Senate approves Senator Pippy's gambling bill

Legislation banning ownership in gaming venues headed to House

Acting to ensure that the highest ethical and professional standards are applied to slot machine gambling in Pennsylvania, the Senate today approved a legislative package that would eliminate the one-percent ownership threshold and expand the Attorney General's power to prosecute crimes associated with gaming, according to Senator John Pippy, R-37^th District and prime sponsor of the bill.

"Senate Bill 1209 addresses a number of issues and concerns about gaming that have arisen since the enactment of Act 71," Senator Pippy said. "This legislation will resolve beyond any question the concerns raised about public officials holding any interest in gaming venues or suppliers. In addition, the legislation provides the Attorney General with sweeping powers to prosecute any criminal activities discovered to be associated with gaming in Pennsylvania."

A key provision of Senate Bill 1209 would specifically bar any ownership by state, county, municipal and party officials, executive-level state employees and their immediate families in gaming venues, their holding companies, affiliates or associated businesses. It would also ban having a financial interest in businesses that manufacture or supply gaming venues.

The legislation excludes mutual funds, pension funds, blind trusts, and Section 529 tuition account programs.

Individuals covered by the provisions of Senate Bill 1209 would have three months to divest or could face a misdemeanor punishable by a fine of up to $1,000 and up to one year imprisonment, Senator Pippy said.

"There is a perception under the current law that public officials stand to benefit from gaming," Senator Pippy said. "This legislation will make it clear that public and party officials cannot and will not benefit from gaming. They will be barred from holding any interest in gaming venues or the businesses that supply those venues."

The legislation also addresses a request by the Attorney General's Office and the State Police to expand the jurisdiction of prosecutions for racketeering and organized crime. The legislation would add the new gambling offenses of Act 71 to those crimes prosecuted under the existing Pennsylvania's Racketeer Influence and Corrupt Organizations (RICO) Act.

"These criminal sanctions are the toughest state law provides to combat organized crime and would further expand the authority of the Attorney General," Senator Pippy said.

Senate Bill 1209 requires that the Gaming Board adhere to the provisions of several key statutes and regulations including the Right-to-Know Law, the State Adverse Interest Act, the Open Meetings (Sunshine Act), Ethics Standards and Financial Disclosure, the Procurement Code, the Commonwealth Attorneys Act, the Commonwealth Documents Law, and the Regulatory Review Act.

In addition, Senate Bill 1209 would mandate background checks by the Pennsylvania State Police for all employees of the Gaming Board and it would prohibit Board members and employees from holding or campaigning for public office or actively participating in any political campaign.

"This will ensure that the activities of the Gaming Board are open to public review and that they follow established state guidelines for conducting business," Senator Pippy said. "Further, it sets accountability standards for members of that Board and its employees."

The bill now goes to the House of Representatives for consideration.

Contact: Matt Campion 412.262.2260