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PA Bulletin, Doc. No. 07-1039




[58 PA. CODE CHS. 451, 451a, 471 AND 471a]

Recordkeeping and Fees

[37 Pa.B. 2686]
[Saturday, June 16, 2007]

   The Pennsylvania Gaming Control Board (Board), under its general authority in 4 Pa.C.S. § 1202(b)(30) (relating to general and specific powers) and the specific authority in 4 Pa.C.S. §§ 1207(3), 1208, 1209(d), 1308 and 1322, adds Chapters 451a and 471a (relating to recordkeeping requirements; and filing fees) to read as set forth in Annex A.

Purpose of the Final-Form Rulemaking

   Under 4 Pa.C.S. § 1203 (relating to temporary regulations), the Board initially adopted temporary regulations in Chapters 451 and 471 at 35 Pa.B. 4045 (July 16, 2005). Under 4 Pa.C.S. § 1203(b), the temporary regulations expire on July 5, 2007.

   The Board is adopting these chapters to replace the temporary regulations with permanent regulations.

Explanation of Chapters 451a and 471a

   Chapter 451a contains general provisions that address the recordkeeping requirements for manufacturer, supplier, junket enterprise, management company and slot machine licensees and registered and certified vendors.

   Amendments to the temporary regulations include a large number of editorial changes intended to improve the clarity of the language in the temporary regulations. The final-form rulemaking also expands the applicability of the provisions to include other regulated entities that were not originally covered when the temporary regulations were promulgated.

   Chapter 471a addresses the applicant's obligation to pay fees required by the Board, the method of payment, the nature of the fees and the publication of a fee schedule by the Board.

   Amendments to the temporary regulations in this final-form rulemaking are primarily editorial and are intended to improve the clarity of the regulations. The final-form rulemaking also expands the applicability of the temporary regulations to include other regulated entities that were not covered in the temporary regulations. Some of the language in temporary § 471.3 (relating to schedule of fees) has been moved to § 471a.1 (relating to fees generally) for clarity purposes. Temporary § 471.2 has been deleted as it is duplicative of other provisions.

Comment and Response Summary

   Notice of proposed rulemaking was published at 36 Pa.B. 5700 (September 9, 2006).

   The Board received a comment on Chapter 451a from International Gaming Technology (IGT) that was included in its comments on the proposed rulemaking published at 36 Pa.B. 3690 (September 9, 2006). Comments were not received from the House Tourism and Recreational Development Committee and the Senate Committee on Rules and Executive Nominations. Comments were received from the Independent Regulatory Review Commission (IRRC).

   IGT commented that they maintain their records at their offices in Nevada and asked if this would meet the requirements in § 451a.1(a) (relating to recordkeeping generally) which requires records to be kept onsite in this Commonwealth. Many of the entities that hold licenses have headquarters located outside of this Commonwealth. To require Board personnel to travel to these locations to examine a licensee's records would cost far more than it will cost to maintain the records in this Commonwealth. Therefore, the Board did not revise this requirement and the entities listed in § 451a.1(a) shall maintain records in this Commonwealth.

   As a general comment, IRRC requested additional information as to the need for and fiscal impact of this final-form rulemaking. This additional information has been included in the Regulatory Analysis Form for the final-form rulemaking.

   In § 471a.1, IRRC suggested the procedures for determining additional fees that may be charged to applicants be added to the final-form rulemaking. The Board bases any additional fees on the amount of staff time required to review each application. Since the final-form rulemaking already specifies that additional fees will be ''based on the actual expenses incurred by the Board,'' the Board has not made any additional changes to this section.

   In § 471a.2 (relating to schedules of fees), IRRC suggested the Board add the actual name of the Board's website. The Board added that suggestion. IRRC also suggested that the Board clarify when it will publish the fee schedule. The Board plans to publish the fee schedule upon publication of this final-form rulemaking and whenever it makes a change to the fee schedule. Language has been added to § 471a.2 to reflect that intent.

   IRRC's final recommendation was that all fee increases be governed by the mechanism in 4 Pa.C.S. § 1208(2) (relating to collection of fees and fines). The Board has not adopted this suggestion for two reasons. First, 4 Pa.C.S. § 1208(2) only applies to fees that were specifically set by 4 Pa.C.S. Part II (relating to gaming). Second, consistent with 4 Pa.C.S. § 1208(1), the Board believes that fees should be based upon the related costs incurred by the Board.

Affected Parties

   This final-form rulemaking imposes requirements on applicants for and holders of a license, permit, registration or certification.

Fiscal Impact

   Commonwealth. This final-form rulemaking will have no significant fiscal impact on the Commonwealth.

   Political subdivisions. This final-form rulemaking will have no significant fiscal impact on political subdivisions of the Commonwealth.

   Private sector. Applicants for or holders of a license, permit, registration or certification will experience costs associated with the payment of fees for applications and other documents submitted to the Board for which a filing fee is required. These entities and individuals will also experience costs as result of the cost of the investigations by the Bureau of Investigations and Enforcement. Applicants for or holders of a license, registration or certification may also experience some increased costs to comply with the document retention and storage requirements.

   General public. This final-form rulemaking will have no fiscal impact on the general public.

Paperwork Requirements

   This final-form rulemaking does not impose new reporting or paperwork requirements on the Board or affected parties under the Board's jurisdiction. This final-form rulemaking clarifies how the applicants and holders of licenses, registrations and certifications must maintain certain records.

Effective Date

   The final-form rulemaking will become effective upon publication in the Pennsylvania Bulletin.

Contact Person

   The contact person for questions about this final-form rulemaking is Richard Sandusky, Director of Regulatory Review, (717) 214-8111.

Regulatory Review

   Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on August 28, 2006, the Board submitted a copy of the notice of proposed rulemaking, published at 36 Pa.B. 5700, to IRRC and the Chairpersons of the House and Senate Committees for review and comment.

   Under section 5(c) of the Regulatory Review Act, IRRC and the Committees were provided with copies of the comments received during the public comment period, as well as other documents when requested. In preparing the final-form rulemaking, the Department has considered all comments from IRRC, the House and Senate Committees and the public.

   Under section 5.1(j.2) of the Regulatory Review Act (71 P. S. § 745.5a(j.2)), on April 4, 2007, the final-form rulemaking was deemed approved by the House and Senate Committees. Under section 5.1(e) of the Regulatory Review Act, IRRC met on April 5, 2007, and approved the final-form rulemaking.


   The Board finds that:

   (1)  Public notice of intention to adopt these chapters was given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations thereunder, 1 Pa. Code §§ 7.1 and 7.2.

   (2)  The final-form rulemaking is necessary and appropriate for the administration and enforcement of 4 Pa.C.S. Part II.


   The Board, acting under 4 Pa.C.S. Part II, orders that:

   (a)  The regulations of the Board, 58 Pa. Code Chapters 451, 451a, 471 and 471a, are amended by deleting §§ 451.1 and 471.1--471.3 adding §§ 451a.1 and 471a.1--471a.3 to read as set forth in Annex A.

   (b)  The Chairperson of the Board shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.

   (c)  This order shall take effect upon publication in the Pennsylvania Bulletin.


   (Editor's Note: For the text of the order of the Independent Regulatory Review Commission, relating to this document, see 37 Pa.B. 1940 (April 21, 2007).)

   Fiscal Note: 125-46 (1) Gaming Fund; (2) Implementing Year 2006-07 is $22,000; (3) 1st Succeeding Year 2007-08 is $11,000; 2nd Succeeding Year 2008-09 is $12,000; 3rd Succeeding Year 2009-10 is $12,000; 4th Succeeding Year 2010-11 is $13,000; 5th Succeeding Year 2011-12 is $13,000; (4) 2005-06 Program--$24,600,000; 2004-05 Program--$13,200,000; 2003-04 Program--$2,900,000; (7) Board Budget; (8) recommends adoption.

Annex A




CHAPTER 451. (Reserved)

§ 451.1 (Reserved).



451a.1.Recordkeeping generally.

§ 451a.1. Recordkeeping generally.

   (a)  All manufacturer, supplier, junket enterprise, management company and slot machine licensees and all registered and certified vendors shall maintain adequate records of business operations which shall be made available to the Board upon request. These records shall be kept onsite in this Commonwealth in a place secure from theft, loss or destruction or at another secure location approved by the Board. These records include:

   (1)  Correspondence with the Board and other local, Commonwealth and Federal governmental agencies.

   (2)  Correspondence concerning gaming equipment with a manufacturer, supplier, management company or slot machine licensee.

   (3)  Copies of all promotional material and advertising.

   (4)  A personnel file on each current and former employee.

   (5)  Financial records of all transactions concerning slot machines and associated equipment with a manufacturer, supplier, management company or slot machine licensee.

   (6)  Copies of all tax returns, reports and other tax documents filed with a taxing entity of the Federal government, the Commonwealth or local taxing entity within this Commonwealth for 7 years or a longer period as prescribed by the taxing entity.

   (7)  Copies of all general accounting records.

   (b)  Except as provided in subsection (a)(6) regarding tax documents, the records listed in subsection (a) shall be maintained for at least 5 years.

CHAPTER 471. (Reserved)

§§ 471.1--471.3. (Reserved).

Subpart F. FEES



471a.1.Fees generally.
471a.2.Schedules of fees.
471a.3.Adjustment of fees.

§ 471a.1. Fees generally.

   (a)  A pleading or other document for which a filing fee is required will be received, but will not be deemed filed, until the filing fee, bond, letter of credit or other cost has been paid.

   (b)  The fees collected by the Board will be deposited into the State Gaming Fund as established in section 1403 of the act (relating to establishment of State Gaming Fund and net slot machine revenue distribution).

   (c)  Fees shall be paid by money order or check made payable to the ''Commonwealth of Pennsylvania.'' Cash will not be accepted by the Board.

   (d)  To recover the initial cost of the investigation and processing of applications, each application for a license, permit, certification or registration must be accompanied by a nonrefundable fee.

   (e)  An applicant may be subject to additional fees based on the actual expenses incurred by the Board in conducting the background investigation.

§ 471a.2. Schedules of fees.

   Fee schedules established by the Board and changes thereto will be published in the Pennsylvania Bulletin and will be available on the Board's website (www.pgcb.

§ 471a.3. Adjustment of fees.

   On or after July 5, 2006, and annually thereafter, the Board may increase the fees, charges, costs or administrative penalties specified in the act by an amount not to exceed an annual cost-of-living adjustment calculated under section 1208(2) of the act (relating to collection of fees and fines).

[Pa.B. Doc. No. 07-1039. Filed for public inspection June 15, 2007, 9:00 a.m.]

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