4 Pa.C.S. Ch. 35

in effect

4 Pa.C.S. § 3501 General prohibition.

No person may offer or otherwise make available for play in this Commonwealth a video gaming terminal unless the person is licensed under this part and according to regulations promulgated by the board under this part.

4 Pa.C.S. § 3502 Terminal operator licenses.

(a) General requirements.--An application for a terminal operator license shall be on the form required by the board and shall include, at a minimum, all of the following: (1) The name, address and photograph of the applicant and of all directors and owners and key employees and their positions within the corporation or organization, as well as additional financial information required by the board. (2) A current tax lien certificate issued by the department. (3) The details of any gaming license applied for, granted to or denied to the applicant by another jurisdiction where the form of gaming is legal and the consent for the board to acquire copies of the application submitted or license issued in connection with the application. (4) The details of any loan obtained from a financial institution or not obtained from a financial institution. (5) The consent to conduct a background investigation by the board, the scope of which investigation shall be determined by the bureau in its discretion consistent with the provisions of this part, and a release signed by all persons subject to the investigation of all information required to complete the investigation. (6) The details of the applicant's diversity plan to assure that all persons are accorded equality of opportunity in employment and contracting by the applicant, its contractors, subcontractors, assignees, lessees, agents, vendors and suppliers. (7) Any information concerning maintenance and operation of video gaming terminals in any other jurisdiction. (8) Proof that the applicant has or will establish a place of business in this Commonwealth. A terminal operator licensee shall maintain its place of business in this Commonwealth to remain eligible for licensure. (9) Any other information determined to be appropriate by the board. (b) Character requirements.--An application for a terminal operator license shall include such information, documentation and assurances as may be required to establish by clear and convincing evidence of the applicant's suitability, including good character, honesty and integrity. The application shall include, without limitation, information pertaining to family, habits, character, reputation, criminal history background, business activities, financial affairs and business, professional and personal associates, covering at least the 10-year period immediately preceding the filing date of the application. (c) Civil judgments.--An applicant shall notify the board of any civil judgment obtained against the applicant pertaining to laws of the Federal Government, this Commonwealth or another state, jurisdiction, province or country. (d) (Reserved). (e) (Reserved). (f) Additional eligibility requirements.--In order to be eligible for a terminal operator license under this part, the principals and key employees of the applicant must obtain a license to meet the character requirements of this section or other eligibility requirements established by the board. (g) Classification system.--The board shall develop a classification system for other agents, employees or persons who directly or indirectly hold or are deemed to be holding debt or equity securities or other financial interest in the applicant and for other persons that the board considers appropriate for review under this section. (h) Related entities.-- (1) Except as provided in paragraph (2), no person shall be eligible to receive a terminal operator license unless the principals and key employees of each intermediary or holding company of the person meet the requirements of subsection (f). (2) The board may require that lenders and underwriters of intermediaries, subsidiaries or holding companies of a terminal operator license applicant meet the requirements of subsection (f) if the board determines that the suitability of a lender or underwriter is at issue and necessary to consider a pending application for a terminal operator license. (i) Revocable privilege.--The issuance or renewal of a license or other authorization by the board under this section shall be a revocable privilege. (j) Waiver for publicly traded corporations.--The board may waive the requirements of subsection (f) for a person directly or indirectly holding ownership of securities in a publicly traded corporation if the board determines that the holder of the securities does not have the ability to control the corporation or elect one or more directors thereof. (k) (Reserved). (l) Ongoing duty.--A person applying for a license or other authorization under this part shall continue to provide information required by the board or the bureau and cooperate in any inquiry or investigation. (m) Criminal history record check.--The board may conduct a criminal history record check on a person for whom a waiver is granted under this section. (n) Applicant financial information.-- (1) The board shall require an applicant for a terminal operator license to produce the information, documentation and assurances concerning financial background and resources as the board deems necessary to establish by clear and convincing evidence the financial stability, integrity and responsibility of the applicant, its affiliate, intermediary, subsidiary or holding company, including, but not limited to, bank references, business and personal income and disbursement schedules, tax returns and other reports filed with governmental agencies and business and personal accounting and check records and ledgers. (2) An applicant shall in writing authorize the examination of all bank accounts and records as may be deemed necessary by the board. (o) Financial backer information.-- (1) The board shall require an applicant for a terminal operator license to produce the information, documentation and assurances as may be necessary to establish by clear and convincing evidence the integrity of all financial backers, institutional investors, investors, mortgagees, bondholders and holders of indentures, notes or other evidences of indebtedness, either in effect or proposed. (2) The board may waive the qualification requirements for banking or lending institution and institutional investors. (3) A banking or lending institution or institutional investor shall produce for the board upon request any document or information that bears relation to the proposal submitted by the applicant or applicants. (4) The integrity of the financial sources shall be judged upon the same standards as the applicant. Any such person or entity shall produce for the board upon request any document or information which bears any relation to the application. (5) The applicant shall produce whatever information, documentation or assurances the board requires to establish by clear and convincing evidence the adequacy of financial resources. (p) Applicant's business experience.-- (1) The board shall require an applicant for a terminal operator license to produce the information, documentation and assurances as the board may require to establish by clear and convincing evidence that the applicant has sufficient business ability and experience to create and maintain a successful, efficient operation. (2) An applicant shall produce the names of all proposed key employees and a description of their respective or proposed responsibilities as they become known. (q) Additional information.--In addition to other information required by this part, a person applying for a terminal operator license shall provide the following information: (1) The organization, financial structure and nature of all businesses operated by the person, including any affiliate, intermediary, subsidiary or holding companies, the names and personal employment and criminal histories of all officers, directors and key employees of the corporation; the names of all holding, intermediary, affiliate and subsidiary companies of the corporation; and the organization, financial structure and nature of all businesses operated by such holding, intermediary and subsidiary companies as the board may require, including names and personal employment and criminal histories of such officers, directors and principal employees of such corporations and companies as the board may require. (2) The extent of securities held in the corporation by all officers, directors and underwriters and their remuneration in the form of salary, wages, fees or otherwise. (3) Copies of all management and service contracts. (r) Review and approval.--Upon being satisfied that the requirements of subsections (a), (b), (c), (f), (g), (h), (i), (j), (l), (m), (n), (o), (p) and (q) have been met, the board may approve the application and issue the applicant a terminal operator license consistent with all of the following: (1) (i) The license shall be valid for a period of five years. (ii) Nothing in this paragraph shall be construed to relieve a licensee of the affirmative duty to notify the board of any changes relating to the status of its license or to any information contained in the application materials on file with the board. (2) The license shall be nontransferable. (3) Any other condition established by the board. (s) Renewal.-- (1) At least six months prior to expiration of a terminal operator license, the terminal operator licensee seeking renewal of its license shall submit a renewal application to the board. (2) If the renewal application satisfies the requirements of subsections (a), (b), (c), (f), (g), (h), (i), (j), (l), (m), (n), (o), (p) and (q), the board may renew the licensee's terminal operator license. (3) If the board receives a complete renewal application but fails to act upon the renewal application prior to the expiration of the terminal operator license, the terminal operator license shall continue in effect until acted upon by the board. Cross References. Section 3502 is referred to in section 3508 of this title.

4 Pa.C.S. § 3504 Principal licenses.

(a) License required.--All principals shall obtain a principal license from the board. (b) Application.--A principal license application shall be in a form prescribed by the board and shall include the following: (1) Verification of status as a principal from a terminal operator licensee, manufacturer licensee or supplier licensee. (2) A description of responsibilities as a principal. (3) All releases necessary to obtain information from governmental agencies, employers and other organizations. (4) Details relating to a similar license, permit or other authorization obtained in another jurisdiction. (5) Additional information required by the board. (c) Issuance.--Following review of the application and the background investigation, the board may issue a principal license if the applicant has proven by clear and convincing evidence that the applicant is a person of good character, honesty and integrity and is eligible and suitable to be licensed as a principal. (d) Nontransferability.--A license issued under this section shall be nontransferable. (e) Principals.--An individual who receives a principal license need not obtain a key employee license.

4 Pa.C.S. § 3505 Key employee licenses.

(a) License required.--All key employees shall obtain a key employee license from the board. (b) Application.--A key employee license application shall be in a form prescribed by the board and shall include the following: (1) Verification of status as a key employee from a terminal operator licensee, establishment licensee, manufacturer licensee or supplier licensee. (2) A description of employment responsibilities. (3) All releases necessary to obtain information from governmental agencies, employers and other organizations. (4) Details relating to a similar license or other authorization obtained in another jurisdiction. (5) Additional information required by the board. (c) Issuance.--Following review of the application and the background investigation, the board may issue a key employee license if the applicant has proven by clear and convincing evidence that the applicant is a person of good character, honesty and integrity and is eligible and suitable to be licensed as a key employee. (d) Nontransferability.--A license issued under this section shall be nontransferable.

4 Pa.C.S. § 3506 Divestiture of disqualifying applicant.

(a) Board power to require.-- (1) In the event that any establishment license application, terminal operator license application, supplier license application or manufacturer license application is not approved by the board based on a finding that an individual who is a principal or has an interest in the person applying for the license does not meet the character requirements of this part or any of the eligibility requirements under this part or a person who purchases a controlling interest in the applicant in violation of section 3517 (relating to change in ownership or control of terminal operator licensee), the board may afford the individual the opportunity to completely divest his interest in the person, its affiliate, intermediary, subsidiary or holding company seeking the license and, after such divestiture, reconsider the person's or applicant's suitability for licensure in an expedited proceeding and may, after such proceeding, issue the person or applicant a terminal operator license. (2) The board shall approve the terms and conditions of any divestiture under this section. (b) Limitation.--Under no circumstances shall any divestiture be approved by the board if the compensation for the divested interest exceeds the cost of the interest.

4 Pa.C.S. § 3507 Supplier licenses.

(a) Application.-- (1) A manufacturer that elects to contract with a supplier under section 3508 (relating to manufacturer licenses) shall ensure that the supplier is appropriately licensed under this section. (2) A person seeking to provide video gaming terminals, redemption terminals or associated equipment to a terminal operator licensee within this Commonwealth through a contract with a licensed manufacturer must apply to the board for the appropriate supplier license. (b) Requirements.--An application for a supplier license shall be on the form required by the board and shall include 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. (3) Proof that the applicant has or will establish a place of business in this Commonwealth. A supplier licensee shall maintain its 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 (relating to supplier licenses), if applicable. (6) The details of any equivalent license granted or denied by other jurisdictions where gaming activities as authorized by this part are permitted. (7) The type of goods and services to be supplied and whether those goods and services will be provided through purchase, lease, contract or otherwise. (8) Other information determined by the board to be appropriate. (c) Review and approval.--Upon being satisfied that the requirements of subsection (b) have been met, the board may approve the application and issue the applicant a supplier license consistent with all of the following: (1) (i) The license shall be valid for a period of five years. (ii) Nothing in this paragraph shall be construed to relieve a licensee of the affirmative duty to notify the board of a change relating to the status of its license or to information contained in the application materials on file with the board. (2) The license shall be nontransferable. (3) Other conditions established by the board. (d) Renewal.-- (1) At least six months prior to expiration of a supplier license, the supplier licensee seeking renewal of its license shall submit a renewal application to the board. (2) If the renewal application satisfies the requirements of subsection (b), the board may renew the licensee's supplier license. (3) If the board receives a complete renewal application but fails to act upon the renewal application prior to the expiration of the supplier license, the supplier license shall continue in effect until acted upon by the board. Cross References. Section 3507 is referred to in section 3508 of this title.

4 Pa.C.S. § 3508 Manufacturer licenses.

(a) Application.--A person seeking to manufacture video gaming terminals, redemption terminals and associated equipment for use in this Commonwealth must apply to the board for a manufacturer license. (b) Requirements.--An application for a manufacturer license shall be on the form required by the board and shall include 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. (3) The consent to a background investigation by the bureau of the applicant, its principals, its key employees, its intermediaries, its subsidiaries or other persons required by the board and a release to obtain the information necessary for the completion of the background investigation. (4) The details of any equivalent license granted or denied by other jurisdictions where gaming activities as authorized by this part are permitted. (5) The details of any manufacturer license issued by the board to the applicant under section 1317.1 (relating to manufacturer licenses), if applicable. (6) The type of video gaming terminals, redemption terminals or associated equipment to be manufactured or repaired. (7) Other information determined by the board to be appropriate. (c) Review and approval.--Upon being satisfied that the requirements of subsection (b) have been met, the board may approve the application and grant the applicant a manufacturer license consistent with all of the following: (1) (i) The license shall be valid for a period of five years. (ii) Nothing in this paragraph shall be construed to relieve the licensee of the affirmative duty to notify the board of a change relating to the status of its license or to other information contained in application materials on file with the board. (2) The license shall be nontransferable. (3) Other conditions established by the board. (d) Renewal.-- (1) At least six months prior to expiration of a manufacturer license, the manufacturer licensee seeking renewal of its license shall submit a renewal application accompanied by the renewal fee to the board. (2) If the renewal application satisfies the requirements of subsection (b), the board may renew the licensee's manufacturer license. (3) If the board receives a complete renewal application but fails to act upon the renewal application prior to the expiration of the manufacturer license, the manufacturer license shall continue in effect until acted upon by the board. (e) Authority.--The following shall apply to a licensed manufacturer: (1) A manufacturer or its designee, as licensed by the board, may supply or repair a video gaming terminal, redemption terminal or associated equipment manufactured by the manufacturer, provided the manufacturer holds the appropriate manufacturer license. (2) A manufacturer of video gaming terminals or redemption terminals may contract with a supplier under section 3507 (relating to supplier licenses) to provide video gaming terminals, redemption terminals or associated equipment to a terminal operator licensee within this Commonwealth, provided the supplier is licensed to supply video gaming terminals, redemption terminals or associated equipment. (f) Prohibitions.-- (1) No person may manufacture video gaming terminals, redemption terminals or associated equipment for use within this Commonwealth by a terminal operator licensee unless the person has been issued the appropriate manufacturer license under this section. (2) No person issued a license under this section may apply for or be issued a terminal operator license under section 3502 (relating to terminal operator licenses) or establishment license under section 3514 (relating to establishment licenses). Cross References. Section 3508 is referred to in section 3507 of this title.

4 Pa.C.S. § 3509 Gaming service provider.

(a) Development of classification system.--The board shall develop a classification system governing the certification, registration and regulation of gaming service providers and individuals and entities associated with them. The classification system shall be based upon the following: (1) Whether the employees of the gaming service provider will have access to the video gaming area or video gaming terminals or redemption terminals prior to or after installation. (2) Whether the goods or services provided or to be provided by the gaming service provider would impact the integrity of video gaming terminals, redemption terminals or the conduct of video gaming. (b) Authority to exempt.--The board may exempt a person or type of business from the requirements of this section if the board determines: (1) the person or type of business is regulated by an agency of the Federal Government, an agency of the Commonwealth or the Pennsylvania Supreme Court; or (2) the regulation of the person or type of business is determined not to be necessary in order to protect the public interest or the integrity of gaming. (c) Duties of gaming service providers.--A gaming service provider shall have a continuing duty to: (1) Provide all information, documentation and assurances as the board may require. (2) Cooperate with the board in investigations, hearings and enforcement and disciplinary actions. (3) Comply with all conditions, restrictions, requirements, orders and rulings of the board in accordance with this part. (4) Report a change in circumstances that may render the gaming service provider ineligible, unqualified or unsuitable for continued registration or certification. (d) Requirement for permit.--The board may require employees of a gaming service provider to obtain a permit or other authorization if, after an analysis of duties, responsibilities and functions, the board determines that a permit or other authorization is necessary to protect the integrity of gaming. (e) Interim authorization.--The board or a designated employee of the board may permit a gaming service provider applicant to engage in business with an applicant for a terminal operator license or a terminal operator licensee prior to approval of the gaming service provider application if the following criteria have been satisfied: (1) A completed application has been filed with the board by the gaming service provider. (2) The terminal operator license applicant or terminal operator licensee contracting or doing business with the gaming service provider certifies that it has performed due diligence on the gaming service provider and believes that the applicant meets the qualification to be a gaming service provider pursuant to this section. (3) The gaming service provider applicant agrees in writing that the grant of interim authorization to conduct business prior to board approval of the application does not create a right to continue to engage in business if the board determines that the applicant is not suitable or continued authorization is not in the public interest. (f) Construction.--Nothing in this section shall be construed to prohibit the board from rescinding a grant of interim authorization if, at any time, the suitability of the person subject to interim authorization is at issue or if the person fails to cooperate with the board, the bureau or an agent of the board or bureau. (g) Gaming service provider lists.-- (1) The board shall: (i) Develop and maintain a list of approved gaming service providers who are authorized to provide goods or services whether under a grant of interim or continued authorization. (ii) Develop and maintain a list of prohibited gaming service providers. (2) An applicant for a terminal operator license or a terminal operator licensee may not enter into an agreement or engage in business with a gaming service provider listed on the prohibited gaming service provider list. (h) Emergency authorization.-- (1) A terminal operator licensee may utilize a gaming service provider that has not been approved by the board when a threat to public health, welfare or safety exists or circumstances outside the control of the terminal operator licensee require immediate action to mitigate damage or loss to the licensee's video gaming terminals. (2) The board shall promulgate regulations to govern the use of gaming service providers under emergency circumstances. The regulations shall include a requirement that the terminal operator licensee contact the board immediately upon utilizing a gaming service provider that has not been approved by the board. (i) Criminal history record information.--If the classification system developed by the board in accordance with subsection (a) requires a gaming service provider or an individual or entity associated with the gaming service provider to submit to or provide the bureau with criminal history record information under 18 Pa.C.S. Ch. 91 (relating to criminal history record information), the bureau shall notify a terminal operator licensee that submitted a certification under subsection (e)(2) whether the applicant has been convicted of a felony or misdemeanor gambling offense.

4 Pa.C.S. § 3510 Occupation permit.

(a) Application.-- (1) A person who desires to be a gaming employee and has a bona fide offer of employment from a terminal operator licensee, establishment licensee or supplier licensee shall apply to the board for an occupation permit. (2) A person may not be employed as a gaming employee unless and until that person holds an appropriate occupation permit issued under this section. (3) The board may promulgate regulations to reclassify a category of nongaming employees or gaming employees upon a finding that the reclassification is in the public interest and consistent with the objectives of this part. (b) Requirements.--The application for an occupation permit shall include, at a minimum: (1) The name and home address of the person. (2) The previous employment history of the person. (3) The criminal history record of the person, as well as the person's consent for the bureau to conduct a background investigation. (4) A photograph of the person. (5) Evidence of the offer of employment and the nature and scope of the proposed duties of the person, if known. (6) The details of an occupation permit or similar license granted or denied to the applicant in other jurisdictions. (7) Other information determined by the board to be appropriate. (c) Prohibition.--No terminal operator licensee may employ or permit a person under 18 years of age to render service in a video gaming area.

4 Pa.C.S. § 3511 Alternative terminal operator licensing standards.

(a) Determination.-- (1) The board may determine whether the licensing standards of another jurisdiction within the United States in which an applicant, its affiliate, intermediary, subsidiary or holding company for a terminal operator license is similarly licensed are comprehensive and thorough and provide similar adequate safeguards as those required by this part. (2) If the board makes that determination, it may issue a terminal operator license to an applicant who holds a terminal operator license in the other jurisdiction after conducting an evaluation of the information relating to the applicant from the other jurisdictions, as updated by the board, and evaluating other information related to the applicant received from that jurisdiction and other jurisdictions where the applicant may be licensed, the board may incorporate such information in whole or in part into the board's evaluation of the applicant. (b) Abbreviated process.-- (1) In the event an applicant for a terminal operator license is licensed in another jurisdiction, the board may determine to use an alternate process requiring only that information determined by the board to be necessary to consider the issuance of a license, including financial viability of the licensee, to such an applicant. (2) Nothing in this section shall be construed to waive fees associated with obtaining a license through the normal application process. (c) Current license holders.--In the event an applicant for a terminal operator license under this part holds a slot machine license under Part II (relating to gaming), the board may determine to use an abbreviated process requiring only that information determined by the board to be necessary to consider the issuance of a license, including financial viability of the applicant. Cross References. Section 3511 is referred to in section 3520 of this title.

4 Pa.C.S. § 3512 Alternative manufacturer licensing standards.

(a) Determination.-- (1) The board may determine whether the licensing standards of another jurisdiction within the United States in which an applicant for a manufacturer license is similarly licensed are comprehensive and thorough and provide similar adequate safeguards as those required by this part. (2) If the board makes that determination, it may issue a manufacturer license to an applicant who holds a similar manufacturer license in the other jurisdiction after conducting an evaluation of the information relating to the applicant from the other jurisdictions, as updated by the board, and evaluating other information related to the applicant received from that jurisdiction and other jurisdictions where the applicant may be licensed, the board may incorporate such information in whole or in part into the board's evaluation of the applicant. (b) Abbreviated process.-- (1) In the event an applicant for a manufacturer license is licensed in another jurisdiction, the board may determine to use an abbreviated process requiring only that information determined by the board to be necessary to consider the issuance of a license, including financial viability of the applicant. (2) Nothing in this section shall be construed to waive fees associated with obtaining a license through the normal application process. (c) Current license holders.--In the event an applicant for a manufacturer license under this part holds a manufacturer license under section 1317.1 (relating to manufacturer licenses), the board may determine to use an abbreviated process requiring only that information determined by the board to be necessary to consider the issuance of a license, including financial viability of the applicant. Cross References. Section 3512 is referred to in section 3520 of this title.

4 Pa.C.S. § 3513 Alternative supplier licensing standards.

(a) Determination.-- (1) The board may determine whether the licensing standards of another jurisdiction within the United States in which an applicant for a supplier's license is similarly licensed are comprehensive and thorough and provide similar adequate safeguards as required by this part. (2) If the board makes that determination, it may issue a supplier license to an applicant who holds a similar supplier license in another jurisdiction after conducting an evaluation of the information relating to the applicant from the other jurisdictions, as updated by the board, and evaluating other information related to the applicant received from that jurisdiction and other jurisdictions where the applicant may be licensed. The board may incorporate the information in whole or in part into its evaluation of the applicant. (b) Abbreviated process.-- (1) In the event an applicant for a supplier license is licensed in another jurisdiction, the board may determine to use an abbreviated process requiring only that information determined by the board to be necessary to consider the issuance of a license, including financial viability of the applicant. (2) Nothing in this section shall be construed to waive any fees associated with obtaining a license through the normal application process. (c) Current license holders.--In the event an applicant for a supplier license under this part holds a supplier license under section 1317 (relating to supplier licenses), the board may determine to use an abbreviated process requiring only that information determined by the board to be necessary to consider the issuance of a license, including financial viability of the applicant. Cross References. Section 3513 is referred to in section 3520 of this title.

4 Pa.C.S. § 3514 Establishment licenses.

(a) General requirements.--A truck stop establishment that submits an application for an establishment license shall include at a minimum: (1) The name, address and photograph of the applicant and additional financial information required by the board. (2) A description of the proposed surveillance and security measures to ensure the security of the proposed video gaming area. (3) A current tax lien certificate issued by the department. (4) The criminal history record of the applicant, principal and key employees and a consent for the bureau to conduct a background investigation on the applicant, principals and key employees. (5) Other information determined to be appropriate by the board. (b) Nontransferability.--A license issued under this section shall be nontransferable. (c) Ongoing duty.--An establishment applying for a license under this section shall continue to provide information required by the board or the bureau and cooperate in any inquiry or investigation. (d) Review and approval.--Upon being satisfied that the requirements of subsection (a) have been met, the board may approve the application and issue the applicant an establishment license consistent with all of the following: (1) (i) The license shall be valid for a period of five years. (ii) Nothing in this paragraph shall be construed to relieve a licensee of the affirmative duty to notify the board of a change relating to the status of its license or to information contained in application materials on file with the board. (2) The license shall be nontransferable. (3) Other conditions established by the board. (e) Renewal.-- (1) At least three months prior to expiration of an establishment license, the establishment licensee seeking renewal of its license shall submit a renewal application accompanied by the renewal fee to the board. (2) If the renewal application satisfies the requirements of subsection (d), the board may renew the licensee's establishment license. (3) If the board receives a complete renewal application but fails to act upon the renewal application prior to the expiration of the establishment license, the establishment license shall continue in effect until acted upon by the board. (f) Requirement.--In order to be eligible for an establishment license, a truck stop establishment must be licensed as a lottery sales agent under section 305 of the act of August 26, 1971 (P.L.351, No.91), known as the State Lottery Law, and licensed to take any actions authorized by the designation. Cross References. Section 3514 is referred to in section 3508 of this title; section 502 of Title 53 (Municipalities Generally).

4 Pa.C.S. § 3515 License or permit prohibition.

The following apply: (1) The board shall be prohibited from granting a license under this part to any applicant who has been convicted of a felony offense in any jurisdiction. (2) In addition to the prohibition under paragraph (1), the board shall be prohibited from granting the following: (i) A principal license or key employee license to an individual who has been convicted in a jurisdiction of a misdemeanor gambling offense, unless 15 years have elapsed from the date of conviction for the offense. (ii) A gaming employee permit or a license other than a principal license or key employee license to an individual who has been convicted in a jurisdiction of a misdemeanor gambling offense, unless 15 years have elapsed from the date of conviction for the offense. (iii) An establishment license to an applicant who has been convicted in a jurisdiction of a misdemeanor gambling offense, unless 15 years have elapsed from the date of conviction for the offense. (3) Following the expiration of any prohibition period applicable to an applicant under paragraph (2), in determining whether to issue a license or permit, the board shall consider the following factors: (i) The nature and duties of the applicant's position with the licensed entity. (ii) The nature and seriousness of the offense or conduct. (iii) The circumstances under which the offense or conduct occurred. (iv) The age of the applicant when the offense or conduct was committed. (v) Whether the offense or conduct was an isolated or a repeated incident. (vi) Evidence of rehabilitation, including good conduct in the community, counseling or psychiatric treatment received and the recommendation of persons who have substantial contact with the applicant. (4) For purposes of this section, a felony offense is any of the following: (i) An offense classified as a felony or punishable under the laws of this Commonwealth by imprisonment for more than five years. (ii) An offense which, under the laws of another jurisdiction, is: (A) classified as a felony; or (B) punishable by imprisonment for more than five years. (iii) An offense under the laws of another jurisdiction which, if committed in this Commonwealth, would be subject to imprisonment for more than five years.

4 Pa.C.S. § 3516 Issuance and renewal.

(a) Issuance.-- (1) In addition to any other criteria provided under this part, any terminal operator, truck stop establishment, supplier, manufacturer, gaming employee, key employee, principal or other person that the board approves as qualified to receive a license, permit or other authorization under this part shall be issued a license or permit upon the payment of a fee required in section 4101 (relating to fees) and upon the fulfillment of conditions required by the board or provided for in this part. (2) Nothing contained in this part is intended or shall be construed to create an entitlement to a license, permit or other authorization by a person. (b) Renewal.-- (1) All permits and licenses issued under this part unless otherwise provided shall be subject to renewal every five years. (2) The application for renewal of a license or permit, unless otherwise provided, shall be submitted at least 180 days prior to the expiration of the permit or license and shall include an update of the information contained in the initial and any prior renewal applications and the payment of any renewal fee required by section 4101. (3) Nothing in this subsection shall be construed to relieve a licensee or permittee of the affirmative duty to notify the board of a change relating to the status of its license or permit or to other information contained in the application materials on file with the board. (c) Revocation or failure to renew.-- (1) In addition to other sanctions the board may impose under this part, the board may at its discretion suspend, revoke or deny renewal of a permit or license issued under this part if it receives information from any source that the applicant or any of its officers, directors, owners or key employees is in violation of any provision of this part, that the applicant has furnished the board with false or misleading information or that the information contained in the applicant's initial application or renewal application is no longer true and correct such that the applicant is no longer eligible. (2) In the event of a revocation or failure to renew, the licensee's authorization to conduct the previously approved activity shall immediately cease the activity and all fees paid in connection with the license shall be deemed to be forfeited. (3) In the event of a suspension, the applicant's authorization to conduct the previously approved activity shall immediately cease until the board has notified the applicant that the suspension is no longer in effect. (d) Nontransferability of licenses.-- (1) A license issued by the board is a grant of the privilege to conduct a business in this Commonwealth. (2) Except as permitted by section 3517 (relating to change in ownership or control of terminal operator licensee), no license granted or renewed pursuant to this part may be sold, transferred or assigned to another person. (3) No licensee may pledge or otherwise grant a security interest in or lien on the license. (4) The board has the sole discretion to issue, renew, condition or deny the issuance of a license based upon the requirements of this part. (5) Nothing contained in this part is intended or shall be construed to create in any person an entitlement to a license.

4 Pa.C.S. § 3517 Change in ownership or control of terminal operator licensee.

(a) Notification and approval.-- (1) A terminal operator licensee shall promptly notify the board of a proposed or contemplated change of ownership of the terminal operator licensee by a person or group of persons acting in concert which involves any of the following: (i) More than 5% of a terminal operator licensee's securities or other ownership interests. (ii) More than 5% 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 licensee. (iii) The sale of all or substantially all of a licensee's assets. (iv) Other transaction or occurrence deemed by the board to be relevant to license qualifications. (2) (i) Notwithstanding the provisions of paragraph (1), no terminal operator licensee may be required to notify the board of an acquisition by an institutional investor under paragraph (1)(i) or (ii) if the institutional investor holds less than 10% of the securities or other ownership interests referred to in paragraph (1)(i) or (ii), the securities or interests are publicly traded securities and its holdings of the securities were purchased for investment purposes only and the institutional investor files with the board a certified statement to the effect that it has no intention of influencing or affecting, directly or indirectly, the affairs of the licensee, provided, however, that it shall be permitted to vote on matters put to the vote of the outstanding security holders. (ii) Notice to the board and board approval shall be required prior to completion of any proposed or contemplated change of ownership of a terminal operator licensee that meets the criteria of this section. (b) Qualification of purchaser of terminal operator licensee; change of control.-- (1) The purchaser of all or substantially all of the assets of a terminal operator licensee shall, if not already a terminal operator licensee, independently qualify for a license in accordance with this part and shall pay the license fee as required by section 4101 (relating to fees). (2) A change in control of a terminal operator licensee shall require that the terminal operator licensee independently qualify for a license in accordance with this part, and the terminal operator licensee shall pay a new license fee as required by section 4101, except as otherwise required by the board pursuant to this section. (3) The new license fee shall be paid upon the assignment and actual change of control or ownership of the terminal operator license. (c) Change in control defined.--For purposes of this section, a change in control of a terminal operator licensee shall mean the acquisition by a person or group of persons acting in concert of more than 20% of a terminal operator licensee's securities or other ownership interests, with the exception of any ownership interest of the person that existed at the time of initial licensing and payment of the initial slot machine license fee, or 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 licensee. (d) Fee reduction.--The board may, in its discretion, eliminate the need for qualification or proportionately reduce, but not eliminate, the new license fee otherwise required pursuant to this section in connection with a change of control of a licensee, depending upon the type of transaction, the relevant ownership interests and changes to the interests resulting from the transaction and other considerations deemed relevant by the board. (e) License revocation.--Failure to comply with this section may cause the license issued under this part to be revoked or suspended by the board unless the purchase of the assets or the change in control that meets the criteria of this section has been independently qualified in advance by the board and any required license fee has been paid. Cross References. Section 3517 is referred to in sections 3506, 3516 of this title.

4 Pa.C.S. § 3518 Video gaming accounting controls and audits.

(a) Approval.--Except as otherwise provided by this part, a terminal operator license applicant shall, in addition to obtaining a terminal operator license, obtain approval from the board in consultation with the department of its internal control systems and audit protocols prior to the installation and operation of video gaming terminals at licensed establishments. (b) Minimum requirements.--At a minimum, the applicant's proposed internal controls and audit protocols shall: (1) Safeguard its assets and revenues, including, but not limited to, the recording of cash and cash equivalents and evidences of indebtedness related to the video gaming terminals. (2) Provide for reliable records, accounts and reports of a financial event that occurs in the operation of a video gaming terminal, including reports to the board related to the video gaming terminals. (3) Ensure that each video gaming terminal directly provides or communicates all required activities and financial details to the central control computer system as set by the board and the department. (4) Provide for accurate and reliable financial records. (5) Ensure a financial event that occurs in the operation of a video gaming terminal is performed only in accordance with the management's general or specific authorization, as approved by the board. (6) Ensure that a financial event that occurs in the operation of a video gaming terminal is recorded adequately to permit proper and timely reporting of gross revenue and the calculation thereof and of fees and taxes and to maintain accountability for assets. (7) Ensure that access to assets is permitted only in accordance with management's specific authorization, as approved by the board. (8) Ensure that recorded accountability for assets is compared with actual assets at intervals as required by the board and appropriate action is taken with respect to discrepancies. (9) Ensure that all functions, duties and responsibilities are appropriately segregated and performed in accordance with sound financial practices by competent, qualified personnel. (10) Any other requirement of the board or the department. (c) Internal control.--A terminal operator license applicant shall submit to the board and department, in such manner as the board requires, a description of its administrative and accounting procedures in detail, including its written system of internal control. The written system of internal control shall include: (1) Records of direct and indirect ownership in the proposed terminal operator licensee, its affiliate, intermediary, subsidiary or holding company. (2) An organizational chart depicting appropriate segregation of employee functions and responsibilities. (3) A description of the duties and responsibilities of each employee position shown on the organizational chart. (4) A detailed narrative description of the administrative and accounting procedures designed to satisfy the requirements of this section. (5) Record retention policy. (6) Procedure to ensure that assets are safeguarded, including mandatory count procedures. (7) A statement signed by the chief financial officer of the terminal operator license applicant or other competent person and the chief executive officer of the terminal operator license applicant or other competent person attesting that the officer believes, in good faith, that the system satisfies the requirements of this section. (8) Other items that the board or department may require in its discretion.

4 Pa.C.S. § 3519 Multiple licenses prohibited.

(a) Manufacturer restriction.--A manufacturer may not be licensed as a terminal operator or own, manage or control an establishment licensee or terminal operator licensee, but may also be licensed as a supplier. (b) Supplier restriction.--A supplier may not be licensed as a terminal operator or own, manage or control an establishment licensee or terminal operator licensee. (c) Terminal operator restriction.--A terminal operator may not be licensed as a manufacturer or supplier or own, manage or control an establishment licensee or own, manage or control premises used by an establishment licensee. (d) Establishment restriction.--An establishment licensee may not be licensed as a manufacturer, supplier or terminal operator.

4 Pa.C.S. § 3520 Conditional licenses.

(a) Conditional establishment licenses.-- (1) Within 90 days after the effective date of this section, the board shall make applications for establishment licenses available to applicants. (2) The board shall issue a conditional license to an applicant for an establishment license if the applicant satisfies, as determined by the board, all of the following criteria: (i) The applicant has never been convicted of a felony in any jurisdiction. (ii) The applicant is current on all State taxes. (iii) The applicant has submitted a completed application for an establishment license in accordance with this part, which may be submitted concurrently with the applicant's request for a conditional license. (iv) The applicant has never been convicted of a gambling law violation in any jurisdiction. (3) (i) The board shall issue a conditional license to an applicant for an establishment license within 60 days after the completed application has been received by the board, provided that the board determines that the criteria contained in paragraph (2) has been satisfied. (ii) If the board determines that the criteria contained in paragraph (2) has not been satisfied, the board shall give a written explanation to the applicant as to why it has determined the criteria has not been satisfied. (4) A conditional license shall be valid until: (i) the board either approves or denies the applicant's application for licensure; (ii) the conditional license is terminated for a violation of this part; or (iii) one calendar year has passed since the conditional license was issued. (5) The board may extend the duration of the conditional license for one calendar year. (6) An applicant shall attest by way of affidavit under penalty of perjury that the applicant is not otherwise prohibited from licensure according to the requirements of this section or any other provision of this part. (7) A request for conditional licensure under this subsection shall include payment of a $100 fee, which fee shall be in addition to the applicable fee required under section 4101 (relating to fees). (b) Conditional terminal operator licenses.-- (1) Within 90 days after the effective date of this section, the board shall make applications for terminal operator licenses available to applicants. (2) The board shall issue a conditional license to an applicant for a terminal operator license if the applicant satisfies, as determined by the board, all of the following criteria: (i) The applicant has never been convicted of a felony in any jurisdiction. (ii) The applicant is current on all State taxes. (iii) The applicant has submitted a completed application for a terminal operator license which may be submitted concurrently with the applicant's request for a conditional license. (iv) The applicant has never had its terminal operator license or similar gaming license denied or revoked in another jurisdiction. (v) The applicant has never been convicted of a gambling law violation in any jurisdiction. (3) (i) The board shall issue a conditional license to an applicant for a terminal operator license within 60 days after the completed application has been received by the board, provided that the board determines that the criteria contained in paragraph (2) has been satisfied. (ii) If the board determines that the criteria contained in paragraph (2) has not been satisfied, the board shall give a written explanation to the applicant as to why it has determined the criteria has not been satisfied. (4) A conditional license shall be valid until: (i) the board either approves or denies the applicant's application for licensure; (ii) the conditional license is terminated for a violation of this chapter; or (iii) one calendar year has passed since the conditional license was issued. (5) The board may extend the duration of the conditional license for one calendar year. (6) An applicant shall attest by way of affidavit under penalty of perjury that the applicant is not otherwise prohibited from licensure according to the requirements of this subsection or any other provision of this part. (7) A request for conditional licensure under this subsection shall include payment of a $100 fee, which fee shall be in addition to the applicable fee required under section 4101. (c) Conditional manufacturer and supplier licenses.-- (1) Within 90 days after the effective date of this section, the board shall make applications available for manufacturer and supplier licenses. (2) The board shall issue a conditional license to an applicant for a manufacturer or supplier license if the applicant satisfies, as determined by the board, all of the following criteria: (i) The applicant has never been convicted of a felony. (ii) The applicant is current on all State taxes. (iii) The applicant has submitted a completed application for a manufacturer or supplier license, which may be submitted concurrently with the applicant's request for a conditional license. (iv) The applicant has never had its manufacturer, supplier or similar gaming license denied or revoked in another jurisdiction. (v) The applicant has never been convicted of a gambling law violation in any jurisdiction. (3) (i) The board shall issue a conditional license to an applicant for a manufacturer or supplier license within 60 days after the completed application has been received by the board, provided that the board determines that the criteria contained in paragraph (2) has been satisfied. (ii) If the board determines that the criteria contained in paragraph (2) has not been satisfied, the board shall give a written explanation to the applicant as to why it has determined the criteria has not been satisfied. (4) A conditional license shall be valid until: (i) the board either approves or denies the applicant's application for licensure; (ii) the conditional license is terminated for a violation of this part; or (iii) one calendar year has passed since the conditional license was issued. (5) The board may extend the duration of the conditional license for one calendar year. (6) An applicant shall attest by way of affidavit under penalty of perjury that the applicant is not otherwise prohibited from licensure according to the requirements of this subsection or any other provision of this part. (7) A request for a conditional license under this subsection shall include payment of a $1,000 fee, which fee shall be in addition to the applicable fee required under section 4101. (d) Other conditional licenses.-- (1) Within 90 days after the effective date of this section, the board shall make applications available for any other license required under this part. (2) The board shall issue a conditional license to an applicant if the applicant satisfies, as determined by the board, all of the following criteria: (i) The applicant has never been convicted of a felony in any jurisdiction. (ii) The applicant is current on all State taxes. (iii) The applicant has submitted a completed application for licensure, which may be submitted concurrently with the applicant's request for a conditional license. (iv) The applicant has never been convicted of a gambling law violation in any jurisdiction. (3) (i) The board shall issue a conditional license to an applicant within 60 days after the completed application has been received by the board, provided that the board determines that the criteria contained in paragraph (2) has been satisfied. (ii) If the board determines that the criteria contained in paragraph (2) has not been satisfied, the board shall give a written explanation to the applicant as to why it has determined the criteria has not been satisfied. (4) A conditional license shall be valid until: (i) the board either approves or denies the applicant's application for licensure; (ii) the conditional license is terminated for a violation of this part; or (iii) one calendar year has passed since the conditional license was issued. (5) The board may extend the duration of the conditional license for one calendar year. (6) An applicant shall attest by way of affidavit under penalty of perjury that the applicant is not otherwise prohibited from licensure according to the requirements of this subsection or any other provision of this part. (7) A request for conditional licensure under this subsection shall include payment of a $100 fee, which fee shall be in addition to the applicable fee required under section 4101. (e) Prioritization prohibited.-- (1) The board may not utilize the alternative licensing standards for a terminal operator license, manufacturer license or a supplier license under sections 3511 (relating to alternative terminal operator licensing standards), 3512 (relating to alternative manufacturer licensing standards) and 3513 (relating to alternative supplier licensing standards) to prioritize the issuance of a terminal operator, manufacturer or supplier license under this chapter. (2) The board shall ensure that applications made to the board according to the alternative standards under sections 3511, 3512 and 3513 are not approved or denied in a time period that is less than the time period in which an application for a conditional license is approved or denied under this section. (f) Incomplete applications.--If the board receives an application that is incomplete, the board shall, within seven days of receiving the incomplete application, notify the applicant of additional information required by the board.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=04Fetched: 10/16/2026