Senate Republican Communications Office: Senate Bill 862 -- Major
provisions as amended by Senate Rules Committee.

*Senate Bill 862 * Major Provisions*

/As amended by the Senate Rules Committee/

/September 26, 2006/

* Makes suppliers optional by allowing a manufacturer to determine
whether or not to use a supplier. Suppliers would still be required to
be licensed. Allows manufacturers to repair slot machines. (Current law
requires machine repairs to be done by suppliers.)

* Eliminates 1% ownership provision for public officials. Redefines
"public official" to include all officials in jurisdictions which
receive gambling revenues or who have regulatory or other discretionary
authority over gambling.

* Clarifies that the Attorney General has concurrent jurisdiction
relating to gambling crimes and the ability to enforce RICO violations.
Requires the Attorney General to establish a gambling unit.

* Clarifies that other state statutes -- such as the Right-to-Know Law,
the Sunshine Act and the Adverse Interest Act -- apply to the
Pennsylvania Gaming Control Board (PGCB).

* Establishes a code of conduct for the PGCB, including a restriction on
political activity and recusal standards. Prohibits ex parte communications.

* Requires that if a PGCB member recuses himself from voting on a
particular applicant, he must recuse himself from the entire proceeding.
For purposes of this provision, a "proceeding" is the awarding of a
single slot machine license from multiple applications. (Under current
law, the PGCB member must only recuse himself from voting on the
applicant is required.)

* Strengthens the prohibition on ex parte communication by defining ex
parte communication and preventing a PGCB member from having an ex parte
communication with "any person" and not just with an "interested party."

* Provides that the PGCB budget goes through the normal state budget
process.

* Eliminates the ability of a public official to place gambling-related
assets in a blind trust. This applies prospectively because blind trusts
were allowed under the original act.

* Places restrictions on any license applicant which is a trust with a
child beneficiary.

* Prohibits PGCB members, employees, public officials and employees of
independent contractors from being employed by a licensed entity for one
year following board employment or contract. Members and employees
cannot appear before the board for two years following termination. An
employee, independent contractor or individual employed by an
independent contractor may work for an "accessory gaming use" owned by a
licensee, such as a hotel, sports facility or other non-gambling business.

* Strengthens removal provisions for PGCB members. Adds additional types
of offenses that lead to removal.

* Establishes the PGCB's Bureau of Investigation and Enforcement as a
separate bureau and make it a criminal justice agency.

* Maintains a level playing field among existing slots license
applicants by removing the prohibition on placing a license in Gettysburg.

* Requires at least one public input hearing in the host municipality
for future slot machine license applications.

* Excludes Category 2 or 3 licenses from being in a Keystone Opportunity
Zone.

* Allows temporary detention of individuals suspected of a crime at a
gambling facility until law enforcement arrives. This is similar to the
current retail theft law.

* Regulates zoning and riparian rights in Philadelphia.

* Maintains current prohibition on granting a license or permit to
anyone with a felony that is less than 15 years old. Requires the board
to review felonies that are more than 15 years old and consider the
nature of the position sought, the nature and age of the offense,
rehabilitation and related factors.

* Requires PGCB members and employees and public officials to disclose
gambling-related financial interests known to be held by a spouse,
parent, brother, sister or child. Requires divestiture of
gambling-related financial interests held by a spouse or child.
Exceptions are made for retirement plans and TAP accounts. Removes blind
trust allowance for PGCB members.

* Prohibits complimentary services or discounts from licensed entities
being offered to or accepted by PGCB members and employees and public
officials.

* Encourages competition among slot machine manufacturers by
establishing a market share cap for the percentage of machines any
single manufacturer may have at a licensed entity. This provision sunsets.

* Clarifies distribution of funds to ensure that host municipalities get
a $10 million minimum. Changes the distribution formula in the Lehigh
Valley. Establishes a board to distribute funds in Dauphin County.
Clarifies that contiguous property owned in another county is part of
the facility.

* Allows $5 million of Philadelphia's share to go to the Philadelphia
School District.

* Preempts local smoking ordinances for gambling facilities.

* Prohibits a PGCB member from soliciting charitable contributions from
a gambling entity. Allows a PGCB member to serve as an officer of a
nonprofit organization and to attend fundraising events. A PGCB member
may permit his name to appear on letterhead used for fundraising if it
contains the position with the nonprofit organization.

* Requires that progressive jackpot annuity accounts granted as prizes
be administered in accordance with written agreements approved by the board.

* Requires the board to make annual reports to the majority and minority
leaders of each chamber and the majority and minority chairmen of the
standing committees with jurisdiction over gambling. These reports will
also be posted to the Internet.

* Allows PGCB members to hire one special assistant to work directly for
the member.

* Requires PGCB members to avoid the appearance of impropriety.

* Requires that the central control computer system protects against fraud.

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