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PA Bulletin, Doc. No. 09-1779

RULES AND REGULATIONS

PENNSYLVANIA GAMING CONTROL BOARD

[ 58 PA. CODE CHS. 439a, 461a, 463a, 465a AND 499a ]

Junkets; Slot Machines; and Practice and Procedures; Omnibus Amendments

[39 Pa.B. 5562]
[Saturday, September 26, 2009]

 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. §§ 1205, 1207 and 1322 (relating to license or permit application hearing process; public input hearings; regulatory authority of board; and slot machine accounting controls and audits), amends Chapters 439a, 461a, 463a, 465a and 499a to read as set forth at 39 Pa.B. 1662 (April 4, 2009).

Purpose of the Final-Form Rulemaking

 The final-form rulemaking contains numerous editorial changes to improve the clarity of existing provisions, brings the Board's regulations in line with current practices, and eliminates or streamlines existing requirements and procedures to improve the effectiveness of the Board's regulatory programs.

Explanation of Amendments to Chapters 439a, 461a, 463a, 465a and 499a

 Throughout this final-form rulemaking, the Board replaced references to the ''Office of Gaming Operations'' with the new name, ''Bureau of Gaming Operations.'' Additionally, the Board deleted the definition of ''Slots Lab'' and references to this term and to ''Gaming Lab,'' replacing them with the ''Bureau of Gaming Laboratory Operations (BGLO),'' the name used for this Bureau in other chapters.

 In § 461a.12 (relating to progressive slot machines), a new subsection (g) was added to require that the BGLO test and certify progressive slot machines prior to the progressive slot machines' availability to the public for play. This reflects the current practice of the BGLO, but it will now also be a regulatory requirement.

 In § 463a.1(c) (relating to possession of slot machines generally), the Board limited the requirement to file a petition requesting permission to possess slot machines to educational institutions; unlicensed manufacturers, manufacturer designees or suppliers who want to exhibit or demonstrate slot machines; and the general category of ''other persons.'' There is no need for the other entities previously listed in subsection (b) to file a petition because they are either licensed by the Board or are law enforcement agencies. The Board will be able to monitor slot machines in the possession of these entities through the periodic reports they are required to file. The Board also believes that requiring common carriers to file a petition is impracticable and unnecessary because of the short duration of time common carriers will have the slot machines in their possession, and because information related to all shipments is filed with the Board under § 463a.2 (relating to transportation of slot machines into, within and out of this Commonwealth).

 In § 463a.7 (relating to off premises storage of slot machines), the Board simplified the process for reviewing requests from slot machine licensees to store slot machines off the premises of a licensed facility. These amendments replace the requirement that these requests be filed as a petition and approved by the Board with the requirement that these requests be filed as a written request with the Bureau of Gaming Operations which will be approved by the Board's Executive Director. This should reduce the amount of time required to process these requests.

 In § 465a.9(c) (relating to surveillance system; surveillance department control; surveillance department restrictions), the Board deleted the requirement that slot machine licensees have audio surveillance capability in the count room. Because of changes in count room equipment technology and the capabilities of the central control computer system to track gaming revenues, there is no need to have audio recordings of count room activities.

 In subsections (c) and (e), ''automated teller machines'' (ATMs) have been added to the lists of items that require camera coverage and video recording. Slot machine licensees' surveillance systems already cover ATMs, but they were not previously included in the Board's regulations. Gaming conducted at slot machines has also been added to the list in subsection (e) for the same reason. Additionally in subsection (e), the reference to ''satellite cage'' has been moved from paragraph (2), which covers the main bank and vault, to paragraph (1), which covers the cashier cage.

 In § 465a.9(j), the Board reduced the time period for retention of surveillance recordings from 30 days to 7 days for the main bank and vault, the drop, the count and gaming conducted at slot machines. Following the internal control requirements associated with the activities conducted in these areas, any problems for which these recordings would be needed will have occurred within the 7-day time frame.

 In § 465a.25 (relating to counting and recording of slot cash storage boxes), the Board deleted, ''at least 48 hours'' from the advance notice requirement for changes to the time the slot cash storage boxes are to be counted. Video surveillance utilized during the count process and the continuing presence of the Board's casino compliance representatives at the licensed facilities makes the 2 days advanced notice on changes to this schedule unnecessary.

 In § 465a.26 (relating to jackpot payouts), the requirement in subsection (b)(3) and (7)(viii)(A) that the witness of a jackpot between $1,200 and $9,999.99 be ''a lead slot attendant or higher'' has been replaced with ''a security department member or a slot operations department member other than the preparer.'' This will make it easier for slot machine licensees to verify jackpots and allow more efficient use of personnel.

 In § 499a.1 (relating to appearance in person), a new subsection (b) has been added, clarifying who may represent a party in nonadversarial proceedings before the Board. It is modeled on the provisions in 1 Pa. Code § 31.21 (relating to appearance in person) and will reduce the need for some parties to hire legal counsel to represent them.

Comment and Response Summary

 Notice of proposed rulemaking was published at 39 Pa.B. 1662 (April 4, 2009).

 During the public comment period, the Board received a letter from International Gaming Technology thanking the Board for the opportunity to comment, but not offering any comments on the substance of the rulemaking. By letter dated June 3, 2009, the Independent Regulatory Review Commission (IRRC) notified the Board that it had no comments on the proposed rulemaking.

 No changes have been made to the proposed rulemaking in the final-form version of this rulemaking.

Affected Parties

 Slot machine licensees will benefit from the simplified process for reviewing requests for off premise storage of slot machines and for verifying jackpots, the elimination of the requirement for audio surveillance capability in the count room, the reduction in the time periods for retention of some video recordings and the elimination of the 48 hours minimum notice on changes to the count schedule. Slot machine licensees will also be required to have progressive slot machines certified by the BGLO prior to their use by the gaming public. Licensed and governmental entities and common carriers will no longer have to file petitions to possess slot machines. Parties in some Board proceedings will not be required to be represented by legal counsel.

Fiscal Impact

Commonwealth

 To the extent that this final-form rulemaking simplifies some administrative processes, there may be some slight savings to the Board. The Department of Revenue and the State Police may also experience small savings because filing a petition to possess slot machines is no longer required.

Political Subdivisions

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

Private Sector

 Slot machine licensees will experience some cost savings due to revisions and elimination of unnecessary regulatory requirements. There should be little to no costs associated with the new requirement that progressive slot machines be certified prior to the use because this represents the current practice of the BGLO.

General Public

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

Paperwork requirements

 This final-form rulemaking may reduce the paperwork associated with filing requests for off premise storage of slot machines. Licensed and governmental entities and common carriers will no longer have to file petitions to possess slot machines.

Effective Date

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

Contact Person

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

Regulatory Review

 Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on March 24, 2009, the Board submitted a copy of the proposed rulemaking, published at 39 Pa.B. 1662 and a copy of the Regulatory Analysis Form to IRRC and to the House Gaming Oversight Committee and the Senate Community, Economic and Recreational Development Committee (Committees).

 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 Board has considered all comments received from IRRC, the Committees and the public.

 Under section 5.1(j.2) of the Regulatory Review Act (71 P. S. § 745.5a(j.2)), the final-form rulemaking was deemed approved by the Committees on August 19, 2009. Under section 5(g) of the Regulatory Review Act, the final-form rulemaking was deemed approved by IRRC effective August 19, 2009.

Findings

 The Board finds that:

 (1) Public notice of intention to adopt these amendments 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 (relating to notice of proposed rulemaking required; and adoption of regulations).

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

Order

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

 (a) The regulations of the Board, 58 Pa. Code Chapters 439a, 461a, 463a, 465a and 499a are amended by amending §§ 439a.7, 439a.8, 439a.10, 439a.11, 461a.1, 461a.4, 461a.5, 461a.7, 461a.8, 461a.10, 461a.12, 461a.18, 461a.22, 461a.26, 463a.1, 463a.2, 463a.7, 465a.2, 465a.4, 465a.5, 465a.8, 465a.9 465a.18, 465a.25, 465a.26 and 499a.1 to read as set forth at 39 Pa.B. 1662.

 (b) The Chairperson of the Board shall certify this order, 39 Pa.B. 1662 and deposit them with the Legislative Reference Bureau as required by law.

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

GREGORY C. FAJT, 
Chairperson

Fiscal Note: 125-99 remains valid for the final adoption of the subject regulations.

 (Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 39 Pa.B. 5279 (September 5, 2009).)

[Pa.B. Doc. No. 09-1779. Filed for public inspection September 25, 2009, 9:00 a.m.]



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