Current through Register Vol. 54, No. 44, November 2, 2024
(a)
Application for licensure. A supplier as defined in this
subpart shall apply for licensure in accordance with §
431a.2 (relating to supplier
license applications and standards).
(1) A
supplier filing an application for licensure under this chapter shall not be
required to file a diversity plan as set forth in §
431a.2(a)(3).
(b)
Submittals. In addition to the information submitted under
§ 431a.2, an applicant for a supplier license shall submit all of the
following:
(1) The name and business address
of the applicant and the applicant's affiliates, intermediaries, subsidiaries
and holding companies, the principals and key employees of each business, and a
list of employees and their positions within each business, as well as
financial information required by the Board.
(2) A statement that the applicant and each
affiliate, intermediary, subsidiary or holding company of the applicant are not
terminal operator licensees or establishment licensees.
(3) Proof that the applicant has or will
establish a place of business in this Commonwealth. A supplier licensee shall
maintain a place of business in this Commonwealth to remain eligible for
licensure.
(4) The consent to a
background investigation by the Bureau of the applicant, its principals and key
employees or other persons required by the Board and a release to obtain the
information necessary for the completion of the background
investigation.
(5) The details of
any supplier license issued by the Board to the applicant under section 1317 of
the act (relating to supplier licenses) and details of any application for a
supplier license that was denied by the board, if applicable.
(6) The details of any equivalent license
granted or denied by other jurisdictions where gaming activities similar to
those authorized by the act or this part are permitted.
(7) The type of products and services to be
supplied and whether those products and services will be provided through
purchase, lease, contract or otherwise.
(8) Other information determined by the Board
to be appropriate.
(c)
Approval and issuance of license. Upon being satisfied that
the requirements in subsections (a) and (b) have been met, the Board may
approve the application and issue the applicant a supplier license consistent
with all of the following:
(1) A licensee
shall have an affirmative duty to notify the Board of a change relating to the
status of its license or to information in the application materials on file
with the Board.
(2) The license is
nontransferable.
(3) Other
conditions established by the Board.
(d)
Considerations. In
determining whether an applicant is suitable to be licensed as a supplier under
this section, the Board will consider all of the following:
(1) The financial fitness, good character,
honesty, integrity and responsibility of the applicant.
(2) If all principals and key employees of
the applicant are eligible and suitable for licensure.
(3) The integrity of financial
backers.
(4) The suitability of the
applicant and principals and key employees of the applicant based on the
satisfactory results of:
(i) A background
investigation of the applicant and its principals and key employees.
(ii) A current tax clearance review performed
by the Department.
(iii) A current
Unemployment Compensation Tax clearance review and a Workers Compensation Tax
clearance review performed by the Department of Labor and Industry.
(e)
Submittal of
agreements. A supplier shall submit to the Bureau of Licensing for
review any agreements with a licensed manufacturer or with a terminal operator
licensee. The review may include financing arrangements, inventory
requirements, warehouse requirements, warehouse space, technical competency,
compensative agreements and other terms or conditions to ensure the financial
independence of the supplier licensee from any licensed manufacturer or
terminal operator.
(f)
Occupation permit or nongaming registration. An employee of a
supplier licensee who is a gaming employee or nongaming employee as defined in
§
1101a.2 (relating to definitions)
shall obtain an occupation permit under §
1109a.1 (relating to gaming
employee occupation permits) or a nongaming registration under §
1109a.2 (relating to nongaming
employee registrations).
(g)
Change of control of a supplier licensee.
(1) For purposes of this subsection, a change
of control of a supplier licensee will be deemed to have occurred when a person
or group of persons acquires:
(i) More than
20% of a supplier licensee's securities, assets or other ownership
interests.
(ii) More than 20% of
the securities or other ownership interests of a corporation or other form of
business entity that owns directly or indirectly at least 20% of the voting or
other securities or other ownership interests of the supplier
licensee.
(iii) Any other interest
in a supplier licensee which allows the acquirer to control the supplier
licensee.
(2) A supplier
licensee shall notify the Bureau and the Bureau of Licensing in a manner
prescribed by the Bureau of Licensing immediately upon becoming aware of any
proposed or contemplated change of control of the supplier licensee.
(3) Prior to acquiring a controlling interest
in a supplier licensee, the acquirer shall file a petition in accordance with
§
493a.4 (relating to petitions
generally) requesting Board approval of the acquisition. The petition must
include all of the following:
(i) A copy of
all documents governing the acquisition.
(ii) Completed applications for the acquiring
company, as required under this chapter, principals as required under §
1104a.1 (relating to principal
licenses) and key employees as required under §
1105a.1 (relating to key employee
licenses).
(iii) An affirmation
that neither the acquirer nor any of its affiliates, intermediaries,
subsidiaries or holding companies is a terminal operator licensee or
establishment licensee.
(4) A person or group of persons seeking to
acquire a controlling interest in a supplier licensee shall promptly provide
any additional information requested by the Board and Board staff and cooperate
with the Bureau in any investigations related to the petition filed under this
subsection.
(5) A person or group
of persons may not acquire a controlling interest in a supplier licensee until
the petition required under this subsection, has been approved. A person or
group of persons seeking to acquire a controlling interest in a supplier
licensee and the supplier licensee may enter into a sales agreement that is
contingent on Board approval of the petition.
(6) The requirements in this section do not
apply to the acquisition of a controlling interest in a supplier licensee when
all of the following conditions are met:
(i)
The acquirer is an existing licensed supplier licensee.
(ii) The existing licensed supplier licensee
has provided the Bureau and the Bureau of Licensing notification and a copy of
all documents governing the acquisition at least 60 days prior to the
acquisition.
(iii) After reviewing
the documentation, the Bureau and the Bureau of Licensing determine that the
filing of a petition is not required.
