RULES AND REGULATIONS
PENNSYLVANIA GAMING CONTROL BOARD
[58 PA. CODE CHS. 401, 401a, 403, 403a, 405, 405a, 407 AND 407a]
General and Operative Provisions; Board Procedures
[37 Pa.B. 2808]
[Saturday, June 23, 2007]
The Pennsylvania Gaming Control Board (Board), under its general authority in 4 Pa.C.S. § 1202(b)(30) (relating to general and specific powers) and the specific authority in 4 Pa.C.S. § 1202(a) and (b)(25) and 4 Pa.C.S. §§ 1201(f) and 1206 (relating to Pennsylvania Gaming Control Board established; and Board minutes and records), adds Chapters 401a, 403a, 405a and 407a and deletes Chapters 401, 403, 405 and 407 to read as set forth in Annex A.
Purpose of the Final-form Rulemaking
Under the authority granted to the Board under 4 Pa.C.S. § 1203 (relating to temporary regulations), the Board initially adopted temporary regulations in Chapters 401, 403 and 407 at 35 Pa.B. 4045 (July 16, 2005) and temporary regulations in Chapter 405 at 35 Pa.B. 6407 (November 19, 2005). Under 4 Pa.C.S. § 1203(b), the temporary regulations expire on July 5, 2007.
The Board is adopting these chapters to replace the temporary regulations with the permanent regulations.
Explanation of Chapters 401a, 403a, 405a and 407a
This final-form rulemaking replaces the temporary regulations in Chapters 401, 403, 405 and 407.
Chapter 401a (relating to preliminary provisions) contains preliminary provisions which address the purpose of the Board's regulations, construction, definitions of terms and the Board's jurisdiction.
Chapter 403a (relating to Board operations and organization) addresses areas of Board operations including participation in and voting at Board meetings by members. It also addresses when the Board will conduct meetings and requires the preparation of a transcript of Board meetings. This chapter also outlines the procedures that the Board will use to delegate authority to individual Board members or to Board staff and sets forth the process that the Board will use to issue temporary emergency orders.
Chapter 405a (relating to Bureau of Investigations and Enforcement) outlines the general duties and powers of the Bureau of Investigations and Enforcement (Bureau) and the Office of Chief Enforcement Counsel (OEC). It also establishes the responsibilities of applicants and those regulated by the Board to provide information to the Bureau. It includes provisions governing the conduct of attorneys, employees and Board members to avoid ex parte communications, addresses the issuance of subpoenas by the OEC and establishes complaints as the vehicle the OEC will use to pursue enforcement actions.
Chapter 407a (relating to public access to Board files) specifies how the Board's case files are organized and how requests for access to material in these files will be processed. It also requires that the minutes of Board meetings and annual reports be available for public inspection and copying and prescribes what will be considered confidential information and the circumstances under which confidential information may be released.
Comment and Response Summary
Notice of proposed rulemaking was published at 36 Pa.B. 5690 (September 9, 2006).
The Board received comments on the proposed rulemaking from International Game Technology (IGT) and the Independent Regulatory Review Commission (IRRC). Those comments were reviewed by the Board and are discussed in detail as follows.
IRRC requested that the Board provide additional information pertaining to the need for the rulemaking and the fiscal impact in the preamble and the Regulatory Analysis Form (RAF). Additional information has been included in both the preamble and the RAF.
In § 401a.2(b) (relating to construction), IRRC questioned the Board's authority to waive a requirement of this part. The Board's intent was to apply subsection (b) to Subpart H (relating to practice and procedure) only. Accordingly, it has been deleted from the final-form rulemaking.
In § 401a.3 (relating to definitions), IRRC commented on a number of the definitions in this section. IRRC had three concerns with the definition of ''gaming employee.'' First, IRRC asked that a definition of the term ''SLOTS Link'' be added. The Board agreed and added the definition.
Next, IRRC questioned the Board's authority to require certain employees of manufacturers to obtain an occupation permit.
In addition to the Board's general authority under 4 Pa.C.S. § 1202(a) and (b)(15) and (30), 4 Pa.C.S. §§ 1318(a) and 1321 (relating to occupation permit application; and additional licenses and permits and approval of agreements) give the Board authority to require permits from additional employees.
Additionally, the act of November 1, 2006 (P. L. 1243, No. 135) (Act 135) allows manufacturers to perform technical and installation functions that were previously exclusively reserved for suppliers. To ensure the integrity of the acquisition and operation of slot machines and associated equipment, the Board determined that permitting of certain employees of a manufacturer is necessary.
Finally, IRRC stated that the phrase ''other employees'' in subparagraph (iv) lacks specificity and suggested that it be deleted or replaced with a list of who the other employees are.
In response to this comment, the Board revised subparagraph (iv) of the definition of ''gaming employee'' by adding language that narrows the application of this provision to employees whose work requires permitting to protect the integrity of gaming. Because gaming is a new industry in this Commonwealth, the Board needs to retain some flexibility to require permits for employees that are not include under subparagraphs (i)--(iii).
IRRC had two concerns with the definition of ''key employee.'' First, IRRC questioned the authority for including manufacturers and suppliers in this definition. Second, IRRC asked why the phrase ''and/or credit'' was not include in the term ''director of cage operations.''
In addition to the Board's general authority in 4 Pa.C.S. § 1202(b)(30), 4 Pa.C.S. §§ 1202(b)(15) and 1321 give the Board some latitude to impose additional licensing or permitting requirements. Additionally, 4 Pa.C.S. §§ 1317 and 1317.1 (relating to supplier licenses; and manufacturer licenses) require suppliers and manufacturers to list their key employees in the application. Therefore, they were added to the definition of ''key employee.''
While the phrase ''and/or credit'' appears in 4 Pa.C.S. Part II (relating to gaming), 4 Pa.C.S. § 1504 (relating to wagering on credit) bars slot machine licensees from extending credit. To avoid possible confusion concerning a slot machine licensee's ability to extend credit, the phrase ''and/or credit'' was not included in the definition.
IRRC also questioned the basis for including the phrase ''other than a natural person'' in the definition of ''licensed entity.''
Throughout the Board's regulations, ''entity'' is used to refer to everything other than a natural person. For a natural person, the Board uses ''individual.'' The addition of the phrase ''other than a natural person'' in this definition is intended to make this distinction clear to the regulated public.
IRRC noted that the requirement that ''manufacturer's serial numbers will be affixed to the outside of the slot machine cabinet in a location approved by the Board'' is a substantive requirement and suggested that it be removed from the definition.
The Board agrees and has deleted this language from the definition.
IRRC commented that 4 Pa.C.S. Part II includes the phrase ''at a licensed facility'' in the definition of ''occupation permit'' but this phrase is not in the definition in the regulation. IRRC questioned the Board's authority for this change and if it was the Board's intent to apply this definition to employees working outside of the licensed facilities.
As previously discussed, some employees of manufacturers, manufacturer designees and suppliers who work at a licensed facility will be required to obtain an occupation permit. While 4 Pa.C.S. Part II uses ''employed or work as a gaming employee at a licensed facility,'' the Board did not want this definition to be interpreted as only applying to individuals who are employed by a licensed facility. The Board does not intend to apply the permitting requirement to employees working outside of a licensed facility.
IRRC also suggested that the Board add the monetary criteria to the definitions of ''certified vendor'' and ''registered vendor.''
The Board agrees with this comment but is in the process of amending Chapter 437 (relating to vendor registration and certification). Amendments to these definitions will be made when Chapter 437 is amended.
Regarding § 403a.7 (relating to temporary emergency orders), IRRC had five comments. First, IRRC noted that the phrase ''other disqualifying offense'' in subsection (c)(1) lacks clarity and suggested that it be deleted or clarified.
In response to IRRC's suggestion, the phrase has been amended to read ''other offense that would make the person ineligible or unsuitable to hold a license, permit, certification or registration.''
IRRC also suggested that the Board delete references to temporary regulations in subsection (g) and elsewhere since those regulations expire on July 5, 2007.
The Board discussed this issue with the Legislative Reference Bureau (LRB) prior to the publication of this proposed rulemaking and this is how the LRB has instructed the Board to reference other chapters. The Board will update these citations as permanent regulations are finalized.
In subsection (j), IRRC asked how long the Executive Director has to render a decision and how will the person be notified of the decision.
In response to this comment, the Board added ''within 72 hours'' as the time frame for rendering a decision and added a cross-reference to § 491.3 (relating to service by the Board).
Under subsection (m)(1), IRRC suggested that the Board add a cross-reference to Chapter 494 (relating to hearing procedure) to provide guidance on appeals.
The Board adopted this suggestion and added a cross-reference to § 494.11 (relating to appeals).
Finally, IRRC suggested that the phrase ''or designee'' be added to subsection (h) for consistency.
The Board agreed and added ''or a designee'' to this subsection.
In § 405a.1(2) (relating to general duties and powers), IRRC questioned the Board's authority to investigate a person not subject to some form of Board approval.
While some of the paragraphs under 4 Pa.C.S. § 1517(a.1) (relating to investigations and enforcement) are specific to entities regulated by the Board, others are broader in their scope. For example, the Bureau may need to investigate individuals who many be involved in possible criminal violations of 4 Pa.C.S. Part II. Additionally, the Bureau may also investigate patron complaints, entities or individuals who haven't but should obtain a license, permit, certification or registration, or individuals who may meet the criteria for placement on the excluded persons list.
In § 405a.2 (relating to information), IRRC suggested that the Board change ''shall'' to ''may'' to better match language of 4 Pa.C.S. § 1517(f).
The Board agrees and ''shall'' has been replaced with ''may.''
In § 405a.6 (relating to enforcement action), IRRC suggested that the term ''enforcement action'' be explained in the final-form rulemaking.
The Board has rewritten this section to make it clear that enforcement actions will be done as complaints and how these complaints will be processed.
IGT and IRRC suggested that language be added to § 407a.1 (relating to case files) to provide notice to an applicant or holder of a license, permit, certification or registration before releasing confidential information regarding the applicant or holder of a license, permit, certification or registration.
The Board has not adopted this suggested change. The circumstances under which confidential information would be released are listed in § 407a.3(b)(1)--(3) (relating to confidential information). The Board believes it would be inappropriate to provide notice if the release meets the criteria in subsection (b)(1) because a release would most likely be in the context of an active investigation. For the conditions in subsection (b)(2) and (3), the Board believes notice is unnecessary. In subsection (b)(2), the applicant or holder of a license, permit, certification or registration has already released the information to the public. In subsection (b)(3), the applicant or holder of a license, permit, certification or registration has already given consent for the release of the information.
In addition to the changes made in response to the comments received, the Board made a number of changes to improve the clarity of the regulations and to incorporate a number of revisions to 4 Pa.C.S. Part II which were in Act 135.
Amendments were made to the following definitions to improve their clarity or make them consistent with the definitions in Act 135: ''affiliate,'' ''applicant,'' ''controlling interest,'' ''gaming employee,'' ''licensed facility,'' ''nongaming employee'' and ''vendor.''
The following definitions in Act 135 have been added: ''compensation,'' ''complementary service,'' ''conduct of gaming,'' ''corporation,'' ''ex parte communication,'' ''holding company,'' ''independent contractor,'' ''intermediary,'' ''licensed entity representative,'' ''member,'' ''principal,'' ''publicly traded corporation,'' ''subsidiary'' and ''underwriter.''
Additionally, ''BCCIC'' has been added and defined as the Bureau of Corporate Compliance and Internal Controls and ''BIE'' has been added to the definition of ''Bureau'' as a short version of Bureau of Investigations and Enforcement.
The definition of ''cheat'' has been deleted from this section because it is defined in Chapter 511 (relating to persons required to be excluded) and is only used in that chapter. The term ''key employee qualifier'' has also been deleted; it was replaced with the term ''principal.''
Sales representatives were included under the definition of ''key employee'' and definitions of ''manufacturer designee,'' ''manufacturer designee license'' and ''manufacturer designee licensee'' were added for this new entity created by Act 135.
Finally, definitions of ''arrest,'' ''charges,'' ''offense,'' ''pending matter or contested on the record proceeding'' and ''staff,'' which were added to the Board's temporary regulations after this proposed rulemaking was adopted, have also been added.
A number of amendments have also been made in Chapter 403a as a result of the passage of Act 135. Section 403a.1 (relating to definitions) has been added and includes definitions of ''financial interest'' and ''ownership interest'' that were added by Act 135.
In § 403a.2 (relating to participation at meetings and voting), subsection (c) has been added to mirror 4 Pa.C.S. § 1201(h)(6) and the language in subsection (d) has been expanded slightly to track the language in 4 Pa.C.S. § 1201(f).
In § 403a.3 (relating to meetings), subsection (d) has been revised slightly to mirror some of the language in 4 Pa.C.S. § 1206(b).
Additionally, § 403a.8 (relating to licensed entity representative meetings) has been added. This section contains provisions regarding meetings with licensed entity representatives. This section is identical to the language that was added to the Board's temporary regulations in November 2006.
A few revisions were also made in Chapter 405a. Section 405a.1(5) has been expanded to provide a list of potential audit areas and § 405a.1(7) adds language from 4 Pa.C.S. § 1517(a.1)(9) that allows the Bureau to be considered to be a criminal justice agency under 18 Pa.C.S. Chapter 91 (relating to criminal history record information).
Finally, minor edits were made to § 405a.4 (relating to conduct) to make it more consistent with 4 Pa.C.S. § 1517.2 (relating to conduct of public officials and employees).
This final-form rulemaking imposes general requirements on the Board. It may also have indirect impacts on applicants for and holders of a license, permit, certification or registration from the Board and the general public.
Commonwealth. The Pennsylvania State Police, the Office of Attorney General, the Department of Revenue and other executive agencies may experience some minor cost to comply with requests for information and documents from the Bureau.
The Board will experience some costs for the preparation of verbatim transcripts of its public meetings
Political subdivisions. This final-form rulemaking will have no significant fiscal impact on political subdivisions of this Commonwealth. Local law enforcement agencies may experience some costs to comply with requests for information and documents from the Bureau.
Private sector. Applicants for or holders of a license, permit, registration or certification may experience some costs to comply with requests for information and documents from the Bureau.
General public. Other than requiring payment of fees for copying costs, this final-form rulemaking will have no fiscal impact on the general public.
This final-form rulemaking does not impose new reporting or paperwork requirements on the Board or affected parties under the Board's jurisdiction. This proposed rulemaking clarifies how the Board will maintain formal records and how individuals can request access to these records.
The final-form rulemaking will become effective upon publication in the Pennsylvania Bulletin.
The contact person for questions about this final-form rulemaking is Richard Sandusky, Director of Regulatory Review, (717) 214-8111.
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on August 28, 2006, the Board submitted a copy of the notice of proposed rulemaking, published at 36 Pa.B. 5690 (September 9, 2006), to IRRC and the Chairpersons of the House Tourism and Recreational Development Committee and the Senate Committee on Rules and Executive Nominations for review and comment.
Under section 5(c) of the Regulatory Review Act, IRRC and the Committees were provided with copies of the comments received during the public comment period, as well as other documents when requested. In preparing the final-form rulemaking, the Department has considered all comments from IRRC, the House and Senate Committees and the public.
Under section 5.1(j.2) of the Regulatory Review Act (71 P. S. § 745.5a(j.2)), on May 16, 2007, the final-form rulemaking was deemed approved by the House and Senate Committees. Under section 5.1(e) of the Regulatory Review Act, IRRC met on May 17, 2007, and approved the final-form rulemaking.
The Board finds that:
(1) Public notice of intention to adopt these chapters was given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations thereunder, 1 Pa. Code §§ 7.1 and 7.2.
(2) The final-form rulemaking is necessary and appropriate for the administration and enforcement of 4 Pa.C.S. Part II.
The Board, acting under 4 Pa.C.S. Part II, orders that:
(a) The regulations of the Board, 58 Pa. Code, are amended by deleting §§ 401.1--401.5, 403.1--403.7, 405.1--405.7 and 407.1--407.3 and adding §§ 401a.1--401a.4, 403a.1--403a.7, 405a.1--405a.6 and 407a.1--407a.3 to read as set forth in Annex A.
(b) The Chairperson of the Board shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(c) This order shall take effect upon publication in the Pennsylvania Bulletin.
THOMAS A. DECKER,
(Editor's Note: For the text of the order of the Independent Regulatory Review Commission, relating to this document, see 37 Pa.B. 2566 (June 2, 2007).)
Fiscal Note: 125-45 (1) Gaming Fund; (2) Implementing Year 2006-07 is $20,000; (3) 1st Succeeding Year 2007-08 is $10,000; 2nd Succeeding Year 2008-09 is $10,400; 3rd Succeeding Year 2009-10 is $10,861; 4th Succeeding Year 2010-11 is $11,249; 5th Succeeding Year 2011-12 is $11,699; (4) 2005-06 Program--$26,400,000; 2004-05 Program--$13,200,000; 2003-04 Program--$2,900,000; (7) Board Budget; (8) recommends adoption.
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD
Subpart A. GENERAL PROVISIONS
CHAPTER 401. (Reserved)
§§ 401.1--401.5. (Reserved).
CHAPTER 401a. PRELIMINARY PROVISIONS
401a.1. Purpose. 401a.2. Construction. 401a.3. Definitions. 401a.4. Jurisdiction.
§ 401a.1. Purpose.
The purpose of this part is to facilitate the implementation of the act.
§ 401a.2. Construction.
(a) This part shall be liberally construed to secure the just, speedy and efficient determination of every action, proceeding or issue presented to which it is applicable. The Board at any stage of an action, proceeding or issue presented may disregard an error or defect of procedure which does not affect the substantive rights of the participants.
(b) Subsection (a) supersedes 1 Pa. Code § 31.2 (relating to liberal construction).
§ 401a.3. Definitions.
The following words and terms, when used in this part, have the following meanings, unless the context clearly indicates otherwise:
Act--The Pennsylvania Race Horse Development and Gaming Act (4 Pa.C.S. §§ 1101--1904).
Affiliate, affiliate of or person affiliated with--A person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with a specified person.
Applicant--A person, who on his own behalf or on behalf of another, is applying for permission to engage in an act or activity which is regulated under the act or this part. In cases in which the applicant is a person other than an individual, the Board will determine the associated persons whose qualifications are necessary as a precondition to the licensing of the applicant.
Application--A written request for permission to engage in an act or activity which is regulated under the act or this part.
Approved, approval or approve--The date that an application to the Board is granted regardless of the pendency of administrative or judicial appeals or other legal action challenging the decision of the Board.
Arrest--Detaining, holding, or taking into custody by police or other law enforcement authorities to answer for an alleged commission of an offense.
Associated equipment--Equipment or mechanical, electromechanical or electronic contrivance, component or machine used in connection with gaming, including the following:
(i) Linking devices which connect to progressive slot machines or slot machines.
(ii) Replacement parts needed to conduct slot machine gaming.
(iii) Equipment which affects the proper reporting of gross revenue.
(iv) Computerized systems for controlling and monitoring slot machines, including, the central control computer and devices for weighing or counting money.
BCCIC--The Bureau of Corporate Compliance and Internal Controls of the Board.
BIE or Bureau--The Bureau of Investigations and Enforcement of the Board.
Background investigation--A security, criminal, credit and suitability investigation of a person as provided for in the act. The investigation must include the status of taxes owed to the United States and to the Commonwealth and its political subdivisions.
(i) Those areas of the racetrack facility that are not generally accessible to the public and which include facilities commonly referred to as barns, track kitchens, recreation halls, backside employee quarters and training tracks, and roadways providing access thereto.
(ii) The term does not include those areas of the racetrack facility which are generally accessible to the public, including the various buildings commonly referred to as the grandstand or the racing surfaces, paddock enclosures and walking rings.
Board--The Pennsylvania Gaming Control Board.
Central control computer--A central site computer controlled by the Department and accessible by the Board to which all slot machines communicate for the purpose of auditing capacity, real-time information retrieval of the details of a financial event that occurs in the operation of a slot machine, including, coin in, coin out, ticket in, ticket out, jackpots, machine door openings and power failure, and remote machine activation and disabling of slot machines.
Certified vendor--A vendor that holds a vendor certification.
Charge--An indictment, complaint, information, summons or other notice of an alleged commission of an offense.
Clerk--The Clerk to the Board's Office of Hearings and Appeals.
Collateral agreement--Any contract between a management company or its affiliates, intermediaries, subsidiaries or holding companies and a slot machine licensee or its affiliates, intermediaries, subsidiaries or holding companies that is related either directly or indirectly to a management contract or to any rights, duties or obligations created between a management company and a slot machine licensee.
Commission or Commissions--The State Horse Racing Commission or the State Harness Racing Commission, or both, as the context may require.
Compensation--A thing of value, money or a financial benefit conferred on or received by a person in return for services rendered, or to be rendered, whether by that person or another.
(i) Any lodging, service or item which is provided directly or indirectly to an individual at no cost or at a reduced cost which is not generally available to the public.
(ii) The term includes a lodging provided to a person at a reduced price due to the anticipated or actual gaming activities of that person. Group rates, including convention and government rates, shall be deemed generally available to the public.
Conduct of gaming--The licensed placement and operation of games of chance under the act or this part and approved by the Board at a licensed facility.
Confidential information--Materials that are not generally available to the public.
(i) For a publicly traded domestic or foreign corporation, a controlling interest is an interest in a legal entity, applicant or licensee if a person's sole voting rights under state law or corporate articles or bylaws entitle the person to elect or appoint one or more of the members of the board of directors or other governing board or the ownership or beneficial holding of 5% or more of the securities of the publicly traded corporation, partnership, limited liability company or other form of publicly traded legal entity, unless this presumption of control or ability to elect is rebutted by clear and convincing evidence.
(ii) For a privately held domestic or foreign corporation, partnership, limited liability company or other form of privately held legal entity, a controlling interest is the holding of any securities in the legal entity, unless this presumption of control is rebutted by clear and convincing evidence.
(iii) A person who owns or beneficially holds less than 5% of the securities of a privately held domestic or foreign corporation, partnership, limited liability company or other form of privately held legal entity shall be deemed as having rebutted the presumption of control by clear and convincing evidence.
(i) A finding of guilt or a plea of guilty or nolo contendere, whether or not a judgment of sentence has been imposed as determined by the law of the jurisdiction in which the prosecution was held.
(ii) The term does not include a conviction that has been expunged or overturned or for which an individual has been pardoned or an order of Accelerated Rehabilitative Disposition has been entered.
Corporation--A publicly traded corporation.
Credential--A form of identification approved and issued by the Board.
Department--The Department of Revenue of the Commonwealth.
Ex parte communication--
(i) Any off-the-record communications regarding a pending matter before the Board or which may reasonably be expected to come before the board in a contested on-the-record proceeding.
(ii) The term does not include off-the-record communications by and between members, staff and employees of the Board, the Department, the Pennsylvania State Police, the Attorney General or other law enforcement officials necessary for their official duties under this part.
Federal tax identification number--The Social Security number of an individual or the Employer Identification Number of a business entity, fiduciary or other person.
Final order--One of the following:
(i) An action by the Board which approves, issues, renews, revokes, suspends, conditions, denies issuance or renewal of a license, permit, certification or registration.
(ii) An action by the Board which affects personal or property rights, privileges, immunities, duties, liabilities or obligations and disposes of all claims by or against parties before the Board.
(iii) An action by the Board which is designated by the Board as final.
Financial backer--An investor, mortgagee, bondholder, note holder or other source of equity or capital provided to an applicant or licensed entity.
Formal record--The pleadings in a matter or proceeding, a notice or Board order initiating the matter or proceeding, and if a hearing is held: the transcript of a hearing, exhibits received in evidence, offers of proof, motions, stipulations, subpoenas, proofs of service, determinations made by the Board thereon, and certifications to the Board.
Gaming area or gaming floor--Any portion of a licensed facility where slot machines have been installed for use or play.
(i) An employee of a slot machine licensee, including:
(B) Change personnel.
(C) Counting room personnel.
(D) Slot attendants.
(E) Hosts or other persons authorized to extend complimentary services.
(F) Machine mechanics or computer machine technicians.
(G) Security personnel.
(H) Surveillance personnel.
(I) Supervisors and managers.
(J) Personnel with SLOTS Link security administrator access and responsibilities.
(ii) Employees of a licensed supplier, manufacturer or manufacturer designee whose duties are directly involved with the repair, service or distribution of slot machines and associated equipment sold or provided to a licensed facility within this Commonwealth.
(iii) Employees of a licensed manufacturer or manufacturer designee whose duties require the employee's presence on the gaming floor or in a restricted area of a licensed facility.
(iv) Other employees that the Board determines, after a review of the work being performed, require a permit for the protection of the integrity of gaming.
Gross terminal revenue--The total of cash or cash equivalent wagers received by a slot machine minus the total of:
(i) Cash or cash equivalents paid out to patrons as a result of playing a slot machine which are paid to patrons either manually or paid out by the slot machine.
(ii) Cash paid to purchase annuities to fund prizes payable to patrons over a period of time as a result of playing a slot machine.
(iii) Any personal property distributed to a patron as the result of playing a slot machine. This does not include travel expenses, food, refreshments, lodging or services.
(iv) The term does not include counterfeit money or tokens, coins or currency of other countries which are received in slot machines (except to the extent that they are readily convertible to United States currency), cash taken in fraudulent acts perpetrated against a slot machine licensee for which the licensee is not reimbursed or cash received as entry fees for contests or tournaments in which the patrons compete for prizes.
Holding company--A person, other than an individual, which, directly or indirectly, owns, has the power or right to control or to vote 20% or more of the outstanding voting securities of a corporation or other form of business organization. A holding company indirectly has, holds or owns any such power, right or security if it does so through an interest in a subsidiary or successive subsidiaries.
IRS--The Internal Revenue Service of the United States.
Independent contractor--A person who performs professional, scientific, technical, advisory or consulting services to the Board for a fee, honorarium or similar compensation pursuant to a contract.
Institutional investor--A retirement fund administered by a public agency for the exclusive benefit of Federal, State or local public employees, investment company registered under the Investment Company Act of 1940 (15 U.S.C.A. §§ 80a-1--80a-64), collective investment trust organized by banks under Part Nine of the Rules of the Comptroller of the Currency, closed end investment trust, chartered or licensed life insurance company or property and casualty insurance company, banking and other chartered or licensed lending institution, investment advisor registered under the Investment Advisors Act of 1940 (15 U.S.C.A. §§ 80b-1--80b-21), and other persons registered in any foreign jurisdiction and regulated pursuant to a statute of any foreign jurisdiction that the Board determines to be substantially similar to either or both of the aforementioned statutes.
Intermediary--A person, other than an individual, which is:
(i) A holding company with respect to a corporation or other form of business organization, which holds or applies for a license under the act or this part.
(ii) A subsidiary with respect to a holding company.
Issued, issuance or issue--The date when a determination by the Board approving an application becomes final, binding and nonappealable and is not subject to a pending legal challenge.
Key employee--An individual who is:
(i) Employed in a director or department head capacity and who is empowered to make discretionary decisions that regulate slot machine operations in this Commonwealth, including the general manager and assistant manager of the licensed facility, director of slot operations, director of cage operations, director of surveillance, director of marketing, director of management information systems, director of security, director of human resources, comptroller and any employee who supervises the operations of these departments or to whom these department directors or department heads report.
(ii) Employed by a slot machine licensee, manufacturer licensee, or supplier licensee, whose duties affect or require contact with slot machines, slot monitoring systems, casino management systems, player tracking systems and wide-area progressive systems for use or play in this Commonwealth, whether or not the individual is assigned to gaming operations in this Commonwealth.
(iii) A sales representative seeking to sell slot machines and associated equipment for use in this Commonwealth on behalf of a licensed manufacturer, manufacturer designee or supplier.
(iv) Employed in other positions which the Board will determine based on detailed analyses of the employee's duties or the job descriptions.
License fee--The amount of money required to be paid for the issuance or renewal of any type of license required by the act or as established by the Board.
Licensed entity--A slot machine licensee, manufacturer licensee, supplier licensee or other person licensed by the Board under this part.
Licensed entity representative--A person acting on behalf of or representing the interest of an applicant, licensee, permittee or registrant, including an attorney, agent or lobbyist regarding any matter which may reasonably be expected to come before the Board.
Licensed facility--The physical land-based location at which a licensed gaming entity is authorized to place and operate slot machines.
Licensed gaming entity--A person that holds a slot machine license.
Licensed racetrack or racetrack--
(i) The physical facility and grounds where a person has obtained a license from either the State Horse Racing Commission or the State Harness Racing Commission to conduct live thoroughbred or harness race meetings respectively with pari-mutuel wagering.
(ii) The term ''racetrack'' or ''its racetrack'' means the physical land-based location at which live horse racing is conducted even if not owned by the person.
Licensed racing entity--A legal entity that has obtained a license to conduct live thoroughbred or harness horse race meetings respectively with pari-mutuel wagering from either the State Horse Racing Commission or the State Harness Racing Commission under the Race Horse Industry Reform Act.
Management company--A person or legal entity which, through a Board-approved management contract with a slot machine licensee, is responsible for the management of all or part of the operation of a licensed facility.
Management contract--A contract, subcontract or collateral agreement between a management company and a slot machine licensee if the contract provides for the management of all or part of a licensed facility.
Manufacturer--A person who manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs or otherwise makes modifications to slot machines or associated equipment for use or play of slot machines in this Commonwealth for gaming purposes.
Manufacturer designee--A person who is designated by a licensed manufacturer pursuant to an agreement to supply or repair the licensed manufacturer's slot machines or associated equipment.
Manufacturer designee license--A license issued by the Board authorizing a manufacturer designee to supply or repair slot machines or associated equipment of a licensed manufacturer for use in this Commonwealth for gaming purposes.
Manufacturer designee licensee--A manufacturer designee that obtains a manufacturer designee license.
Manufacturer license--A license issued by the Board authorizing a manufacturer to manufacture or produce slot machines or associated equipment for use in this Commonwealth for gaming purposes.
Manufacturer licensee--A person that holds a manufacturer license.
Manufacturer's serial number--The unique number permanently assigned to a slot machine by a manufacturer for identification and control purposes.
Member--An individual appointed to and sworn in as a member of the Board in accordance with section 1201(b) of the act (relating to Pennsylvania Gaming Control Board established).
Municipality--A city, borough, incorporated town or township.
Net terminal revenue--The net amount of the gross terminal revenue less the tax and assessments imposed by sections 1402, 1403, 1405 and 1407 of the act.
Nongaming employee--An employee of a slot machine licensee or certified vendor who is not included within the definition of ''principal'', ''key employee'' or ''gaming employee,'' and:
(i) Whose job duties require the employee to be:
(A) On the gaming floor but do not require the employee to touch or have contact with slot machines or associated equipment other than exterior cleaning.
(B) In a restricted area and the employee:
(I) Is under the constant supervision of an employee of the slot machine licensee who is licensed or permitted and has appropriate access clearance to be in the restricted area.
(II) Is not required to touch or have contact with slot machines or associated equipment other than exterior cleaning.
(ii) Who the Board determines, after a review of the work being performed, requires registration for the protection of the integrity of gaming.
Nonprimary location--A facility in which pari-mutuel wagering is conducted by a licensed racing entity other than the racetrack where live racing is conducted.
Occupation permit--A permit issued by the Board authorizing an individual to be employed or work as a gaming employee.
Offense--Felonies, crimes, high misdemeanors, misdemeanors, disorderly persons offenses, petty disorderly offenses, driving while intoxicated/impaired, motor vehicle offenses and violations of probation or any other court order.
Pending matter or contested on the record proceeding--
(i) A matter including the discretionary issuance, approval, renewal, conditioning, revocation, suspension or denial of any license, permit, certification or registration or any petitions or motions that would require Board consideration.
(ii) The term does not include a policy or administrative matter.
Permit fee--The amount of money required to be paid for issuance or renewal of any type of permit required by the Board.
Permittee--A holder of a permit issued under this part.
Person--A natural person, corporation, foundation, organization, business trust, estate, limited liability company, licensed corporation, trust, partnership, limited liability partnership, association or other form of legal business entity.
Principal--Includes the following:
(i) An officer.
(iii) Person who directly holds a beneficial interest in or ownership of the securities of an applicant or licensee.
(iv) Person who has a controlling interest in an applicant or licensee, or has the ability to elect a majority of the Board of directors of a licensee or to otherwise control a licensee.
(v) Lender or other licensed financial institution of an applicant or licensee, other than a bank or lending institution which makes a loan or holds a mortgage or lien acquired in the ordinary course of business.
(vi) Underwriter of an applicant or licensee.
(vii) Other persons or employees of an applicant, slot machine licensee, manufacturer licensee or supplier licensee deemed to be a principal by the Board.
Publicly traded corporation--A person other than an individual which:
(i) Has a class or series of securities registered under the Securities Exchange Act of 1934 (15 U.S.C.A. §§ 78a--78nn).
(ii) Is a registered management company under the Investment Company Act of 1940.
(iii) Is subject to the reporting obligations imposed by section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C.A. § 78o(d)) by reason of having filed a registration statement which has become effective under the Securities Act of 1933 (15 U.S.C.A. §§ 77a--77aa).
Race Horse Industry Reform Act--4 P. S. §§ 325.101--325.402.
Registered vendor--A vendor that is registered with the Board.
Regular or continuing basis--A vendor will be deemed to conduct business on a regular or continuing basis if:
(i) The total dollar amount of transactions with a single slot machine licensee or applicant is or will be greater than $200,000 within any consecutive 12 month period.
(ii) The total dollar amount of transactions with slot machine licensees or applicants is or will be greater than $500,000 within any consecutive 12 month period.
Restricted area--An area where access is limited and is specifically designated by the Board as restricted, including:
(i) The cashiers' cage.
(ii) The soft count room.
(iii) The surveillance monitoring room.
(iv) The slot machine storage and repair rooms.
(v) The progressive controller room.
(vi) The central control computer room.
(vii) The information technology department.
(viii) Any additional area that the slot machine licensee designates as restricted in its Board-approved internal controls.
Revenue- or tourism-enhanced location--A location within this Commonwealth determined by the Board, which will maximize net revenue to the Commonwealth or enhance year-round recreational tourism within this Commonwealth, in comparison to other proposed facilities and is otherwise consistent with the act and its declared public policy purposes.
SEC--The Securities and Exchange Commission of the United States.
Secretary--Secretary to the Board.
Securities--As defined in the Pennsylvania Securities Act of 1972 (70 P. S. §§ 1-101--1-703).
(i) A mechanical or electrical contrivance, terminal, machine or other device approved by the Board which, upon insertion of a coin, bill, token, gaming voucher, coupon or similar object therein or upon payment of any consideration, including the use of electronic payment system except a credit card or debit card, is available to play or operate, the play or operation of which, whether by reason of skill or application of the element of chance, or both, may deliver or entitle the person playing or operating the contrivance, terminal, machine or other device to receive cash, billets, tokens, gaming vouchers or electronic credits to be exchanged for cash or to receive merchandise or anything of value, whether the payoff is made automatically from the machine or manually. A slot machine:
(A) May utilize spinning reels or video displays, or both.
(B) May or may not dispense coins, vouchers or tokens to winning patrons.
(C) May use an electronic credit system for receiving wagers and making payouts.
(ii) The term includes associated equipment necessary to conduct the operation of the contrivance, terminal, machine or other device.
Slot machine license--A license issued by the Board authorizing a person to place and operate slot machines under the act.
Slot machine licensee--A person that holds a slot machine license.
SLOTS Link--An electronic application system developed by the Board.
Staff--An employee or an independent expert, including but not limited to, attorneys, accountants, investment bankers, architects, engineers, scientific and technical consultants and licensed financial brokers retained by the Board.
State gaming receipts--Revenues and receipts required by the act to be paid into the State Gaming Fund, the Pennsylvania Race Horse Development Fund and the Pennsylvania Gaming Economic Development and Tourism Fund, and all rights, existing on July 5, 2004, or coming into existence after July 5, 2004, to receive any of those revenues and receipts.
State Treasurer--The State Treasurer of the Commonwealth.
Statement of Investigation--An order of the Board in response to a petition for an order regarding inquiry and investigation of a purchase of an eligible applicant or licensee which specifies the particular criterion satisfied by the purchaser, provides for the continuing obligation of the purchaser to provide information to the Board, is applicable only as to the purchase of a specific eligible applicant or licensee, and provides an expiration date not to exceed 6 months from the date of issuance unless otherwise extended by the Board.
Subsidiary--A person other than an individual. The term includes:
(i) A corporation, any significant part of whose outstanding equity securities are owned, subject to a power or right of control, or held with power to vote, by a holding company or an intermediary company.
(ii) A significant interest in a person, other than an individual, which is owned, subject to a power or right of control, or held with power to vote, by a holding company or an intermediary company.
(iii) A person deemed to be a subsidiary by the Board.
Supplier--A person that sells, leases, offers or otherwise provides, distributes or services slot machines or associated equipment for use or play of slot machines in this Commonwealth at a licensed gaming facility.
Supplier license--A license issued by the Board authorizing a supplier to provide products or services related to slot machines or associated equipment to licensed gaming entities.
Supplier licensee--A person that holds a supplier license.
Trade secret--A private formula, pattern, device, cost study or compilation of information which is used in a business and which, if disclosed could negate an advantage over competitors who do not know or use it.
Underwriter--As defined in the Pennsylvania Securities Act of 1972.
(i) A person who provides goods or services to a slot machine licensee or applicant, but who is not required to be licensed as a manufacturer, manufacturer designee, supplier, management company or junket enterprise.
(ii) The term includes:
(A) Suppliers of alcoholic beverages (if not otherwise regulated by the Pennsylvania Liquor Control Board), food and nonalcoholic beverages.
(B) Refuse handlers.
(C) Vending machine providers and service personnel.
(D) Linen and uniform suppliers.
(E) Janitorial and maintenance companies, not relating to the repair of slot machines or associated equipment.
(F) Tenant businesses or franchises located within licensed facilities.
(G) Providers of transportation services.
(H) Companies, subcontractors and professionals involved in the construction of a facility for a slot machine licensee or applicant.
(I) Lessors of real property or goods.
(J) Other entities which the Board will determine based on detailed analyses by the Board of vendor contracts.
Vendor certification--A certification issued by the Board authorizing a vendor to provide goods or services to a slot machine licensee or applicant.
Vendor registration--A registration issued by the Board authorizing a vendor to provide goods or services to a slot machine licensee or applicant.
§ 401a.4. Jurisdiction.
(a) The Board will have exclusive jurisdiction over all matters within the scope of its powers under the act.
(b) Nothing contained in this part shall be construed to limit the powers and duties of the Board as provided in the act.
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