the employee may wager at the licensed facility in which the employee was formerly employed.
(k) An individual required to obtain a license or permit by this part shall demonstrate that he is current and not in arrears on any financial obligation owed to the Commonwealth or any subdivision thereof, including court-ordered child-support payments.
§ 435a.2. Key employee license.
(a) An applicant for a key employee license from the Board shall submit:
(1) An original and three copies of the Multi-jurisdictional Personal History Form and the Principal/Key Employee Form--Pennsylvania Supplement to the Multi-jurisdictional Personal History Disclosure Form unless otherwise directed by the Board.
(2) A nonrefundable application fee.
(b) In addition to the materials required under subsection (a), an applicant for a key employee license shall:
(1) Promptly provide information requested by the Board relating to its application or regulation and cooperate with the Board in investigations, hearings and enforcement and disciplinary actions.
(2) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications).
(c) In addition to the information under subsections (a) and (b), the Board may require letters of reference from law enforcement agencies under section 1310(b) of the act (relating to slot machine license application character requirements).
(d) An applicant for a key employee license will be required to reimburse the Board for additional costs, based on the actual expenses incurred by the Board, in conducting the background investigation.
(e) After review of the information submitted under subsections (a), (b) and (c), including the background investigation, the Board may issue a key employee license if the individual applicant has proven by clear and convincing evidence that the individual is a person of good character, honesty and integrity and is eligible and suitable to be licensed as a key employee.
(f) A license issued under this section will be nontransferable.
(g) An individual who is a key employee may request in writing that the Board waive the obligation to be licensed as a key employee by:
(1) Filing an original and three copies of a Principal/Key Employee Waiver Form.
(2) A nonrefundable waiver application fee.
(h) As part of the waiver request, the individual shall be required to demonstrate one of the following:
(1) The individual is not assigned to an applicant's or licensee's gaming operations in this Commonwealth.
(2) The individual's duties do not have an effect on or require contact with slot machines for use or play in this Commonwealth.
(i) The request for a waiver must include, at a minimum, the following:
(1) A description of the individual's title, duties and responsibilities with the applicant, licensee or with any of its affiliates, intermediaries, subsidiaries or holding companies.
(2) A certification by the chief executive officer stating that the employee is not assigned to the licensee's gaming operations in this Commonwealth or that the employee's duties do not have an effect on or require contact with slot machines for use or play in this Commonwealth.
(j) An applicant for a key employee waiver will be required to reimburse the Board for additional costs, based on the actual expenses incurred by the Board, in conducting the background investigation.
§ 435a.3. Occupation permit.
(a) An applicant for an occupation permit shall submit:
(1) An original and three copies of the Gaming Employee Application and Disclosure Information Form or an electronic application using the SLOTS Link system.
(2) A nonrefundable application fee.
(3) Verification of an offer of employment from a licensed entity.
(b) In addition to the materials required under subsection (a), an applicant for an occupation permit shall:
(1) Promptly provide information requested by the Board relating to its application or regulation and cooperate with the Board in investigations, hearings and enforcement and disciplinary actions.
(2) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications).
(c) An applicant for an occupation permit may be required to reimburse the Board for additional costs, based on the actual expenses incurred by the Board, in conducting the background investigation.
(d) After review of the information submitted under subsections (a) and (b), including a background investigation, the Board may issue a permit if the individual has proven that the individual is a person of good character, honesty and integrity and is eligible and suitable to hold an occupation permit.
(e) An individual who wishes to receive an occupation permit under this chapter may authorize an applicant for or holder of a slot machine, management company, manufacturer, manufacturer designee or supplier license or vendor certification to file an application on the individual's behalf.
(f) A permit issued under this section is nontransferable.
§ 435a.4. Key employee license and occupation permit term and renewal.
(a) A key employee license or occupation permit issued under this chapter will be valid for 1 year from the date of Board approval.
(b) A renewal application shall be submitted to the Board at least 60 days prior to the expiration of a key employee license or occupation permit.
(c) A key employee license or occupation permit for which a completed renewal application and fee has been received by the Board will continue in effect until the Board sends written notification to the holder of the key employee license or occupation permit that the Board has approved or denied the key employee license or occupation permit.
§ 435a.5. Nongaming employee registration.
(a) An applicant for a nongaming employee registration shall submit:
(1) An original and three copies of the Nongaming Employee Registration Form or an electronic application using the SLOTS Link system.
(2) A nonrefundable application fee.
(b) In addition to the materials required under subsection (a), an applicant for a nongaming employee registration shall:
(1) Promptly provide information requested by the Board relating to its application or regulation and cooperate with the Board in investigations, hearings and enforcement and disciplinary actions.
(2) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications).
(c) After review of the information required under subsections (a) and (b), the Board may register the individual if the individual has proven that he is eligible and suitable to be registered under this section.
(d) An individual who wishes to receive a nongaming employee registration under this chapter may authorize an applicant for or holder of a slot machine license or a vendor certification to file an application on the individual's behalf.
§ 435a.6. Board credentials.
(a) The following individuals shall obtain a Board credential:
(1) A principal whose duties are required to be performed at a licensed facility in excess of 12 days in a 12-month period.
(2) Key employees.
(3) Gaming employees.
(4) Nongaming employee registrants.
(5) State employees whose duties require the employee's presence at a licensed facility more frequently than once a month.
(b) The credential will contain the following information:
(1) The name, address, date of birth, sex, height, weight, hair color and eye color of the licensee, permittee or registrant.
(2) A photograph of the face of the individual to whom the credential has been issued which meets the standards of the Commonwealth Photograph Imaging Network.
(3) The inscription ''Pennsylvania Gaming Control Board.''
(4) The seal of the Commonwealth.
(5) A license, permit or registration number.
(6) The type of license, permit or registration.
(7) An expiration date.
(8) The signature of the employee.
(9) Other security features as determined by the Board.
(c) An individual required to obtain a board credential shall carry the Board credential on his person at all times while engaged in the performance of his duties on the premises of a licensed facility.
(d) Except as provided in § 435a.7 (relating to emergency credentials), slot machine and management company licensees are prohibited from allowing a principal who is required to obtain a credential, key employee, gaming employee or nongaming employee registrant to perform his duties on the premises of a licensed facility unless the employee has his Board credential.
(e) Notwithstanding subsection (a), the Board may, upon written request by a slot machine or management company licensee and upon a showing of good cause, exempt certain positions, titles or persons from the requirements of this section.
(f) An employee whose license, permit or registration has been suspended or revoked by the Board shall surrender the Board credential to the Board.
§ 435a.7. Emergency credentials.
(a) An emergency credential obtained from the Board may be issued by the security department of a slot machine licensee to a principal, key employee, gaming employee or nongaming employee of the slot machine licensee who does not have the credential on his person, or whose credential has been stolen, lost or destroyed, to enable the employee to perform the employee's duties at the licensed facility, if the security department of the slot machine licensee performs the following actions prior to issuing the emergency credential:
(1) Verifies that the employee is listed in the slot machine licensee's current employee status report.
(2) Verifies that the employee holds a valid license, permit or registration.
(3) Confirms the employment and licensure, permit or registration information of the employee with the supervisor of the employee.
(4) Verifies that fewer than 12 emergency credentials have been issued to the particular employee in the past 12 months.
(5) Maintains, in writing, an emergency credentials log containing the following information:
(i) The name and license, permit or registration number of the employee to whom the emergency credential was issued.
(ii) The date and time that the emergency credential was issued.
(iii) The name and license, permit or registration number of the slot machine licensee security department employee issuing the emergency credential.
(iv) The badge number of the emergency credential that was issued.
(b) Each slot machine licensee shall submit a copy of its emergency credential log for the preceding year to the Bureau of Licensing by January 15 of the following year.
(c) Emergency credentials:
(1) Will be valid for a time period not to exceed 72 hours.
(2) Will be sequentially numbered.
(3) Shall be stored in the offices of the security department and distributed by that department in accordance with this section and the slot machine licensee's procedures submitted to and approved by the Board.
§ 435a.8. Temporary credentials for principals and key employees.
(a) A temporary credential may be issued by the Board to a principal or a key employee whose investigation for licensure by the Board is pending but whose presence is necessary in the licensed facility.
(b) A temporary credential issued under this section is void 120 days after the date of its issuance.
(c) The Board may extend the expiration date of a temporary credential if the Board determines additional time is needed to complete the investigation for licensure.
§ 435a.9. Temporary credentials for nongaming employees.
(a) A temporary credential may be issued by the Board to a nongaming employee if:
(1) The applicant has submitted the application materials required under § 435a.5 (relating to nongaming employee registration).
(2) The applicant has been fingerprinted and photographed by the Pennsylvania State Police.
(b) Temporary credentials for nongaming employees will be issued by the Bureau.
(c) A temporary credential issued under this section will be valid for 30 days.
§ 435a.10. Loss or destruction of credentials.
(a) As soon as possible, but no later than 24 hours, following the loss or destruction of a Board credential, emergency credential or temporary credential, the person to whom the credential was issued shall notify the security department of the slot machine licensee.
(b) The security department of the slot machine licensee shall notify the Board in writing within 24 hours and may issue an emergency credential in accordance with § 435a.7 (relating to emergency credentials).
(c) An employee who has lost his Board credential may request a duplicate Board credential by submitting a Request for Duplicate PGCB Credential Form and the fee established by the Board to the Bureau of Licensing.
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