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Pennsylvania Gaming Control Board established - 4 Pa. Cons. Stat. § 1201Legal Research Home > Pennsylvania Statutes Sponsored Links
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 |