Pennsylvania Code & Bulletin
COMMONWEALTH OF PENNSYLVANIA

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The Pennsylvania Code website reflects the Pennsylvania Code changes effective through 52 Pa.B. 6342 (October 1, 2022).

58 Pa. Code § 1106a.1. Supplier licenses.

§ 1106a.1. Supplier licenses.

 (a)  Application for licensure. A supplier as defined in this subpart shall apply for licensure in accordance with §  431a.2 (relating to supplier license applications and standards).

   (1)  A supplier filing an application for licensure under this chapter shall not be required to file a diversity plan as set forth in §  431a.2(a)(3).

 (b)  Submittals. In addition to the information submitted under §  431a.2, an applicant for a supplier license shall submit all of the following:

   (1)  The name and business address of the applicant and the applicant’s affiliates, intermediaries, subsidiaries and holding companies, the principals and key employees of each business, and a list of employees and their positions within each business, as well as financial information required by the Board.

   (2)  A statement that the applicant and each affiliate, intermediary, subsidiary or holding company of the applicant are not terminal operator licensees or establishment licensees.

   (3)  Proof that the applicant has or will establish a place of business in this Commonwealth. A supplier licensee shall maintain a place of business in this Commonwealth to remain eligible for licensure.

   (4)  The consent to a background investigation by the Bureau of the applicant, its principals and key employees or other persons required by the Board and a release to obtain the information necessary for the completion of the background investigation.

   (5)  The details of any supplier license issued by the Board to the applicant under section 1317 of the act (relating to supplier licenses) and details of any application for a supplier license that was denied by the board, if applicable.

   (6)  The details of any equivalent license granted or denied by other jurisdictions where gaming activities similar to those authorized by the act or this part are permitted.

   (7)  The type of products and services to be supplied and whether those products and services will be provided through purchase, lease, contract or otherwise.

   (8)  Other information determined by the Board to be appropriate.

 (c)  Approval and issuance of license. Upon being satisfied that the requirements in subsections (a) and (b) have been met, the Board may approve the application and issue the applicant a supplier license consistent with all of the following:

   (1)  A licensee shall have an affirmative duty to notify the Board of a change relating to the status of its license or to information in the application materials on file with the Board.

   (2)  The license is nontransferable.

   (3)  Other conditions established by the Board.

 (d)  Considerations. In determining whether an applicant is suitable to be licensed as a supplier under this section, the Board will consider all of the following:

   (1)  The financial fitness, good character, honesty, integrity and responsibility of the applicant.

   (2)  If all principals and key employees of the applicant are eligible and suitable for licensure.

   (3)  The integrity of financial backers.

   (4)  The suitability of the applicant and principals and key employees of the applicant based on the satisfactory results of:

     (i)   A background investigation of the applicant and its principals and key employees.

     (ii)   A current tax clearance review performed by the Department.

     (iii)   A current Unemployment Compensation Tax clearance review and a Workers Compensation Tax clearance review performed by the Department of Labor and Industry.

 (e)  Submittal of agreements. A supplier shall submit to the Bureau of Licensing for review any agreements with a licensed manufacturer or with a terminal operator licensee. The review may include financing arrangements, inventory requirements, warehouse requirements, warehouse space, technical competency, compensative agreements and other terms or conditions to ensure the financial independence of the supplier licensee from any licensed manufacturer or terminal operator.

 (f)  Occupation permit or nongaming registration. An employee of a supplier licensee who is a gaming employee or nongaming employee as defined in §  1101a.2 (relating to definitions) shall obtain an occupation permit under §  1109a.1 (relating to gaming employee occupation permits) or a nongaming registration under §  1109a.2 (relating to nongaming employee registrations).

 (g)  Change of control of a supplier licensee.

   (1)  For purposes of this subsection, a change of control of a supplier licensee will be deemed to have occurred when a person or group of persons acquires:

     (i)   More than 20% of a supplier licensee’s securities, assets or other ownership interests.

     (ii)   More than 20% of the securities or other ownership interests of a corporation or other form of business entity that owns directly or indirectly at least 20% of the voting or other securities or other ownership interests of the supplier licensee.

     (iii)   Any other interest in a supplier licensee which allows the acquirer to control the supplier licensee.

   (2)  A supplier licensee shall notify the Bureau and the Bureau of Licensing in a manner prescribed by the Bureau of Licensing immediately upon becoming aware of any proposed or contemplated change of control of the supplier licensee.

   (3)  Prior to acquiring a controlling interest in a supplier licensee, the acquirer shall file a petition in accordance with §  493a.4 (relating to petitions generally) requesting Board approval of the acquisition. The petition must include all of the following:

     (i)   A copy of all documents governing the acquisition.

     (ii)   Completed applications for the acquiring company, as required under this chapter, principals as required under §  1104a.1 (relating to principal licenses) and key employees as required under §  1105a.1 (relating to key employee licenses).

     (iii)   An affirmation that neither the acquirer nor any of its affiliates, intermediaries, subsidiaries or holding companies is a terminal operator licensee or establishment licensee.

   (4)  A person or group of persons seeking to acquire a controlling interest in a supplier licensee shall promptly provide any additional information requested by the Board and Board staff and cooperate with the Bureau in any investigations related to the petition filed under this subsection.

   (5)  A person or group of persons may not acquire a controlling interest in a supplier licensee until the petition required under this subsection, has been approved. A person or group of persons seeking to acquire a controlling interest in a supplier licensee and the supplier licensee may enter into a sales agreement that is contingent on Board approval of the petition.

   (6)  The requirements in this section do not apply to the acquisition of a controlling interest in a supplier licensee when all of the following conditions are met:

     (i)   The acquirer is an existing licensed supplier licensee.

     (ii)   The existing licensed supplier licensee has provided the Bureau and the Bureau of Licensing notification and a copy of all documents governing the acquisition at least 60 days prior to the acquisition.

     (iii)   After reviewing the documentation, the Bureau and the Bureau of Licensing determine that the filing of a petition is not required.



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