For Immediate Release
July 7, 2009
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Senate Approves Earll's Sweeping Gaming Law Reform Bill

Bipartisan measure targets conflicts of interests, improves transparency.

Harrisburg – The state Senate today approved bipartisan legislation to make significant reforms to the law governing casinos in Pennsylvania, 47 to 1.

Senate Bill 711, sponsored by Sen. Jane Earll (R-49), would make numerous changes to the law regulating casinos in Pennsylvania. It would reestablish the prohibition on political campaign contributions by individuals and entities subject to the Gaming Act, bar outside employment by members of the Pennsylvania Gaming Control Board (PGCB), and extend the ban on felons receiving gaming licenses.

"When the Gaming Law was enacted five years ago, Pennsylvania was entering largely uncharted waters. Over time, the need to tighten the law has become clear. This comprehensive legislation represents a bipartisan effort to prevent conflicts of interest, improve transparency, and give citizens confidence that safeguards are in place to properly regulate the industry," said Earll, who chairs the Senate Community, Economic and Recreational Development Committee.

"Reform of the Gaming Law is another step in restoring public confidence in state government by opening up the process and making the Gaming Board more accountable," said Senate Majority Leader Dominic Pileggi (R-9). "The legislation aims to keep politics out of the process and give law enforcement more tools to weed out bad actors."

"Senate Bill 711 is an important step in ensuring that gaming in Pennsylvania is conducted in an open and transparent manner," said Senate Democratic Leader Bob Mellow (D-22). "These bipartisan, common-sense reforms address numerous issues that have been raised since gaming's inception in the Commonwealth and will help maintain public confidence in the regulation of gaming."

Major provisions in Senate Bill 711 include:

• Reestablishing the prohibition on political campaign contributions by individuals and entities subject to the Gaming Act.
• Prohibiting future board members from having any outside employment.
• Expanding the automatic felony ban provisions of the Act to include a lifetime ban on applicants with a felony conviction who seek a principal or key employee license. For all other license or permit applications, the existing automatic 15-year ban remains in place.
• Prohibiting employees of the PGCB, including attorneys, from being employed by any regulated entity for a period of two years after leaving the PGCB.
• Clarifying that gaming-related employees of the PGCB, the Department of Revenue, the Pennsylvania State Police, and the Attorney General would not be subject to furlough in the event of a budget impasse.
• Requiring the PGCB to post on its web site information related to individuals with a controlling interest or ownership interest in any licensed entity and any license applicant.
• Strengthening the Code of Conduct for the PGCB, including stronger prohibitions on ex parte communications.
• Limiting reimbursement for PGCB members and employees to actual and reasonable expenses, and requiring receipts to be submitted for any reimbursement over $10.
• Requiring monthly and annual reporting of PGCB expenses on the board's web site.
• Requiring a public input hearing for any petition regarding the structural redesign of a licensed facility in a city of the first class.
• Clarifying confidentiality provisions by establishing and identifying specific categories of confidential information.
• Enhancing provisions related to the relocation of a licensed slot machine facility, including specific evaluation criteria and a requirement that the board hold at least one public input hearing in the municipality where the licensed facility may be located.
• Prohibiting any grants or loans from the Commonwealth for the purpose of relocating a licensed slot machine facility.
• Strengthening the PGCB's subpoena powers and allowing the Chief Enforcement Counsel to seek immunity from the court for a person who refuses to testify without it.
• Adding a new section specifically providing for the appointment of a trustee under certain conditions.
• Expanding the authorized use of local law enforcement grants to include all forms of unlawful gambling. The total amount of grants available in this section is reduced from $5 million to $3 million annually, with the $2 million difference going into the Property Tax Relief Fund.

Senate Bill 711 will be sent to the House of Representatives for consideration.

"Senate Bill 711 shows what we can do when the Legislature works in a bipartisan manner to reform government," said Earll. "I hope the House of Representatives passes the bill and the governor signs it into law, so that these reforms can be enacted as soon as possible."

CONTACT:

Jason Brehouse
717-787-8927