§ 901.1. Definitions.

 The following words and terms, when used in this part, have the following meanings, unless the context clearly indicates otherwise:

   Act—The Local Option Small Games of Chance Act (10 P. S. § §  311—327).

   Applicant—A person who prepares and files an application.

   Application—A form prescribed by the Department that a manufacturer, distributor or eligible organization shall complete and file to obtain a license or certificate.

   Auxiliary group—

     (i)   A division, subsidiary or affiliated organization or association, incorporated or unincorporated, of an eligible organization whose business and operation is subject to and restricted by the bylaws, rules, regulations and procedures of the eligible organization and that is established solely for the purpose of aiding or assisting the eligible organization and its members in the fulfillment of the eligible organization’s purposes.

     (ii)   The term does not include home associations.

   Bingo Law—The Bingo Law (10 P. S. § §  301—308.1).

   Board—The Small Games of Chance Board of the Department.

   Bona fide member—An individual who holds a membership in the eligible organization as defined by that organization’s constitution, charter, articles of incorporation or bylaws.

   Chance—A right purchased for consideration to participate in a game for a prize offered in the game, which right is represented by a tangible item such as a ticket, document, paper or other item.

   Charitable organization—A not-for-profit group or body of persons which is created and exists for the purpose of performing a humane service; promoting the welfare of the aged, poor, infirm or distressed; combating juvenile delinquency or advancing the spiritual, mental, social and physical improvement of young men and women. The term includes the YMCA and YWCA.

   Civic and service association—

     (i)   Any Statewide or a branch, lodge or chapter of a nonprofit National or State organization which is authorized by its written constitution, charter, articles of incorporation or bylaws to engage in a civic or service purpose within this Commonwealth, which has existed in this Commonwealth for 1 year.

     (ii)   The term also includes a similar local nonprofit organization, not affiliated with a National or State organization, which is recognized by a resolution adopted by the governing body of the municipality in which the organization conducts its principal activities.

     (iii)   The term includes:

       (A)   Bona fide sportsmen’s and wildlife associations, federations or clubs, Statewide or local in nature.

       (B)   Volunteer fire companies.

       (C)   Volunteer rescue squads.

       (D)   Volunteer ambulance associations.

       (E)   Bona fide senior citizens organizations.

       (F)   Nonprofit organizations that are recognized by a resolution adopted by the appropriate governing body and which are established to promote and encourage participation and support for extracurricular activities within the established primary and secondary public, private and parochial school systems.

   Club—As defined in section 102 of the Liquor Code (47 P. S. §  1-102), that qualifies as an exempt organization under section 501(c) or 527 of the Internal Revenue Code of 1954 (26 U.S.C.A. §  501(c) or §  527) and is licensed to sell liquor at retail and has a charitable, religious or civic purpose or is organized to benefit a political party.

   Daily drawing—

     (i)   A game in which a bona fide member selects or is assigned a number in exchange for consideration for a chance at a prize with the winner determined by a random drawing to take place on the eligible organization’s premises during the same operating day that the chances for the drawing are sold.

     (ii)   The term includes games commonly known as ‘‘member sign-in lotteries’’ and ‘‘half-and-half lotteries.’’

   Deal—A set of pull-tabs or punches bearing the same serial number.

   Department—The Department of Revenue of the Commonwealth.

   Deputy Secretary—A deputy secretary of the Department.

   Dispensing machine—

     (i)   A device designed exclusively for the dispensing of games of chance authorized by the act, including ticket jars, fish bowls and stamp machines.

     (ii)   The term does not include any device commonly known as a ‘‘slot machine’’ or ‘‘video poker’’ or any device that contains as one of its components a video display monitor that is capable of displaying numbers, letters, symbols or characters in winning or losing combinations.

   Distributor—A person who purchases or otherwise obtains games of chance, including punchboards or pull-tabs, from a manufacturer and sells or otherwise furnishes the games of chance, with or without merchandise to be awarded as prizes in connection therewith, to another person for the resale, display or operation of the games of chance by a licensed eligible organization.

   Distributor’s representative—

     (i)   A natural person who represents a distributor in connection with the sale or furnishing of games of chance for use in authorized activities.

     (ii)   The term includes the distributor’s sales personnel.

     (iii)   The term does not include warehouse personnel, delivery personnel and other employees who only have incidental contact with customers.

   Eligible organization—An organization that meets all of the following:

     (i)   Nonprofit.

     (ii)   Charitable organization, religious organization, fraternal organization, veterans organization, club or civic and service association.

     (iii)   In existence and fulfilling its purposes for 1 year prior to the date of application for a license.

   Flare—A card, graphic, illustration or other document that is part of a pull-tab game or punchboard and satisfies the requirements of §  901.608 or §  901.627 (relating to standards for flares), respectively.

   Fraternal organization—An organization within this Commonwealth created and carried on for the mutual benefit of its members, has a limited membership and a representative form of government and is a branch, lodge or chapter of a National or State organization.

   Game of chance or game—

     (i)   The following games: punchboards, daily drawings, weekly drawings, raffles and pull-tab games.

     (ii)   The term includes all of the parts, accessories and items necessary to play such games. The term also includes dispensing machines and passive selection devices.

     (iii)   The term does not include a game played by or with the assistance of mechanical, electronic or electrical devices or media or a game in which the particular chance taken by a person in the game is made contingent upon another occurrence or the winning of another contest.

     (iv)   This definition does not authorize another form of gambling currently prohibited under 18 Pa.C.S. (relating to the Crimes Code).

     (v)   The term does not include games commonly known as ‘‘slot machines’’ or ‘‘video poker.’’

   Hold ticket—A pull-tab or punch in a subset of pull-tabs or punches in a deal one or more of which are designated in advance as a winning pull-tab or punch for a specific prize. The winning pull-tab or punch is revealed after all hold tickets are purchased. Hold tickets are typically used in conjunction with seal cards.

   Home association—A corporation, association or other organization organized under the laws of the Commonwealth by a veterans organization in conformity with its local, State or National bylaws and meets all of the following:

     (i)   Affiliated with the veterans organization.

     (ii)   Has a separate legal existence from the veterans organization.

     (iii)   Accepts into its membership persons who are not eligible for membership in the veterans organization.

     (iv)   The board of directors, officers and members with voting rights or other controlling interests consist solely of bona fide veterans organization members.

   Ideal prizes—The maximum amount to be awarded in prizes if the game of chance is played to its fullest, all plays are sold and all potential prizes are awarded.

   Law enforcement official—A municipal police officer, a member of the State Police, the sheriff of a county or a deputy sheriff.

   License—A document issued by:

     (i)   The Department, upon application, to a distributor authorizing the distributor to purchase games of chance from a registered manufacturer and sell games of chance in this Commonwealth to licensed eligible organizations, also known as a distributor’s license.

     (ii)   A licensing authority, upon application, to an eligible organization authorizing the eligible organization to purchase games of chance from licensed distributors and conduct games of chance in this Commonwealth, on a yearly basis, known as a game of chance license, or on a limited basis, known as a limited occasion license.

   Licensed premises—The specific location upon which a licensed eligible organization is authorized to conduct games of chance.

   Licensee—A distributor or eligible organization that has been issued a license.

   Licensing authority—The county treasurer, or in a home rule county or city of the first class, where there is no elected treasurer, the designee of the governing authority.

   Limited occasion license—A license issued by a licensing authority to an eligible organization authorizing the organization to conduct games of chance on a limited basis.

   Manufacturer—

     (i)   A person who assembles from raw materials or subparts a completed game of chance for use in authorized activities, and who sells or otherwise furnishes the same to a licensed distributor.

     (ii)   The term does not include printers of only raffle, daily drawing or weekly drawing tickets.

   Manufacturer registration certificate or certificate—A document issued by the Department, upon application, to a manufacturer authorizing the manufacturer to sell games of chance that the Department has approved to distributors licensed to sell games of chance in this Commonwealth.

   Manufacturer’s representative—

     (i)   A natural person who represents a manufacturer in connection with the sale or furnishing of games of chance for use in authorized activities.

     (ii)   The term includes the manufacturer’s sales personnel.

     (iii)   The term does not include warehouse personnel, delivery personnel and other employees who only have incidental contact with the customers.

   NAGRA—The North American Gaming Regulators Association or its successors.

   Nonoperating day—A period of time equivalent to an eligible organization’s operating day except that the eligible organization is closed to normal activities or to its members during that period of time.

   Normal business or operating site—The location at which an eligible organization conducts its activities as permitted and enumerated in its constitution, charter, articles of incorporation, bylaws or other document of formation.

   Office of Attorney General—The Attorney General of the Commonwealth of Pennsylvania.

   Operating day—The period of time during any 24 hour period during which an eligible organization conducts its normal activities or holds itself open to its members.

   Operating week—Seven consecutive operating days or nonoperating days.

   Passive selection device—A device that is used to hold or denote all of the possible winning numbers or entrants in a daily drawing, weekly drawing or raffle. The device may not have the capability of being utilized to conduct or aid in unauthorized or illegal forms of gambling.

   Person—A natural person, unincorporated association, company, corporation, joint stock company, group, agency, syndicate, trust or trustee, receiver, fiduciary, partnership, conservator, the Commonwealth or a political subdivision or instrumentality of the Commonwealth or of another state or the Federal government or officers thereof.

   Petition—A written statement of facts, under oath, submitted by one of the following:

     (i)   A manufacturer or distributor who disagrees with the Department’s decision to deny or refuse to renew its application.

     (ii)   A registered manufacturer or licensed distributor who disagrees with the Department’s decision to revoke his certificate or license.

   Petitioner—A manufacturer or distributor who files a petition.

   Public interest purposes—

     (i)   Any of the following:

       (A)   Benefiting persons by enhancing their opportunity for religious or educational advancement, by relieving or protecting them from disease, suffering or distress, by contributing to their physical, emotional or social well-being, by assisting them in establishing themselves in life as worthy and useful citizens or by increasing their comprehension of and devotion to the principles upon which this nation was founded.

       (B)   Initiating, performing or fostering worthy public works or enabling or furthering the erection or maintenance of public structures.

       (C)   Lessening the burdens borne by government or voluntarily supporting, augmenting or supplementing services which the government would normally render to the people.

       (D)   Improving, expanding, maintaining or repairing real property owned or leased by an eligible organization and used for purposes specified in clauses (A)—(C).

     (ii)   The term does not include the erection or acquisition of any real property, unless the property will be used exclusively for one or more of the purposes specified in this definition.

   Pull-tab—A game piece in a pull-tab game made completely of paper or paper products with concealed numbers or symbols that must be exposed by the player to determine wins or losses.

   Pull-tab game—A deal of pull-tabs and its corresponding flare.

   Punch—A crimped strip of paper or similar material that is enclosed in a punchboard receptacle and contains either a winning or losing number or symbol printed on one side and a serial number printed on the other.

   Punchboard—A board, placard or other device comprised of receptacles, usually laid out in a grid or column pattern, containing a deal of hidden punches and its corresponding flare. Upon the payment of consideration, a player may select and remove the punches contained in a receptacle. A prize is awarded to a player who selects a receptacle containing a punch with a predetermined winning number or symbol.

   Raffle—

     (i)   A game in which a participant buys a ticket for a chance at a prize with the winner determined by a random drawing of corresponding ticket stubs to take place at a location and date or dates printed upon each ticket.

     (ii)   The term includes lotteries but not daily or weekly drawings.

     (iii)   The term does not include the paying of money or merchandise at roulette wheels, at cards, dice, other tables or another form of gambling not specifically authorized by law.

   Registrant—A manufacturer who is issued a manufacturer registration certificate.

   Registration—The process of applying to the Department for a manufacturer registration certificate.

   Religious organization—A not-for-profit group or body of persons which is created and exists for the predominant purpose of regularly holding or conducting religious activities or religious education, without pecuniary benefit to an officer, member or shareholder, except as reasonable compensation for actual services rendered to the organization.

   Responsible person—A person who is connected or associated with an eligible organization, distributor or manufacturer in a manner that meets at least one of the following criteria:

     (i)   Has the control, receipt, custody or disposal of or pays the compensation of an employee.

     (ii)   Has the control, receipt, custody or disposal of the games of chance proceeds.

     (iii)   Has the control, receipt, custody and disposal of available cash on hand or other quick or liquid assets or pays the liabilities of the eligible organization, manufacturer or distributor.

     (iv)   Has the duty, power or authority to do one of the following:

       (A)   Direct the deduction and withholding of tax.

       (B)   Direct the collection and payment of sales and use tax.

       (C)   Control the financial affairs of the entity.

       (D)   Direct the payment of the entity’s liabilities.

       (E)   Direct the payment of the tax deducted and withheld from the compensation of an employee.

       (F)   Direct the disposition and use of games of chance proceeds.

       (G)   Account for and report tax deducted and withheld from the compensation of an employee.

       (H)   Direct the filing of State tax reports and returns.

       (I)   Direct the payment of State taxes.

       (J)   Direct the transaction involved with the sale, manufacture or use of games of chance.

     (v)   Is an eligible organization’s manager, officer, director or bar personnel involved with the conduct of games of chance.

   Seal card—A board or placard that contains a seal or seals that, when removed or opened, reveal predesignated winning numbers, letters or symbols.

   Secretary—The Secretary of the Department.

   Seven-day period—The period of days Monday through Sunday.

   Special raffle permit—A document issued by a licensing authority to a licensed eligible organization that authorizes the eligible organization to conduct a raffle with prize limits exceeding the standard prize limits for raffles.

   Stamp machine—A device designed exclusively to dispense preprinted pull-tab tickets which does not make a change to, mark on or alter in any way the ticket placed in the device. The device may not print or produce tickets in any manner. The term is also known as a vending machine for pull-tab tickets.

   State Lottery Law—The State Lottery Law (72 P. S. § §  3761-101—3761-2102).

   Veterans organization—

     (i)   A Congressionally chartered organization within this Commonwealth, or any branch or lodge or chapter of a nonprofit National or State organization within this Commonwealth, the membership of which consists of individuals who were members of the armed services or armed forces of the United States.

     (ii)   The term includes home associations.

   Weekly drawing—A game in which a bona fide member selects or receives a number or numbers in exchange for consideration during an operating week for a chance at a prize with the winner determined by a random drawing to take place on the eligible organization’s premises on the last operating day of the eligible organization’s operating week.

   The provisions of this §  901.1 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265852) to (265856).

GENERAL APPLICABILITY

§ 901.21. Applicability.

 This part applies to manufacturers and distributors who sell or intend to sell games of chance in this Commonwealth and to eligible organizations located in municipalities within this Commonwealth which have adopted the act by an affirmative vote in a municipal referendum under the act.

 (a)  Manufacturers.

   (1)  Registration. A manufacturer shall register with the Department and obtain a manufacturer registration certificate to sell, offer for sale or furnish games of chance for use in this Commonwealth. This paragraph does not apply to manufacturers that only sell, offer for sale or furnish raffle, daily drawing or weekly drawing tickets for use in this Commonwealth.

   (2)  Sales. A registered manufacturer may only sell, offer for sale or furnish games of chance that have been approved by the Department for sale in this Commonwealth. A registered manufacturer may only sell, offer for sale or furnish approved games of chance for sale in this Commonwealth to a licensed distributor. This paragraph does not apply to the sale of raffle, daily drawing or weekly drawing tickets.

 (b)  Distributors.

   (1)  Licensure. A distributor shall apply for and obtain from the Department a distributor license to sell, offer for sale or furnish games of chance in this Commonwealth. This paragraph does not apply to distributors that only sell, offer for sale or furnish raffle, daily drawing or weekly drawing tickets.

   (2)  Sales. A licensed distributor may only sell, offer for sale or furnish approved games of chance for use within this Commonwealth to another licensed distributor or a licensed eligible organization. This paragraph does not apply to the sale of raffle, daily drawing or weekly drawing tickets.

   (3)  Purchase. A licensed distributor may only purchase approved games of chance for resale in this Commonwealth from a registered manufacturer or licensed distributor. This paragraph does not apply to the purchase of raffle, daily drawing or weekly drawing tickets.

 (c)  Eligible organizations.

   (1)  Licensure. An eligible organization shall apply for and obtain a games of chance license from the licensing authority in the county where it shall maintain its licensed premises before purchasing games of chance for use in this Commonwealth.

   (2)  Purchase. A licensed eligible organization may not purchase or lease games of chance for use in this Commonwealth except from a licensed distributor. This paragraph does not apply to the purchase of raffle, daily drawing or weekly drawing tickets.

 A certificate, license or game of chance that has been denied, suspended or revoked or that has expired is not a valid certificate, license or game of chance. A person, applicant for or holder of a certificate or license or owner of a game of chance cannot avail himself of the privileges that the act and this part confers upon a holder of a valid certificate or license or an approved game of chance following a denial, suspension or revocation.

   The provisions of this §  901.23a adopted August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475.

 A certificate or license confers only a privilege on the holder. A certificate or license confers no vested right in the privilege so conferred.

 (a)  As a condition precedent to the issuance of a license or certificate, the Department may require background checks on a person seeking a license or for whom a certificate is sought, or employees thereof, or of a person participating as an employee who will be involved in the operation of games of chance or a person with equity ownership of 10% or more.

 (b)  The applicant or the person for whom a license or certificate is requested shall cooperate with the Department and assist in its investigation.

 (a)  Licensed premises, or premises relating to or being used for activities conducted under the act and this part by a licensed eligible organization, registered manufacturer or licensed distributor shall be open to inspection by the Department or its authorized representatives with or without prior notice, but the inspection shall:

   (1)  Take place during the registrant’s or licensee’s normal business hours or normal operating hours.

   (2)  Take place only when a reasonable belief exists that a violation of the act or this part has occurred, is occurring or will occur.

   (3)  Be limited to the inspection of matters, areas and records associated with games of chance to insure compliance with the act and this part.

 (b)  The Department or its authorized representatives reserve the right to enter and make annual inspections.

   The provisions of this §  901.28 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265857) to (265858).

 (a)  A manufacturer or distributor or employee thereof may not directly or indirectly solicit, give or offer to give or receive from another licensee or registrant or an employee thereof gifts, loans of money, premiums, rebates, free merchandise or services of a substantial value. A licensee or registrant or employee thereof, may not directly or indirectly solicit, receive from, or give or offer to give a manufacturer or distributor or his employee gifts, loans of money, premiums, rebates, free merchandise or services of a substantial value.

 (b)  A manufacturer, distributor or representative thereof may not sell to or solicit from a person an order for a game of chance contingent upon that person or another purchasing or ordering some other game of chance.

 (c)  A manufacturer, distributor or licensed eligible organization may not fix by express or implied agreement with another manufacturer, distributor, eligible organization or any other person, the prices to be charged to other manufacturers, distributors or eligible organizations in the competitive market place for games of chance or goods, prizes or services sold or rendered in connection with games of chance. Nothing in this subsection is intended to prohibit individual manufacturers, distributors and eligible organizations from negotiating for the price to be paid for goods, prizes or services sold or rendered in connection with games of chance.

 In addition to the examination of records authorized during an inspection of the premises, the Department is authorized to examine the reports, books, accounts and records, and the inventory related to games of chance of a licensed distributor, registered manufacturer, licensed eligible organization or their representatives. Every manufacturer, distributor or eligible organization is directed and required to give to the Department or its authorized representatives the means, facilities and opportunity for the examinations.

   The provisions of this §  901.31 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265859).

 The physical possessor of a chance in a game is the owner of the chance until a name is imprinted or placed upon it. When a name is placed upon the chance, the person whose name appears on the chance is the owner and is entitled to a prize attributable to it.

 If a dispute occurs about whether a chance is a winning chance and the dispute cannot be resolved through normal verification procedures or other appropriate means the licensed eligible organization may retain the chance and replace it with an equivalent chance in a like game. This is the exclusive remedy of the owner of the chance. Detailed records regarding the dispute, the reasons for the dispute and the chance shall be maintained by the eligible organization for a minimum of 2 years from the date the dispute arose.

 A licensed eligible organization may announce a termination date at which point no further chances may be sold, and a date by which all claims or prizes shall be made. This date may not be less than 30 days after the last date for play of the game being terminated.

 A licensed eligible organization is responsible for complying with Internal Revenue Service rules for reporting and withholding on gambling and lottery winnings.

 A licensed eligible organization is responsible for complying with Commonwealth rules for reporting and withholding on gambling and lottery winnings.

 A person applying for a certificate or distributor’s license under the act or this part is required to designate a person and location within this Commonwealth for purposes of service of process and the person shall agree to submit to the jurisdiction of the courts of the Commonwealth and law enforcement officials of the Commonwealth and its subdivisions.

 (a)  An operating day or a nonoperating day may not exceed 24 consecutive hours. An operating day or a nonoperating day may not overlap with any other operating day or nonoperating day.

 (b)  An operating day may extend from 1 calendar day to another so long as the eligible organization’s normal activities or business hours extend from 1 calendar day to another. For example, an eligible organization’s operating day may begin at 9 a.m. and end at 3 a.m. the following calendar day (that is, 18 consecutive hours over 2 calendar days).

 (c)  If an eligible organization operates on a 24 hour-a-day basis, the eligible organization’s operating day shall be any consecutive 24-hour period as chosen by the organization. For example, an eligible organization could choose its operating day to be from 9:01 a.m. to 9 a.m. the following calendar day or from 12:01 a.m. to midnight on the same calendar day.

 (d)  An operating week shall consist of 7 consecutive, reoccurring operating or nonoperating days.

 (e)  An eligible organization shall choose its operating day and week and report them on its license application.

 (f)  A licensed eligible organization may change its operating day and week. The eligible organization shall amend its license before the new operating day or week becomes effective.

   The provisions of this §  901.40 adopted August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475.

ADMINISTRATION

§ 901.51. Power and duties.

 The Department has the power and authority granted to it by the Legislature under the act, including the power and authority to do the following:

   (1)  Review the tax status of an applicant for a certificate or distributor license.

   (2)  Prescribe the records and books which distributors and manufacturers are required to keep. See § §  901.421—901.426 and 901.441—901.445 (relating to manufacturing records and reports; and distributor records and reports).

   (3)  Impose minimum standards and restrictions applicable to games of chance manufactured for sale in this Commonwealth. The standards and restrictions may include specifications for the maximum number of chances available to be sold for a single game or prize and other standards and restrictions the Department deems necessary for the purpose of the act.

   (4)  Establish procedures by which manufacturers may apply for a certificate and distributors may apply for licensure.

   (5)  Provide forms for registration of manufacturers and licensure of distributors.

   (6)  Prescribe procedures for the suspension or revocation of distributor licenses and certificates for violations of the act or this title.

   (7)  Prescribe the form to be used by the licensing authority to license eligible organizations.

   (8)  Conduct investigations prior to licensure and registration to ensure compliance with the requirements and prohibitions of the act and this part.

   (9)  Collect a fee for the issuance of a manufacturer registration certificate or distributor license.

   (10)  Initiate legal proceedings, in law or equity, before any court or tribunal, for purposes of administering or enforcing the provisions of the act or this part.

   (11)  Notify the Office of Attorney General of violations of the act and this part and request the Attorney General to initiate legal proceedings, criminal or civil, legal or equitable, to enforce the provisions of the act and this part.

   (12)  Do other matters necessary or desirable for the efficient operation and administration of games of chance and to carry out the act and this part.

 The Department will carry out its powers provided in the act or this part through the Bureau of Business Trust Fund Taxes—Miscellaneous Tax Division. The administrative entity may be changed by notice published in the Pennsylvania Bulletin.

 (a)  Payment by a check which is not promptly paid by the drawee bank is grounds for immediate suspension of a license, registration or application. The suspension will continue until a certified check, cashier’s check or money order in the amount of the fee and the penalty imposed by subsection (b) is tendered or the original check is paid by the drawee bank and a check for the amount of the penalty imposed by subsection (b) is also remitted.

 Application materials required by the licensing authority, manufacturers and distributors will be available from the Department.

Subchapter B. LICENSING AND REGISTRATION

MANUFACTURER REGISTRATION

Sec.

§ 901.101. Manufacturer registration and game approval required.

 (a)  A person shall be registered with the Department and possess a manufacturer’s registration certificate to sell or otherwise furnish games of chance to licensed distributors within this Commonwealth.

 (b)  A registered manufacturer may not sell a game of chance in this Commonwealth to a licensed distributor until the Department has approved it.

 (c)  If a registered manufacturer modifies an approved game of chance in any substantial way so that the nature or identity of the game is changed, the rules of the game change or the prizes or payouts change, the game of chance must be considered a new game of chance and submitted for approval.

   The provisions of this §  901.101 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265864).

 (a)  A person seeking a manufacturer registration certificate shall submit to the Department an application form as prescribed by the Department.

 (b)  A person seeking an approval of a game of chance shall submit the application for approval to the Department with its manufacturer’s registration application or during the registration term on a form prescribed by the Department. The information to be provided on the form must include:

   (1)  The name of the game.

   (2)  The game form number.

   (3)  A description of the game and rules for play.

   (4)  A picture or illustration of the game and its component pieces.

   (5)  The game prize structure, prizes and their value.

   (6)  The number of chances and cost per chance.

   (7)  The percentage of prizes to be paid in relation to the gross sale proceeds for all chances.

 (c)  The application forms referenced in subsections (a) and (b) shall be completed in full and will not be considered to be received until completed in full.

   The provisions of this §  901.102 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265864).

 An application for registration as a manufacturer of games of chance shall contain at a minimum the following information:

   (1)  The name of the manufacturer, including a copy of the Fictitious Name Registration Form, Department of State Registry Statement or similar registration form.

   (2)  The manufacturer’s business, mailing and legal address as well as the address of all locations where the applicant manufactures its games. It does not include the address of each person from whom the manufacturer purchases raw materials, components or subparts used to manufacture its games.

   (3)  The names, addresses, telephone numbers and Social Security numbers of officers, directors, owners and partners or other responsible persons. If incorporated, the application must contain the names, addresses, telephone numbers and Social Security numbers of officers and shareholders controlling 10% or more of outstanding stock. If organized as a partnership, the application must contain the names, addresses and telephone numbers of all partners.

   (4)  A copy of the constitution and bylaws or the corporate charter for new applications. This information must also accompany renewal application if requested or if amended.

   (5)  A complete list of all games of chance to be manufactured for sale in this Commonwealth during the registration term. The list must contain information as prescribed on the manufacturer registration application form.

   (6)  The signatures of responsible persons.

   (7)  A complete list of manufacturer representatives operating in this Commonwealth, their addresses and telephone numbers.

   (8)  Pennsylvania tax information, including:

     (i)   The Pennsylvania Sales Tax number.

     (ii)   The Pennsylvania corporate box number.

     (iii)   The Pennsylvania employer identification number.

     (iv)   The Pennsylvania Unemployment Compensation account number.

   (9)  A certified statement that:

     (i)   State tax reports and returns have been filed.

     (ii)   State taxes due and payable have been paid.

     (iii)   State taxes owing are subject to timely administrative or judicial appeal and the required bond or security has been filed.

     (iv)   Delinquent State taxes are subject to an approved deferred payment plan. A copy of the approved deferred payment plan shall be attached to the certified statement.

   (10)  A certified statement that no officer, director or other responsible person or employee eligible to make sales on behalf of the manufacturer has been convicted of one or more of the following:

     (i)   A felony in a state or Federal court within the past 5 years.

     (ii)   A violation of the act, the Bingo Law or a gambling related offense under 18 Pa.C.S. (relating to the Crimes Code) or other comparable state or Federal law within 10 years of the date of the application in a state or Federal court.

   (11)  The logos and trade names used by the manufacturer.

   (12)  Other documents as identified in the application materials.

   The provisions of this §  901.103 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265864) to (265865).

 A manufacturer shall report any changes to the information supplied in its application to the Department within 15 days of the change.

   The provisions of this §  901.103a adopted August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475.

 By filing an application for the grant of a manufacturer registration certificate, the applicant waives confidentiality with respect to Commonwealth tax information in the possession of the Department, the Office of Attorney General or the Department of Labor and Industry regarding the applicant, regardless of the source of that information, and consents to the provision of that information to the Department by the Office of Attorney General or the Department of Labor and Industry.

 The annual registration fee is $2,000 and shall accompany the original registration application and every renewal application. An application processing fee of $100 will be retained by the Department if registration is denied and the remaining $1,900 will be returned to the applicant. No part of the registration fee is subject to proration.

 A registration term begins on April 1 and ends on March 31 of the succeeding year. A certificate issued during a registration term is only valid from the date of issuance to the end of the registration term.

   The provisions of this §  901.106 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265866).

 A registered manufacturer shall file an application for a certificate at least 60 days prior to the expiration date of its existing certificate to ensure that the Department will act on its application prior to the expiration of its current certificate.

   The provisions of this §  901.107 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265866).

 The Department will assign a registration number and issue a certificate to each manufacturer that it approves for registration. The registered manufacturer shall place the registration number on all documents used in any transactions under the act or this part.

   The provisions of this §  901.108 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265866).

 The certificate issued must be maintained on the manufacturer’s premises and available for inspection upon request.

   The provisions of this §  901.109 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265866).

 If a certificate is defaced, destroyed or lost, the Department may issue a duplicate to the holder of the certificate upon submission of a duplicate application form. A $100 fee will be charged for the duplicate certificate.

   The provisions of this §  901.110 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265866).

 A manufacturer is prohibited from transferring or assigning its certificate.

   The provisions of this §  901.111 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265866).

 A representative of a manufacturer acts as an agent of the manufacturer in activities conducted under the manufacturer’s registration certificate.

   The provisions of this §  901.113 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265866).

 (a)  A manufacturer shall notify the Department in writing within 10 days of one or more of the following actions on the part of the manufacturer:

   (1)  The filing with the Department of State of a certificate of election to dissolve, or the filing of a similar document in another jurisdiction.

   (2)  The filing of a petition in bankruptcy or receivership by the manufacturer.

   (3)  The merging or consolidating with another entity.

   (4)  The termination of its business activities by a process, legal or equitable, voluntary or involuntary, formal or informal, within or outside this Commonwealth.

 (b)  A notice of the decision to dissolve is required even if filing is not required.

   The provisions of this §  901.114 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265867).

 A manufacturer shall notify the Department, in writing, 10 days before a change of address.

   The manufacturer shall make a written report to the Department of changes of responsible persons engaged in the business of the manufacturer. This report shall also include a change in the management, ownership, directorship or equity ownership of 10% or more, and a change in the manufacturer’s representatives. The report shall be filed on September 15.

 (a)  Manufacturer registration certificate. The Department may deny an application for a certificate, issue a notice of violation or revoke a certificate if the manufacturer or a person required to be identified in the application form commits one or more of the following acts:

   (1)  Has included false information on the application.

   (2)  Has failed to comply with or engaged in an activity prohibited by the act or this part.

   (3)  Has changed its address without notification as required in this part.

   (4)  Has been convicted of, forfeited bond upon a charge of or pleaded guilty or nolo contendere to one of the following:

     (i)   Forgery.

     (ii)   Larceny.

     (iii)   Extortion.

     (iv)   Conspiracy to defraud.

     (v)   Willful failure to make required payment or reports to a governmental agency.

 (vi)  A crime, whether a felony or a misdemeanor, involving a gambling activity or a felony involving moral turpitude.

 (vii)  Other similar offenses.

   (5)  Has refused to permit an inspection of its records or premises under one of the following:

     (i)   Section 901.28 or §  901.31 (relating to inspection of premises; and examination of records).

     (ii)   A search warrant.

     (iii)   A court order.

   (6)  Has been convicted of a felony in a State, or Federal court within the past 5 years.

   (7)  Has been convicted in a municipal, State or Federal court of a violation of the act, the Bingo Law or of a gambling-related offense under 18 Pa.C.S. (relating to the Crimes Code) or another comparable state or Federal law within 10 years of the date of application.

   (8)  Has made a misrepresentation or fails to disclose a material fact.

   (9)  Sells or offers for sale in this Commonwealth a game of chance that has not been approved by the Department as provided for in this part.

 (b)  Game of chance approval. The Department may deny an application for a game of chance approval. The Department may issue a notice of violation for or revoke an approved game of chance if the game of chance fails to meet the requirements of the act or this part. The Department may revoke its approval of a game if the Department determines that the approval was issued in error.

 (c)  Notice of violation.

   (1)  A notice of violation is issued to notify a manufacturer of a violation of the act or this part and to provide the manufacturer with an opportunity to remedy the violation. A manufacturer retains the privileges conferred on it by its certificate or game approval during the notice period and may continue to sell games of chance in this Commonwealth.

   (2)  The time period that the Department may grant to a manufacturer to remedy a violation may not exceed 30 days, unless the manufacturer requests an extension, in writing, and the Department approves the extension. An extension may not exceed 30 additional days.

   (3)  The Department will provide the manufacturer a notice of compliance within 5 days after the manufacturer demonstrates to the satisfaction of the Department that the violation has been remedied.

   (4)  If the Department determines that the manufacturer has not remedied the violation identified in the notice by the end of the notice or extension period, the Department will revoke the certificate or game approval as applicable.

   (5)  There is no right to appeal a notice of violation or a denial of an extension.

 (d)  Notice.

   (1)  The Department will notify a manufacturer in writing of a denial, violation or revocation. The notice will provide:

     (i)   The issue date of the notice.

     (ii)   The action taken by the Department.

     (iii)   The reason for the action.

     (iv)   The manufacturer’s appeal rights.

   (2)  The Department will serve the notice by certified or first-class mail.

   (3)  The Department will mail the notice to the manufacturer’s Commonwealth resident designee and the manufacturer’s primary business address listed on the manufacturer’s application.

   The provisions of this §  901.117 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265867) to (265868).

 Unless otherwise provided by the act or this part:

   (1)  A manufacturer whose certificate is revoked is ineligible to apply for and receive another certificate for the remaining registration term or 6 months, whichever is longer.

   (2)  For a second revocation, the manufacturer is ineligible to apply for and receive another certificate for the remaining registration term as well as the following registration term.

   (3)  For a third and subsequent revocation, the manufacturer is ineligible to apply for and receive another certificate for 30 months.

   The provisions of this §  901.117a adopted August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475.

 The Department will approve or deny applications within 60 days of their receipt unless the applicant is notified in writing of the specific reason for the delay. If the applicant requests a denial in writing, the delayed application will be denied and may be appealed under § §  901.161—901.168 (relating to Board procedures). Applications are considered to be received when they arrive at the Department as evidenced by the date stamp placed on the application.

   Approval

   The Department of Revenue’s failure to approve or disapprove an application to market a more advanced pull-tab device within 60 days pursuant to this regulation did not divest the Department of authority to deny the application as there is no recognized deemed approval provision in this regulation or 10 P. S. § §  313 and 314. Major Mfg. Corp. v. Department of Revenue, 651 A.2d 204 (Pa. Cmwlth. 1994).

   In General

   This regulation describes the decision time limit for reviewing applications for registration as manufacturers, not applications or requests to market devices. Major Mfg. Corp. v. Department of Revenue, 651 A.2d 204 (Pa. Cmwlth. 1994).

 This section and § §  901.101—901.111 and 901.113—901.118 do not apply to the manufacturers who only produce and sell raffle, daily drawing and weekly drawing tickets.

   The provisions of this §  901.119 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265868).

DISTRIBUTOR LICENSING

§ 901.131. Distributor license requirement.

 A person shall be licensed by the Department and possess a license to sell, offer for sale or otherwise furnish games of chance to licensed eligible organizations in this Commonwealth.

   The provisions of this §  901.131 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265869).

 For a distributor to obtain a license to sell games of chance in this Commonwealth, the distributor shall submit a license application to the Department in the form prescribed by the Department. The application form shall be completed in full and will not be considered to be received until it has been completed in full.

   The provisions of this §  901.132 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265869).

 The application form must include the following:

   (1)  The name of the distributor, including a copy of the Fictitious Name Registration, Department of State Registry Statement or similar registry statement.

   (2)  The address of the distributor, including the business, mailing and legal address.

   (3)  The names, addresses, telephone numbers and Social Security numbers of officers, directors, owners and partners or other responsible persons. If incorporated, the application shall contain the names, addresses and telephone numbers of officers and shareholders controlling 10% or more of outstanding stock. If organized as a partnership, the application must contain the names, addresses and telephone numbers of all partners.

   (4)  A copy of the constitution and bylaws or corporate charter only for new applications. This information must also accompany renewals if requested or if changed or amended.

   (5)  A list of all types of games of chance to be distributed.

   (6)  A list of manufacturers with whom distributors anticipate doing business.

   (7)  The signature of responsible persons.

   (8)  A complete list of distributor representatives and their addresses and telephone numbers.

   (9)  Pennsylvania tax information, including:

     (i)   Pennsylvania Sales Tax number.

     (ii)   Pennsylvania Corporate box number.

     (iii)   Pennsylvania employer identification number.

     (iv)   Pennsylvania Unemployment Compensation account number.

     (v)   Pennsylvania Liquor License number, if applicable.

   (10)  A certified statement that:

     (i)   State tax reports and returns have been filed.

     (ii)   State taxes due and payable have been paid.

     (iii)   State taxes owing are subject to timely administrative or judicial appeal.

     (iv)   Delinquent State taxes are subject to an approved deferred payment plan. A copy of the approved deferred payment plan shall be attached to the certified statement.

   (11)  A certified statement that no officer, director or other responsible person or employee eligible to make sales on behalf of the distributor has been convicted of one or more of the following:

     (i)   A felony in a state or Federal court within the past 5 years.

     (ii)   A violation of the Bingo Law or of the act or a gambling related offense under 18 Pa.C.S. (relating to the Crimes Code) or other comparable state or Federal law within 10 years of the date of application in a state or Federal court.

   (12)  The logo used by the distributor.

   (13)  Other documents as identified in the application materials.

   The provisions of this §  901.133 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265869) to (265870).

 A distributor shall report any changes to the information supplied in its application to the Department within 15 days of the change.

   The provisions of this §  901.133a adopted August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475.

 An applicant for the grant or renewal of a distributor license by the filing of an application insofar as it relates to the Department, waives confidentiality with respect to Commonwealth tax information in the possession of the Department, the Office of Attorney General or the Department of Labor and Industry regarding the applicant, regardless of the source of that information and consents to the provisions of that information to the Department by the Office of Attorney General or the Department of Labor and Industry.

 The annual license fee is $1,000 and shall accompany the license application and every renewal application. An application processing fee of $100 will be retained by the Department if the license is denied and the remaining $900 will be returned to the applicant. No part of this fee is subject to proration.

 A license term begins on June 1 and ends on May 31 of the succeeding year. A license issued during a license term is only valid from the date of issuance to the end of the license term.

   The provisions of this §  901.136 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265871).

 A licensed distributor shall file an application for a license at least 60 days prior to the expiration date of its existing license to ensure that the Department will act on its application prior to the expiration of its existing license.

   The provisions of this §  901.137 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265871).

 The Department will assign a license number and issue a license to each distributor it approves for licensure. A licensed distributor shall place its business name and license number on all documents used in any transaction under this part.

   The provisions of this §  901.138 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265871).

 The license shall be conspicuously displayed at all times at the place of business of the person licensed.

   The provisions of this §  901.139 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265871).

 Whenever a license is defaced, destroyed or lost, the Department may issue a duplicate to the holder of the license upon submission of a duplicate License Application Form. A $100 fee will be charged for the duplicate license.

   The provisions of this §  901.140 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265872).

 A licensed distributor is prohibited from transferring or assigning its license.

   The provisions of this §  901.141 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265872).

 A distributor’s representative acts as an agent of the licensee in activities conducted under the distributor’s license.

   The provisions of this §  901.142 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265872).

 (a)  A licensed eligible organization may not be a distributor.

 (b)  A person who is an officer, director, proprietor, consultant, employee or owner of a distributorship may not have a pecuniary interest in the operation of games of chance.

 (c)  A distributor or person who has a financial interest in a distributorship may not be a lessor of premises, directly or indirectly, to a licensed eligible organization.

   The provisions of this §  901.143 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265872).

 (a)  An employee of a distributorship may not be an employee, consultant or volunteer of a licensed eligible organization unless the employee has first made a full written disclosure of the employee’s distributorship employment to the eligible organization.

 (b)  An employee of a distributorship may not be a law enforcement official.

 (c)  An employee of a distributorship may not play games of chance at the site of a licensed eligible organization if that eligible organization is a customer of the distributorship.

 (d)  A Department employee assigned to the bureau responsible for administering the act or this part may not have an interest in a distributor licensed under the act or this part.

   The provisions of this §  901.144 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265872) to (265873).

 A distributor may not enter with another distributor into an express or implied agreement, under which either of them is restricted in the operation and carrying on of business to a specific geographic area. A restriction may not be a condition of sales between a distributor and manufacturer.

 A distributor may not use as a sales promotion a statement, demonstration or implication that a certain portion of a deal contains more winners than other portions of the deal or that a game of chance may be played by a licensed eligible organization in a particular manner that would give the organization an advantage in selling more chances before having to pay out winners.

   The provisions of this §  901.146 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265873).

 A distributor may not enter into an express or implied agreement with another distributor to fix the price at which games of chance may be sold, or for which services in connection therewith may be rendered. The price of these items in the competitive marketplace must be established by each distributor for the games of chance and services offered by each and may not be directly or indirectly established in concert with one another.

   The provisions of this §  901.147 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265873).

 (a)  A distributor shall notify the Department, in writing, within 10 days of one or more of the following actions on the part of the distributor:

   (1)  The filing with the Department of State of a certificate of election to dissolve, or the filing of a similar document in another jurisdiction.

   (2)  The filing of a petition in bankruptcy or receivership by the distributor.

   (3)  The merging or consolidating with another entity.

   (4)  The termination of its business activities by a process, legal or equitable, voluntary or involuntary, formal or informal, in or out of this Commonwealth.

 (b)  A notice of the decision to dissolve is required if filing is not required.

   The provisions of this §  901.148 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265874).

 A distributor shall notify the Department, in writing, 10 days prior to a change of address.

   The provisions of this §  901.149 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265874).

   The distributor shall make a written report to the Department of changes of responsible persons engaged in the business of the distributor. This report must also include a change in the management, ownership, directorship or equity ownership of 10% or more, or a change in the manufacturer’s representatives. The report must be filed within 15 days of the addition or deletion.

   The provisions of this §  901.150 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265874).

 (a)  Distributor license. The Department may deny a license application, issue a notice of violation or revoke a license if the distributor or a person required to be identified in the application form commits one of the following acts:

   (1)  Has included false information on the application.

   (2)  Has failed to comply with or engaged in an activity prohibited by the act or this part.

   (3)  Has changed its address without notification as required in this part.

   (4)  Has been convicted of, forfeited bond upon a charge of or plead guilty or nolo contendere to one of the following:

     (i)   Forgery.

     (ii)   Larceny.

     (iii)   Extortion.

     (iv)   Conspiracy to defraud.

     (v)   Willful failure to make required payments or reports to a governmental agency.

     (vi)   A crime, whether a felony or a misdemeanor, involving gambling activity or a felony involving moral turpitude.

     (vii)   Other similar offenses.

   (5)  Has refused to permit an inspection of its records or premises under one of the following:

     (i)   Section 901.28 or §  901.31 (relating to inspection of premises; and examination of records).

     (ii)   A search warrant.

     (iii)   A court order.

   (6)  Has been convicted of a felony in a state or Federal court within the past 5 years.

   (7)  Has been convicted in a municipal, State or Federal court of a violation of the act, the Bingo Law, a gambling-related offense under 18 Pa.C.S. (relating to the Crimes Code) or another comparable state or Federal law within 10 years of the date of application.

   (8)  Has made a misrepresentation or failed to disclose a material fact.

 (b)  Notice of violation.

   (1)  A notice of violation is issued to notify a distributor of a violation of the act or this part and to provide the distributor with an opportunity to remedy the violation. A distributor retains the privileges conferred on it by its license during the notice period and may continue to sell games of chance in this Commonwealth.

   (2)  The time period that the Department may grant to a distributor to remedy a violation may not exceed 30 days, unless the distributor requests an extension, in writing, and the Department approves the extension. An extension may not exceed 30 additional days.

   (3)  The Department will provide the distributor a notice of compliance within 5 days after the distributor demonstrates to the satisfaction of the Department that the violation has been remedied.

   (4)  If the Department determines that the distributor has not remedied the violation identified in the notice by the end of the notice or extension period, the Department will revoke the license.

   (5)  There is no right to appeal a notice of violation or a denial of an extension.

 (c)  Notice.

   (1)  The Department will notify a manufacturer in writing of a denial, violation or revocation. The notice will provide:

     (i)   The issue date of the notice.

     (ii)   The action taken by the Department.

     (iii)   The reason for the action.

     (iv)   The distributor’s appeal rights.

   (2)  The Department will serve the notice by certified or first-class mail.

   (3)  The Department will mail the notice to the distributor’s Commonwealth resident designee and the distributor’s primary business address listed on the distributor’s application.

   The provisions of this §  901.151 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265874) to (265875).

 Unless otherwise provided by the act or this part:

   (1)  A distributor whose license is revoked is ineligible to apply for and receive another license for the remaining license term or 6 months, whichever is longer.

   (2)  For a second revocation, the distributor is ineligible to apply for and receive another license for the remaining license term as well as the following license term.

   (3)  For a third and subsequent revocation, the distributor is ineligible to apply for and receive another license for 30 months.

   The provisions of this §  901.151a adopted August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475.

 The Department will approve or deny applications within 60 days of their receipt unless the applicant is notified in writing of the specific reason for the delay. If the applicant requests a denial in writing the delayed application will be denied and may be appealed under § §  901.161—901.168 (relating to Board procedures). Applications are considered to be received when they arrive at the Department as evidenced by the date stamp placed on the application.

 This section and § §  901.131—901.152 do not apply to distributors who only sell raffle, daily drawing and weekly drawing tickets.

   The provisions of this §  901.153 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265875) to (265876).

BOARD PROCEDURES

§ 901.161. Jurisdiction and purpose.

 The Board will receive and review petitions challenging the Department’s decisions to deny an application for a manufacturer registration certificate or game of chance approval or a distributor license. The Board will also receive and review petitions from manufacturers or distributors challenging the Department’s revocation of a manufacturer registration certificate, game of chance approval or a distributor license. The Board will provide petitioners with the opportunity for a hearing and will make recommendations to the Secretary regarding petitions.

   The provisions of this §  901.161 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial page (265876).

 The Board will be comprised of the following members appointed by the Secretary:

   (1)  A Deputy Secretary of the Department or a designee.

   (2)  The Chief Counsel of the Department or a designee.

   (3)  A Department employee.

 The Board will do the following:

   (1)  Receive, consider and act upon petitions for review of decisions of the Department.

   (2)  Conduct hearings at the request of the Petitioner prior to making a recommendation to the Secretary.

   (3)  Determine procedural matters.

   (4)  Determine issues of fact and law raised by petitions.

   (5)  Make findings, decisions and orders as may be necessary and proper.

   (6)  Make recommendations to the Secretary regarding the disposition of petitions.

   (7)  Perform other acts which may be necessary and proper.

 (a)  Time for filing. A petition shall be filed within 15 days after the applicant, registrant or licensee receives notice of the Department’s decision.

 (b)  Place for filing. A petition shall be filed with the Bureau of Business Trust Fund Taxes, Department 280901, Harrisburg, Pennsylvania 17128-0901. A change of address will be published as a notice in the Pennsylvania Bulletin.

 (c)  Form and content. A petition shall be in writing, signed by the petitioner, a responsible person or authorized representative, and shall contain:

   (1)  The petitioner’s name, address and telephone number.

   (2)  The name, address and telephone number of the authorized representative, if any.

   (3)  A copy of the notice of the Department’s decision.

   (4)  A detailed statement in separate numbered paragraphs of the facts and grounds relied upon, specifically stating why the Department’s decision is improper.

   (5)  A copy of the documents relevant to the petition.

   (6)  A statement specifying the relief requested by the petitioner.

   (7)  A statement indicating whether or not a hearing is requested.

   (8)  A signed statement certifying that to the petitioner’s knowledge and belief, the facts contained in the petition are true and correct and that the petition is not made for purposes of delay.

   (9)  The petition shall contain pertinent data known to the petitioner.

 (d)  Number of copies. Four copies of the petition and documentation shall be submitted.

 (e)  Additional information. Upon written request, the Board may require a petitioner to furnish additional information that may be necessary to define the issues or to determine the case. The Board may deny the petition for failure to furnish the additional information within a stated, reasonable amount of time after the request.

 (a)  General. The provisions of 2 Pa.C.S. § §  501—508 and 701—704 (relating to the administrative agency law) do not apply to practice and procedure before the Board to the extent that those provisions are inconsistent with § §  901.161—901.164, this section and § §  901.166—901.168 (relating to Board recommendation; decision and order; and stay of appeal).

 (b)  Representation.

   (1)  A petitioner is not required to be represented before the Board by an attorney. An individual or a partner in a partnership, corporation or association may be represented by a bona fide officer thereof or another person upon a showing of adequate authorization. A petitioner’s representative shall be authorized in writing to represent the petitioner. A letter signed by the petitioner or a listing as a representative on the face of the petition signed by the petitioner will be accepted as authorization for representation. An authorization continues until the Board is notified in writing by the petitioner that the authorization is rescinded. A party may be represented by a member in good standing of the bar of this Commonwealth.

   (2)  Only an attorney-at-law representing a petitioner, or the petitioner acting without representation before the Board, is permitted to raise or argue a legal question at a hearing before the Board.

   (3)  Notices and other written communications to the petitioner will be given to the petitioner’s authorized representative, and will have the same force and effect as if given to the petitioner directly. Action before the Board taken by the petitioner’s authorized representative will have the same force and effect as if taken by the petitioner.

 (c)  Hearings.

   (1)  Waiver. The petitioner has the right to a hearing or to have the case decided upon the petition and record. A hearing shall be requested in writing. If a hearing is not requested, it is considered waived.

   (2)  Notices of hearing. When the petitioner requests a hearing in writing, reasonable notice will be given to the petitioner in writing specifying the date, time and place of the hearing.

   (3)  Continuances. The Board may grant a reasonable request for continuance of a scheduled hearing. The request shall be made or confirmed in writing, state the reasons for the continuance and be received at least 5 days prior to the scheduled hearing. The Board may grant a request that is not in conformity with this paragraph under extraordinary circumstances. The Board will notify the petitioner of its decision on the requested continuance.

   (4)  Presiding officer. The Deputy Secretary or a designee shall conduct the hearings.

   (5)  Transcripts. Written transcripts of hearings will not be prepared by the Board unless specifically requested in writing. The cost of the transcript is $1.50 per page. A recording of the hearing will be made.

   (6)  Contemptuous conduct. Contemptuous conduct is grounds for exclusion from the hearing.

 (d)  Authority of presiding officer. The presiding officer has authority to:

   (1)  Regulate the conduct of hearings, including scheduling, recessing, reconvening and adjourning, and to do acts and take measures necessary or proper for the efficient conduct of hearings.

   (2)  Administer oaths and affirmation.

   (3)  Receive evidence.

   (4)  Take or cause depositions to be taken.

   (5)  Hold appropriate conferences before or during hearings.

   (6)  Take other action necessary or appropriate to the discharge of the duties vested in the officer, consistent with statutory authority, regulations and Board policy.

   (7)  Participate in making decisions.

   (8)  Rule upon offers of proof and receive relevant evidence.

  &