Subchapter B. LICENSING AND REGISTRATION

§ 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); appeal denied 665 A.2d 471 (Pa. 1995).

   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.

   (9)  Dispose of procedural requests or similar matters.

 (e)  Service. Notices and decisions issued under § §  901.161—901.164, this section and § §  901.166—901.168 will be sent by first class mail, postage prepaid.

 (f)  Consolidation. Two or more proceedings may be consolidated or severed by the Board at its discretion.

 (g)  Bond. A registrant or licensee whose license or registration has been revoked due to Commonwealth tax liabilities, and who has been notified of the revocation, shall file a bond in an amount of 120% of the tax and interest with the Department for an appeal of the revocation to stay the revocation.

 (h)  Evidence and subpoenas. The presentation of evidence and the issuance of subpoenas relating to hearings before the Board are governed by 1 Pa. Code Chapter 35 Subchapter C (relating to evidence and witnesses).

 (i)  Burden of proof. The petitioner has the burden of proof.

   The provisions of this §  901.165 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265877) to (265879).

 The Board will make its recommendation to the Secretary within 15 days after a hearing, or if a hearing is not held, within 15 days of submission of documentation that the Board deems sufficient upon which to make a recommendation.

   (1)  The Board’s recommendation will include findings of fact and conclusions of law that the Board deems necessary and upon which its recommendation is based.

   (2)  The Board’s recommendation will be in writing and signed by a majority of the Board members.

   (3)  A dissenting recommendation may also be submitted. It will conform to the requirements of this section and will be attached to the Board’s recommendation.

   (4)  The Board’s recommendation will be the result of deliberations of a quorum of the members. If a hearing is held, only members present at the hearing will be eligible to participate in the Board’s recommendation.

 (a)  The Secretary’s final decision will include findings of facts and discussion of law that the Secretary deems necessary.

 (b)  The Secretary’s final decision will be in writing and signed by the Secretary.

 (c)  One copy of the final decision will be mailed to the petitioner or to the petitioner’s authorized representative at the mailing address shown on the petition.

 (d)  The Secretary’s final decision will be made within 15 days of the receipt of the Board’s recommendation.

 (a)  Actions to revoke a registration, license or game approval will be stayed pending the decision of the Secretary when a petition has been filed with the Board.

 (b)  During the pendency of the appeal, the certificate, game approval or license will be suspended. (See §  901.23a (relating to effect of denial, suspension, revocation, expiration of a certificate, license or game of chance).)

   The provisions of this §  901.168 amended August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265880) to (265881).

   This section cited in 61 Pa. Code §  901.118 (relating to registration decision time limit); 61 Pa. Code §  901.152 (relating to licensing decision time limits); and 61 Pa. Code §  901.165 (relating to Board practice and procedure).

ELIGIBLE ORGANIZATION LICENSING

§ § 901.181—901.190. [Reserved].

 (a)  The Department will proscribe the license application form for eligible organizations. Licensing authorities may obtain the form from the Department.

 (b)  The form is available to eligible organizations through the licensing authorities.

 (c)  The license application form must contain, at a minimum, the following information:

   (1)  The name of the organization.

   (2)  The type of organization.

   (3)  The address of the organization.

   (4)  Incorporation information.

   (5)  The name of the municipality where the applicant will maintain its licensed premises.

   (6)  The eligible organization’s licensed premises.

   (7)  The eligible organization’s operating day and week.

   (8)  The names, addresses and telephone numbers of the officers of the organization.

   (9)  Partnership information.

   (10)  A list of shareholders owning 10% or more of outstanding stock.

   (11)  The names and addresses of persons who will be responsible for the operation of games of chance, including eligible organization employees, bar personnel, auxiliary group members and other persons who will obtain the games of chance and coordinate their use.

   (12)  A statement under oath in the form of an affidavit, affirmed by the executive officer or secretary of the eligible organization, stating the following:

     (i)   A person 17 years of age or younger will not be permitted by the eligible organization to operate or play games of chance.

     (ii)   The facility in which games of chance are to be played has adequate means of ingress and egress and adequate sanitary facilities available in the area and meets Department of Health and other local or Federal sanitary requirements.

     (iii)   The eligible organization is the owner of the premises upon which the games of chance are played or, if it is not, the eligible organization is not leasing the premises from the owner thereof under an oral agreement, nor is it leasing the premises from the owner thereof under a written agreement at a rental which is determined by the amount of receipts realized from the playing of games of chance or by the number of people attending, except that an eligible organization may lease a location or premises for a banquet where a per head charge is applied in connection with the serving of a meal.

   (13)  A copy of a corporate applicant articles of incorporation and bylaws; or, if not a corporation, a copy of bylaws and other documents which set out the organizational structure and purpose.

   (14)  A copy of a nonprofit charitable applicant’s Internal Revenue Service tax exemption letter if one has been obtained and a copy of other documents indicating the eligible organization is a nonprofit charitable organization.

   (15)  The details and copies of the lease, rental or other arrangements between the applicant and the owner of premises upon which the games of chance will be conducted, if the premises are not owned by the eligible organization.

   (16)  The names, addresses, dates of birth and the Social Security numbers of each paid employee, auxiliary group member or agent who will be involved with the activities for which the license is sought.

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

   (18)  The type of license applied for and a list of all types of games of chance to be operated by the eligible organization.

   (19)  A list of distributors of games of chance with whom the eligible organization does business.

   (20)  A list of the eligible organization’s auxiliary groups that will operate games of chance under the eligible organization’s license.

 Two types of licenses are available. An eligible organization may only hold one type of license at a time. The types of licenses are as follows:

   (1)  Games of chance license. A games of chance license authorizes the licensee to conduct games of chance as prescribed by the act and this part during the eligible organization’s licensing term. A licensee is eligible to apply for special raffle permits.

   (2)  Limited occasion license. A limited occasion license authorizes the licensee to conduct games of chance on a limited basis as provided in §  901.196 (relating to limited occasion license requirements, limits and restrictions).

 (a)  Only organizations that do not own or lease a premises or do not have a specific location at which they conduct their normal business are eligible for a limited occasion license.

 (b)  Limited occasion licensees are not eligible for the following:

   (1)  Special raffle permits.

   (2)  A games of chance license.

 (c)  Limited occasion licensees may conduct games of chance on no more than three occasions over a period of no more than 7 days during the license term.

 (d)  No more than two raffles may be conducted under a limited occasion license.

 (e)  The fee for a limited occasion license is $10.

 (f)  The licensee shall provide 10 days prior written notice of its intent to conduct games of chance under its license to the licensing authority that issued its license.

   The provisions of this §  901.196 adopted August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475.

 An eligible organization shall report any changes to the information supplied in its license application to the licensing authority within 15 days of the change.

   The provisions of these § §  901.211—901.219 reserved August 11, 2006, effective August 12, 2006, 36 Pa.B. 4475. Immediately preceding text appears at serial pages (265887) to (265893).