Current through Register Vol. 54, No. 44, November 2, 2024
(a)
Application for licensure. A manufacturer as defined in this
subpart who seeks to manufacture video gaming terminals, redemption terminals
and associated equipment for use in this Commonwealth shall apply for licensure
in accordance with §§
427a.1 and
427a.2 (relating to manufacturer
general requirements; and manufacturer license applications and standards).
(1) A manufacturer filing an application for
licensure under this chapter shall not be required to file a diversity plan as
set forth in § 427a.2(a)(3).
(b)
Submittals. In addition
to the information submitted under §
427a.2 an applicant shall include
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) 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.
(4) The details of
any equivalent manufacturer license granted or denied by other jurisdictions
where gaming activities similar to those authorized by this part are
permitted.
(5) The details of any
manufacturer license issued by the Board to the applicant under section 1317.1
of the act (relating to manufacturer licenses) or details of any application
for a manufacturer license that was denied by the Board, if
applicable.
(6) The type of video
gaming terminals, redemption terminals or associated equipment to be
manufactured or repaired.
(7) Other
information determined by the Board or the Bureau 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 manufacturer 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 shall be
nontransferable.
(3) Other
conditions established by the Board.
(d)
Considerations. In
determining whether an applicant is suitable to be licensed as a manufacturer
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 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 manufacturer shall submit to the Bureau of Licensing for
review any agreements with a licensed supplier, terminal operator or
establishment 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 licensed manufacturer from any licensed supplier,
terminal operator or establishment licensee.
(f)
Occupation permit or
nongaming registration. An employee of a manufacturer 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 manufacturer licensee.
(1) For purposes of this subsection, a change
of control of a manufacturer licensee will be deemed to have occurred when a
person or group of persons acquires:
(i) More
than 20% of a manufacturer 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 manufacturer
licensee.
(iii) Any other interest
in a manufacturer licensee which allows the acquirer to control the
manufacturer licensee.
(2) A manufacturer 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 manufacturer licensee.
(3) Prior to acquiring a controlling interest
in a manufacturer 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 Chapter
433a (relating to principal licenses) and key employees as required under
§
435a.2 (relating to key employee
license).
(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 and
that the acquirer has neither applied for nor holds a terminal operator license
or establishment license.
(4) A person or group of persons seeking to
acquire a controlling interest in a manufacturer 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 subsection (a).
(5) A person
or group of persons may not acquire a controlling interest in a manufacturer
licensee until the petition required under subsection (g) has been approved. A
person or group of persons seeking to acquire a controlling interest in a
manufacturer licensee and the manufacturer licensee may enter into an agreement
of sale 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 manufacturer licensee
when all of the following conditions are met:
(i) The acquirer is an existing licensed
manufacturer licensee.
(ii) The
existing licensed manufacturer 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.
