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Pennsylvania Gaming Control Board established - 4 Pa. Cons. Stat. § 1201

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                                CHAPTER 12
                    PENNSYLVANIA GAMING CONTROL BOARD

     Sec.
     1201.  Pennsylvania Gaming Control Board established.
     1201.1. Applicability of other statutes.
     1202.  General and specific powers.
     1202.1. Code of conduct.
     1203.  Temporary regulations.
     1204.  Licensed gaming entity application appeals from board.
     1205.  License or permit application hearing process; public
            input hearings.
     1206.  Board minutes and records.
     1207.  Regulatory authority of board.
     1208.  Collection of fees and fines.
     1209.  Slot machine license fee.
     1210.  Number of slot machines.
     1211.  Reports of board.
     1212.  Diversity goals of board.
     1213.  License or permit prohibition.

        Enactment.  Chapter 12 was added July 5, 2004, P.L.572,
     No.71, effective immediately.
     § 1201.  Pennsylvania Gaming Control Board established.
        (a)  Board established.--There is established an independent
     board which shall be a body corporate and politic to be known as
     the Pennsylvania Gaming Control Board.
        (b)  Membership.--The board shall consist of the following
     members:
            (1)  Three members appointed by the Governor.
            (2)  One member appointed by each of the following:
                (i)  The President pro tempore of the Senate.
                (ii)  The Minority Leader of the Senate.
                (iii)  The Speaker of the House of Representatives.
                (iv)  The Minority Leader of the House of
            Representatives.
        (b.1)  Removal.--A member of the board shall be removed from
     office by the appointing authority:
            (1)  for misconduct in office, willful neglect of duty or
        conduct evidencing unfitness for office or incompetence; or
            (2)  upon conviction of an offense graded as a felony, an
        infamous crime, an offense under this part or an equivalent
        offense under Federal law or the law of another jurisdiction.
        (c)  Initial appointments to board.--
            (1)  Gubernatorial appointees initially appointed under
        subsection (b)(1) shall serve an initial term of one, two and
        three years respectively as designated by the Governor at the
        time of appointment and until their successors are appointed
        and qualified.
            (2)  Legislative appointees initially appointed under
        subsection (b)(2) shall serve until the third Tuesday in
        January 2007 and until their successors are appointed and
        qualified.
            (3)  An appointment to fill a vacancy created by a member
        appointed in accordance with paragraph (1) or (2) shall be
        for the remainder of the unexpired term.
        (d)  Terms of office.--Upon the expiration of a term of a
     member appointed under subsection (c), the following shall
     apply:
            (1)  The term of office of a gubernatorial appointee
        shall be three years and until a successor is appointed and
        qualified.
            (2)  The term of office of a legislative appointee shall
        be two years and until a successor is appointed and
        qualified.
            (3)  A legislative appointee shall serve no more than
        three full consecutive terms.
            (4)  A gubernatorial appointee shall serve no more than
        two full consecutive terms.
            (5)  An appointment to fill a vacancy shall be for the
        remainder of the unexpired term.
            (6)  A member appointed to fill a vacancy under paragraph
        (3) may serve three full terms following the expiration of
        the term related to the vacancy.
            (7)  A member appointed to fill a vacancy under paragraph
        (4) may serve two full terms following the expiration of the
        term related to the vacancy.
        (e)  Ex officio members.--The Secretary of Revenue, the
     Secretary of Agriculture and the State Treasurer, or their
     designees, shall serve on the board as nonvoting ex officio
     members of the board. The designee shall be a deputy secretary
     or an equivalent position within the agency.
        (f)  Qualified majority vote.--
            (1)  Except as permitted in paragraphs (2) and (3), any
        action, including, but not limited to, the approval,
        issuance, denial or conditioning of any license by the board
        under this part or the making of any order or the
        ratification of any permissible act done or order made by one
        or more of the members, shall require a qualified majority
        vote consisting of at least one gubernatorial appointee and
        the four legislative appointees.
            (2)  Any action to suspend or revoke, not renew, void or
        require forfeiture of a license or permit issued under this
        part, to impose any administrative fine or penalty under this
        part or to issue cease and desist orders or similar
        enforcement actions shall require a majority vote of all the
        members appointed to the board.
            (3)  Notwithstanding any other provision of this part or
        65 Pa.C.S. § 1103(j) (relating to restricted activities), a
        member shall disclose the nature of his disqualifying
        interest, disqualify himself and abstain from voting in a
        proceeding under this part in which his objectivity,
        impartiality, integrity or independence of judgment may be
        reasonably questioned, as provided in subsection (h)(6). If a
        legislative appointee has disqualified himself, the qualified
        majority shall consist of all of the remaining legislative
        appointees and at least two gubernatorial appointees.
        (g)  Background investigation.--Appointees shall be subject
     to a background investigation conducted by the Pennsylvania
     State Police in accordance with this part.
        (h)  Qualifications and restrictions.--
            (1)  Each member at the time of appointment shall be at
        least 25 years of age and shall have been a resident of this
        Commonwealth for a period of at least one year immediately
        preceding appointment. Each member shall continue to remain a
        resident of this Commonwealth during the term of membership
        on the board.
            (2)  Except for ex officio members, no person shall be
        appointed a member of the board or be employed by or be an
        independent contractor of the board if that person is a
        public official or party officer as defined in section 1512
        (relating to financial and employment interests) in this
        Commonwealth or any of its political subdivisions.
            (3)  Each member, employee and independent contractor of
        the board shall sign an agreement not to disclose
        confidential information.
            (4)  No member, employee or independent contractor of the
        board or other agency having regulatory authority over the
        board or over forms of gaming regulated by this part shall be
        employed, hold any office or position or be engaged in any
        activity which is incompatible with the position, employment
        or contract.
            (5)  No member shall be paid or receive any fee or other
        compensation other than salary and expenses provided by law
        for any activity related to the duties or authority of the
        board. Nothing in this part shall prohibit a member from
        engaging in any employment or receiving any compensation for
        such employment that is not connected to or incompatible with
        his service as a member of the board.
            (6)  No member, employee or independent contractor of the
        board shall participate in a hearing, proceeding or other
        matter in which the member, employee or independent
        contractor, or the immediate family thereof, has a financial
        interest in the subject matter of the hearing or proceeding
        or other interest that could be substantially affected by the
        outcome of the hearing or proceeding without first fully
        disclosing the nature of the interest to the board and other
        persons participating in the hearing or proceeding. The board
        shall determine if the interest is a disqualifying interest
        that requires the disqualification or nonparticipation of an
        employee or independent contractor. For purposes of this
        paragraph, the term "immediate family" shall mean spouse,
        parent, brother, sister or child.
            (7)  At the time of appointment and annually thereafter,
        each member shall disclose the existence of any financial
        interest in any applicant, licensed entity or licensed
        facility and in an affiliate, intermediary, subsidiary or
        holding company thereof held by the member or known to be
        held by the member's immediate family. The disclosure
        statement shall be filed with the executive director of the
        board and with the appointing authority for such member and
        shall be open to inspection by the public at the office of
        the board during the normal business hours of the board for
        the duration of the member's term and for two years after the
        member leaves office. For purposes of this paragraph, the
        term "immediate family" shall mean spouse, parent, brother,
        sister or child.
            (7.1)  Prior to being sworn as a member, an appointee and
        his immediate family shall divest any financial interest in
        any applicant, licensed facility or licensed entity and in an
        affiliate, intermediary, subsidiary or holding company
        thereof owned or held by the appointee or known to be held by
        the appointee's immediate family. For the duration of the
        member's term and for one year thereafter, the member and the
        member's immediate family may not acquire a financial
        interest in any applicant, licensed facility or licensed
        entity or in an affiliate, intermediary, subsidiary or
        holding company thereof. For purposes of this paragraph, the
        term "immediate family" shall mean spouse and any minor or
        unemancipated child.
            (7.2)  Prior to entering into employment or a contract
        with the board and annually thereafter, an employee or
        independent contractor shall disclose the existence of any
        financial interest in any applicant, licensed facility or
        licensed entity and in an affiliate, intermediary, subsidiary
        or holding company thereof owned or held by the employee or
        independent contractor or known to be held by the immediate
        family of the employee or independent contractor. The
        disclosure statement shall be filed with the board and shall
        be open to inspection by the public at the office of the
        board during the normal business hours of the board and for
        two years after termination of employment or a contract with
        the board. For purposes of this paragraph, the term
        "immediate family" shall mean spouse, parent, brother, sister
        or child.
            (7.3)  Prior to entering into employment or contracting
        with the board, an employee or independent contractor and the
        employee's or independent contractor's immediate family shall
        divest any financial interest in any applicant, licensed
        facility or licensed entity, and in an affiliate,
        intermediary, subsidiary or holding company thereof, owned or
        held by the employee or independent contractor or known to be
        held by the immediate family of the employee or independent
        contractor. For the duration of the employee's employment
        with the board or the independent contractor's contract with
        the board and for one year thereafter, the employee or
        independent contractor and the immediate family thereof shall
        not acquire, by purchase, gift, exchange or otherwise, any
        financial interest in any applicant, licensed facility or
        licensed entity and in any affiliate, intermediary,
        subsidiary or holding company thereof. For purposes of this
        paragraph, the term "immediate family" shall mean spouse and
        any minor or unemancipated child.
            (8)  No member, employee or independent contractor of the
        board may directly or indirectly solicit, request, suggest or
        recommend to any applicant, licensed entity, or an affiliate,
        intermediary, subsidiary or holding company thereof or to any
        principal, employee, independent contractor or agent thereof,
        the appointment or employment of any person in any capacity
        by the applicant, licensed entity, or an affiliate,
        intermediary, subsidiary or holding company thereof for a
        period of two years from the termination of term of office,
        employment or contract with the board.
            (9)  No member may accept employment with any applicant,
        licensed entity, or an affiliate, intermediary, subsidiary or
        holding company thereof, for a period of two years from the
        termination of term of office.
            (10)  No member may appear before the board on behalf of
        any applicant, licensed entity, or an affiliate,
        intermediary, subsidiary or holding company thereof, or any
        other licensee or permittee for a period of two years from
        the termination of term of office.
            (11)  No member, employee or independent contractor of
        the board shall accept a complimentary service, wager or be
        paid any prize from any wager at any licensed facility within
        this Commonwealth or at any other facility outside this
        Commonwealth which is owned or operated by a licensed gaming
        entity or any of its affiliates, intermediaries, subsidiaries
        or holding companies thereof for the duration of their term
        of office, employment or contract with the board and for a
        period of one year from the termination of term of office,
        employment or contract with the board. The provisions of this
        paragraph shall not apply to employees who utilize slot
        machines for testing purposes or to verify the performance of
        a machine as part of an enforcement investigation.
            (12)  A member who has been convicted during his term in
        any domestic or foreign jurisdiction of a felony, infamous
        crime or gambling offense shall, upon conviction, be
        automatically removed from the board and shall be ineligible
        to become a member in the future. If an ex officio member is
        convicted during his term in any domestic or foreign
        jurisdiction of a felony, infamous crime or gambling offense,
        the ex officio member shall, upon conviction, be
        automatically removed from the board, and a designee shall be
        designated pursuant to subsection (e) to serve the remainder
        of the ex officio member's term.
            (13)  No employee of the board or individual employed by
        an independent contractor of the board whose duties
        substantially involve licensing, enforcement or the
        development or adoption of regulations or policy under this
        part shall:
                (i)  accept employment with an applicant or licensed
            entity, or an affiliate, intermediary, subsidiary or
            holding company thereof, for a period of one year after
            the termination of the employment relating to the conduct
            of gaming or contract with the board; or
                (ii)  appear before the board in any hearing or
            proceeding or participate in any other activity on behalf
            of any applicant, licensee, permittee or licensed entity,
            or an affiliate, intermediary, subsidiary or holding
            company thereof, for a period of two years after
            termination of the employment or contract with the board.
            (14)  Upon the written request of an employee of the
        board, the executive branch of the Commonwealth or a
        political subdivision or of the agency or political
        subdivision employing an employee, the State Ethics
        Commission shall determine whether the individual's duties
        substantially involve the development or adoption of
        regulations or policy, licensing or enforcement under this
        part and shall provide a written determination to the
        employee to include any prohibition under this paragraph. An
        individual who relies in good faith on a determination under
        this paragraph shall not be subject to any penalty for an
        action taken, provided that all material facts set forth in
        the request for a determination are correct.
            (15)  If a member, employee or independent contractor of
        the board violates any provision of this section, the
        appointing authority or the board may, upon notice and
        hearing, remove the person from the board, withdraw the
        appointment or terminate the employment or contract, and the
        person shall be ineligible for future appointment, employment
        or contract with the board and for approval of a license or
        permit under this part for a period of two years thereafter.
        (h.1)  Fiduciary relationship.--A member or employee of the
     board shall serve as a fiduciary of the Commonwealth.
        (h.2)  Standard of care.--Members shall exercise the standard
     of care required by 20 Pa.C.S. Ch. 73 (relating to
     municipalities investments) in the performance of their duties
     under this part.
        (h.3)  Liability.--Members shall not be personally liable for
     any of the following:
            (1)  Obligations of the board.
            (2)  Actions which were within the scope of their office
        and made in good faith.
        (i)  Compensation.--
            (1)  The Executive Board as established in the act of
        April 9, 1929 (P.L.177, No.175), known as The Administrative
        Code of 1929, shall establish the compensation of the
        members.
            (2)  Members shall be reimbursed for all necessary and
        actual expenses.
            (3)  Members shall be eligible for retirement under the
        State Employees' Retirement Code and shall, if the member
        elects to participate, be considered a State employee for the
        purposes of 71 Pa.C.S. Pt. XXV (relating to retirement for
        State employees and officers).
        (j)  Chairman.--The chairman of the board shall be selected
     by the Governor.
        (k)  Appointments.--The appointing authorities shall make
     their initial appointments within 60 days of the effective date
     of this part. No appointment shall be final until receipt by the
     appointing authority of the required background investigation of
     the appointee by the Pennsylvania State Police which shall be
     completed within 30 days. No person who has been convicted in
     any domestic or foreign jurisdiction of a felony, infamous crime
     or gaming offense shall be appointed to the board.
        (l)  Prohibition against nepotism.--No member may solicit,
     request, suggest or recommend the employment by the board of any
     individual related within the second degree of consanguinity to
     the member as set forth in 23 Pa.C.S. § 1304(e) (relating to
     restrictions on issuance of license) or the spouse of the
     individual.
        (m)  Employment requirements.--
            (1)  Prospective employees shall submit an application
        and a personal disclosure form to the board which shall
        include a complete criminal history, including convictions
        and current charges for all felonies and misdemeanors.
            (2)  Prospective employees shall be required to undergo
        testing which detects the presence of illegal substances in
        the body.
            (3)  The board shall obtain fingerprints and photographs
        for each prospective employee consistent with the standards
        adopted by the Pennsylvania State Police.
            (4)  The board shall verify the identification,
        employment and education of each prospective employee,
        including:
                (i)  Legal name, including any alias.
                (ii)  All educational institutions attended
            regardless of graduation status.
                (iii)  Places of residence for the past ten years.
                (iv)  Employment history for the past 15 years.
            (5)  The board shall not hire a prospective employee if
        the prospective employee:
                (i)  has been convicted of a crime that bears a close
            relationship to the duties and responsibilities of the
            position for which employment is sought;
                (ii)  has been dismissed from other employment for
            gross misconduct; or
                (iii)  has intentionally made a false statement
            concerning a material fact in connection with the
            application to the board.
            (6)  The board shall not employ a person unless the
        requirements of paragraphs (1), (2), (3) and (4) have been
        met. This paragraph shall apply only to persons employed
        after the effective date of this subsection.
            (7)  The board shall:
                (i)  Immediately refer any criminal matter involving
            an employee to law enforcement.
                (ii)  Develop a disciplinary process for an employee
            charged with a crime or with gross misconduct.
                (iii)  Immediately suspend from employment any
            employee charged with a felony.
                (iv)  Develop a process to discipline all other
            instances of misconduct.
            (8)  Disciplinary action shall be instituted promptly
        against an employee who, while on or off duty, engages in
        serious misconduct which may bring the board into disrepute.
        (n)  Definitions.--As used in this section, the following
     words and phrases shall have the meanings given to them in this
     subsection:
        "Financial interest."  An ownership, property, leasehold or
     other beneficial interest in an entity. The term shall not
     include an interest which is held or deemed to be held in any of
     the following:
            (1)  Securities that are held in a pension plan, profit-
        sharing plan, individual retirement account, tax-sheltered
        annuity, a plan established pursuant to section 457 of the
        Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
        1 et seq.), or any successor provision, deferred compensation
        plan whether qualified or not qualified under the Internal
        Revenue Code of 1986, or any successor provision, or other
        retirement plan that:
                (i)  is not self-directed by the individual; and
                (ii)  is advised by an independent investment adviser
            who has sole authority to make investment decisions with
            respect to contributions made by the individual to these
            plans.
            (2)  A tuition account plan organized and operated
        pursuant to section 529 of the Internal Revenue Code of 1986
        (Public Law 99-514, 26 U.S.C. § 529) that is not self-
        directed by the individual.
            (3)  A mutual fund where the interest owned by the mutual
        fund in a licensed entity does not constitute a controlling
        interest as defined in this part.
        "Ownership interest."  Owning or holding, or being deemed to
     hold, debt or equity securities or other ownership interest or
     profit interest.
     (Nov. 1, 2006, P.L.1243, No.135, eff. imd.)

        Cross References.  Section 1201 is referred to in sections
     1103, 1209, 1902 of this title.
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Last modified: November 27, 2007