PROPOSED RULEMAKING
PENNSYLVANIA GAMING CONTROL BOARD
[ 58 PA. CODE CHS. 421a, 423a, 425a, 427a, 429a, 431a, 433a, 435a, 437a, 440a, 441a, 461a, 465a, 609a, 623a, 633a, 643a AND 645a ]
Licensing; Slot Software; Count Room Characteristics; Credit; Table Game Rules
[43 Pa.B. 6764]
[Saturday, November 16, 2013]In accordance with 4 Pa.C.S. Part II (relating to gaming), the Pennsylvania Gaming Control Board (Board), under the general authority in 4 Pa.C.S. § 1202(b)(9)—(23) (relating to general and specific powers) and the specific authority in 4 Pa.C.S. §§ 1205, 1206(f) and (g), 1207(1) and (2), 1208(1)(iii), 1209(b), 1212, 1213, 13A11, 13A12, 13A13, 13A14, 13A15 and 1802 and 4 Pa.C.S. Chapter 13 proposes to amend Chapters 421a, 423a, 425a, 427a, 429a, 431a, 433a, 435a, 437a, 440a, 441a, 461a, 465a, 609a, 623a, 633a, 643a and 645a to read as set forth in Annex A.
Purpose of the Proposed Rulemaking
This proposed rulemaking is a comprehensive amendment package addressing 13 chapters in Subpart B (relating to licensing, permitting, certification and registration). This proposed rulemaking should provide clarity, delete redundant provisions, decrease the number of copies of applications required, allow for an increase in ownership of licensees by institutional investors and ensure that a background investigation is completed on nongaming employees every 4 years.
Explanation
General revisions
The Board is referenced throughout Subpart B. However, many of the provisions currently listed as Board functions are functions associated with a specific bureau within the Board. To provide some clarity to the regulated community, ''Board'' is proposed to be replaced, when relevant, with a specific bureau.
Additionally, all references to the Board's web site are proposed to be deleted. The definition of ''Board web site'' in § 401a.3 (relating to definitions) is applicable to Part VII (relating to Gaming Control Board) and eliminates the need to revise references should the address change again in the future.
Chapter 421a. General provisions
In § 421a.1 (relating to general requirements), references to ''approval'' are proposed to be replaced with ''authorization'' to reflect that gaming service providers (GSP) may receive an authorization to conduct business prior to being certified or registered with the Board.
In subsection (b), the reference to the type of investigation conducted is proposed to be deleted. Investigations are addressed in § 421a.3 (relating to investigations; supplementary information).
Proposed subsection (e)(2) requires applicants for and holders of licenses, permits, registrations, certifications or qualifications to report changes in circumstances that may render the applicant or holder unsuitable or ineligible to continue to apply for or hold a license, permit, certification, registration or qualification. This requirement is not new, simply proposed to be moved, without revisions, from Chapter 435a (relating to key, gaming and nongaming employees; Board-issued credentials). It is necessary to move these provisions into this section because Chapter 435a is applicable to key, gaming and nongaming employees; however, this standard is applicable to anyone with a license, permit, registration, certification or qualification.
Language in subsection (f) is redundant with proposed subsection (e)(2) and therefore is proposed to be deleted. Language in subsection (h) also is proposed to be deleted as redundant with language in subsection (a).
In accordance with 4 Pa.C.S. Part II, applicants for and holders of a license, permit, registration or certification have an ongoing duty to report information to the Board that may impact the applicant or holder's suitability or eligibility to hold a license, permit, registration or certification. If applicants or holders do not maintain suitability or eligibility, the Board may revoke, suspend or not issue or renew a license, permit, registration or certification. Proposed language in subsection (i) is added to reiterate that any person regulated by the Board has an ongoing duty to maintain suitability and eligibility in accordance with 4 Pa.C.S. Part II and the Board's regulations.
Language also is proposed to be deleted from subsection (i). The Board does not believe this language provides specificity as to which parties might be jointly and severely liable for conduct. The chapters on management companies, GSPs, manufacturer designees, and the like address joint and several liability with slot machine licensees.
Subsection (j) is proposed to be deleted. This provision is a requirement of the Board not the regulated entities. It is a statutory requirement of 4 Pa.C.S. Part II and is therefore unnecessary to recite in the regulations.
Section 421a.2(a)(4) (relating to disqualification criteria) is proposed to be amended. The Board believes proposed language in this section provides a clearer standard regarding the circumstances under which the Board may deny, suspend or revoke an applicant for or holder of a license, permit, registration or certification.
Proposed subsection (a)(6) is existing language moved from § 435a.1(o) (relating to general provisions). As previously stated, Chapter 435a relates to key, gaming and nongaming employees and this requirement is applicable to all individuals applying for a license (including principals), permit, registration or certification. Proposed language in subsections (b)—(e) is existing language which is also moved from § 435a.1(e)—(j).
Proposed § 421a.3(c) requires applicants to reimburse the Board for actual expenses incurred in conducting background investigations. This is existing language moved from §§ 427a.2(c), 429a.2(c), 431a.2(c) and 435a.2(d). Because applicants are required to reimburse the Board for actual expenses it made logical sense to include this provision in the general requirements applicable to all applicants.
The provisions on presuitability determinations in § 421a.4 (relating to presuitability determination) are proposed to be amended to delete the requirement that a request for the presuitability determination be made by petition to the Board. Typically if a presuitability determination were conducted, the Bureau of Investigations and Enforcement (BIE) would already be investigating the applicant's eligibility and suitability in conjunction with an underlying application for a license or in conjunction with a petition for change of control or ownership. Requiring an additional petition for a presuitability determination would therefore be redundant and unnecessary. Instead, a request may now be made directly to the BIE.
The provisions regarding presuitability determinations in § 421a.4 are applicable to licensees but have not been applied to GSPs that are registered or certified. The reference to certification or registration in subsection (c) is therefore proposed to be deleted.
Section 421a.5(a) (relating to undue concentration of economic opportunities and control) is proposed to be amended to replace ''other'' license with ''principal'' license. Principals, specifically, are those individuals and entities that have ownership interest in or control over a licensee.
Language is proposed to be added to subsection (c)(1)(iii)—(v) to reflect the legalization of table games. Subsection (c)(1)(vi) is proposed to be deleted as this provision would not be applicable in making a determination as to whether there was an undue concentration of economic control of a slot machine licensee. Gross terminal revenue, not ticket-in, ticket-out, is indicative of overall play.
Chapter 423a. Applications; statement of conditions; wagering restrictions
Proposed language in § 423a.1(b) (relating to general requirements) reflects that gaming and nongaming employees file applications electronically using the Board's SlotsLink system.
Subsection (c) is proposed to be deleted as redundant. The requirements in this subsection are covered in subsections (b) and proposed subsection (d).
In proposed subsection (c), ''Board staff'' is proposed to be added because the Bureau of Licensing (BOL) or the BIE may need additional information from an applicant to process an application or complete an investigation.
Proposed subsection (d) is combined with the language in current subsection (f). The remaining subsections are proposed to be renumbered.
Language is proposed to be added to § 423a.2(a)(3) (relating to preliminary submission review). Applicants may be required to execute authorization forms for the release of information from other entities such as credit bureaus or banking institutions. Therefore, ''other entities'' is proposed to be added.
Subsection (c) is proposed to be deleted as inconsistent with current practice. The Board does not return applications but may deem the application abandoned or denied if an applicant doesn't cure deficiencies.
Section 423a.3(a)(1) and (2) (relating to application processing) is proposed to be deleted. An application is filed when submitted and an applicant will be given an opportunity to cure deficiencies if a part of the application is missing or incomplete. Subsection (a)(1) is proposed to be deleted as unnecessary. Subsection (a)(2) is proposed to be deleted to reflect Board practice. In only a few circumstances, pertaining primarily to the filing of an application for a slot machine license or table game certificate, is the applicant or an attorney for the applicant notified, in writing, that the application has been officially accepted.
Proposed subsection (a)(1) is proposed to be amended to reflect that the Board makes determinations regarding the information obtained by Board staff during an investigation. The remaining paragraphs are proposed to be renumbered.
Section 423a.5(a) (relating to application withdrawal) is proposed to be amended to reflect that the Board no longer requires the filing of a petition for most individuals requesting to withdraw their applications. Only entities that have applied for a license, certification or registration and individuals who have applied for a principal license or GSP qualification are still required to petition the Board to withdraw. For other individuals (key, gaming and nongaming employees), a request form is submitted to the BOL. Subsection (c) is therefore proposed to be deleted as redundant with the proposed language in subsection (a).
Current subsection (d)(1) and (2) is proposed to be deleted. Provisions regarding restrictions on subsequent application after a withdrawal with prejudice has been granted are already in § 423a.7 (relating to restriction on application after withdrawal with prejudice, denial or revocation).
Subsection (e) is proposed to be deleted to reflect Board practice. If an applicant fails to cure deficiencies with the application before it is officially accepted, the BOL may deem the application abandoned. Alternatively, if the applicant failed to cure deficiencies because the applicant failed to cooperate with an investigation, the Board may deny the application.
Section 423a.6(b) (relating to license, permit, registration and certification issuance and statement of conditions) is proposed to be amended for clarity and to reflect Board practice. GSPs, unlike licensees, are now required to execute a statement of conditions at the time of application because a GSP or gaming related GSP can be given interim authorization to conduct business prior to obtaining registration or certification from the Board.
Proposed § 423a.6a (relating to restriction on wagering after issuance of a license, permit, registration or certification) is language moved from § 435a.1(k)—(n). As previously stated, Chapter 435a is primarily applicable to key, gaming and nongaming employees; however, wagering restrictions are also applicable to principal licensees and qualifiers. For clarity to the regulated community, wagering restrictions are therefore proposed to be moved into a new section.
Section 423a.7(f) is proposed to be deleted as unnecessary. Typically when an individual's petition to reapply is denied, the Board will set a time period in which the person may reapply.
Chapter 427a. Manufacturers
Section 427a.1(d) and (e) (relating to manufacturer general requirements) is proposed to be deleted. Subsection (e) is a provision not applicable to the regulated community but to the Board, both provisions are already in 4 Pa.C.S. Part II and are therefore unnecessary to recite in the regulations. Language similar to subsection (e) is proposed to be deleted from §§ 429a.1(d) and 431a.1(c) (relating to manufacturer designee general requirements; and supplier general requirements).
Section 427a.2(a) (relating to manufacturer license applications and standards) is proposed to be amended to reflect that only one copy of an application is required instead of three. The number of required copies is also proposed to be reduced in Chapters 429a, 431a, 433a, 437a and 441a.
Subsection (a)(5) is proposed to be deleted. Gaming employee applications are not required to be filed with the application for a manufacturer license. Typically the suitability of an employee of a licensee is considered separately from the suitability or eligibility of the licensee and its principals (owners, officers and directors). Similar language is proposed to be deleted in § 431a.2(a)(5) (relating to supplier license applications and standards).
Subsection (a)(6) is also proposed to be deleted. Copies of Securities and Exchange Commission (SEC) filings are no longer required to be submitted as part of the application packet. The BIE, when conducting its investigation, will review all SEC filings for any publicly traded applicant. All SEC filings are available online. If an applicant is publicly traded on a foreign exchange, the BIE may request specific information from the applicant during the investigation if the information is not publicly available through a foreign exchange regulator. Similar language is proposed to be deleted § 429a.2(a)(5) (relating to manufacturer designee license applications and standards) and § 431a.2(a)(6).
Language in subsection (a)(5) is proposed to be deleted for consistency with 4 Pa.C.S. Part II. Similar language is proposed to be deleted in §§ 429a.2(a)(5) and 431a.2(a)(7).
Subsection (b)(1) is proposed to be deleted in this section and other sections in chapters regarding licensing. This is a current requirement of all applicants, as specified in § 421a.1(g) and proposed paragraph (1) requires all applicants to comply with Chapter 421a (relating to general provisions). This provision is proposed to be deleted as redundant with § 421a.3(c).
Proposed amendments to subsection (c) are made for clarity and to delete a reference to key employee suitability. As previously stated, the suitability of an employee of a licensee, in most instances, is not considered at the time the Board evaluates the suitability of an entity or its owners, officers or directors (principals) to hold a license. Similar language is proposed to be deleted in proposed § 429a.2(c) and § 431a.2(c).
Section 427a.5(a)(1) and (2) (relating to responsibilities of a manufacturer) are proposed to be deleted. These paragraphs are proposed to be deleted in sections in other chapters regarding licensing as these provisions are already in Chapter 421a. Subsection (a)(3) is proposed to be deleted and replaced with language in proposed subsection (a)(2). Similar language is proposed to be added in § 429a.5(a) (relating to responsibilities of a manufacturer designee) and proposed § 431a.4(c)(2) (relating to responsibilities of a supplier).
Subsection (b) is proposed to be amended for clarity. Similar amendment are made in proposed §§ 429a.5(b) and 431a.4(d).
Subsections (c) and (d) are proposed to be deleted because they do not relate to the chapter or section heading. Similar language is also proposed to be deleted from § 431a.4(f)—(h).
Proposed § 427a.6 (relating to change of control of a manufacturer licensee) provides guidance to unlicensed companies regarding the proper procedure for acquiring a manufacturer licensee. These requirements will also ensure that the acquiring company and its officers, owners and directors (principals) apply for licensure and are investigated before a manufacturer licensee is acquired. The approval requirement is also applicable to manufacturer designees in proposed § 429a.8 (relating to change of control of a manufacturer designee licensee) and to supplier licensees in proposed § 431a.6 (relating to change of control of a supplier licensee).
Chapter 429a. Manufacturer designees
Proposed amendments to § 429a.3 (relating to additional manufacturer designee licenses) specify that if a manufacturer designee has already been licensed, it does not need to receive a separate manufacturer designee license to supply or repair gaming equipment on behalf of a different manufacturer. Instead, manufacturer designees submit an abbreviated application (Additional Manufacturer Designee Application and Disclosure Information Form) to receive a subsequent designation.
Proposed amendments to § 429a.3(c) reflect proposed amendment to § 429a.2(b) and (c).
Section 429a.5(b) is proposed to be deleted. This is a statutory requirement applicable to suppliers but is not applicable to manufacturer designees.
Section 429a.7 (relating to manufacturer designee agreements) is proposed to be amended for clarity and to reflect Board practice. When a manufacturer designee enters into an agreement with a manufacturer, the designee, as part of its application for a designee license, is required to submit all agreements for review. The agreements are reviewed as part of the background investigation. Any subsequent agreements, after licensure, are reviewed by Board staff. If there are issues or questions regarding the terms of the agreement, Board staff will notify the parties and request additional information or clarification.
Chapter 431a. Supplier licenses
Section 431a.4(b) is proposed to be deleted. This subsection relates to financial suitability. The information would be included in the application for a supplier license and would be reviewed during the applicant's background investigation. If the applicant is not financially suitable, it would not be awarded a supplier license.
Section 431a.5(c) (relating to supplier log books) specifies that licensed, permitted or registered employees of a supplier are not required to register in the log book. Language is therefore proposed to be added to subsection (b)(5) for clarity.
Chapter 433a. Principal licenses
Section 433a.1 (relating to definitions) is proposed to be amended to delete ''principal slot operations officer of a slot machine licensee'' from the definition of ''officer.'' Facilities have a slot operations director; the individual is licensed as a key employee not as a principal.
Section 433a.3(a)(3) (relating to interests in licensees held by individuals) is proposed to be amended for clarity and consistency. Similar amendments are proposed to be made to §§ 433a.4(a)(3) and 433a.7(a)(3) (relating to interests in licensees held by entities; and trusts).
Sections 433a.3(d) and (e) and 433a.4(d) and (e) are proposed to be amended or deleted to reflect the requirements in proposed §§ 427a.6, 429a.8 and 431a.6. The remaining subsections are proposed to be renumbered.
Section 433a.5 (relating to institutional investors) is proposed to be amended to allow institutional investors to acquire a greater ownership interest in all licensee without requiring a waiver from the Board.
Previously, institutional investors were capped at a 15% ownership interest in a principal affiliate of a manufacturer, manufacturer designee and supplier licensee and a 10% ownership interest in a principal affiliate of a slot machine licensee. This proposed amendment will allow institutional investors to acquire less than a 20% interest in all licensees provided the institutional investor files the notice of ownership form and passive investor affirmation. Additionally, before acquiring an interest in a slot machine or management company licensee that is between 10% and 20%, the institutional investor shall provide the BIE with additional information relating to the institutional investor's operations and sources of funds.
Based on the nature of the funds associated with institutional investors, the reporting obligations to the SEC and the permissible ownership interests in other gaming jurisdictions, the Board has determined that increasing the allowable ownership interest to less than 20% would not adversely impact the integrity of gaming. Additionally, allowing institutional investors to acquire an ownership interest of less than 20% would not have other licensing implications related to changes of control or ownership.
Management companies are proposed to be deleted from subsection (a)(1). Management companies act on behalf of a slot machine licensee, are subject to the same requirements as slot machine licensees and therefore the requirements in subsection (a)(2) are applicable.
Subsection (c) and additional language in proposed subsection (d) are proposed to be added to address institutional investor ownership in licensees whose securities are publicly traded on a foreign exchange.
In regard to § 433a.6 (relating to lenders and underwriters), as previously stated, management companies act on behalf of a slot machine licensee and are therefore subject to the same requirements as slot machine licensees. Therefore, for clarity, management companies are proposed to be added to several of the sections throughout this chapter.
In subsection (f), language at the end of the sentence is proposed to be deleted as unnecessary.
Section 433a.7(b) currently requires trusts to notify the Board and submit a complete application prior to possessing any interest in paragraphs (1)—(5). The notification requirement is proposed to be deleted as unnecessary. Submitting applications will serve as notice. Subsection (c) is proposed to be amended for clarity.
Chapter 435a. Key, gaming and nongaming employees; Board-issued credentials
The requirements in § 435a.1(c), (e)—(j) and (o) are applicable to all applicants and holders of a license, permit, registration or certification. However, this chapter is pertinent only to key, gaming and nongaming employees. The requirements in this section are therefore proposed to be moved to §§ 421a.1 and 421a.2.
The wagering restrictions in subsections (k)—(n) are also applicable to holders of a license, permit, registration, certification or qualification and are proposed to be moved to proposed § 423a.6a.
Section 435a.5 (relating to nongaming employee registration) addresses nongaming employee registrations. Currently registrations do not have an expiration date. Nongaming employees do not submit a renewal application and therefore a subsequent background investigation is not conducted beyond initial registration. The Board believes that submission of a renewal application and subsequent background investigation is necessary to protect the integrity of gaming as it will ensure that every nongaming employee remains eligible and suitable to hold a registration.
Additionally, placing an expiration date on nongaming registrations will eliminate unnecessary administrative expenses associated with an ever growing number of individuals who no longer work in the gaming industry. There are currently over 5,500 nongaming employees who remain registered with the Board but have not worked in a position that requires registration for 2 years or more.
The regulation will require that nongaming employee registrations be renewed every 4 years. The application will be submitted electronically through the Board's SlotsLink system. The renewal will cost around $40 which will cover the cost of fingerprinting with the Pennsylvania State Police and the criminal background check. Regarding the renewal schedule, each Board credential issued to a nongaming employee has a date by which the credential shall be reissued with an updated employee photo. The BOL will use the expiration date on the credential as the renewal date which will ensure that renewals are staggered and will not all occur within the same month or year.
Section 435a.6 (relating to Board credentials) is proposed to be amended for clarity. Specifically, subsection (c) is proposed to be divided in two subsections, with subsection (c) addressing the wearing of Board-issued credentials by State employees and proposed subsection (d) addressing the wearing of credentials by individuals who are not State employees.
Language in proposed subsection (e) reflects that all employees who are on the gaming floor are required to have a Board-issued credential. Current subsection (e) is proposed to be deleted as unnecessary.
The heading of § 435a.8 (relating to temporary credentials) relates to temporary credentials for principal and key employees and the heading of § 435a.9 (relating to temporary credentials for nongaming employees) relates to temporary credentials for nongaming employees. Neither section addresses the issuance of temporary credentials for gaming employees. To reflect the Board practice of issuing temporary credentials to gaming as well as principals, keys and nongaming employees, language is proposed to be added. Both sections, which address the same topic, are proposed to be combined into § 435a.8.
Section 435a.9a(a)(1) (relating to gaming service provider employee temporary access credentials) is proposed to be amended for clarity. Subsection (a)(2) would no longer require an employee from the licensee's security department to escort a GSP employee provided that another employee of the licensee who is authorized to have access to the area escorts the GSP employee and both individuals sign in with the Board's casino compliance representatives. This will ensure that Board staff is aware of who is performing the work in the licensed facility and the individual responsible for supervising that employee.
Proposed language in subsection (c) allows additional flexibility, when circumstances warrant, to extend the time period to allow an employee to complete work beyond 12 days in a 12-month period.
Language in current subsection (d) addresses a prohibition on the issuance of temporary access credentials to manufacturers, designees and suppliers. However, the section heading relates to GSP temporary access credentials. The language is proposed to be deleted as misplaced and unnecessary.
The proposed language in subsection (d) specifies that if an operator is going to use an emergency GSP, any employee providing emergency services shall obtain a temporary access credential in accordance with this section prior to performing any emergency services at the licensed facility. This section corresponds with proposed amendments to § 437a.10 (relating to emergency gaming service provider).
Section 435a.10 (relating to loss, theft or destruction of credentials) is proposed to be amended to reflect that credentials are obtained from the Board's casino compliance representatives and are not distributed or controlled by a licensee's security department. This subsection is proposed to be amended to reflect that typically the employer not the employee will request replacement credentials from the Board.
Chapter 437a. Gaming service provider certification and registration
The proposed amendments to § 437a.1 (relating to general gaming service provider requirements) are made for clarity and to replace language with defined terms in § 401a.3.
Proposed language in § 437a.2 (relating to gaming service provider registration applications) should provide GSPs with some guidance as to when to file a sponsored versus unsponsored application. If a GSP already has a contract to provide goods or services to a slot machine licensee, the GSP completes a sponsored application. If the GSP does not have a contact with a specific licensee but anticipates that a licensee may utilize the GSP's services in the future, the GSP would complete the unsponsored application.
Proposed language in subsection (d) reflects the requirements in § 435a.3 (relating to occupation permit) and § 435a.5.
Section 437a.3(d)—(f) (relating to gaming service provider certification applications) is proposed to be deleted and added as proposed § 437a.3a (relating to single transaction waiver). This is proposed to be done because the section heading is not pertinent to waivers. Additionally, both registered and certified GSPs may request a single transaction waiver.
Section 437a.5 (relating to construction subcontractors) is proposed to be amended to provide clarity to the regulated community. These provisions are applicable to subcontractors providing goods and services to other subcontractors while the licensed facility is under construction.
Subsection (c) is proposed to be amended to reflect that prior to a casino opening, a licensed facility is, in essence, a construction site. Closer to opening, onsite Board staff will specify a date as to when an area of the licensed facility becomes a live gaming floor. Once designated, only those persons who hold a Board-issued credential are allowed onto the gaming floor.
In 2010, the Board amended the GSP regulations and exempted publicly traded GSPs from the requirements of certification or registration. To be eligible for the exemption, each publicly traded GSP was required to complete an authorization form to be placed on the authorized GSP list. At that time, there was not and expiration placed on exemption. Although the Board believes that publicly traded GSPs should still be exempt from the certification and registration requirements, the Board has placed an expiration date on the exemption. Every 4 years, publicly traded GSPs that are exempt will have to submit the authorization form to verify that the GSP has continued to provide goods and services to licensed facilities and is still eligible for the exemption. Language relevant to the exemption expiration and renewal is therefore proposed to be added in § 437a.6 (relating to registration and certification term and renewal).
Language is proposed to be added in § 437a.7 (relating to registered, certified and authorized gaming service provider responsibilities) to reflect that the requirements applicable to a GSP that is registered or certified are also applicable to a GSP that is on the authorized list to conduct business prior to obtaining registration or certification.
Subsections (b) and (c) are proposed to be amended for clarity and to utilize terms that are already defined in § 401a.3. The Board also proposed to delete the requirement that offsite supervisors obtain a registration. Language is proposed to be deleted and a cross reference added in subsection (e) as these provisions are already addressed in § 435a.9.
Subsection (f) is proposed to be added to address amendments in proposed rulemaking 125-168 published at 43 Pa.B. 2152 (April 20, 2013), which proposed to delete § 501a.6 (relating to check cashing) and move those requirements to § 465a.20 (relating to personal check cashing). The personal check cashing provisions in § 501a.6 were applicable to licensees and GSPs, while the requirements in Chapter 465a (relating to accounting and internal controls) are applicable only to slot machine and management company licensees unless otherwise specified. Subsection (f) is necessary to ensure that requirements of personal check cashing are the same regardless of whether a licensee or a GSP acting on the licensee's behalf, are performing those functions.
Section 437a.10 is proposed to be amended to no longer require an emergency GSP that is not already registered or certified to file for registration or certification after providing emergency services. An employee of the emergency GSP will be required to obtain a temporary access credential before providing services. The BOL will review the explanation for use of the emergency GSP to ensure that this provision is not used to circumvent the registration and certification requirements.
Chapter 440a. Management companies
Section 440a.1 (relating to general requirements) is proposed to be amended to reflect current practice. Many of the applicants for the available Category 2 slot machine license have contracted with a management company to manage the licensed facility should the slot machine applicant be awarded the license. The management company has filed an application with the Board and if the slot machine applicant were awarded the license, the management company would be licensed at that time as well.
Section 440a.2 (relating to applications) is proposed to be amended to reflect that there is only one application for all categories of slot machine license. Additionally, if a management company is going to act on behalf of the slot machine applicant/licensee, the management company is required to complete the same application as the slot machine applicant.
Section 440a.3 (relating to management company license term and renewal) is proposed to be amended to reflect that a management company acts as the slot machine licensee and neither a slot machine license or a management company license is transferrable.
A portion of § 440a.5(c) (relating to management contracts) is proposed to be moved into subsection (d) and amended for clarity. The language in current subsection (d) is proposed to be deleted as the business plan is essentially addressed in the requirements in subsection (f). Subsection (f) is proposed to be amended to address the management of table game operations.
Chapter 441a. Slot machine licenses
Terms are proposed to be added to § 441a.1 (relating to definitions). The use of these terms is explained in the provisions proposed to be added in §§ 441a.11a, 441a.20a and 441a.24—441a.26.
Section 441a.2(a) (relating to slot machine application deadlines) is proposed to be deleted for consistency with 4 Pa.C.S. Part II. Subsection (c) is proposed to be deleted as unnecessary. The handling of deficiencies in applications is addressed generally in § 423a.2 and in § 441a.3 (relating to slot machine license application).
Section 441a.3 is proposed to be amended to no longer require applications from key employees at the time the slot machine applicant submits an application for licensure. In most instances, key employees have not yet been identified at the time a slot machine applicant submits its application for licensure nor do most applicants hire employees unless and until the Board awards the applicant a slot machine license. The language regarding application requirements is proposed to be deleted as unnecessary as application requirements for keys and principals is in Chapter 433a (relating to principal licenses) and Chapter 435a.
In subsection (a)(5), language is proposed to be added to recognize that an authorized designee can sign on behalf of a chief executive officer to legally bind a slot machine applicant. Subsection (a)(6) is proposed to be amended to reflect the proposed provisions for approval of a licensee's initial or modified plan of development in proposed § 441a.20a (relating to changes to a slot machine licensee's initial or modified plan of development).
As specified in § 423a.1(g), once submitted to the Board, applications and related materials will not be returned to the applicant. The inconsistent language in subsection (b) is proposed to be deleted.
Subsection (d) is proposed to be amended to correct conflicting requirements. This subsection currently requires that the local impact report be submitted to the Board with the application and simultaneously to the municipality. Licensees were also required to submit proof that the municipality was served at the time the application was submitted to the Board. The language is proposed to be amended and still requires licensees to submit the local impact report simultaneously to the municipality and the Board (with the application) but provides that the applicant submit proof that the municipality was served within 5 days after the application is submitted to the Board. Subsection (e) is in § 421a.3 and therefore is proposed to be deleted.
Section 441a.5(e) (relating to license fee payment bond or letter of credit requirements) is proposed to be amended to reflect that a slot machine license will not be issued until the license fee has been paid. The Board or Board staff, typically the BOL, will specify the date by which the fee shall be paid.
Most of the proposed amendments to § 441a.7 (relating to licensing hearings for slot machine licenses) are made for clarity. Language in subsections (i) and (n) is proposed to be amended to reflect that 4 Pa.C.S. § 1206(a) (relating to Board minutes and records) was deleted. Confidential information may be presented not in closed deliberations but during executive session in accordance with 65 Pa.C.S. § 708(a)(5) (relating to executive sessions).
Section 441a.11 (relating to notification of new financial sources) is proposed to be deleted and replaced with the more detailed provisions in §§ 441a.24—441a.26 (relating to notification of equity securities offering; approval of material debt transactions; and notification of refinancing transaction).
Section 441a.11a (relating to duty to maintain financial suitability; notification of change in financial status) is proposed to be added. Subsection (a) reflects requirements in 4 Pa.C.S. Part II. Subsection (b) is proposed because a material change in financial status, as defined in § 441a.1, is directly related to a licensee's overall financial suitability. If a licensee or any of its intermediaries, subsidiaries or holding companies defaults on any provision of its loan agreements, immediate notification to the Board is required.
Section 441a.15(b)(2) (relating to slot machine license issuance bond requirement) is proposed to be deleted. Board staff reviews submitted payment bonds. If there are issues with the payment bond, the BOL notifies the applicant that was awarded the license if corrections are necessary or if additional information about the surety is required. The slot machine license will not be issued until all information is received and any necessary corrections are made.
Section 441a.17(b)—(e) (relating to change in ownership or control of slot machine licensee and multiple slot machine license prohibition) is proposed to be deleted. The proposed language should provide clarity and specificity to the regulated community regarding the procedure to acquire an interest in a slot machine licensee which would trigger the change in control or ownership provisions of 4 Pa.C.S. Part II. The remaining subsections are proposed to be renumbered.
Minor revisions are proposed to be made to § 441a.18(b)(2) and (c) (relating to employee status report). Subsection (b)(2) is proposed to be deleted because applicants for a slot machine license do not typically have employees and are therefore not required to submit an employee status report to the Board. Subsection (c) is proposed to be amended to reflect that a signature on an electronically submitted employee status report is not required.
Proposed § 441a.20a provides further detail on a requirement that is already in § 441a.3(a)(6). A licensee may change its approved plan of development is not required with approval of the Board.
In proposed § 441a.24, if a licensee or its holding company is going to issue a class of securities, the licensee shall notify the Board in writing prior to the offering. Board approval of these transactions is not required; however, licensees will be required to submit all documents associated with the offering which will be reviewed by Board staff.
Section 441a.25 is proposed to be added. If a licensee is going to incur additional debt, those transactions will require the approval of the Board if the incurrence of debt is greater than $25 million for privately held entities and $50 million for publicly traded entities. The incurrence of additional debt may impact the licensee's overall financial suitability. Therefore the Board believes approval of these transactions is necessary. If the licensee is borrowing on an already approved line of credit, those transactions will not require additional approval of the Board.
Proposed § 441a.26 requires licensees to provide documents to Board staff if the licensee is refinancing its existing debt. These transactions will not require Board approval unless Board staff after reviewing the documents determines that approval is necessary. If a licensee or its holding company incurs additional debt in conjunction with a refinance, § 441a.25 would apply.
Subpart E. Slot machines and associated equipment; accounting and internal controls
Specificity is proposed to be added in § 461a.7 (relating to slot machine minimum design standards) regarding how the Bureau of Gaming Laboratory Operations will calculate the theoretical payout percentage for slot machines.
A minor revision is proposed to be made in § 465a.24(b)(1) (relating to count room characteristics) to clarify that the alarm device does not need to signal both security and surveillance. The licensee can designate which department will receive the audible alarm signal. The language at the end of the sentence is proposed to be deleted as unnecessary. Every time the count room door is opened the audible alarm signal should be sent to security or surveillance. In subsection (b)(2), the language requiring exits door to contain locks is proposed to be deleted. Only entrances require dual key control. Proposed subsection (b)(3) addresses exiting the count room and requires that licensees specify what type of door device will be used.
Subpart K. Table games
Language is proposed to be added in § 609a.4 (relating to approval of credit limits) to reflect the statutory requirement that any increase in credit, whether temporary or permanent, requires reverification of a patron's credit information.
Proposed amendments to § 609a.5 (relating to derogatory information; reduction or suspension of credit) clarify the following: if derogatory information is received, the licensee's credit department shall reverify the patron's casino credit information; if a patron's check is returned, the patrons credit privileges must be suspended; and if a patron's credit has been suspended, the licensee is required to reverify the patron's casino and consumer credit information before reinstating credit.
Proposed amendments to §§ 623a.4 and 623a.5 (relating to making and removal of wagers; and payout odds) add clarity regarding the paying of wagers and the collection of vigorish.
The payout procedure in § 633a.7(i) (relating to procedure for dealing the cards; completion of each round of play) is proposed to be amended to allow operators to either payout immediately when a player has a Blackjack or in accordance with the current regulation. Section 633a.9 (relating to surrender) is proposed to be amended to allow operators to collect a surrendered hand immediately or in accordance with the current regulation.
In § 643a.12(b) (relating to payout odds; payout limitation), a new payout table is proposed to be added for the Five Card Bonus Wager.
Section 645a.5(i)(3) (relating to shuffle and cut of the cards; procedures for determining the starting position for dealing cards) is proposed to be deleted as unnecessary.
Fiscal Impact
Commonwealth. The Board does not expect that this proposed rulemaking will have a substantial fiscal impact on the Board or other Commonwealth agencies. Although nongaming employees and publicly traded GSPs will be required to submit renewals, the renewals are conducted once every 4 years and will not occur at the same time. Additionally, the Board may see some administrative cost savings associated with nongaming employees who no longer work in the gaming industry. Currently there are over 5,600 nongaming employees under the Board's jurisdiction who have not worked in a position that requires a registration in 2 years or more.
Political subdivisions. This proposed rulemaking will not have fiscal impact on political subdivisions of this Commonwealth.
Private sector. All individuals and entities that apply for a license, permit, registration, certification or authorization will be required to comply with the requirements in this proposed rulemaking. Most of the amendments in this proposed rulemaking will not have a fiscal impact on the regulated community with two exceptions: nongaming employees and GSPs.
Nongaming employees will be required to renew their registration once every 4 years. The renewal fee will be approximately $40 to cover the cost of fingerprinting and a criminal background check with the Pennsylvania State Police. There are approximately 4,000 individuals who hold a registration.
Publicly traded GSPs will also be required to renew their exemption from the certification and registration requirements once every 4 years. The renewal fee is $250. There are approximately 85 publicly traded GSPs that are currently not required to comply with the certification and registration requirements.
Additionally, GSPs that provide services to slot machine licensees on an emergency basis will no longer be required to complete an application for certification or registration, a cost savings of at least $2,500. It is unclear how many emergency GSPs will benefit from this proposed rulemaking.
General public. This proposed rulemaking will not have fiscal impact on the general public.
Paperwork Requirements
This proposed rulemaking will eliminate the requirement that applicants for and holders of a slot machine, management company, manufacturer, manufacturer designee or supplier license file copies of SEC filings with the Board. A one-page notification is required. Additionally, applicants will no longer be required to submit three copies of applications, only an original and one copy.
Although nongaming employees will be required to renew their registration, the application is submitted electronically through the Board's Slots Link system and a paper submission typically is not required.
For publicly traded GSPs that will be required to renew their exemption, the application is approximately three pages long and is available on the Board's web site.
Regarding institutional investors, the Institutional Investor Notice of Ownership form and Passive Investor Affirmation, which are required under § 433a.5, is a single page, plus instructions and affirmation.
The Notification of Financial Transaction form which slot machine licensees would be required to complete in conjunction with a securities offering, a material debt transaction or when refinancing debt (§§ 441a.24—441a.26) will provide to Board staff an overview of a contemplated transaction.
Effective Date
This proposed rulemaking will 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 Susan A. Yocum, Assistant Chief Counsel, Pennsylvania Gaming Control Board, P.O. Box 69060, Harrisburg, PA 17106-9060, Attention: Public Comment on Regulation # 125-175.
Contact Person
The contact person for questions about this proposed rulemaking is Susan Yocum, Assistant Chief Counsel, (717) 346-8300.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on November 4, 2013, 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 and is available on the Board's web site at www.gamingcontrolboard.pa.gov.
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 Department, the General Assembly and the Governor of comments, recommendations or objections raised.
WILLIAM H. RYAN, Jr.,
ChairpersonFiscal Note: 125-175. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD
Subpart B. LICENSING, PERMITTING, CERTIFICATION AND REGISTRATION
CHAPTER 421a. GENERAL PROVISIONS § 421a.1. General requirements.
(a) A license, permit, certification or registration issuance, renewal or other [approval] authorization issued by the Board is a revocable privilege. No person holding a license, permit, certification or registration, renewal, or other [approval] authorization is deemed to have any property rights related to the license, permit, certification or registration.
(b) By filing an application with the Board, an applicant consents to an investigation, to the extent deemed appropriate by the Bureau, of the applicant's general suitability, financial suitability, character, integrity and ability to engage in, or be associated with, gaming activity in this Commonwealth [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.]
(c) By filing an application for a license, permit, certification or registration issuance, renewal or other [approval] authorization from the Board, an applicant agrees to:
(1) Abide by the provisions of the act and this part.
(2) Waive liability as to the Board, its members, its employees, the Pennsylvania State Police, the Commonwealth and its instrumentalities for damages resulting from disclosure or publication in any manner, other than a willfully unlawful disclosure or publication of material or information acquired during an investigation of the applicant.
(3) Execute all releases requested by [the] Board staff, including releases whereby the applicant consents to the release of information that may be requested by the individual under section 1 of the Freedom of Information Act (5 [U.S.C.] U.S.C.A. § 552) [to the Board].
(d) An applicant for or holder of a license, permit, certification [or], registration or authorization may not give or offer to give, compensation or reward or a percentage or share of the money or property played or received through gaming to a public official or public employee in consideration for or in exchange for obtaining a license, permit, certification or registration issued pursuant to this part.
(e) An applicant for or holder of a license, permit, certification [or], registration or authorization shall have a continuing duty to inform the Bureau of [an]:
(1) An action which the applicant for or holder of a license, permit, certification [or], registration or authorization believes would constitute a violation of the act. A person who so informs the Bureau may not be discriminated against by an applicant for or holder of a license, permit, certification [or], registration or authorization for supplying the information.
(2) A change in circumstances that may render the applicant for or holder of a license, permit, certification, registration or authorization ineligible, unqualified or unsuitable to hold a license, permit, certification, registration or authorization under the act and this part including an arrest, charge, indictment or conviction for:
(i) An offense involving moral turpitude.
(ii) An offense under 18 Pa.C.S. (relating to Crimes Code).
(iii) An offense under 75 Pa.C.S. (relating to Vehicle Code) which is punishable by 1 year or more.
(iv) An offense under section 13(a) of The Controlled Substance, Drug, Device and Cosmetic Act (35 P. S. § 780-113(a)), regarding prohibited acts and penalties.
(v) A felony offense.
(vi) A comparable offense in other states or foreign jurisdictions.
(f) An applicant for or holder of a license, permit, certification [or], registration or authorization shall have a continuing duty to inform the [Board] Bureau of Licensing of changes in the information supplied to the [Board] Bureau of Licensing in or in conjunction with the original or renewal application. [An applicant for or holder of a license, permit, certification or registration shall have a continuing duty to inform the Board of a change in circumstances that may render the applicant for or holder of a license, permit, certification or registration ineligible, unqualified or unsuitable to hold a license, permit, certification or registration under the standards and requirements of the act and of this part.]
(g) An applicant for or holder of a license, permit, certification [or], registration or authorization shall have a continuing duty to promptly provide information requested by [the] Board staff relating to its application [or regulation] and cooperate with [the] Board staff in investigations, hearings, and enforcement and disciplinary actions.
(h) [An application submitted to the Board constitutes the seeking of a privilege.] An applicant shall at all times have the burden of proof. It shall be the applicant's affirmative responsibility to establish the facts supporting its suitability under the act and this part by clear and convincing evidence, including why a license, permit, certification [or], registration or authorization should be issued or renewed by the Board.
(i) A person holding a license, permit, certification [or], registration or authorization issued by the Board [who violates a provision of the act or this part may be held jointly or severally liable for the violation] shall have a continuing duty to maintain suitability and eligibility in accordance with the act and this part.
[(j) The Board will maintain lists of applicants for licenses, permits, certifications or registrations under this part as well as a record of the actions taken with respect to each applicant. The lists will be posted on the Board's web site (www.pgcb.state.pa.us).]
§ 421a.2. Disqualification criteria.
(a) An application for issuance or renewal of a license, permit, certification [or], registration or authorization may be denied, or a license, permit, certification [or], registration or authorization may be suspended or revoked if:
(1) The applicant has failed to prove to the satisfaction of the Board that the applicant or any of the persons required to be qualified, are in fact qualified in accordance with the act and with this part.
(2) The applicant for or holder of a license, permit, certification [or], registration or authorization has violated the act or this part.
(3) The applicant for or holder of a license, permit, certification [or], registration or authorization is disqualified under the criteria in the act.
(4) The applicant for or holder of a license, permit, certification [or], registration or authorization has [materially departed from a representation made] misrepresented, falsified or omitted a fact in the application for licensure or renewal.
(5) The applicant for or holder of a license, permit, certification [or], registration or authorization has failed to comply with Federal [or], state or local laws or regulations.
(6) The applicant for or holder of a license, permit, certification, registration or authorization is not current or is in arrears on a financial obligation owed to the Commonwealth or a subdivision thereof, including court-ordered child support payments.
(b) An individual will be disqualified from obtaining or holding:
(1) A principal or key employee license if the individual has been convicted of a:
(i) Felony offense in any jurisdiction.
(ii) Misdemeanor gambling offense in any jurisdiction, unless 15 years have elapsed from the date of conviction for the offense.
(2) A permit if the individual has been convicted of a felony or misdemeanor gambling offense in any jurisdiction unless 15 years have elapsed from the date of conviction for the offense.
(c) When considering an application for registration from an individual who has been convicted of a felony or misdemeanor gaming offense in any jurisdiction, a permit from an individual who has been convicted of a felony or misdemeanor gaming offense in any jurisdiction when 15 years have elapsed from the date of the conviction for the offense or a license from an individual who has been convicted of a misdemeanor gaming offense in any jurisdiction when 15 years have elapsed from the date of the conviction 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.
(d) For purposes of this section, a felony offense is any of the following:
(1) An offense punishable under the laws of the Commonwealth by imprisonment for more than 5 years.
(2) An offense which, under the laws of another jurisdiction, is either:
(i) Classified as a felony.
(ii) Punishable by imprisonment for more than 5 years.
(3) An offense under the laws of another jurisdiction which, if committed in this Commonwealth, would be subject to imprisonment for more than 5 years.
(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) An employment authorization number and expiration date.
(4) A document which the Bureau deems to be sufficient evidence or authorization.
[(b)] (f) A denial of an application or nonrenewal, suspension or revocation of a license, permit, certification or registration may be made for a sufficient cause consistent with the act and the public interest.
§ 421a.3. Investigations; supplementary information.
(a) The [Board] Bureau may make an inquiry or investigation concerning an applicant for or holder of a license, permit, certification [or], registration or authorization or any affiliate, intermediary, subsidiary or holding company of the applicant for or holder of a license, permit, certification [or], registration or authorization as it may deem appropriate either at the time of the initial application or at any time thereafter.
(b) It shall be the continuing duty of applicants and a holder of a license, permit, certification [or], registration or authorization to provide full cooperation to the [Board] Bureau in the conduct of an inquiry or investigation and to provide supplementary information requested by the [Board] Bureau.
(c) An applicant for an initial or renewal license, permit, registration, certification or authorization will be required to reimburse the Board for additional costs, based on the actual expenses incurred, in conducting the background investigation.
§ 421a.4. Presuitability determination.
(a) Upon request from an eligible applicant for or holder of a license and upon receipt of an application and appropriate fees, the [Board] Bureau will make an inquiry or investigation of a potential purchaser of an applicant for or holder of a license[, certification or registration] as if the purchaser were an eligible applicant. The eligible applicant for or holder of a license may [petition the Board, on behalf of the purchaser, for a Statement of Investigation under § 493a.4 (relating to petitions generally)] request that the Bureau conduct a presuitability determination investigation.
(b) The eligible applicant for or holder of a license making the request shall reimburse the costs associated with the inquiry or investigation.
(c) This inquiry or investigation does not replace the application process required under the act and this part which is a requirement for licensure[, certification or registration].
§ 421a.5. Undue concentration of economic opportunities and control.
(a) In accordance with section 1102(5) of the act (relating to legislative intent), a slot machine license, management company license or [other] principal license may not be issued to or held by a person if the Board determines that the issuance or holding will result in the undue concentration of economic opportunities and control of the licensed gaming facilities in this Commonwealth by that person.
* * * * * (c) In determining whether the issuance or holding of a license by a person will result in undue concentration of economic opportunities and control of the licensed gaming facilities in this Commonwealth, the Board will consider the following criteria:
(1) The percentage share of the market presently controlled by the person in each of the following categories:
(i) Total number of slot machine licenses available under section 1307 of the act (relating to number of slot machine licenses).
(ii) Total gaming floor square footage.
(iii) Number of slot machines and table games.
(iv) Gross terminal and table game revenue.
(v) Net terminal and table game revenue.
(vi) [Total amount of money, vouchers and electronic money transfers through the use of a cashless wagering system made to slot machines.
(vii)] Number of persons employed by the licensee.
* * * * *
CHAPTER 423a. APPLICATIONS; STATEMENT OF CONDITIONS; WAGERING RESTRICTIONS § 423a.1. General requirements.
(a) For the purposes of this section, a reference to an applicant includes the applicant's affiliates, intermediaries, subsidiaries and holding companies.
(b) An application shall be submitted on forms or in an electronic format supplied or approved by the Board, contain the information and documents required by the Board and include the applicable fees.
(c) [The applicant shall file with the application all supplemental forms required by the Board. The forms require full disclosure of all details relative to the applicant's suitability to conduct business in this Commonwealth under the act.
(d)] Upon request of the Board or Board staff, the applicant shall further supplement information provided in the application. The applicant shall provide 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.
[(e) Information provided to the Board must be true and complete.] (d) The application, and amendments thereto, and other specific documents designated by the Board shall be sworn to or affirmed by the applicant before a notary public. If there is any change in the information provided to the Board or Board staff, the applicant shall promptly file a written amendment.
[(f) The application and amendments thereto and other specific documents designated by the Board shall be sworn to or affirmed by the applicant before a notary public.
(g)] (e) The Board will deny the application of an applicant that refuses to submit to a background investigation or provide requested information as required under the act.
[(h)] (f) An applicant that submits a document to the Board which is in a language other than English shall also submit an English translation of the non-English language document. At its discretion, the Board may accept an English summary of a document in lieu of a complete translation of the document. The summary or translation must 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 summary or translation.
[(i)] (g) An application [that has been accepted for filing] and related materials that have been submitted to the Board will become the property of the Board and will not be returned to the applicant.
§ 423a.2. Preliminary submission review.
(a) Upon receipt of an application submission, the [Board] Bureau of Licensing will review the submission to [insure] ensure that it contains:
(1) The applicable application fee.
(2) The applicable application forms and additional information and accompanying documentation required by the act or the Board's regulations governing the specific type of application.
(3) Completed authorization forms for release of information from [Federal and state] governmental agencies and other entities required for the specific type of application.
(4) For slot machine license applications only, a bond or letter of credit as required by section 1313(c) of the act (relating to slot machine license application financial fitness requirements).
(b) If an application submission fails to include one or more of the items in subsection (a), the applicant will be notified [that the application has not been accepted for filing and the applicant will be] and given an opportunity to cure the [insufficiency] deficiency.
[(c) If the applicant fails or is unable to cure the insufficiency within the time period set by the Board, the submission and related materials will be returned to the applicant.]
§ 423a.3. Application processing.
(a) Upon a determination that an application is required and the prerequisites for filing have been met, the [Board] application will be accepted for filing and Board staff, if applicable, will:
(1) [Accept the application for filing.
(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 the date of the acceptance for filing. The Board will also notify the applicant that the acceptance for filing 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 any matter relating to the application.
[(4) Request the Bureau to promptly] (2) Promptly conduct an investigation and provide the information necessary to determine the qualifications of the applicant and any matter relating to the application.
[(5)] (3) Request the Pennsylvania State Police to provide a criminal history background investigation report, determine employee eligibility consistent with § 435a.1 (relating to general provisions), conduct fingerprinting, photograph applicants and perform other related duties in accordance with the act.
[(6)] (4) Request the Department to promptly conduct a tax clearance review.
[(7)] (5) Request the Department of Labor and Industry to perform an Unemployment Compensation Tax clearance review and a Workers Compensation Tax clearance review.
[(8)] (6) Request any agencies, entities or persons to conduct investigations or evaluations or to provide information to the Board as deemed necessary by the Board.
(b) The Board will keep and maintain a [list] record of all applicants under this part together with a record of all actions taken with respect to applicants.
(c) An application submitted under this part and information obtained by [the] Board staff relating to the application shall be part of the evidentiary record [of the licensing proceeding]. The Board's decision to issue or deny a license, permit, registration or certification will be based solely on the evidentiary record before the Board.
§ 423a.5. Application withdrawal.
(a) A request for withdrawal of an application [for a license, permit, certification or registration] may be made [by petition to the Board filed] at any time prior to the Board taking action on the application[.] in accordance with the following requirements:
(1) A request for withdrawal of an entity applying for a license, certification or registration, or an individual applying for a principal license or a qualifier of an entity applying for a license or certification shall be made by filing a petition with the Board in accordance with § 493a.4 (relating to petitions generally).
(2) A request for withdrawal of an individual applying for a key employee license, a permit or registration shall be made on a form supplied by the Bureau of Licensing. If Board staff objects to the request for withdrawal, the person filing the form will be notified and required to file a petition for withdrawal with the Board in accordance with § 493a.4.
(b) The petition or form must set forth the reasons for the withdrawal.
(c) [An applicant may petition for the withdrawal of its application or an application submitted by one of its affiliates, intermediaries, subsidiaries or holding companies or persons or entities required to be qualified under section 1311 of the act (relating to additional slot machine license requirements), or both.
(d)] When rendering a decision on a petition for withdrawal, the Board may set the conditions of withdrawal and may deny or grant the request with or without prejudice.
[(1) If a petition for withdrawal is granted with prejudice, the person or entity whose application has been withdrawn will not be eligible to apply for a license, permit, certification or registration with the Board until after expiration of 5 years from the date of the withdrawal.
(2) If a petition for withdrawal is granted without prejudice the Board may, in the order granting the petition, impose restrictions on when the person or entity whose application has been withdrawn will be eligible to apply for a license, permit, certification or registration.
(e) The Board may convert an application with deficiencies that an applicant fails to cure under § 423a.4(a) (relating to deficient applications) to a petition for withdrawal.
(f)] (d) Unless the Board otherwise directs, fees or other payments relating to the application will not be refundable by reason of the withdrawal. Additionally, fees and costs owed to the Board related to the [application] investigation shall be paid prior to granting a petition to withdraw.
§ 423a.6. License, permit, registration and certification issuance and statement of conditions.
* * * * * (b) Statement of conditions.
(1) For the purposes of this subsection, the term ''executive officer'' means the individual holding the highest ranking management position within the entity and who is authorized to [contract on behalf of] legally bind the entity. If the entity elects to designate another competent individual with a direct reporting relationship to its executive officer to execute the statement of conditions required in this section and otherwise legally bind the entity, the entity shall adopt a resolution identifying and authorizing the individual to act on behalf of both the entity and its executive officer. A copy of the resolution shall be provided to the Bureau of Licensing and attached to the Statement of Conditions.
(2) If the Board approves an entity's application for or renewal of a license[, certification or registration, or for the renewal of a license, certification or registration, the Board may require] the executive officer of the entity [whose application has been approved], or other competent individual designated by the entity in accordance with paragraph [(3), to] (1), shall execute a Statement of Conditions in the manner and form required by the Board. Execution of the Statement of Conditions constitutes the acceptance of each provision contained in the Statement of Conditions by both the entity and the executive officer. The executive officer shall ensure that the entity fully complies with each provision contained in the statement of conditions.
(3) [Prior to the issuance of a license, certification or registration to an entity, the entity shall determine whether the entity will designate its executive officer or another competent individual with a direct reporting relationship to its executive officer to execute the statement of conditions on behalf of both the entity and its executive officer. If the entity elects to designate another competent individual with a direct reporting relationship to its executive officer to execute the statement of conditions on behalf of the entity and its executive officer, the entity shall adopt a resolution identifying the individual so designated, authorizing that individual to execute the statement of conditions on behalf of both the entity and its executive officer, and evidencing the executive officer's concurrence in that individual's designation. A copy of the resolution, certified as true and correct, shall be provided to the Board and attached to the statement of conditions.] At the time of application for registration or certification, the executive officer, or other competent individual designated by the applicant in accordance with paragraph (1), of a gaming service provider or gaming related gaming service provider shall execute a Statement of Conditions in the manner and form required by the Board. The execution of the Statement of Conditions constitutes the acceptance of each provision in the Statement of Conditions by both the entity and the executive officer. The executive officer shall ensure that the entity fully complies with each provision in the Statement of Conditions.
(4) [If the Board approves an individual's application for] An individual who has been approved for the issuance or renewal of a license, permit, certification or registration[, or for the renewal of a license, permit, certification or registration, the Board may require the individual whose application has been approved to] shall execute a statement of conditions in the manner and form required by the Board. The execution of the Statement of Conditions constitutes the acceptance of each provision contained in the statement of conditions [by the individual]. [The individual shall fully comply with each provision contained in the Statement of Conditions.]
(5) Failure to fully comply with any provision contained in an executed Statement of Conditions constitutes a violation [of the Statement of Conditions] and may result in [the imposition of] Board-imposed administrative sanctions, up to and including revocation, against the individual or entity to whom the license, permit, certification or registration was issued[, and, in the case of an entity, against the entity and its executive officer or other designee under paragraph (3)].
(Editor's Note: The following section is new and printed in regular type to enhance readability.)
§ 423a.6a. Restriction on wagering after issuance of a license, permit, registration or certification.
(a) An individual who holds a license, permit or registration and is currently employed by or is a principal of a slot machine licensee may not wager at any slot machine or table game in the licensed facility in which the licensee, permittee or registrant is currently employed or associated. The licensed, permitted or registered individual shall wait at least 30 days following the date that the individual is no longer employed in a position that requires a license, permit or registration before the individual may wager at the licensed facility.
(b) An employee of a slot machine licensee who is not required to obtain a license, permit or registration may not wager in the licensed facility in which the employee is currently employed.
(c) An individual who holds a license, permit or registration and is currently employed by a manufacturer, manufacturer designee, supplier or gaming related gaming service provider may not wager at a slot machine or table game in the licensed facility in which the individual is servicing or installing table games, table game devices, slot machines or associated equipment while the individual is at the licensed facility in the performance of the individual's job duties.
(d) An individual who is a qualifier of a gaming junket enterprise or an individual who is employed as a gaming junket representative may not wager at a slot machine or table game in the licensed facility in which the gaming junket enterprise has an ongoing contractual agreement.
§ 423a.7. Restriction on application after withdrawal with prejudice, denial or revocation.
(a) A person whose application has been withdrawn with prejudice, denied or whose license, permit, registration or certification has been revoked, may not apply for a license, permit, certification or registration for 5 years from the date that the application was withdrawn with prejudice, denied or the license, permit, certification or registration was revoked.
(b) The 5-year restriction in subsection (a) will not apply:
(1) To applicants for a slot machine license if the denial was for reasons other than unsuitability.
(2) If the denial or revocation was based on pending charges for a disqualifying offense under section 1213 or section 1518 of the act (relating to license or permit prohibition; and prohibited acts; penalties), 18 Pa.C.S. (relating to crimes and offenses) or the criminal laws of any other jurisdiction and the pending charges [do] did not result in conviction of the disqualifying offense.
(c) Two years from the date that the application was withdrawn with prejudice, denied or the license, permit, certification or registration was revoked, a person may file a petition for permission to apply for a license, permit, certification or registration before the expiration of the 5-year period.
(d) A petition filed under subsection (c) shall be filed in accordance with § 493a.4 (relating to petitions generally).
(e) Petitions filed under subsection (c) must contain:
(1) An explanation of how the conditions that were the basis for withdrawal with prejudice, denial or revocation have been corrected or no longer exist.
(2) Supporting materials that demonstrate that the person meets the requirements for a license, permit, certification or registration.
(3) If the withdrawal with prejudice, denial or revocation was the result of a conviction, the petition must include evidence of rehabilitation, such as:
* * * * * [(f) If a petition filed under subsection (c) is denied, a person may not file another petition under subsection (c) for 1 year from the date of the denial of the petition.]
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