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PA Bulletin, Doc. No. 08-572



[ 58 PA. CODE CHS. 405a AND 461a ]

Bureau of Investigations and Enforcement; and Slot Machine Testing and Control

[38 Pa.B. 1474]
[Saturday, March 29, 2008]

   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, 1320 and 1517(a.2) (relating to regulatory authority of board; slot machine testing and certification standards; and investigations and enforcement), amends Chapters 405a and 461a (relating to Bureau of Investigations and Enforcement; and slot machine testing and control) to read as set forth in Annex A.

Purpose of the Final-Form Rulemaking

   These amendments conform the language in the regulations to the language of 4 Pa.C.S. Part II (relating to Pennsylvania Race Horse Development and Gaming Act) (act), make provisions consistent with changes in subsequently adopted chapters and remove obsolete provisions.

Explanation of the Amendments to Chapters 405a and 461a

   In § 405a.3(b) (relating to Office of Enforcement Counsel), the Board deleted the phrase ''and operational'' so that this section mirrors the language in section 1517(a.2)(2) of the act (relating to investigations and enforcement). The title ''Director of the Office of Enforcement Counsel'' has been changed to ''Chief Enforcement Counsel'' in this section and in § 405a.5 (relating to investigatory subpoena) to match the Board's current organizational structure.

   In § 405a.6 (relating to enforcement action), the Board updated citations and extended the time to file a notice of defense and request a hearing in subsections (c) and (d) from 15 days to 20 days to match the time period in § 493a.2(e) (relating to complaints).

   In § 405a.6(e), the Board changed the requirement concerning the mailing of final orders. Final orders will be sent by first class mail instead of certified mail. Because a respondent's address is determined at the beginning of the proceeding there is no need to use certified mail for the final order.

   In §§ 461a.3 and 461a.4 (relating to testing and approval generally; and submission for testing and approval), the Board removed the references and provisions relating to abbreviated testing and approval of slot machines and associated equipment. Section 1320 of the act (relating to category 1 slot machine license) allowed the Board to use certifications of equipment by other states or approved private testing laboratories until the Board established its testing facility. Now that the Gaming Laboratory is operational, the time period to use these alternate processes has expired.

   In § 461a.7 (relating to slot machine minimum design standards), the Board deleted subsection (d) which contains the ''payout requirement of 85% within 10 million plays'' standard. Because the length of time that a slot machine is typically used today is shorter and because of the advent of server based games, this standard has become obsolete. The other requirements which reflect the statutory requirement of having a payout of at least 85% remain unchanged.

   In § 461a.12 (relating to progressive slot machines), references to § 461a.7 have been updated to reflect the deletion of subsection (d).

Comment and Response Summary

   Notice of proposed rulemaking was published at 37 Pa.B. 5799 (October 27, 2007).

   The Board received comments from International Gaming Technology during the public comment period in support of the proposed changes. By letter dated December 26, 2007, the Independent Regulatory Review Commission (IRRC) notified the Board that IRRC had no objections, comments or recommendations to offer on these amendments.

   No changes have been made to this final-form rulemaking.

Affected Parties

   Under this final-form rulemaking, manufacturers submitting slot machines for testing and certification will be affected by no longer being able to request alternate certification of their slot machines and related equipment. There are 16 currently licensed manufacturers.

   Respondents to complaints will also be affected. The Board projects that there may be approximately 2,000 complaints filed over the next 12 months.

Fiscal Impact


   By mailing Board orders by first class mail instead of certified mail, the Board estimates this final-form rulemaking will save up to $10,000 annually.

Political Subdivisions

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

Private Sector

   The Board anticipates that there will be no significant costs or savings to the regulated public as a result of these amendments.

General Public

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

Paperwork requirements

   These amendments do not change or add new reporting, recordkeeping or paperwork requirements.

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 (act) (71 P. S. § 745.5(a), on October 12, 2007, the Board submitted a copy of the proposed rulemaking, published at 37 Pa.B. 5799 (October 27, 2007), and a copy of the Regulatory Analysis Form to IRRC and the Chairpersons of the House Gaming Oversight Committee and the Senate Committee on Community, Economic and Recreational Development.

   Under section 5(c) of the 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 House and Senate Committees and the public.

   Under section 5.1(j.2) of the act (71 P. S. § 745.5a(j.2)), the final-form rulemaking was deemed approved by the House Gaming Oversight Committee and the Senate Committee on Community, Economic and Recreational Development on February 20, 2008. Under section 5(g) of the act, the final-form rulemaking was deemed approved by IRRC effective February 20, 2008.


   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.

   (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 405a and 461a, are amended by amending §§ 405a.3, 405a.5, 405a.6, 461a.3, 461a.4, 461a.7 and 461a.12 to read as set forth at 37 Pa.B. 5799.

   (b)  The Chairperson of the Board shall certify this order and 37 Pa.B. 5799 and deposit them with the Legislative Reference Bureau as required by law.

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


   Fiscal Note: Fiscal Note 125-71 remains valid for the final adoption of the subject regulations.

[Pa.B. Doc. No. 08-572. Filed for public inspection March 28, 2008, 9:00 a.m.]

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