HB 1887

Senate Community, Economic and Recreational Development Committee

Wednesday, October 19, 2016
Off the Floor

Senate Rules Room (Main Capitol)


Agenda

House Bill 1887, Printer’s No. 3421 (Ortitay), – Summary – amends Title 4 (Amusements) of the Pennsylvania Consolidated Statutes, in administrative and enforcement, further providing for compulsive and problem gambling program by requiring one compulsive gamblers assistance organization’s toll-free problem gambling telephone number (with up to a three (3) year exception for PA casinos and racetracks already using a different toll-free number).  It also places the problem gambling program under the PA Department of Drug and Alcohol Programs (DDAP) vs. the PA Department of Health (DOH), including funding for the program. [Note: HB 1887, PN 3421 was previously reported as committed (6/23/16) by the Committee and received first and second consideration before it was re-committed (6/27/16) to the Committee.]

Senate Bill 1324

Senate Community, Economic and Recreational Development Committee

Monday, June 27. 2016
Off the Floor

Senate Rules Room (Main Capitol)

Senate Bill 1324, Printer’s No. 1946 (Williams & Reschenthaler) – Bill Summary, provides for fantasy contests; imposing duties upon the Department of Revenue, the Department of Drug and Alcohol Programs and the Pennsylvania Gaming Control Board (PGCB); and making appropriations.  More Specifically this legislation provides for the Fantasy Sports Consumer Protection Act that provides for the licensing and regulation of fantasy contests

  • [A09106] (Reschenthaler) Amendment Summary

This is primarily a technical amendment, which also specifies the following substantive provisions:

  • In regards to the requirement that licensed operators annually contract for an independent audit and with a testing laboratory, except for a licensed operator operating season-long fantasy contests it is further specified that this exception applies where such generates less than $250,000 in season-long fantasy contest adjusted revenue, unless the board determines otherwise.
  • It further specifies the requirement of a single toll-free telephone number (compulsive and problem play of fantasy contests) [vs. the potential for multiple numbers].
  • In regards to the nonrefundable application fee which may not exceed the amount necessary to reimburse the board for all costs incurred it is further specified that such amount may not exceed an amount equal to 5% of the applicant’s fantasy contest adjusted revenues for the previous calendar year if the applicant is not a licensed gaming entity.
  • In relation to the reasons to deny a license it specifies that an applicant is not compliant with taxes due in general [vs. due to the department (DOR)].
  • In regards to the requirement that a licensed operator segregate a participants funds and maintain a reserve (i.e., in the form of cash, irrevocable letter of credit, bond, etc.), it alternative provides that a licensed operator of season-long fantasy contests that generate less than $250,000 in season-long fantast contest adjusted revenue may contract with a third party to hold prizes and awards until after the season is concluded.
  • Adds no licensed operator may knowing allow a self-excluded individual to keep a prize or award and provides any amount forfeited by a self-excluded individual shall be deposited in the General Fund.
  • Tax rate is set at 18% [vs. 5%].

HB 1887

Senate Community, Economic and Recreational Development Committee

Thursday, June 23, 2016
Off the Floor

Senate Rules Room (Main Capital)


Agenda

House Bill 1887, Printer’s No. 3421 (Ortitay), amends Title 4 (Amusements) of the Pennsylvania Consolidated Statutes, in administrative and enforcement, further providing for compulsive and problem gambling program by requiring one compulsive gamblers assistance organization’s toll-free problem gambling telephone number (with up to a three (3) year exception for PA casinos and racetracks already using a different toll-free number).  It also places the problem gambling program under the PA Department of Drug and Alcohol Programs (DDAP) vs. the PA Department of Health (DOH).

Senate Bill 1221

Senate Community, Economic and Recreational Development Committee

Wednesday, May 18, 2016
Off the Floor
Senate Rules Room (Main Capitol)

Senate Bill 1221, Printer’s No. 1748 (Costa & Fontana) Bill Summary, amends the act of February 12, 2004 (P.L.73, No. 11), known as the Intergovernmental Cooperation Authority (ICA) Act for Cites of the Second Class (Pittsburgh) in general provisions, further providing for definitions; in ICA for cites of the second class, further providing for governing board, for powers and duties, for term and existence, for annual report to be filed and annual audits and providing for distribution of gaming revenue.

More specifically this legislation represents reforms to the Pittsburgh ICA Act that involves both technical and substantive modifications (e.g., definition of “gaming revenue”; clarifies when actions may be taken by the board; clarifies and adds statutes applicable to board and executive director; and requires various things in relation to specific duties, term of existence and distribution of gaming revenue). 

  • [A07252] (Fontana) Amendment Summary – This amendment consists of various editorial, technical and substantive modifications that includes the follow (among other things):
    • Specifies only certain statutes apply to the executive director vs. the board (g., State Adverse Interest Act, Ethics Standards).
    • Requires a detailed accounting of gaming revenue whether distributed under 4 Pa.C.S. § 1403(c)(3)(xv) (relating to the establishment of the State Gaming Fund and net slot machine revenue distribution) or the {new} provisions of section 210.1 (relating to the distribution of gaming revenue) including the state of all gaming revenue not yet distributed.
    • Further specifies in the instance where the [Pittsburgh ICA] authority is terminated and the gaming revenue goes to increase the pension funding for the assisted city [Pittsburgh] that such revenues shall be in addition to and shall not replace the minimum obligation that the assisted city is require to contribute to its pension fund under the Municipal Pension Plan Funding Standard and Recovery Act (Act 205 of 1984).
    • Provides gaming revenues are merely withheld versus being held in escrow as the latter is not applicable in this situation given the gaming revenues are already held by the Commonwealth.
    • Adds language describing when the Secretary of the Budget may not distribute gaming revenue (since adding language that describes when the Secretary of the Budget shall distribute gaming revenue). 

Public Hearing on Increase of Assessments on PA Casinos

Joint Hearing

Senate Community, Economic and Recreational Development Committee
and
House Gaming Oversight Committee

Tuesday, May 17, 2016
9:00 a.m.
East Wing, Room 60

Listen


PA Dept. of Revenue’s recent notification of the 12 operating PA casinos of its intention to increase the assessment for Section 1401 accounts from 1.5% to 2%

9:00 a.m.

Call public hearing to order

Pledge of Allegiance

Roll Call (House and Senate)

Opening Comments

Representative John D. Payne – Majority Chairman
Senator Kim Ward – Majority Chairwoman
Representative Nick Kotik – Minority Chairman
Senator Lawrence M. Farnese, Jr. – Democratic Chairman

9:10 a.m.

Secretary Eileen McNulty
Deputy Secretary for Administration Christin Heidingsfelder
Pennsylvania Department of Revenue

9:30 a.m.

Lieutenant Colonel Stephen Bucar, Deputy Commissioner of Staff
Lieutenant Kevin Conrad, Bureau of Gaming Enforcement
Mr. Bill Box, Director/Fiscal Division
Pennsylvania State Police

9:50 a.m.

Counsel to the Casino Industry
Mark S. Stewart, Esq. – Eckert Seamans Cherin & Mellott, LLC
William J. Downey, III, Esq. – Fox Rothschild LLP
Adrian R. King, Jr., Esq. – Ballard Spahr LLP

10:10 a.m.

Kevin O’Toole, Executive Director
Pennsylvania Gaming Control Board

10:30 a.m.

Closing Remarks
Senator Lawrence M. Farnese, Jr. – Democratic Chairman
Representative Nick Kotik – Minority Chairman
Senator Kim Ward – Majority Chairman
Representative John D. Payne – Majority Chairman

Adjournment

Additional Information:

CDC Article

HB 1788

Community, Economic and Recreational Development Committee
Wednesday, April 13, 2016
Off-the-Floor
Senate Rules Room -Main Capitol

House Bill 1788, Printer’s No. 2734 (White), – Summary, amends the act of December 21, 1998 (P.L.1307, No.174), known as the Community and Economic Improvement Act (CEI Act) that provides for the establishment of Neighborhood Improvement Districts (NID) relating to cities of the first class (Philadelphia) by providing for special financing assessments.  More specifically this legislation clarifies the circumstances in which a NID established under the CEI Act overlaps with a Tax Increment Financing District (TIF) established under the act of July 11, 1990 (P.L.465, No.113), known as the Tax Increment Financing District Act (TIF Act).

The proposed changes are administrative in nature and are meant to synchronize existing discrepancies between the various definitions and procedures contained in the CEI Act and TIF Act as follows:

  • Coordinate definitions of the district boundaries between the CEI Act and TIF Act.
  • Enable the same authority to issue debt under both acts and use certain NID revenues to service TIF debt.
  • Enable the same authority to administer the district under both acts.
  • Eliminate the requirement for separate plans when the Acts are used in conjunction.
  • Rationalize provisions of the CEI Act with debt service requirements of TIF lenders.
  • Provide consistency in eligible uses of the funds between the two Acts.

{Handout}

  • Letter of Support from John Grady, President (PIDC) to CERD Chairs – HB 1788

PA Tourism: Economic Impact, Budget (FY16-17), Marketing, Branding, Partnerships and Heritage Areas

JOINT HEARING

Senate Community, Economic & Recreational Development Committee

AND House Tourism & Recreational Development

Wednesday, March 16, 2016
9 a.m.
Hearing Room 1, North Office Building


Listen

Purpose & Format

Purpose: The focus of this joint hearing on PA Tourism is as follows:

  • {Impact} Economic impact of PA Tourism and the related report titled, “Comprehensive Analysis of Pennsylvania’s Tourism Budget” (Dec. 2015) by Tourism Economics.
    • The ideal and/or minimum level of state tourism funding and how such would be utilized to effectively market and promote PA tourism and travel.
    • Impact of Local Hotel Room Taxes.
  • {Budget (FY 16-17)} – An overview and rationale of the proposed Budget (FY 16-17) for PA tourism.
  • {PA Branding} Rational and efforts related to establishing a PA brand.
  • {Update} PA Tourism Partnership (PTP) Steering Committee and the transition to the Pennsylvania Travel and Tourism Partnership (per Act 189 of 2002).
  • {Overview} Heritage Areas Program and its impact on PA tourism [under Department of Conservation and Natural Resources (DCNR)].

Format: This hearing will conducted via panel format with all testifiers sitting together and available for questions following each subject section.

Agenda

[9:00 A.M.] – Introductory Remarks – By Committee Chairs

[9:05 A.M.]

  • Economic Impact of PA Tourism – “Comprehensive Analysis of Pennsylvania’s Tourism Budget” (Dec. 2015) by Tourism Economics – State Tourism Funding – Impact of Local Hotel Room Taxes
    • John Longstreet, President & CEO, Pennsylvania Restaurant and Lodging Association (PRLA)
    • Matthew [Matt] Price, Chairman, Pennsylvania Association of Travel and Tourism (PATT) & Executive Director, Huntingdon County Visitors Bureau
    • Adam Sacks, President (founder), Tourism Economics | Attachment

[9:45 A.M.]

  • PA Tourism Proposed Budget (FY 16-17) – PA Branding – PTP Steering Committee & the transition to the PA Travel and Tourism Partnership (per Act 189 of 2002)
    • Carrie Lepore, Deputy Secretary for Marketing Tourism and Film, Department of Community, Economic and Recreational Development (DCED)
    • John Longstreet, President & CEO, Pennsylvania Restaurant and Lodging Association (PRLA)
    • Matthew [Matt] Price, Chairman, Pennsylvania Association of Travel and Tourism (PATT) & Executive Director, Huntingdon County Visitors Bureau

[10:25 A.M.]

  • Heritage Areas Program and its impact on PA tourism
    • Jane Sheffield, President, Heritage PA & Executive Director, Allegheny Ridge Corporation

{Handouts}

House Bill 944

Community, Economic and Recreational Development Committee
Tuesday, February 9, 2016
Off-the-Floor
Senate Rules Room -Main Capitol

 

Agenda

House Bill 944, Printer’s No. 1223 (Taylor) – Summary, amends the act of December 21,1998 (P.L.1307, No.174), known as the Community and Economic Improvement Act (CEIA) that provides for the establishment of Neighborhood Improvement Districts (NID) relating to cities of the first class (Philadelphia) by further providing for definitions, for powers of municipal corporations, for creation of neighborhood improvement districts (NID), for creation of NID management associations, for powers of NID management associations, for annual audit and report and for applicability. More specifically it clarifies to whom notice of hearings must be given, who has standing to object to the creation of NID and modifies the percentage required to veto the establishment of NID, the distribution of the annual audit and report, etc.

  • A05275 (Farnese) – This amendment defines the term “curb market stand” and includes the same in the definition of the term “property owner” and provides a formula for purpose of Neighborhood Improvement District (NID) assessments.

House Bill 794

Senate Community, Economic and Recreational Development Committee

Wednesday, October 28, 2015

10:30 P.M.

Room 8E-A – East Wing (Main Capitol)

Agenda



House Bill 794, Printer’s No. 1842 (Gillespie) | Bill Summary, amends The County Code (Act 130 of 1955) by repealing sections 1770.2 (relating to authorization of excise tax) and 1770.6 (relating to authorization of hotel tax) and providing for a Hotel Room Rental Tax in 3rd through 8th class counties through the addition of {new} sections that would consolidate these provisions, incorporate various reforms, increase the maximum tax rate allowed from 3% to 5% and create a more specific process for the certification and decertification of recognized tourist promotion agencies (TPAs).

  • [A03748] (Ward) Amendment Summary – This amendment accomplishes the following:
    • It tweaks subsection (d) in relation to the allowable categories in regards to how tax revenues may be spent by further clarifying/specifying tax revenues may be spent on tourism or travel related purposes as indicated.
    • In subsection (d), paragraphs (4) & (5) the term “expenditures” is added.
    • In subsection (d), paragraph (4) the following is specified with regard to grants:
      • Grants require a cash or in-kind local match of at least 25%.
      • Grants may not be used for signage that promotes a specific private entity on the situs of that entity, except where the signage also carries the logo of a recognized tourist promotion agency.
    • Adds {new} subsection (g) that provides in relation to the failure of a TPA to submit its required audit or financial statement as follows:
      • County may withhold tax revenues after ninety (90) days of the end of the TPA’s fiscal year until such is submitted.
      • The Secretary of the Department of Community and Economic Development (DCED) may require the county (in the event the county has not taken action) to withhold tax revenues after one hundred twenty days (120) days of the end of the TPA’s fiscal year until such is submitted.
    • Adds {new} subsection (h) that provides any board member, director, officer or employee of a TPA shall disclose any conflict of interest or financial interest and recuse himself or herself from any action on behalf of the TPA which may result in a private pecuniary benefit to the individual, a member of the individual’s immediate family or a business with which associated.
      • Definitions of the following terms are added in subsection that defined various words and phrases:
        • “Conflict of interest.” Use by a board member, director, officers or employee of a TPA of the authority of his or her office or employment or any confidential information received through his or her capacity in relation to a recognized tourist promotion agency for the private pecuniary benefit of himself or herself, a member of his or her immediate family or a business with which he or she or a member of his or her immediate family is associated. The term does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes a board member, director, officer or employee, a member of his or her immediate family or business with which he or she or a member of his or her immediate family is associated.
        • “Immediate family.” A spouse, parent, brother, sister or child.
    • Reduces the maximum administrative fee from 5% to 4% and clarifies that the percentage is based on the taxes collected.
    • Clarifies the 1.5% penalty per month for the failure to collect and remit the Hotel Room Rental Tax is imposed upon the hotel operator.
    • The definition of “hotel” is further tweaked by eliminating duplicative language (“on campgrounds located on State land or private property”) in relation to the defined term “cabin” that is already contained in the definition of “cabin.”
    • The definition of “hotel” is further tweaked in relation to the reference to “summer camp for children” by eliminating the term “summer” as camps for children are often not limited to the summer season and may occur at other times of the year.

PA Gaming and Control Board and Dept. of Drug & Alcohol Programs: gaming, internet gaming and related issues and Title 4 (Amusements) legislation (i.e., SB 700 and SB 900)

Senate Community, Economic and Recreational Development Committee

Wednesday, June 17, 2015

9 – 11 a.m.

East Wing, Hearing Room 8E-B


Subject Matter: PA Gaming Control Board (PGCB) and Department of Drug and Alcohol Programs (DDAP) – Gaming, Internet gaming and related issues (i.e., bingo; fantasy sports; liquor; small games of chance, including tavern gaming; etc.) some of which may be addressed in Title 4 (Amusements) legislation [i.e., SB 700 (Ward), SB 900 (Ward-Tomlinson-Vogel-Scarnati), etc.]

SB700 – Summary

SB900 – Summary

Agenda

[9:00 A.M.] – Introductory Remarks – Senator Ward, Chair & Senator Wiley, Democratic Chair

[9:05 A.M.] – Pennsylvania Gaming Control Board (PGCB) and Department of Drug and Alcohol Programs (DDAP): | Bios

  • [9:05 A.M.]Kevin F. O’Toole, Executive Director (PGCB) – Legislative Enhancements and Reforms
    • What legislative enhancements and reforms does the PGCB support in relation to the PA gaming industry to maintain its viability and to promote responsible growth?
    • What legislative provisions are necessary with regard to Internet gaming to ensure the PGCB can adequately regulate PA Internet gaming?
    • How long would it take the PGCB to get Internet gaming up and running in PA and is existing technology adequate to effectively regulate wager based Internet gaming, while preventing underage, self-excluded and excluded individuals and ensuring Internet gaming is not a conduit for crime and money laundering?
  • [9:35 A.M.] Douglas [Doug] Sherman, Chief Counsel, Office of Chief Counsel (PGCB) and Cyrus Pitre, Chief Enforcement Counsel, Office of Enforcement Counsel, Bureau of Investigations and Enforcement (PGCB) – Federal Law and Online Social Gaming vs. Wager Based Internet Gaming | Testimony
    • Can you provide an overview of the relevant federal statutes: Wire Act, 18 U.S.C. § 1084 (2006), Unlawful Internet Gambling Enforcement Act (UIGEA), 31 U.S.C. §§ 5361-5367 (2006), etc.?
    • Can you explain the difference between online social gaming and wager based Internet gaming?
    • Should PGCB have some regulatory authority with regard to online social games offered by PA casinos and/or their affiliates?
  • [10:00 A.M.]Kevin C. Kile, Director, Office of Racetrack Gaming (PGCB) – Status of Horse Racing & Internet Gaming
    • What is the status of horse racing at PA Racinos (Cat. 1) and the potential impact of wager based Internet gaming?
    • Can you discuss existing online pari-mutuel betting?
    • Can you describe the function and role of the PGCB in regards to PA Racinos (Cat. 1) and racetrack operations?
    • What else might you suggest can be done to enhance horse racing in Pennsylvania and the PA gaming industry as a whole?
  • [10:15 A.M.] – Michael Cruz, Chief Technology Officer, Bureau of Gaming Laboratory Operations & Office of Information Technology (PGCB) – Testing and Certification Standards
    • Are there efficiencies and expertise that can be achieved by utilizing outside testing facilities and/or the testing and certification standards of another jurisdiction, while still achieving the effective regulation (and perhaps even enhancing it) with regard to slot machines, table game devices and Internet gaming computer hardware (i.e., servers), software and related equipment?
    • Is there anything in the Gaming Act that currently precludes the PGCB from utilizing testing and certification standards with regard to slot machines and/or table games of another jurisdiction or private testing facility?
    • Would Internet gaming testing and certification standards be unique or different from those currently utilized and would the PGCB need additional resources?
    • Relevant sections of the Pennsylvania Race Horse Development and Gaming Act (Gaming Act):
      • 4 Pa.C.S. § 1320 (Slot machine testing and certification standards)
      • 4 Pa.C.S. § 13A41 (Table game device and associated equipment testing and certification standards)
  • 10:30 A.M. – {Panel} Potential enhancements and funding needs in relation to wager based Internet gaming and Compulsive and Problem Gambling
    • Elizabeth [Liz] M. Lanza, Director, Office of Compulsive and Problem Gambling (PGCB) – Attachment 1 | Attachment 2
    • Ken Martz, Special Assistant to the Secretary (DDAP) – Bio
      • Does the PGCB/DDAP feel it can adequately protect Pennsylvanian’s who have an issue with Compulsive and Problem Gambling if PA decides to authorize wager based iGaming?
      • Would additional resources be warranted and should those resources be directed to DDAP or the Department of Health?
      • Relevant sections of the Gaming Act:
        • 4 Pa.C.S. § 1102 (13) (Increase awareness and develop/implement effective strategies for prevention, assessment and treatment of compulsive and problem gambling) and (14) (Ensure the provision of adequate resources to identify, assess and treat both compulsive and problem gambling and drug and alcohol addiction.
        • 4 Pa.C.S. § 1408 (Transfers from State Gaming Fund)
          • (a) (Transfer for compulsive and problem gambling treatment) – $2 million or .2% of gross terminal revenue (whichever is greater)
          • (b) (Transfer for drug and alcohol addiction treatment services, including that related to compulsive and problem gambling) – $3 million.
        • 4 Pa.C.S. § 1509 (Compulsive and problem gambling program)
        • 4 Pa.C.S. § 1509.1 (Drug and alcohol treatment)
        • 4 Pa.C.S. § 1516 (List of persons self-excluded from gaming activities)
    • [10:40 A.M.] – Pennsylvania Equine Coalition – Todd Mostoller, Executive Director, Pennsylvania Horsemen’s Benevolent and Protective Association (SB 352 and SB 900) – Attachment 1 | Attachment 2