Subchapter B. LICENSING AND REGISTRATION
MANUFACTURER REGISTRATION Sec.
901.101. Manufacturer registration and game approval required.
901.102. Registration and game approval forms.
901.103. Manufacturer registration application form contents.
901.103a. Change of application information.
901.104. Waiver of confidentiality.
901.105. Registration fee.
901.106. Registration term.
901.107. Annual applications.
901.108. Registration number.
901.109. Certificate.
901.110. Duplicate certificate.
901.111. Transfer.
901.112. [Reserved].
901.113. Representatives of manufacturer.
901.114. Dissolutions, terminations, mergers and bankruptcies.
901.115. Change of address.
901.116. Change in ownership or personnel.
901.117. Denial, notice of violation and revocation.
901.117a. Registration following revocation.
901.118. Registration decision time limit.
901.119. Raffle, daily drawing and weekly drawing ticket manufacturers.
DISTRIBUTOR LICENSING
901.131. Distributor license requirement.
901.132. License application form.
901.133. Distributor license application form contents.
901.133a. Change of application information.
901.134. Waiver of confidentiality.
901.135. License fee.
901.136. License term.
901.137. Annual application.
901.138. License number.
901.139. License.
901.140. Duplicate license.
901.141. Transfer.
901.142. Distributor’s representative.
901.143. Restrictions on distributorship interest.
901.144. Restrictions of distributor employees.
901.145. Division of territories.
901.146. Sales promotion.
901.147. Fixed prices.
901.148. Dissolutions, terminations, mergers and bankruptcies.
901.149. Change of address.
901.150. Changes in ownership or personnel.
901.151. Denial, notice of violation and revocation of licenses.
901.151a. Licensing following revocation.
901.152. Licensing decision time limits.
901.153. Raffle, daily drawing and weekly drawing ticket distributors.
BOARD PROCEDURES
901.161. Jurisdiction and purpose.
901.162. [Reserved].
901.163. [Reserved].
901.164. Petitions.
901.165. Board practice and procedure.
901.166. [Reserved].
901.167. [Reserved].
901.168. Stay of appeal.
ELIGIBLE ORGANIZATION LICENSING
901.181—901.190. [Reserved].
901.191. License application form.
901.192—901.194. [Reserved].
901.195. Types of licenses.
901.196. Limited occasion license requirements, limits and restrictions.
901.197. Change of application information.
901.211—901.219. [Reserved].
MANUFACTURER REGISTRATION
§ 901.101. Manufacturer registration and game approval required.
(a) A person shall be registered with the Department and possess a manufacturer’s registration certificate to sell or otherwise furnish games of chance to licensed distributors within this Commonwealth.
(b) A registered manufacturer may not sell a game of chance in this Commonwealth to a licensed distributor until the Department has approved it.
(c) If a registered manufacturer modifies an approved game of chance in any substantial way so that the nature or identity of the game is changed, the rules of the game change or the prizes or payouts change, the game of chance must be considered a new game of chance and submitted for approval.
Source The provisions of this § 901.101 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265864).
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.102. Registration and game approval forms.
(a) A person seeking a manufacturer registration certificate shall submit to the Department an application form as prescribed by the Department.
(b) A person seeking an approval of a game of chance shall submit the application for approval to the Department with its manufacturer’s registration application or during the registration term on a form prescribed by the Department. The information to be provided on the form must include:
(1) The name of the game.
(2) The game form number.
(3) A description of the game and rules for play.
(4) A picture or illustration of the game and its component pieces.
(5) The game prize structure, prizes and their value.
(6) The number of chances and cost per chance.
(7) The percentage of prizes to be paid in relation to the gross sale proceeds for all chances.
(c) The application forms referenced in subsections (a) and (b) shall be completed in full and will not be considered to be received until completed in full.
Source The provisions of this § 901.102 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265864).
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.103. Manufacturer registration application form contents.
An application for registration as a manufacturer of games of chance shall contain at a minimum the following information:
(1) The name of the manufacturer, including a copy of the Fictitious Name Registration Form, Department of State Registry Statement or similar registration form.
(2) The manufacturer’s business, mailing and legal address as well as the address of all locations where the applicant manufactures its games. It does not include the address of each person from whom the manufacturer purchases raw materials, components or subparts used to manufacture its games.
(3) The names, addresses, telephone numbers and Social Security numbers of officers, directors, owners and partners or other responsible persons. If incorporated, the application must contain the names, addresses, telephone numbers and Social Security numbers of officers and shareholders controlling 10% or more of outstanding stock. If organized as a partnership, the application must contain the names, addresses and telephone numbers of all partners.
(4) A copy of the constitution and bylaws or the corporate charter for new applications. This information must also accompany renewal application if requested or if amended.
(5) A complete list of all games of chance to be manufactured for sale in this Commonwealth during the registration term. The list must contain information as prescribed on the manufacturer registration application form.
(6) The signatures of responsible persons.
(7) A complete list of manufacturer representatives operating in this Commonwealth, their addresses and telephone numbers.
(8) Pennsylvania tax information, including:
(i) The Pennsylvania Sales Tax number.
(ii) The Pennsylvania corporate box number.
(iii) The Pennsylvania employer identification number.
(iv) The Pennsylvania Unemployment Compensation account number.
(9) A certified statement that:
(i) State tax reports and returns have been filed.
(ii) State taxes due and payable have been paid.
(iii) State taxes owing are subject to timely administrative or judicial appeal and the required bond or security has been filed.
(iv) Delinquent State taxes are subject to an approved deferred payment plan. A copy of the approved deferred payment plan shall be attached to the certified statement.
(10) A certified statement that no officer, director or other responsible person or employee eligible to make sales on behalf of the manufacturer has been convicted of one or more of the following:
(i) A felony in a state or Federal court within the past 5 years.
(ii) A violation of the act, the Bingo Law or a gambling related offense under 18 Pa.C.S. (relating to the Crimes Code) or other comparable state or Federal law within 10 years of the date of the application in a state or Federal court.
(11) The logos and trade names used by the manufacturer.
(12) Other documents as identified in the application materials.
Source The provisions of this § 901.103 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265864) to (265865).
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.103a. Change of application information.
A manufacturer shall report any changes to the information supplied in its application to the Department within 15 days of the change.
Source The provisions of this § 901.103a adopted August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475.
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.104. Waiver of confidentiality.
By filing an application for the grant of a manufacturer registration certificate, the applicant waives confidentiality with respect to Commonwealth tax information in the possession of the Department, the Office of Attorney General or the Department of Labor and Industry regarding the applicant, regardless of the source of that information, and consents to the provision of that information to the Department by the Office of Attorney General or the Department of Labor and Industry.
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.105. Registration fee.
The annual registration fee is $2,000 and shall accompany the original registration application and every renewal application. An application processing fee of $100 will be retained by the Department if registration is denied and the remaining $1,900 will be returned to the applicant. No part of the registration fee is subject to proration.
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.106. Registration term.
A registration term begins on April 1 and ends on March 31 of the succeeding year. A certificate issued during a registration term is only valid from the date of issuance to the end of the registration term.
Source The provisions of this § 901.106 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265866).
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.107. Annual applications.
A registered manufacturer shall file an application for a certificate at least 60 days prior to the expiration date of its existing certificate to ensure that the Department will act on its application prior to the expiration of its current certificate.
Source The provisions of this § 901.107 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265866).
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.108. Registration number.
The Department will assign a registration number and issue a certificate to each manufacturer that it approves for registration. The registered manufacturer shall place the registration number on all documents used in any transactions under the act or this part.
Source The provisions of this § 901.108 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265866).
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.109. Certificate.
The certificate issued must be maintained on the manufacturer’s premises and available for inspection upon request.
Source The provisions of this § 901.109 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265866).
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.110. Duplicate certificate.
If a certificate is defaced, destroyed or lost, the Department may issue a duplicate to the holder of the certificate upon submission of a duplicate application form. A $100 fee will be charged for the duplicate certificate.
Source The provisions of this § 901.110 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265866).
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.111. Transfer.
A manufacturer is prohibited from transferring or assigning its certificate.
Source The provisions of this § 901.111 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265866).
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.112. [Reserved].
Source The provisions of this § 901.112 reserved August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265866).
§ 901.113. Representatives of manufacturer.
A representative of a manufacturer acts as an agent of the manufacturer in activities conducted under the manufacturer’s registration certificate.
Source The provisions of this § 901.113 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265866).
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.114. Dissolutions, terminations, mergers and bankruptcies.
(a) A manufacturer shall notify the Department in writing within 10 days of one or more of the following actions on the part of the manufacturer:
(1) The filing with the Department of State of a certificate of election to dissolve, or the filing of a similar document in another jurisdiction.
(2) The filing of a petition in bankruptcy or receivership by the manufacturer.
(3) The merging or consolidating with another entity.
(4) The termination of its business activities by a process, legal or equitable, voluntary or involuntary, formal or informal, within or outside this Commonwealth.
(b) A notice of the decision to dissolve is required even if filing is not required.
Source The provisions of this § 901.114 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265867).
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.115. Change of address.
A manufacturer shall notify the Department, in writing, 10 days before a change of address.
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.116. Change in ownership or personnel.
The manufacturer shall make a written report to the Department of changes of responsible persons engaged in the business of the manufacturer. This report shall also include a change in the management, ownership, directorship or equity ownership of 10% or more, and a change in the manufacturer’s representatives. The report shall be filed on September 15.
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.117. Denial, notice of violation and revocation.
(a) Manufacturer registration certificate. The Department may deny an application for a certificate, issue a notice of violation or revoke a certificate if the manufacturer or a person required to be identified in the application form commits one or more of the following acts:
(1) Has included false information on the application.
(2) Has failed to comply with or engaged in an activity prohibited by the act or this part.
(3) Has changed its address without notification as required in this part.
(4) Has been convicted of, forfeited bond upon a charge of or pleaded guilty or nolo contendere to one of the following:
(i) Forgery.
(ii) Larceny.
(iii) Extortion.
(iv) Conspiracy to defraud.
(v) Willful failure to make required payment or reports to a governmental agency.
(vi) A crime, whether a felony or a misdemeanor, involving a gambling activity or a felony involving moral turpitude.
(vii) Other similar offenses.
(5) Has refused to permit an inspection of its records or premises under one of the following:
(i) Section 901.28 or § 901.31 (relating to inspection of premises; and examination of records).
(ii) A search warrant.
(iii) A court order.
(6) Has been convicted of a felony in a State, or Federal court within the past 5 years.
(7) Has been convicted in a municipal, State or Federal court of a violation of the act, the Bingo Law or of a gambling-related offense under 18 Pa.C.S. (relating to the Crimes Code) or another comparable state or Federal law within 10 years of the date of application.
(8) Has made a misrepresentation or fails to disclose a material fact.
(9) Sells or offers for sale in this Commonwealth a game of chance that has not been approved by the Department as provided for in this part.
(b) Game of chance approval. The Department may deny an application for a game of chance approval. The Department may issue a notice of violation for or revoke an approved game of chance if the game of chance fails to meet the requirements of the act or this part. The Department may revoke its approval of a game if the Department determines that the approval was issued in error.
(c) Notice of violation.
(1) A notice of violation is issued to notify a manufacturer of a violation of the act or this part and to provide the manufacturer with an opportunity to remedy the violation. A manufacturer retains the privileges conferred on it by its certificate or game approval during the notice period and may continue to sell games of chance in this Commonwealth.
(2) The time period that the Department may grant to a manufacturer to remedy a violation may not exceed 30 days, unless the manufacturer requests an extension, in writing, and the Department approves the extension. An extension may not exceed 30 additional days.
(3) The Department will provide the manufacturer a notice of compliance within 5 days after the manufacturer demonstrates to the satisfaction of the Department that the violation has been remedied.
(4) If the Department determines that the manufacturer has not remedied the violation identified in the notice by the end of the notice or extension period, the Department will revoke the certificate or game approval as applicable.
(5) There is no right to appeal a notice of violation or a denial of an extension.
(d) Notice.
(1) The Department will notify a manufacturer in writing of a denial, violation or revocation. The notice will provide:
(i) The issue date of the notice.
(ii) The action taken by the Department.
(iii) The reason for the action.
(iv) The manufacturer’s appeal rights.
(2) The Department will serve the notice by certified or first-class mail.
(3) The Department will mail the notice to the manufacturer’s Commonwealth resident designee and the manufacturer’s primary business address listed on the manufacturer’s application.
Source The provisions of this § 901.117 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265867) to (265868).
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.117a. Registration following revocation.
Unless otherwise provided by the act or this part:
(1) A manufacturer whose certificate is revoked is ineligible to apply for and receive another certificate for the remaining registration term or 6 months, whichever is longer.
(2) For a second revocation, the manufacturer is ineligible to apply for and receive another certificate for the remaining registration term as well as the following registration term.
(3) For a third and subsequent revocation, the manufacturer is ineligible to apply for and receive another certificate for 30 months.
Source The provisions of this § 901.117a adopted August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475.
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.118. Registration decision time limit.
The Department will approve or deny applications within 60 days of their receipt unless the applicant is notified in writing of the specific reason for the delay. If the applicant requests a denial in writing, the delayed application will be denied and may be appealed under § § 901.161—901.168 (relating to Board procedures). Applications are considered to be received when they arrive at the Department as evidenced by the date stamp placed on the application.
Notes of Decisions Approval
The Department of Revenue’s failure to approve or disapprove an application to market a more advanced pull-tab device within 60 days pursuant to this regulation did not divest the Department of authority to deny the application as there is no recognized deemed approval provision in this regulation or 10 P. S. § § 313 and 314. Major Mfg. Corp. v. Department of Revenue, 651 A.2d 204 (Pa. Cmwlth. 1994); appeal denied 665 A.2d 471 (Pa. 1995).
In General
This regulation describes the decision time limit for reviewing applications for registration as manufacturers, not applications or requests to market devices. Major Mfg. Corp. v. Department of Revenue, 651 A.2d 204 (Pa. Cmwlth. 1994).
Cross References This section cited in 61 Pa. Code § 901.119 (relating to raffle, daily drawing and weekly drawing ticket manufacturers).
§ 901.119. Raffle, daily drawing and weekly drawing ticket manufacturers.
This section and § § 901.101—901.111 and 901.113—901.118 do not apply to the manufacturers who only produce and sell raffle, daily drawing and weekly drawing tickets.
Source The provisions of this § 901.119 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265868).
DISTRIBUTOR LICENSING
§ 901.131. Distributor license requirement.
A person shall be licensed by the Department and possess a license to sell, offer for sale or otherwise furnish games of chance to licensed eligible organizations in this Commonwealth.
Source The provisions of this § 901.131 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265869).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle ticket distributors).
§ 901.132. License application form.
For a distributor to obtain a license to sell games of chance in this Commonwealth, the distributor shall submit a license application to the Department in the form prescribed by the Department. The application form shall be completed in full and will not be considered to be received until it has been completed in full.
Source The provisions of this § 901.132 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265869).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket).
§ 901.133. Distributor license application form contents.
The application form must include the following:
(1) The name of the distributor, including a copy of the Fictitious Name Registration, Department of State Registry Statement or similar registry statement.
(2) The address of the distributor, including the business, mailing and legal address.
(3) The names, addresses, telephone numbers and Social Security numbers of officers, directors, owners and partners or other responsible persons. If incorporated, the application shall contain the names, addresses and telephone numbers of officers and shareholders controlling 10% or more of outstanding stock. If organized as a partnership, the application must contain the names, addresses and telephone numbers of all partners.
(4) A copy of the constitution and bylaws or corporate charter only for new applications. This information must also accompany renewals if requested or if changed or amended.
(5) A list of all types of games of chance to be distributed.
(6) A list of manufacturers with whom distributors anticipate doing business.
(7) The signature of responsible persons.
(8) A complete list of distributor representatives and their addresses and telephone numbers.
(9) Pennsylvania tax information, including:
(i) Pennsylvania Sales Tax number.
(ii) Pennsylvania Corporate box number.
(iii) Pennsylvania employer identification number.
(iv) Pennsylvania Unemployment Compensation account number.
(v) Pennsylvania Liquor License number, if applicable.
(10) A certified statement that:
(i) State tax reports and returns have been filed.
(ii) State taxes due and payable have been paid.
(iii) State taxes owing are subject to timely administrative or judicial appeal.
(iv) Delinquent State taxes are subject to an approved deferred payment plan. A copy of the approved deferred payment plan shall be attached to the certified statement.
(11) A certified statement that no officer, director or other responsible person or employee eligible to make sales on behalf of the distributor has been convicted of one or more of the following:
(i) A felony in a state or Federal court within the past 5 years.
(ii) A violation of the Bingo Law or of the act or a gambling related offense under 18 Pa.C.S. (relating to the Crimes Code) or other comparable state or Federal law within 10 years of the date of application in a state or Federal court.
(12) The logo used by the distributor.
(13) Other documents as identified in the application materials.
Source The provisions of this § 901.133 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265869) to (265870).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket).
§ 901.133a. Change of application information.
A distributor shall report any changes to the information supplied in its application to the Department within 15 days of the change.
Source The provisions of this § 901.133a adopted August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475.
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly ticket).
§ 901.134. Waiver of confidentiality.
An applicant for the grant or renewal of a distributor license by the filing of an application insofar as it relates to the Department, waives confidentiality with respect to Commonwealth tax information in the possession of the Department, the Office of Attorney General or the Department of Labor and Industry regarding the applicant, regardless of the source of that information and consents to the provisions of that information to the Department by the Office of Attorney General or the Department of Labor and Industry.
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.135. License fee.
The annual license fee is $1,000 and shall accompany the license application and every renewal application. An application processing fee of $100 will be retained by the Department if the license is denied and the remaining $900 will be returned to the applicant. No part of this fee is subject to proration.
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.136. License term.
A license term begins on June 1 and ends on May 31 of the succeeding year. A license issued during a license term is only valid from the date of issuance to the end of the license term.
Source The provisions of this § 901.136 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265871).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.137. Annual application.
A licensed distributor shall file an application for a license at least 60 days prior to the expiration date of its existing license to ensure that the Department will act on its application prior to the expiration of its existing license.
Source The provisions of this § 901.137 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265871).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.138. License number.
The Department will assign a license number and issue a license to each distributor it approves for licensure. A licensed distributor shall place its business name and license number on all documents used in any transaction under this part.
Source The provisions of this § 901.138 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265871).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.139. License.
The license shall be conspicuously displayed at all times at the place of business of the person licensed.
Source The provisions of this § 901.139 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265871).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.140. Duplicate license.
Whenever a license is defaced, destroyed or lost, the Department may issue a duplicate to the holder of the license upon submission of a duplicate License Application Form. A $100 fee will be charged for the duplicate license.
Source The provisions of this § 901.140 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265872).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.141. Transfer.
A licensed distributor is prohibited from transferring or assigning its license.
Source The provisions of this § 901.141 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265872).
Cross References This section cited in 61 Pa. Code § 901.131 (relating to distributor license requirement); and 61 Pa. Code § 901.153 (relating to raffle ticket distributors).
§ 901.142. Distributor’s representative.
A distributor’s representative acts as an agent of the licensee in activities conducted under the distributor’s license.
Source The provisions of this § 901.142 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265872).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.143. Restrictions on distributorship interest.
(a) A licensed eligible organization may not be a distributor.
(b) A person who is an officer, director, proprietor, consultant, employee or owner of a distributorship may not have a pecuniary interest in the operation of games of chance.
(c) A distributor or person who has a financial interest in a distributorship may not be a lessor of premises, directly or indirectly, to a licensed eligible organization.
Source The provisions of this § 901.143 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265872).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.144. Restrictions of distributor employees.
(a) An employee of a distributorship may not be an employee, consultant or volunteer of a licensed eligible organization unless the employee has first made a full written disclosure of the employee’s distributorship employment to the eligible organization.
(b) An employee of a distributorship may not be a law enforcement official.
(c) An employee of a distributorship may not play games of chance at the site of a licensed eligible organization if that eligible organization is a customer of the distributorship.
(d) A Department employee assigned to the bureau responsible for administering the act or this part may not have an interest in a distributor licensed under the act or this part.
Source The provisions of this § 901.144 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265872) to (265873).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.145. Division of territories.
A distributor may not enter with another distributor into an express or implied agreement, under which either of them is restricted in the operation and carrying on of business to a specific geographic area. A restriction may not be a condition of sales between a distributor and manufacturer.
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.146. Sales promotion.
A distributor may not use as a sales promotion a statement, demonstration or implication that a certain portion of a deal contains more winners than other portions of the deal or that a game of chance may be played by a licensed eligible organization in a particular manner that would give the organization an advantage in selling more chances before having to pay out winners.
Source The provisions of this § 901.146 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265873).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.147. Fixed prices.
A distributor may not enter into an express or implied agreement with another distributor to fix the price at which games of chance may be sold, or for which services in connection therewith may be rendered. The price of these items in the competitive marketplace must be established by each distributor for the games of chance and services offered by each and may not be directly or indirectly established in concert with one another.
Source The provisions of this § 901.147 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265873).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.148. Dissolutions, terminations, mergers and bankruptcies.
(a) A distributor shall notify the Department, in writing, within 10 days of one or more of the following actions on the part of the distributor:
(1) The filing with the Department of State of a certificate of election to dissolve, or the filing of a similar document in another jurisdiction.
(2) The filing of a petition in bankruptcy or receivership by the distributor.
(3) The merging or consolidating with another entity.
(4) The termination of its business activities by a process, legal or equitable, voluntary or involuntary, formal or informal, in or out of this Commonwealth.
(b) A notice of the decision to dissolve is required if filing is not required.
Source The provisions of this § 901.148 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265874).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.149. Change of address.
A distributor shall notify the Department, in writing, 10 days prior to a change of address.
Source The provisions of this § 901.149 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265874).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.150. Changes in ownership or personnel.
The distributor shall make a written report to the Department of changes of responsible persons engaged in the business of the distributor. This report must also include a change in the management, ownership, directorship or equity ownership of 10% or more, or a change in the manufacturer’s representatives. The report must be filed within 15 days of the addition or deletion.
Source The provisions of this § 901.150 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265874).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.151. Denial, notice of violation and revocation of licenses.
(a) Distributor license. The Department may deny a license application, issue a notice of violation or revoke a license if the distributor or a person required to be identified in the application form commits one of the following acts:
(1) Has included false information on the application.
(2) Has failed to comply with or engaged in an activity prohibited by the act or this part.
(3) Has changed its address without notification as required in this part.
(4) Has been convicted of, forfeited bond upon a charge of or plead guilty or nolo contendere to one of the following:
(i) Forgery.
(ii) Larceny.
(iii) Extortion.
(iv) Conspiracy to defraud.
(v) Willful failure to make required payments or reports to a governmental agency.
(vi) A crime, whether a felony or a misdemeanor, involving gambling activity or a felony involving moral turpitude.
(vii) Other similar offenses.
(5) Has refused to permit an inspection of its records or premises under one of the following:
(i) Section 901.28 or § 901.31 (relating to inspection of premises; and examination of records).
(ii) A search warrant.
(iii) A court order.
(6) Has been convicted of a felony in a state or Federal court within the past 5 years.
(7) Has been convicted in a municipal, State or Federal court of a violation of the act, the Bingo Law, a gambling-related offense under 18 Pa.C.S. (relating to the Crimes Code) or another comparable state or Federal law within 10 years of the date of application.
(8) Has made a misrepresentation or failed to disclose a material fact.
(b) Notice of violation.
(1) A notice of violation is issued to notify a distributor of a violation of the act or this part and to provide the distributor with an opportunity to remedy the violation. A distributor retains the privileges conferred on it by its license during the notice period and may continue to sell games of chance in this Commonwealth.
(2) The time period that the Department may grant to a distributor to remedy a violation may not exceed 30 days, unless the distributor requests an extension, in writing, and the Department approves the extension. An extension may not exceed 30 additional days.
(3) The Department will provide the distributor a notice of compliance within 5 days after the distributor demonstrates to the satisfaction of the Department that the violation has been remedied.
(4) If the Department determines that the distributor has not remedied the violation identified in the notice by the end of the notice or extension period, the Department will revoke the license.
(5) There is no right to appeal a notice of violation or a denial of an extension.
(c) Notice.
(1) The Department will notify a manufacturer in writing of a denial, violation or revocation. The notice will provide:
(i) The issue date of the notice.
(ii) The action taken by the Department.
(iii) The reason for the action.
(iv) The distributor’s appeal rights.
(2) The Department will serve the notice by certified or first-class mail.
(3) The Department will mail the notice to the distributor’s Commonwealth resident designee and the distributor’s primary business address listed on the distributor’s application.
Source The provisions of this § 901.151 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265874) to (265875).
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.151a. Licensing following revocation.
Unless otherwise provided by the act or this part:
(1) A distributor whose license is revoked is ineligible to apply for and receive another license for the remaining license term or 6 months, whichever is longer.
(2) For a second revocation, the distributor is ineligible to apply for and receive another license for the remaining license term as well as the following license term.
(3) For a third and subsequent revocation, the distributor is ineligible to apply for and receive another license for 30 months.
Source The provisions of this § 901.151a adopted August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475.
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.152. Licensing decision time limits.
The Department will approve or deny applications within 60 days of their receipt unless the applicant is notified in writing of the specific reason for the delay. If the applicant requests a denial in writing the delayed application will be denied and may be appealed under § § 901.161—901.168 (relating to Board procedures). Applications are considered to be received when they arrive at the Department as evidenced by the date stamp placed on the application.
Cross References This section cited in 61 Pa. Code § 901.153 (relating to raffle, daily drawing and weekly drawing ticket distributors).
§ 901.153. Raffle, daily drawing and weekly drawing ticket distributors.
This section and § § 901.131—901.152 do not apply to distributors who only sell raffle, daily drawing and weekly drawing tickets.
Source The provisions of this § 901.153 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265875) to (265876).
BOARD PROCEDURES
§ 901.161. Jurisdiction and purpose.
The Board will receive and review petitions challenging the Department’s decisions to deny an application for a manufacturer registration certificate or game of chance approval or a distributor license. The Board will also receive and review petitions from manufacturers or distributors challenging the Department’s revocation of a manufacturer registration certificate, game of chance approval or a distributor license.
Authority The provisions of this § 901.161 amended under section 6 of The Fiscal Code (72 P. S. § 6) and section 306 of the Local Option Small Games of Chance Act (10 P. S. § 328.306).
Source The provisions of this § 901.161 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475; amended January 25, 2013, effective January 26, 2013, 43 Pa.B. 532. Immediately preceding text appears at serial page (321874).
Cross References This section cited in 61 Pa. Code § 901.118 (relating to registration decision time limit); and 9061 Pa. Code § 901.152 (relating to licensing decision time limits).
§ § 901.162 and 901.163. [Reserved].
Authority The provisions of these § § 901.162 and 901.163 reserved under section 6 of The Fiscal Code (72 P. S. § 6) and section 306 of the Local Option Small Games of Chance Act (10 P. S. § 328.306).
Source The provisions of these § § 901.162 and 901.163 reserved January 25, 2013, effective January 26, 2013, 43 Pa.B. 532. Immediately preceding text appears at serial page (321875).
§ 901.164. Petitions.
A person challenging a Department decision shall file a petition within 15 days after the issue date of notice of the Department’s decision.
Authority The provisions of this § 901.164 amended under section 6 of The Fiscal Code (72 P. S. § 6) and section 306 of the Local Option Small Games of Chance Act (10 P. S. § 328.306).
Source The provisions of this § 901.164 amended January 25, 2013, effective January 26, 2013, 43 Pa.B. 532. Immediately preceding text appears at serial pages (321875) to (321876).
Cross References This section cited in 61 Pa. Code § 901.118 (relating to registration decision time limit); and 61 Pa. Code § 901.152 (relating to licensing decision time limits).
§ 901.165. Board practice and procedure.
The provisions of this part regarding Board procedures and Chapter 7 (relating to Board of Appeals) govern practice and procedure before the Board.
Authority The provisions of this § 901.165 amended under section 6 of The Fiscal Code (72 P. S. § 6) and section 306 of the Local Option Small Games of Chance Act (10 P. S. § 328.306).
Source The provisions of this § 901.165 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475; amended January 25, 2013, effective January 26, 2013, 43 Pa.B. 532. Immediately preceding text appears at serial pages (265877) to (265879).
Cross References This section cited in 61 Pa. Code § 901.118 (relating to registration decision time limit); and 61 Pa. Code § 901.152 (relating to licensing decision time limits).
§ § 901.166 and 901.167. [Reserved].
Authority The provisions of these § § 901.166 and 901.167 reserved under section 6 of The Fiscal Code (72 P. S. § 6) and section 306 of the Local Option Small Games of Chance Act (10 P. S. § 328.306).
Source The provisions of these § § 901.166 and 901.167 reserved January 25, 2013, effective January 26, 2013, 43 Pa.B. 532. Immediately preceding text appears at serial pages (321878) to (321879).
§ 901.168. Stay of appeal.
(a) After a petition is filed, actions to revoke a registration, license or game approval will be stayed pending the decision of the Board.
(b) Pending the Board’s decision and order, the certificate, game approval or license of the petitioner will be suspended. (See § 901.23a (relating to effect of denial, suspension, revocation, expiration of a certificate, license or game of chance).)
Authority The provisions of this § 901.168 amended under section 6 of The Fiscal Code (72 P. S. § 6) and section 306 of the Local Option Small Games of Chance Act (10 P. S. § 328.306).
Source The provisions of this § 901.168 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475; amended January 25, 2013, effective January 26, 2013, 43 Pa.B. 532. Immediately preceding text appears at serial page (321879).
Cross References This section cited in 61 Pa. Code § 901.118 (relating to registration decision time limit); and 61 Pa. Code § 901.152 (relating to licensing decision time limits).
ELIGIBLE ORGANIZATION LICENSING
§ § 901.181—901.190. [Reserved].
Source The provisions of these § § 901.181—901.190 reserved August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265881) to (265883).
§ 901.191. License application form.
(a) The Department will proscribe the license application form for eligible organizations. Licensing authorities may obtain the form from the Department.
(b) The form is available to eligible organizations through the licensing authorities.
(c) The license application form must contain, at a minimum, the following information:
(1) The name of the organization.
(2) The type of organization.
(3) The address of the organization.
(4) Incorporation information.
(5) The name of the municipality where the applicant will maintain its licensed premises.
(6) The eligible organization’s licensed premises.
(7) The eligible organization’s operating day and week.
(8) The names, addresses and telephone numbers of the officers of the organization.
(9) Partnership information.
(10) A list of shareholders owning 10% or more of outstanding stock.
(11) The names and addresses of persons who will be responsible for the operation of games of chance, including eligible organization employees, bar personnel, auxiliary group members and other persons who will obtain the games of chance and coordinate their use.
(12) A statement under oath in the form of an affidavit, affirmed by the executive officer or secretary of the eligible organization, stating the following:
(i) A person 17 years of age or younger will not be permitted by the eligible organization to operate or play games of chance.
(ii) The facility in which games of chance are to be played has adequate means of ingress and egress and adequate sanitary facilities available in the area and meets Department of Health and other local or Federal sanitary requirements.
(iii) The eligible organization is the owner of the premises upon which the games of chance are played or, if it is not, the eligible organization is not leasing the premises from the owner thereof under an oral agreement, nor is it leasing the premises from the owner thereof under a written agreement at a rental which is determined by the amount of receipts realized from the playing of games of chance or by the number of people attending, except that an eligible organization may lease a location or premises for a banquet where a per head charge is applied in connection with the serving of a meal.
(13) A copy of a corporate applicant articles of incorporation and bylaws; or, if not a corporation, a copy of bylaws and other documents which set out the organizational structure and purpose.
(14) A copy of a nonprofit charitable applicant’s Internal Revenue Service tax exemption letter if one has been obtained and a copy of other documents indicating the eligible organization is a nonprofit charitable organization.
(15) The details and copies of the lease, rental or other arrangements between the applicant and the owner of premises upon which the games of chance will be conducted, if the premises are not owned by the eligible organization.
(16) The names, addresses, dates of birth and the Social Security numbers of each paid employee, auxiliary group member or agent who will be involved with the activities for which the license is sought.
(17) Other documents as identified in the application materials.
(18) The type of license applied for and a list of all types of games of chance to be operated by the eligible organization.
(19) A list of distributors of games of chance with whom the eligible organization does business.
(20) A list of the eligible organization’s auxiliary groups that will operate games of chance under the eligible organization’s license.
Source The provisions of this § 901.191 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265883) to (265884).
§ § 901.192—901.194. [Reserved].
Source The provisions of these § § 901.192—901.194 reserved August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265884) to (265887).
§ 901.195. Types of licenses.
Two types of licenses are available. An eligible organization may only hold one type of license at a time. The types of licenses are as follows:
(1) Games of chance license. A games of chance license authorizes the licensee to conduct games of chance as prescribed by the act and this part during the eligible organization’s licensing term. A licensee is eligible to apply for special raffle permits.
(2) Limited occasion license. A limited occasion license authorizes the licensee to conduct games of chance on a limited basis as provided in § 901.196 (relating to limited occasion license requirements, limits and restrictions).
Source The provisions of this § 901.195 adopted August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475.
§ 901.196. Limited occasion license requirements, limits and restrictions.
(a) Only organizations that do not own or lease a premises or do not have a specific location at which they conduct their normal business are eligible for a limited occasion license.
(b) Limited occasion licensees are not eligible for the following:
(1) Special raffle permits.
(2) A games of chance license.
(c) Limited occasion licensees may conduct games of chance on no more than three occasions over a period of no more than 7 days during the license term.
(d) No more than two raffles may be conducted under a limited occasion license.
(e) The fee for a limited occasion license is $10.
(f) The licensee shall provide 10 days prior written notice of its intent to conduct games of chance under its license to the licensing authority that issued its license.
Source The provisions of this § 901.196 adopted August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475.
Cross References This section cited in 61 Pa. Code § 901.195 (relating to types of licenses).
§ 901.197. Change of application information.
An eligible organization shall report any changes to the information supplied in its license application to the licensing authority within 15 days of the change.
Source The provisions of this § 901.197 adopted August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475.
§ § 901.211—901.219. [Reserved].
Source The provisions of these § § 901.211—901.219 reserved August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265887) to (265893).
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