4 Pa.C.S. Ch. 33

in effect

4 Pa.C.S. § 33 Duties of Department of Revenue.

Section 27 of this act reenacts and amends 4 Pa.C.S. § 1403(c)(2). The Department of Revenue shall implement the reenactment and amendment of the provision as follows: (1) The department shall apply the reenactment without the amendment retroactively to May 27, 2017. (2) The department shall apply the reenactment with the amendment prospectively after December 31, 2017. Explanatory Note. Act 42 amended, added, reenacted or repealed sections 9313, 9330, 9352, 9356, 9374 of Title 3; Part I, sections 1102, 1103, 1201, 1202, 1204, 1206, 1207, 1208, 1209, 1210, 1211, 1212, 1301, 1302, 1305, 1305.1, 1305.2, 1307, 1309, 1313, 1317, 1317.1, 1317.3, 1320, 1326, 1326.1, 1330, 13A11, 13A22.1, 13A27, 13A41, 13A61, 13A62 and 13A63, Chapters 13B, 13C, 13D (Reserved), 13E (Reserved) and 13F, sections 1401, 1403, 1405, 1405.1, 1406, 1407, 1407.1, 1408, 1501, 1504, 1509, 1510, 1512, 1513, 1514, 1515, 1516, 1517, 1518, 1901, 1901.1, 1901.3 and 1902 and Part III of Title 4.

4 Pa.C.S. § 3301 Powers of board.

(a) General powers.-- (1) The board shall have general and sole regulatory authority over the conduct of video gaming or related activities as described in this part. The board shall ensure the integrity of the acquisition and operation of video gaming terminals, redemption terminals and associated equipment and shall have sole regulatory authority over every aspect of the conduct of video gaming. (2) The board may employ individuals as necessary to carry out the requirements of this part who shall serve at the board's pleasure. (b) Specific powers.--The board shall have the power and duty: (1) To require background investigations on applicants, licensees, principals, key employees, procurement agents or gaming employees under the jurisdiction of the board. (2) At its discretion, to issue, approve, renew, revoke, suspend, condition or deny issuance or renewal of terminal operator licenses. (3) At its discretion, to award, revoke, suspend, condition or deny issuance or renewal of establishment licenses. (4) At its discretion, to issue, approve, renew, revoke, suspend, condition or deny issuance or renewal of supplier and manufacturer licenses. (5) At its discretion, to issue, approve, renew, revoke, suspend, condition or deny issuance or renewal of a license or permit for various classes of employees as required under this part. (6) At its discretion, to issue, approve, renew, revoke, suspend, condition or deny issuance or renewal of additional licenses, permits or other authorization that may be required by the board under this part. (7) At its discretion, to suspend, condition or deny the issuance or renewal of a license or permit or levy a fine or other sanction for a violation of this part. (8) To require prospective and existing video gaming employees, independent contractors, applicants, permittees and licensees to submit to fingerprinting by the Pennsylvania State Police or its authorized designee. The Pennsylvania State Police or its authorized designee shall submit the fingerprints to the Federal Bureau of Investigation for purposes of verifying the identity of the individual and obtaining records of criminal arrests and convictions. (9) To require prospective and existing video gaming employees, independent contractors, applicants, permittees and licensees to submit photographs consistent with a statement of policy developed by the board. (10) In addition to the power of the board relating to license and permit applicants, to determine at its discretion the suitability of a person who furnishes or seeks to furnish to a terminal operator licensee directly or indirectly goods, services or property related to video gaming terminals, redemption terminals or associated equipment. (11) To approve an application for or issue or renew a license, certificate, registration, permit or other authorization that may be required by the board, if the board is satisfied that the person has demonstrated by clear and convincing evidence that the person is of good character, honesty and integrity whose prior activities, criminal record, if any, reputation, habits and associations do not pose a threat to the public interest or the effective regulation and control of video gaming terminal operations or create or enhance the danger of unsuitable, unfair or illegal practices, methods and activities in the conduct of video gaming or the carrying on of the business and financial arrangements incidental thereto. (12) To publish on the board's publicly accessible Internet website a complete list of persons or entities who applied for or held a terminal operator license, establishment license, manufacturer license or supplier license at any time during the preceding calendar year and affiliates, intermediaries, subsidiaries and holding companies thereof and the status of the application or license. (13) To prepare and, through the Governor, submit annually to the General Assembly an itemized budget consistent with Article VI of the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, consisting of the amounts necessary to be appropriated by the General Assembly out of the accounts established under section 4104 (relating to regulatory assessments) required to meet the obligations under this part accruing during the fiscal period beginning July 1 of the following year. (14) In the event that appropriations for the administration of this part are not enacted by June 30 of any year, funds appropriated for the administration of this part which are unexpended, uncommitted and unencumbered at the end of a fiscal year shall remain available for expenditure by the board or other agency to which they were appropriated until the enactment of an appropriation for the ensuing fiscal year. (15) To collect and post information on the board's publicly accessible Internet website with sufficient detail to inform the public of persons with a controlling interest or ownership interest in an applicant for a terminal operator license or terminal operator licensee or affiliate, intermediary, subsidiary or holding company of an applicant for a terminal operator license. The posting shall include: (i) If the applicant for a terminal operator license or terminal operator licensee or an affiliate, intermediary, subsidiary or holding company of the applicant for a terminal operator license or terminal operator licensee is a publicly traded domestic or foreign corporation, partnership, limited liability company or other legal entity, the names of persons with a controlling interest. (ii) If the applicant for a terminal operator license or terminal operator licensee or an affiliate, intermediary, subsidiary or holding company of the applicant for a terminal operator license or terminal operator licensee is a privately held domestic or foreign corporation, partnership, limited liability company or other legal entity, the names of all persons with an ownership interest equal to or greater than 1%. (iii) The name of a person entitled to cast the vote of a person named under subparagraph (i) or (ii). (iv) The names of officers, directors and principals of the applicant for a terminal operator license or terminal operator licensee. (16) Determine, designate and classify employees of a terminal operator licensee as key employees and non-key employees. Cross References. Section 3301 is referred to in section 4303 of this title.

4 Pa.C.S. § 3302 Regulatory authority of board.

(a) General rule.--The board shall have the power and duty: (1) To deny, deny the renewal of, revoke, condition or suspend a license or permit provided for in this part if the board finds in its sole discretion that an applicant, licensee or permittee under this part or its officers, employees or agents have furnished false or misleading information to the board or failed to comply with the provisions of this part or the rules and regulations of the board and that it would be in the public interest to deny, deny the renewal of, revoke, condition or suspend the license or permit. (2) To restrict access to confidential information in the possession of the board that has been obtained under this part and ensure that the confidentiality of information is maintained and protected. (3) To prescribe and require periodic financial reporting and internal control requirements for terminal operator licensees. (4) To require that each terminal operator licensee provide to the board its annual financial statements, with such additional detail as the board shall require, which shall be submitted not later than 180 days after the end of the licensee's fiscal year. (5) To prescribe the procedures to be followed by terminal operator licensees for a financial event that occurs in the operation and play of video gaming terminals. (6) To require that each establishment licensee prohibits minors from operating or using video gaming terminals or redemption terminals. (7) To establish procedures for the inspection and certification of compliance of video gaming terminals, redemption terminals and associated equipment prior to being placed into use on the premises of an establishment licensee by a terminal operator licensee. (8) To require that no video gaming terminal may be set to pay out less than the theoretical payout percentage, which percentage shall be no less than 85%, as specifically approved by the board. The board shall adopt regulations that define the theoretical payout percentage of a video gaming terminal game based on the total value of the jackpots expected to be paid by a play on a video gaming terminal game divided by the total value of video gaming terminals wagers expected to be made on that play or video gaming terminal game during the same portion of the game cycle. In so doing, the board shall specify whether the calculation includes a portion of or the entire cycle of a video gaming terminal game. (9) To require that an establishment license applicant provide detailed site plans of its proposed video gaming area for review and approval by the board for the purpose of determining the adequacy of the proposed security and surveillance measures. The applicant shall cooperate with the board in making changes to the plans suggested by the board and shall ensure that the plans as modified and approved are implemented. The board may not require a floor-to-ceiling wall to segregate the video gaming area, but may adopt rules to establish segregation requirements. (10) To promulgate rules and regulations governing the advertisement of video gaming terminals, provided that the board shall require all advertisements to display or reference the toll-free problem gambling telephone number maintained by the Department of Drug and Alcohol Programs or successor agency under section 3310(b) (relating to duties of Department of Drug and Alcohol Programs or successor agency). (11) To enter into contracts with persons for the purposes of carrying out the powers and duties of the board under this part. (12) To adopt regulations governing the postemployment limitations and restrictions applicable to members and employees of the board subject to section 4302 (relating to additional board restrictions). In developing the regulations, the board may consult with the State Ethics Commission, governmental agencies and the Disciplinary Board of the Supreme Court regarding postemployment limitations and restrictions on members and employees of the board who are members of the Pennsylvania Bar. (13) To review and approve all cash and cash equivalent handling policies and procedures employed by terminal operator licensees. (14) To promulgate rules and regulations governing the placement of automated teller machines within video gaming areas. (15) To establish age-verification procedures for establishment licensees and their employees to ensure minors do not access a video gaming area, video gaming terminal or redemption terminal. (16) To promulgate rules and regulations governing the interconnection of video gaming terminals within the premises of an establishment licensee for a progressive system. (17) To promulgate rules and regulations necessary for the administration and enforcement of this part. (b) Applicable law.--Except as provided in section 3303 (relating to temporary regulations), regulations shall be adopted in accordance with the act of July 31, 1968 (P.L.769, No.240), referred to as the Commonwealth Documents Law, and the act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review Act.

4 Pa.C.S. § 3303 Temporary regulations.

(a) Promulgation.--In order to facilitate the prompt implementation of this part, regulations promulgated by the board shall be deemed temporary regulations which shall expire no later than two years following the publication of the temporary regulations. The board may promulgate temporary regulations not subject to: (1) Sections 201, 202, 203, 204 and 205 of the act of July 31, 1968 (P.L.769, No.240), referred to as the Commonwealth Documents Law. (2) Section 204(b) of the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act. (3) The act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review Act. (b) Expiration.--Except for temporary regulations related to security and surveillance, the authority provided to the board to adopt temporary regulations in subsection (a) shall expire two years following the publication of the temporary regulations. Regulations adopted after that date shall be promulgated as provided by law. 2020 Partial Repeal. Section 18 of Act 114 provided that the provisions of section 3303 are repealed insofar as they are inconsistent with the addition of section 1724.1-E(f) of the act of April 9, 1929, P.L.343, No.176, known as The Fiscal Code. Cross References. Section 3303 is referred to in sections 3302, 3308 of this title.

4 Pa.C.S. § 3304 Appeals.

An applicant, licensee or permittee may appeal a final order, determination or decision of the board involving the approval, issuance, denial, revocation, nonrenewal, suspension or conditioning, including any disciplinary actions, of a license, permit or authorization under this part in accordance with 2 Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of Commonwealth agencies) and 7 Subch. A (relating to judicial review of Commonwealth agency action).

4 Pa.C.S. § 3305 Records and confidentiality of information.

(a) Records.--The board shall maintain files and records deemed necessary for the administration and enforcement of this part. (b) Confidentiality of information.-- (1) The following information submitted by an applicant, licensee or permittee under Chapter 35 (relating to application and licensure) or obtained by the board or the bureau as part of a background or other investigation from any source shall be confidential and withheld from public disclosure: (i) Information relating to character, honesty and integrity, including family, habits, reputation, history of criminal activity, business activities, financial affairs and business, professional and personal associations submitted to or otherwise obtained by the board or the bureau. (ii) Nonpublic personal information, including home addresses, telephone numbers and other personal contact information, Social Security numbers, educational records, memberships, medical records, tax returns and declarations, actual or proposed compensation, financial account records, creditworthiness or financial condition relating to an applicant, licensee or permittee or the immediate family thereof. (iii) Information relating to proprietary information, trade secrets, patents or exclusive licenses, architectural and engineering plans and information relating to competitive marketing materials and strategies, including customer-identifying information or customer prospects for services subject to competition. (iv) Security information, including risk prevention plans, detection and countermeasures, emergency management plans, security and surveillance plans, equipment and usage protocols and theft and fraud prevention plans and countermeasures. (v) Information with respect to which there is a reasonable possibility that public release or inspection of the information would constitute an unwarranted invasion into personal privacy of an individual as determined by the board. (vi) Records of an applicant, licensee or permittee not required to be filed with the Securities and Exchange Commission by issuers that either have securities registered under section 12 of the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78l) or are required to file reports under section 15(d) of the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78o). (vii) Records considered nonpublic matters or information by the Securities and Exchange Commission as provided by 17 CFR 200.80 (relating to commission records and information). (viii) Financial information provided to the board by an applicant, licensee or permittee. (2) No claim of confidentiality may be made regarding criminal history record information that is available to the public under 18 Pa.C.S. § 9121(b) (relating to general regulations). (3) Except as provided in paragraph (1), no claim of confidentiality may be made regarding a record in possession of the board that is otherwise publicly available from the board under the act of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law. (4) Except as provided in section 3904(h) (relating to investigations and enforcement), the information made confidential under this section shall be withheld from public disclosure in whole or in part, except that confidential information shall be released upon the order of a court of competent jurisdiction or, with the approval of the Attorney General, to a duly authorized law enforcement agency or shall be released to the public, in whole or in part, to the extent that the release is requested by an applicant, licensee or permittee and does not otherwise contain confidential information about another person. (5) The board may seek a voluntary waiver of confidentiality from an applicant, licensee or permittee but may not require an applicant, licensee or permittee to waive the confidentiality provided under this subsection as a condition for the approval of an application, renewal of a license or other action of the board. (6) (i) No current or former member and no current or former employee, agent or independent contractor of the board, the department, the Pennsylvania State Police, the Office of Attorney General or other executive branch office who has obtained confidential information in the performance of duties under this part shall intentionally disclose the information to a person, knowing that the information being disclosed is confidential under this subsection, unless the person is authorized by law to receive it. (ii) A violation of this subsection shall constitute a misdemeanor of the third degree. (iii) In addition to any penalty under subparagraph (ii), an employee, agent or independent contractor who violates this subsection shall be administratively disciplined by discharge, suspension, termination of contract or other formal disciplinary action as appropriate. If a current member violates this paragraph, the other members shall refer the matter to the current member's appointing authority. (c) Notice.--Notice of the contents of information, except to a duly authorized law enforcement agency pursuant to this section, shall be given to an applicant, licensee or permittee in a manner prescribed by the rules and regulations adopted by the board. (d) Information held by other agencies.--Files, records, reports and other information in the possession of the department pertaining to an applicant, licensee or permittee shall be made available to the board as may be necessary to the effective administration of this part.

4 Pa.C.S. § 3306 Reporting.

(a) Report by board.--Beginning October 1, 2018, and every year thereafter, the annual report submitted to the Governor and the General Assembly by the board under section 1211 (relating to reports of board) shall include information on the conduct of video gaming for the previous calendar year: (1) Total gross terminal revenue. (2) Total number of terminal operator licensees and establishment licensees. (3) All taxes, fees, fines and other revenue collected and, where appropriate, revenue disbursed. The department shall collaborate with the board to carry out the requirements of this paragraph. (4) Other information related to the conduct of video gaming that the board deems appropriate. (b) Participation.--The board may require terminal operator licensees to provide information to the board to assist in the preparation of the report under subsection (a).

4 Pa.C.S. § 3307 Diversity.

(a) Intent.--It is the intent and goal of the General Assembly that the board promote and ensure diversity in all aspects of the gaming activities authorized under this part. (b) Reports by applicants.--An applicant for a terminal operator license or establishment license shall submit a diversity plan to the board. At a minimum, the diversity plan shall contain a summary of: (1) All employee recruitment and retention efforts undertaken to promote the participation of diverse groups in employment with the applicant if issued a terminal operator license or establishment license. (2) Other information deemed necessary by the board to assess the diversity plan. (c) Review.--The board shall conduct a review of a diversity plan. When reviewing the adequacy of a diversity plan, the board shall take into consideration the total number of video gaming terminals the applicant proposes to operate within the Commonwealth. (d) Periodic review.--The board shall periodically review the terminal operator licensee's or establishment licensee's diversity plan and recommend changes. (e) Applicant or licensee responsibility.--An applicant for a terminal operator license or establishment license or a terminal operator licensee or establishment licensee shall provide information as required by the board to enable the board to complete the reviews required under subsections (c) and (d).

4 Pa.C.S. § 3308 Authority of department.

(a) General rule.--The department shall administer and collect taxes imposed under this part and interest imposed under section 806 of the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, and promulgate and enforce rules and regulations to carry out its prescribed duties in accordance with this part, including the collection of taxes, penalties and interest imposed by this part. (b) Application of rules and regulations.--The department may prescribe the extent, if any, to which any rules and regulations shall be applied without retroactive effect. The department shall prescribe the forms and the system of accounting and recordkeeping to be employed and through its representative shall at all times have power of access to and examination and audit of any equipment and records relating to all aspects of the operation of video gaming terminals and redemption terminals under this part. (c) Procedure.--For purposes of implementing this part, the department may promulgate regulations in the same manner in which the board is authorized as provided in section 3303 (relating to temporary regulations). (d) Additional penalty.--A person who fails to timely remit to the department or the State Treasurer amounts required under this part shall be liable, in addition to liability imposed elsewhere in this part, to a penalty of 5% per month up to a maximum of 25% of the amounts ultimately found to be due, to be recovered by the department. (e) Liens and suits for taxes.--The provisions of this part shall be subject to the provisions of sections 242 and 243 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.

4 Pa.C.S. § 3309 Central control computer system.

(a) General rule.--To facilitate the auditing and security programs critical to the integrity of video gaming terminals in this Commonwealth, the department shall have overall control of video gaming terminals that: (1) Shall be linked, at an appropriate time to be determined by the department, to a central control computer under the control of the department and accessible by the board to provide auditing program capacity and individual terminal information as approved by the department. (2) Shall include real-time information retrieval and terminal activation and disabling programs. (b) System requirements.--The central control computer employed by the department shall provide: (1) A fully operational Statewide video gaming terminal control system that has the capability of supporting up to the maximum number of video gaming terminals that is permitted to be in operation under this part. (2) The employment of a widely accepted gaming industry protocol to facilitate a video gaming terminal manufacturers' ability to communicate with the Statewide system. (3) The delivery of a system that has the ability to verify software, detect alterations in payout and detect other methods of fraud in all aspects of the operation of video gaming terminals. (4) The delivery of a system that has the capability to support progressive video gaming terminals as approved by the board. (5) The delivery of a system that does not alter the statistical awards of video gaming terminal games as designed by the manufacturer and approved by the board. (6) The delivery of a system that provides redundancy so that each component of the network is capable of operating independently by the department if any component of the network, including the central control computer, fails or cannot be operated for any reason as determined by the department, and to assure that all transactional data is captured and secured. Costs associated with a computer system required by the department to operate within a video gaming area, whether independent or as part of the central control computer, shall be paid by the terminal operator licensee. The computer system shall be controlled by the department and accessible to the board. (7) The ability to meet all reporting and control requirements as prescribed by the board and department. (8) The delivery of a system that provides centralized issuance of cash redemption tickets and facilitates the acceptance of the tickets by video gaming terminals and redemption terminals. (9) Other capabilities as determined by the department in consultation with the board. (c) Personal information.--The central control computer may not provide for the monitoring or reading of personal or financial information concerning a patron of a terminal operator licensee. (d) Initial acquisition of central control computer.-- (1) Notwithstanding any other provision of law to the contrary and in order to facilitate the prompt implementation of this part, initial contracts entered into by the department for a central control computer, including necessary computer hardware, software, licenses or related services shall not be subject to the provisions of 62 Pa.C.S. (relating to procurement). (2) Contracts made pursuant to the provisions of this section may not exceed five years. (e) Resolution of contract disputes.--The process specified in 62 Pa.C.S. Ch. 17 Subch. B (relating to prelitigation resolution of controversies) shall be the sole means of resolution for controversies arising with respect to contracts executed under this section. (f) Existing central control computer system.--The department, in its discretion, may alter or utilize the central control computer system controlled by the department under section 1323 (relating to central control computer system) to fulfill the requirements of this section.

4 Pa.C.S. § 3310 Department of Drug and Alcohol Programs or successor agency.

(a) Program update.-- (1) The Department of Drug and Alcohol Programs or successor agency shall update the compulsive and problem gambling program established in section 1509 (relating to compulsive and problem gambling program) to address public education, awareness and training regarding compulsive and problem gambling and the treatment and prevention of compulsive and problem gambling related to video gaming terminals. (2) The updated guidelines shall include strategies for the prevention of compulsive and problem gambling related to video gaming terminals. (3) The Department of Drug and Alcohol Programs or successor agency may consult with the board and terminal operator licensees to develop the strategies. (b) Duties of Department of Drug and Alcohol Programs or successor agency.--From funds available in the Compulsive and Problem Gambling Treatment Fund, the Department of Drug and Alcohol Programs or successor agency shall, with respect to video gaming terminals: (1) Maintain one compulsive gamblers assistance organization's toll-free problem gambling telephone number, which number shall be 1-800-GAMBLER, to provide crisis counseling and referral services to individuals and families experiencing difficulty as a result of problem or compulsive gambling. If the Department of Drug and Alcohol Programs or successor agency determines that it is unable to adopt the number 1-800-GAMBLER, the Department of Drug and Alcohol Programs or successor agency shall maintain another number. (2) Maintain one compulsive gambler's assistance organization's telephone number, which shall be accessible via a free text message service, to provide crisis counseling and referral services to individuals and families experiencing difficulty as a result of problem or compulsive gambling. (3) Facilitate, through in-service training and other means, the availability of effective assistance programs for problem and compulsive gamblers and family members affected by problem and compulsive gambling. (4) At its discretion, conduct studies to identify individuals in this Commonwealth who are or are at risk of becoming problem or compulsive gamblers. (5) Provide grants to and contract with single county authorities and other organizations that provide services specified in this section. (6) Reimburse organizations for reasonable expenses incurred assisting the Department of Drug and Alcohol Programs or successor agency with implementing this section. (c) Additional duties.--Within 60 days following the effective date of this section, the Department of Drug and Alcohol Programs or successor agency and the board's Office of Compulsive and Problem Gambling shall jointly collaborate with other appropriate offices and agencies of State or local government, including single county authorities and providers and other persons, public or private, with expertise in compulsive and problem gambling treatment, and shall, with respect to video gaming terminals: (1) Implement a strategic plan for the prevention and treatment of compulsive and problem gambling. (2) Adopt compulsive and problem gambling treatment standards to be integrated with the Department of Drug and Alcohol Programs' or successor agency's uniform Statewide guidelines that govern the provision of addiction treatment services. (3) Develop a method to coordinate compulsive and problem gambling data collection and referral information to crisis response hotlines, child welfare and domestic violence programs and providers and other appropriate programs and providers. (4) Develop and disseminate educational materials to provide public awareness related to the prevention, recognition and treatment of compulsive and problem gambling. (5) Develop demographic-specific compulsive and problem gambling prevention, intervention and treatment programs. (6) Prepare an itemized budget outlining how funds will be allocated to fulfill the responsibilities under this section. (d) Report.--The Department of Drug and Alcohol Programs or successor agency shall include in the report required under section 1509 information involving video gaming terminals. Cross References. Section 3310 is referred to in sections 3302, 3706 of this title.

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