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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY P. COSTA, D. COSTA, DeLUCA, FRANKEL, KORTZ, KOTIK, MATZIE, BARRAR, BRENNAN, BURNS, DAVIS, EVERETT, FABRIZIO, HALUSKA, HARHAI, HARKINS, MAHONEY, MUSTIO, PASHINSKI, SAINATO, STABACK, STERN, STURLA, TAYLOR, WAGNER, WHITE AND YOUNGBLOOD, JUNE 30, 2011 |
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| REFERRED TO COMMITTEE ON GAMING OVERSIGHT, JUNE 30, 2011 |
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| AN ACT |
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1 | Amending Title 4 (Amusements) of the Pennsylvania Consolidated |
2 | Statutes, providing for video gaming. |
3 | The General Assembly of the Commonwealth of Pennsylvania |
4 | hereby enacts as follows: |
5 | Section 1. Title 4 of the Pennsylvania Consolidated Statutes |
6 | is amended by adding a chapter to read: |
7 | CHAPTER 11A |
8 | VIDEO GAMING |
9 | Sec. |
10 | 11A01. Definitions. |
11 | 11A02. Powers and duties. |
12 | 11A03. Video gaming. |
13 | 11A04. Licensing of manufacturers, distributors and vendors. |
14 | 11A05. Licensed establishment license. |
15 | 11A06. Limitations on licensed establishments. |
16 | 11A07. Central communications system. |
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1 | 11A08. Video gaming machine prototype. |
2 | 11A09. Fees. |
3 | 11A10. Unlawful use by minors. |
4 | 11A11. Inducements prohibited. |
5 | 11A12. Multiple types of licenses prohibited. |
6 | 11A13. Illegal activities. |
7 | 11A14. Establishment of account and distribution of funds. |
8 | 11A15. Preemption of local taxes and license fees. |
9 | 11A16. Exemption from State gaming laws. |
10 | 11A17. Exemption from Federal regulation. |
11 | § 11A01. Definitions. |
12 | The following words and phrases when used in this chapter |
13 | shall have the meanings given to them in this section unless the |
14 | context clearly indicates otherwise: |
15 | "Account." The Video Gaming Account established under |
16 | section 11A14 (relating to establishment of account and |
17 | distribution of funds). |
18 | "Coin-operated amusement machine." A machine that requires |
19 | the insertion of a coin, currency or tokens to play or activate |
20 | a game, the outcome of which is primarily determined by the |
21 | skill of the player. The term does not include a video lottery |
22 | terminal. |
23 | "Department." The Department of Revenue of the Commonwealth. |
24 | "Distributor." Any individual, partnership, association or |
25 | corporation, licensed by the Department of Revenue to buy, sell, |
26 | service or distribute video gaming machines. The term does not |
27 | include a machine vendor or a manufacturer. |
28 | "Gaming machine." A device or machine that has the outcome |
29 | of play primarily determined by chance. The term includes an |
30 | antique slot machine under 18 Pa.C.S. § 5513(c) (relating to |
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1 | gambling devices, gambling, etc.) when used for profit. The term |
2 | shall not include any of the following: |
3 | (1) A coin-operated amusement machine. |
4 | (2) A video lottery terminal that has all of its seals |
5 | or identification plates. |
6 | (3) Slot machines as defined under section 1103 |
7 | (relating to definitions). |
8 | (4) A game of chance under the act of December 19, 1988 |
9 | (P.L.1262, No.156), known as the Local Option Small Games of |
10 | Chance Act. |
11 | (5) Lottery terminals used under the act of August 26, |
12 | 1971 (P.L.351, No.91), known as the State Lottery Law. |
13 | "Licensed establishment." A restaurant, bar, tavern, hotel |
14 | or club that has a valid liquor or malt or brewed beverage |
15 | license under Article IV of the act of April 12, 1951 (P.L.90, |
16 | No.21), known as the Liquor Code. |
17 | "Machine vendor." Any individual, partnership, association |
18 | or corporation that: |
19 | (1) is licensed by the Department of Revenue; and |
20 | (2) owns, services and maintains video gaming machines |
21 | for placement in licensed establishments. |
22 | "Manufacturer." Any individual, partnership, association or |
23 | corporation that: |
24 | (1) is licensed by the Department of Revenue; and |
25 | (2) manufactures or assembles video gaming machines. |
26 | "Net profits." All money put into a video gaming machine |
27 | minus the cash awards paid out to players. |
28 | "Service technician." An individual holding a service |
29 | technician's license issued by the Department of Revenue |
30 | allowing the individual to service, maintain and repair video |
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1 | gaming machines. |
2 | "State Lottery." The lottery established and operated under |
3 | the act of August 26, 1971 (P.L.351, No.91), known as the State |
4 | Lottery Law. |
5 | "Video gaming machine." A device or machine: |
6 | (1) that, upon insertion of a coin or currency, will |
7 | play or simulate the play of a video poker, bingo, keno, |
8 | blackjack or any other game authorized by the Department of |
9 | Revenue; |
10 | (2) that utilizes a video display and microprocessors; |
11 | and |
12 | (3) in which, by the skill of the player or by chance, |
13 | the player may receive free games or credits that may be |
14 | redeemed for cash. |
15 | § 11A02. Powers and duties. |
16 | The department shall regulate and adopt standards for all |
17 | gaming activities in this Commonwealth, including video gaming |
18 | as authorized under this chapter. |
19 | § 11A03. Video gaming. |
20 | The department shall provide for video gaming at licensed |
21 | establishments. With the exception of tickets indicating credits |
22 | won, which are redeemable for cash, no machine may directly |
23 | dispense coins, cash, tokens or anything else of value. |
24 | § 11A04. Licensing of manufacturers, distributors and vendors. |
25 | (a) Background investigation; application fee.--The |
26 | department shall have the Pennsylvania State Police conduct a |
27 | background investigation of an applicant for a manufacturer, |
28 | distributor or machine vendor license as to personal and |
29 | business character, honesty and integrity. An applicant must pay |
30 | a nonrefundable application fee of $5,000. The investigation may |
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1 | utilize information on the applicant compiled by the |
2 | Pennsylvania Liquor Control Board. The investigation includes |
3 | the following: |
4 | (1) An examination of criminal or civil records. |
5 | (2) An examination of personal, financial or business |
6 | records. This paragraph includes tax returns, bank accounts, |
7 | business accounts, mortgages and contracts to which the |
8 | license applicant is a party or has an interest. |
9 | (3) An examination of personal or business relationships |
10 | which: |
11 | (i) include a partial ownership or voting interest |
12 | in a partnership, association or corporation; and |
13 | (ii) bear on the fitness of the applicant for |
14 | licensure. |
15 | (b) Production of information.--An applicant to become a |
16 | licensee must produce information, documentation and assurances |
17 | as required by the department. This subsection includes the |
18 | following: |
19 | (1) Each license applicant must: |
20 | (i) consent in writing to and provide for the |
21 | examination of financial and business accounts, bank |
22 | accounts, tax returns and related records in the |
23 | applicant's possession or under the applicant's control |
24 | that establish by clear and convincing evidence the |
25 | financial stability, integrity and responsibility of the |
26 | license applicant; and |
27 | (ii) authorize all third parties in possession or |
28 | control of accounts or records under subparagraph (i) to |
29 | allow for their examination as deemed necessary by the |
30 | department in conducting background investigations. |
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1 | (2) Each license applicant must disclose on the |
2 | application form any criminal convictions for offenses graded |
3 | above summary offenses covering the ten-year period |
4 | immediately preceding the filing of the application. The |
5 | license applicant must also include on the application form |
6 | any convictions of the gambling laws of any jurisdiction. |
7 | (3) If the license applicant has conducted a gaming |
8 | operation in a jurisdiction that permits such activity, the |
9 | license applicant must produce letters of reference from the |
10 | gaming or casino enforcement or control agency that specify |
11 | the experiences of the agency with the license applicant, the |
12 | license applicant's associates and the license applicant's |
13 | gaming operations. If the license applicant is unable to |
14 | obtain these letters within 60 days of the request, the |
15 | license applicant may submit a copy of the letter requesting |
16 | the information together with a statement under oath or |
17 | affirmation that, during the period activities were |
18 | conducted, the license applicant was in good standing with |
19 | the appropriate gambling or casino enforcement control |
20 | agency. |
21 | (4) Each license applicant must provide information, |
22 | documentation and assurances as required by the department to |
23 | establish by clear and convincing evidence the license |
24 | applicant's good character, honesty and integrity. |
25 | Information under this paragraph may relate to family, |
26 | habits, character, reputation, business affairs, financial |
27 | affairs, business associates, professional associates and |
28 | personal associates, covering the ten-year period immediately |
29 | preceding the filing of the application. |
30 | (b.1) Felony conviction prohibition.--A person that has been |
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1 | convicted of a felony within ten years of the date of |
2 | application shall not be issued a license under this chapter. |
3 | (c) Third-party disclosure.--Each license applicant must |
4 | accept any risk of adverse public notice, embarrassment, |
5 | criticism, damages or financial loss, which may result from |
6 | disclosure or publication by a third party of material or |
7 | information requested by the department pursuant to action on an |
8 | application. The license applicant expressly must waive a claim |
9 | against the department, executive director or the Commonwealth |
10 | and its employees from damages as a result of disclosure or |
11 | publication by a third party. |
12 | (d) Hearing upon denial.--A person who is denied a license |
13 | has the right to a hearing before the department in accordance |
14 | with the provisions of 2 Pa.C.S. Chs. 5 Subch. A (relating to |
15 | practice and procedure of Commonwealth agencies) and 7 Subch. A |
16 | (relating to judicial review of Commonwealth agency action). |
17 | (e) Sole proprietor vendors.--A sole proprietor vendor must |
18 | comply with all of the following: |
19 | (1) Be a resident of this Commonwealth for at least two |
20 | years prior to application for a license. |
21 | (2) Be of good moral character and reputation in the |
22 | community. |
23 | (3) Be at least 18 years of age. |
24 | (4) Be current in the payment of all taxes, interest and |
25 | penalties owed to the Commonwealth and political |
26 | subdivisions. This paragraph excludes items under formal |
27 | dispute or appeal under applicable law. |
28 | (5) Demonstrate sufficient financial resources to |
29 | support the activities required to place and service video |
30 | gaming machines. |
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1 | (f) Partnership vendors.--Partnership vendors must comply |
2 | with all of the following: |
3 | (1) Be current in the payment of taxes, interest and |
4 | penalties owed to the Commonwealth and political |
5 | subdivisions. This paragraph excludes items under formal |
6 | dispute or appeal under applicable law. |
7 | (2) Demonstrate sufficient financial resources to |
8 | support the activities required to place and service video |
9 | gaming machines. |
10 | (3) Have each partner be: |
11 | (i) of good moral character and reputation in the |
12 | community; |
13 | (ii) at least 18 years of age; and |
14 | (iii) a resident of this Commonwealth for at least |
15 | two years prior to application for a license. |
16 | (4) At all times subsequent to licensing, a majority of |
17 | the partnership ownership interest must be held by residents |
18 | of this Commonwealth. |
19 | (g) Association and corporate vendors.--Association or |
20 | corporate vendors must comply with all of the following: |
21 | (1) Be current in the payment of taxes, interest and |
22 | penalties owed to the Commonwealth and political |
23 | subdivisions. This paragraph excludes items under formal |
24 | dispute or appeal under applicable law. |
25 | (2) Demonstrate sufficient financial resources to |
26 | support the activities required to place and service video |
27 | gaming machines. |
28 | (3) Have each shareholder holding more than 10% of the |
29 | stock of a corporation be: |
30 | (i) of good moral character and reputation in the |
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1 | community; |
2 | (ii) at least 18 years of age; and |
3 | (iii) a resident of this Commonwealth for at least |
4 | two years prior to application. |
5 | (h) Sole proprietor distributors.--A sole proprietor |
6 | distributor must comply with all of the following: |
7 | (1) Be a resident of this Commonwealth for at least one |
8 | year prior to application. |
9 | (2) Be of good moral character and reputation in the |
10 | community. |
11 | (3) Be at least 18 years of age. |
12 | (4) Be current in the payment of taxes, interest and |
13 | penalties owed to the Commonwealth and political |
14 | subdivisions. This paragraph excludes items under formal |
15 | dispute or appeal under applicable law. |
16 | (5) Demonstrate sufficient financial resources to |
17 | support the activities required to sell and service video |
18 | gaming machines. |
19 | (i) Partnership distributors.--Partnership distributors must |
20 | comply with all of the following: |
21 | (1) Be current in the payment of taxes, interest and |
22 | penalties owed to the Commonwealth and political |
23 | subdivisions. This paragraph excludes items under formal |
24 | dispute or appeal under applicable law. |
25 | (2) Demonstrate sufficient financial resources to |
26 | support the activities required to sell and service video |
27 | gaming machines. |
28 | (3) Have each partner be: |
29 | (i) of good moral character and reputation in the |
30 | community; |
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1 | (ii) at least 18 years of age; and |
2 | (iii) a resident of this Commonwealth for at least |
3 | one year prior to application. |
4 | (4) At all times subsequent to licensing, a majority of |
5 | the partnership ownership interest must be held by residents |
6 | of this Commonwealth. |
7 | (j) Association and corporate distributors.--Association or |
8 | corporate distributors must comply with all of the following: |
9 | (1) Be current in the payment of taxes, interest and |
10 | penalties owed to the Commonwealth and political |
11 | subdivisions. This paragraph excludes items under formal |
12 | dispute or appeal under applicable law. |
13 | (2) Demonstrate sufficient financial resources to |
14 | support the activities required to sell and service video |
15 | gaming machines. |
16 | (3) Have each shareholder holding more than 10% of the |
17 | stock of a corporation be: |
18 | (i) of good moral character and reputation in the |
19 | community; and |
20 | (ii) at least 18 years of age. |
21 | (4) For at least one year immediately prior to |
22 | application, have maintained and operated a coin machine |
23 | distributorship office and sales staff within this |
24 | Commonwealth. This paragraph does not apply to an association |
25 | distributor. |
26 | (k) Sole proprietor manufacturers.--A sole proprietor |
27 | manufacturer must comply with all of the following: |
28 | (1) Be of good moral character and reputation in the |
29 | community. |
30 | (2) Be at least 18 years of age. |
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1 | (3) Be current in the payment of taxes, interest and |
2 | penalties owed to the Commonwealth and political |
3 | subdivisions. This paragraph excludes items under formal |
4 | dispute or appeal under applicable law. |
5 | (4) Demonstrate sufficient financial resources to |
6 | support the activities required to manufacture and sell video |
7 | gaming machines through a licensed distributor. |
8 | (l) Partnership manufacturers.--Partnership manufacturers |
9 | must comply with all of the following: |
10 | (1) Be current in the payment of taxes, interest and |
11 | penalties owed to the Commonwealth and political |
12 | subdivisions. This paragraph excludes items under formal |
13 | dispute or appeal under applicable law. |
14 | (2) Demonstrate sufficient financial resources to |
15 | support the activities required to manufacture and sell video |
16 | gaming machines through a licensed distributor. |
17 | (3) Have each partner be: |
18 | (i) at least 18 years of age; and |
19 | (ii) of good moral character and reputation in the |
20 | community. |
21 | (m) Association and corporate manufacturers.--Association or |
22 | corporate manufacturers must comply with all of the following: |
23 | (1) Be current in the payment of taxes, interest and |
24 | penalties owed to the Commonwealth and political |
25 | subdivisions. This paragraph excludes items under formal |
26 | dispute or appeal under applicable law. |
27 | (2) Demonstrate sufficient financial resources to |
28 | support the activities required to manufacture and sell video |
29 | gaming machines through a licensed distributor. |
30 | (3) Have each shareholder holding more than 10% of the |
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1 | stock of the corporation or association be: |
2 | (i) of good moral character and reputation in the |
3 | community; and |
4 | (ii) at least 18 years of age. |
5 | (n) Service technician.--A service technician must comply |
6 | with the following: |
7 | (1) Be current in the payment of taxes, interest and |
8 | penalties owed to the Commonwealth and political |
9 | subdivisions. This paragraph excludes items under formal |
10 | dispute or appeal under applicable law. |
11 | (2) Be of good moral character and reputation in the |
12 | community. |
13 | (3) Be at least 18 years of age. |
14 | (o) Written agreement.--Each licensed establishment shall |
15 | have a written agreement with a licensed machine vendor for a |
16 | minimum 12-month term. The agreement shall be approved by the |
17 | department and on file at the licensed establishment. |
18 | (p) Nonaccessibility to minors.--No video gaming machine may |
19 | be in an area easily accessible to minors. A floor-to-ceiling |
20 | wall is not required, but the area must be secure and easily |
21 | seen and observed by the employees or management of the licensed |
22 | establishment. |
23 | (q) Advertising prohibited.--No licensed establishment with |
24 | a video gaming license may advertise gaming in any form, written |
25 | or electronic, nor may its name include the words "casino," |
26 | "gambling," "gaming" or any other term that may be interpreted |
27 | to advertise gaming. |
28 | § 11A05. Licensed establishment license. |
29 | The department shall issue a license to any licensed |
30 | establishment upon a showing that its liquor or retail dispenser |
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1 | license is valid and is in good standing with the Pennsylvania |
2 | Liquor Control Board. The annual fee for a licensed |
3 | establishment shall be $500 per video gaming machine. |
4 | § 11A06. Limitations on licensed establishments. |
5 | (a) Limitations.--Licensed establishments shall be subject |
6 | to the following limitations: |
7 | (1) No licensed establishment may have more than five |
8 | video gaming machines. |
9 | (2) No applicant may hold more than one type of license |
10 | authorized by this chapter. |
11 | (3) Each licensee is responsible for payment of its |
12 | license fee. Payment of the fee by a person, partnership or |
13 | corporation other than the licensee is prohibited. |
14 | (b) Unlawful acts.--No licensed establishment shall permit: |
15 | (1) An individual under 21 years of age to operate or |
16 | attempt to operate a video gaming machine. |
17 | (2) An individual under 21 years of age to receive or |
18 | attempt to receive a prize from a video gaming machine. |
19 | (3) A visibly intoxicated person to play a video gaming |
20 | machine. |
21 | (4) An individual to tamper with the connection of a |
22 | video gaming machine to the central computer. |
23 | In addition to any other penalties provided by law, a person who |
24 | violates paragraph (1), (2) or (3) commits a summary offense. |
25 | (c) Seizure, forfeiture and destruction of gaming |
26 | machines.--Gaming machines shall be considered to be per se |
27 | illegal. Gaming machines and the proceeds therefrom may be |
28 | seized upon view as illegal contraband by agents of the |
29 | department and any other law enforcement agency. The owner of a |
30 | gaming machine shall have no right to compensation for the |
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1 | seizure and destruction of a gaming machine or the proceeds of a |
2 | gaming machine. |
3 | (d) Penalties.-- |
4 | (1) In the case of a gaming machine seized from a |
5 | licensed establishment, for a first violation, a penalty of |
6 | at least $1,000 and not more than $5,000 and a suspension of |
7 | the licensed establishment owner's liquor license for not |
8 | less than seven consecutive days, and for each subsequent |
9 | violation, a penalty of $15,000 and a suspension of the |
10 | liquor license for not less than 14 consecutive days. |
11 | (2) In the case of a gaming machine seized from a place |
12 | of business other than a licensed establishment, for a first |
13 | violation, a penalty of at least $1,000 and not more than |
14 | $5,000 against the owner of the business from which the |
15 | gaming machine was seized, and for each subsequent violation, |
16 | a penalty of $15,000. |
17 | § 11A07. Central communications system. |
18 | The department shall establish and procure a central |
19 | communications system capable of monitoring and communicating |
20 | with each licensed video gaming machine. The department may, by |
21 | agreement between the department and the State Lottery, utilize |
22 | the central communications system utilized by the State Lottery. |
23 | All licensed video gaming machines must be linked to the central |
24 | communications system either at the department or, by agreement |
25 | between the department and the State Lottery, at the State |
26 | Lottery. |
27 | § 11A08. Video gaming machine prototype. |
28 | The department shall develop a prototype video gaming machine |
29 | that includes hardware and software specifications. These |
30 | specifications shall include: |
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1 | (1) All machines must have the ability to interact with |
2 | the central communications system. |
3 | (2) Unremovable identification plates shall appear on |
4 | the exterior of the machine containing the name of the |
5 | manufacturer and the serial and model number of the machine. |
6 | (3) Rules of play shall be displayed on the machine face |
7 | or screen as promulgated by the department. |
8 | (4) A video gaming machine may not directly dispense |
9 | coins, cash, tokens or any other article of exchange or value |
10 | except for tickets. Such tickets shall be dispensed by |
11 | pressing the ticket-dispensing button on the machine at the |
12 | end of one's turn or play. The ticket shall indicate the |
13 | total amount of credits and the cash award, and the player |
14 | shall turn in this ticket to the appropriate person at the |
15 | licensed establishment to receive the cash award. The cost of |
16 | the credit shall be $.25, and the number of credits played |
17 | per game shall not exceed ten. |
18 | (5) No cash award for any individual game may exceed |
19 | $1,000. |
20 | (6) All video gaming machines must be designed and |
21 | manufactured with total accountability to include gross |
22 | proceeds, net profits, winning percentages and any other |
23 | information the department requires. |
24 | (7) Each machine shall pay out a minimum of 85% of the |
25 | amount wagered. |
26 | (8) The department may contract with the board to |
27 | develop and verify specifications for video gaming machines. |
28 | § 11A09. Fees. |
29 | (a) Vendors license and fee.--The annual fee for a machine |
30 | vendor license shall be $25,000 for the first 50 video gaming |
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1 | machines and an additional $500 per video gaming machine license |
2 | in excess of 50. A machine vendor license permits the vendor to |
3 | sell video gaming machines to another licensed machine vendor or |
4 | licensed distributor. |
5 | (b) Distributor license fee.--The annual fee for a |
6 | distributor license shall be $10,000. |
7 | (c) Manufacturer license fee.--The annual fee for a |
8 | manufacturer license shall be $10,000. |
9 | (d) Service technician license fee.--The annual fee for a |
10 | service technician license shall be $100. |
11 | § 11A10. Unlawful use by minors. |
12 | (a) Minors.--No individual under 21 years of age may use or |
13 | play a video gaming machine. An individual who violates this |
14 | subsection commits a summary offense. |
15 | (b) Licensees.-- |
16 | (1) A licensed establishment may not, regardless of |
17 | knowledge or intent, permit an individual under 21 years of |
18 | age to play or use a video gaming machine. |
19 | (2) A licensed establishment that violates this |
20 | subsection commits a misdemeanor of the second degree. |
21 | § 11A11. Inducements prohibited. |
22 | (a) General rule.--A video gaming machine owner may not |
23 | offer or give any type of inducement or incentive to a licensed |
24 | establishment to secure a machine placement agreement. |
25 | (b) Definition.--As used in this section, the term |
26 | "inducement" or "incentive" means consideration from a licensed |
27 | machine vendor to a licensed establishment owner as an |
28 | enticement to solicit or maintain the licensed establishment |
29 | owner's business. The term includes cash, gifts, loans and |
30 | prepayment of commissions. |
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1 | § 11A12. Multiple types of licenses prohibited. |
2 | (a) Manufacturer restriction.--A manufacturer may not be |
3 | licensed as a machine vendor or own, manage or control a |
4 | licensed establishment and shall be licensed only to sell to |
5 | licensed distributors. |
6 | (b) Distributor restriction.--A licensed machine distributor |
7 | may not be licensed as a machine vendor or own, manage or |
8 | control a licensed establishment and shall only contract with |
9 | licensed machine vendors. |
10 | (c) Vendor restriction.--A machine vendor may not be |
11 | licensed as a manufacturer or distributor or own, manage or |
12 | control a licensed establishment and shall be licensed only to |
13 | contract with licensed distributors and licensed establishments. |
14 | This shall not prohibit a licensed vendor from selling used |
15 | equipment to another licensed vendor. |
16 | (d) Establishment owner restriction.--An owner of a licensed |
17 | establishment may not be licensed as a manufacturer, distributor |
18 | or vendor and shall only contract with a machine vendor to place |
19 | and service equipment. |
20 | § 11A13. Illegal activities. |
21 | A person may not sell, distribute, service, own, operate or |
22 | place on location a video gaming machine unless the person is |
23 | licensed under this chapter and is in compliance with all |
24 | requirements of this chapter. |
25 | § 11A14. Establishment of account and distribution of funds. |
26 | (a) Video Gaming Account.--There is established a separate |
27 | account in the State Treasury to be known as the Video Gaming |
28 | Account. Fees and fines under this chapter and the portion of |
29 | net profits under subsection (b)(2)(iii) shall be deposited in |
30 | the account. |
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1 | (b) Distribution of net profits.-- |
2 | (1) Net profits shall be calculated by subtracting cash |
3 | awards from the total consideration played on the machine. |
4 | (2) The net profits from each video gaming machine shall |
5 | be distributed in the following manner: |
6 | (i) 33% to the licensed establishment. |
7 | (ii) 33% to the licensed vendor. |
8 | (iii) 34% to the Motor License Fund for use by the |
9 | Pennsylvania State Police, except for any amount in |
10 | excess of $500,000,000, which shall be paid to the |
11 | account. |
12 | (c) Department funding.--The department shall derive all |
13 | funding for its operations related to the establishment, |
14 | enforcement and operation of video gaming from the account. |
15 | (d) Payments to municipalities.--In addition to the funds |
16 | distributed under subsection (b)(2)(iv), the department shall |
17 | pay each municipality from the account $500 per licensed machine |
18 | located in the municipality. |
19 | (e) Funds maintained in account.--An annual minimum balance |
20 | of $2,000,000 shall be maintained in the account. Money in |
21 | excess of this amount at the end of each fiscal year shall be |
22 | distributed to the Department of Transportation for highway |
23 | maintenance and/or projects. |
24 | (f) Funding for compulsive gambling programs.--The |
25 | department shall allocate from the account at least $1,000,000 |
26 | annually for the purpose of treating compulsive gambling in this |
27 | Commonwealth. |
28 | (g) Continuous appropriation.--The money in the account is |
29 | continuously appropriated to the account and shall not lapse at |
30 | the end of any fiscal year. |
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1 | § 11A15. Preemption of local taxes and license fees. |
2 | (a) Statutes.--Video gaming machines shall be exempt from |
3 | taxes levied under the following: |
4 | (1) The act of August 5, 1932 (Sp.Sess., P.L.45, No.45), |
5 | referred to as the Sterling Act. |
6 | (2) The act of December 31, 1965 (P.L.1257, No.511), |
7 | known as The Local Tax Enabling Act. |
8 | (3) 53 Pa.C.S. Pt.III Subpt. E (relating to home rule |
9 | and optional plan government). |
10 | (4) Any statute that confers taxing authority to a |
11 | political subdivision. |
12 | (b) Licensing fees.-- |
13 | (1) Video gaming machines are exempt from local |
14 | licensing fees. |
15 | (2) Local licensing fees imposed on all other coin- |
16 | operated amusement machines shall not exceed $150. |
17 | § 11A16. Exemption from State gaming laws. |
18 | Video gaming machines authorized under this chapter and their |
19 | use as authorized under this chapter are exempt from 18 Pa.C.S. |
20 | § 5513 (relating to gambling devices, gambling, etc.). |
21 | § 11A17. Exemption from Federal regulation. |
22 | The General Assembly declares that the Commonwealth is exempt |
23 | from section 2 of the Gambling Devices Transportation Act (64 |
24 | Stat. 1134, 15 U.S.C. § 1172). Shipments of approved video |
25 | gaming machines into this Commonwealth in compliance with |
26 | sections 3 and 4 of the Gambling Devices Transportation Act (64 |
27 | Stat. 1134, 15 U.S.C. §§ 1173 and 1174) shall be deemed legal |
28 | shipments into this Commonwealth. |
29 | Section 2. This act shall take effect in 60 days. |
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