Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 35 - Application and Licensure
Section 3502 - Terminal operator licenses

(a) General requirements.--An application for a terminal operator license shall be on the form required by the board and shall include, at a minimum, all of the following:
(1) The name, address and photograph of the applicant and of all directors and owners and key employees and their positions within the corporation or organization, as well as additional financial information required by the board.
(2) A current tax lien certificate issued by the department.
(3) The details of any gaming license applied for, granted to or denied to the applicant by another jurisdiction where the form of gaming is legal and the consent for the board to acquire copies of the application submitted or license issued in connection with the application.
(4) The details of any loan obtained from a financial institution or not obtained from a financial institution.
(5) The consent to conduct a background investigation by the board, the scope of which investigation shall be determined by the bureau in its discretion consistent with the provisions of this part, and a release signed by all persons subject to the investigation of all information required to complete the investigation.
(6) The details of the applicant's diversity plan to assure that all persons are accorded equality of opportunity in employment and contracting by the applicant, its contractors, subcontractors, assignees, lessees, agents, vendors and suppliers.
(7) Any information concerning maintenance and operation of video gaming terminals in any other jurisdiction.
(8) Proof that the applicant has or will establish a place of business in this Commonwealth. A terminal operator licensee shall maintain its place of business in this Commonwealth to remain eligible for licensure.
(9) Any other information determined to be appropriate by the board.
(b) Character requirements.--An application for a terminal operator license shall include such information, documentation and assurances as may be required to establish by clear and convincing evidence of the applicant's suitability, including good character, honesty and integrity. The application shall include, without limitation, information pertaining to family, habits, character, reputation, criminal history background, business activities, financial affairs and business, professional and personal associates, covering at least the 10-year period immediately preceding the filing date of the application.
(c) Civil judgments.--An applicant shall notify the board of any civil judgment obtained against the applicant pertaining to laws of the Federal Government, this Commonwealth or another state, jurisdiction, province or country.
(d) (Reserved).
(e) (Reserved).
(f) Additional eligibility requirements.--In order to be eligible for a terminal operator license under this part, the principals and key employees of the applicant must obtain a license to meet the character requirements of this section or other eligibility requirements established by the board.
(g) Classification system.--The board shall develop a classification system for other agents, employees or persons who directly or indirectly hold or are deemed to be holding debt or equity securities or other financial interest in the applicant and for other persons that the board considers appropriate for review under this section.
(h) Related entities.--
(1) Except as provided in paragraph (2), no person shall be eligible to receive a terminal operator license unless the principals and key employees of each intermediary or holding company of the person meet the requirements of subsection (f).
(2) The board may require that lenders and underwriters of intermediaries, subsidiaries or holding companies of a terminal operator license applicant meet the requirements of subsection (f) if the board determines that the suitability of a lender or underwriter is at issue and necessary to consider a pending application for a terminal operator license.
(i) Revocable privilege.--The issuance or renewal of a license or other authorization by the board under this section shall be a revocable privilege.
(j) Waiver for publicly traded corporations.--The board may waive the requirements of subsection (f) for a person directly or indirectly holding ownership of securities in a publicly traded corporation if the board determines that the holder of the securities does not have the ability to control the corporation or elect one or more directors thereof.
(k) (Reserved).
(l) Ongoing duty.--A person applying for a license or other authorization under this part shall continue to provide information required by the board or the bureau and cooperate in any inquiry or investigation.
(m) Criminal history record check.--The board may conduct a criminal history record check on a person for whom a waiver is granted under this section.
(n) Applicant financial information.--
(1) The board shall require an applicant for a terminal operator license to produce the information, documentation and assurances concerning financial background and resources as the board deems necessary to establish by clear and convincing evidence the financial stability, integrity and responsibility of the applicant, its affiliate, intermediary, subsidiary or holding company, including, but not limited to, bank references, business and personal income and disbursement schedules, tax returns and other reports filed with governmental agencies and business and personal accounting and check records and ledgers.
(2) An applicant shall in writing authorize the examination of all bank accounts and records as may be deemed necessary by the board.
(o) Financial backer information.--
(1) The board shall require an applicant for a terminal operator license to produce the information, documentation and assurances as may be necessary to establish by clear and convincing evidence the integrity of all financial backers, institutional investors, investors, mortgagees, bondholders and holders of indentures, notes or other evidences of indebtedness, either in effect or proposed.
(2) The board may waive the qualification requirements for banking or lending institution and institutional investors.
(3) A banking or lending institution or institutional investor shall produce for the board upon request any document or information that bears relation to the proposal submitted by the applicant or applicants.
(4) The integrity of the financial sources shall be judged upon the same standards as the applicant. Any such person or entity shall produce for the board upon request any document or information which bears any relation to the application.
(5) The applicant shall produce whatever information, documentation or assurances the board requires to establish by clear and convincing evidence the adequacy of financial resources.
(p) Applicant's business experience.--
(1) The board shall require an applicant for a terminal operator license to produce the information, documentation and assurances as the board may require to establish by clear and convincing evidence that the applicant has sufficient business ability and experience to create and maintain a successful, efficient operation.
(2) An applicant shall produce the names of all proposed key employees and a description of their respective or proposed responsibilities as they become known.
(q) Additional information.--In addition to other information required by this part, a person applying for a terminal operator license shall provide the following information:
(1) The organization, financial structure and nature of all businesses operated by the person, including any affiliate, intermediary, subsidiary or holding companies, the names and personal employment and criminal histories of all officers, directors and key employees of the corporation; the names of all holding, intermediary, affiliate and subsidiary companies of the corporation; and the organization, financial structure and nature of all businesses operated by such holding, intermediary and subsidiary companies as the board may require, including names and personal employment and criminal histories of such officers, directors and principal employees of such corporations and companies as the board may require.
(2) The extent of securities held in the corporation by all officers, directors and underwriters and their remuneration in the form of salary, wages, fees or otherwise.
(3) Copies of all management and service contracts.
(r) Review and approval.--Upon being satisfied that the requirements of subsections (a), (b), (c), (f), (g), (h), (i), (j), (l), (m), (n), (o), (p) and (q) have been met, the board may approve the application and issue the applicant a terminal operator license consistent with all of the following:
(1) (i) The license shall be valid for a period of five years.
(ii) Nothing in this paragraph shall be construed to relieve a licensee of the affirmative duty to notify the board of any changes relating to the status of its license or to any information contained in the application materials on file with the board.
(2) The license shall be nontransferable.
(3) Any other condition established by the board.
(s) Renewal.--
(1) At least six months prior to expiration of a terminal operator license, the terminal operator licensee seeking renewal of its license shall submit a renewal application to the board.
(2) If the renewal application satisfies the requirements of subsections (a), (b), (c), (f), (g), (h), (i), (j), (l), (m), (n), (o), (p) and (q), the board may renew the licensee's terminal operator license.
(3) If the board receives a complete renewal application but fails to act upon the renewal application prior to the expiration of the terminal operator license, the terminal operator license shall continue in effect until acted upon by the board.

Cross References. Section 3502 is referred to in section 3508 of this title.