PENNSYLVANIA GAMING CONTROL BOARD [58 PA. CODE CH. 465] Enforcement, Hearings and Slot Machine Testing [37 Pa.B. 1978]
[Saturday, April 28, 2007]Under the Pennsylvania Gaming Control Board's (Board) Resolution No. 2006-2-REG, the Board has the authority to amend the temporary regulations adopted on February 2, 2006, as it deems necessary in accordance with the purpose of 4 Pa.C.S. Part II (relating to gaming) enacted by the act of July 5, 2004 (P. L. 572, No. 71) (Act 71), as amended by the act of November 1, 2006 (P. L. 1243, No. 135) and to further the intent of Act 71. To clarify the Board's internal controls requirements, the Board has decided to make changes to the temporary regulations, dated February 2, 2006, as deposited with the Legislative Reference Bureau (Bureau) and published at 36 Pa.B. 910 (February 18, 2006).
Therefore, the Board has deposited with the Bureau amendments to Chapter 465 (relating to accounting and internal controls). The amendments are effective as of March 27, 2007.
The temporary regulations of the Board in Chapter 465 are amended by amending §§ 465.12 and 465.21 to read as set forth in Annex A.
Order
The Board, acting under the authorizing statute, orders that:
(a) The Board, acting under the authority of the Act 71, adopts the amendments to the temporary regulations adopted by resolution at the March 27, 2007, public meeting. The amendments to the temporary regulations pertain to enforcement, hearings and slot machine testing.
(b) The temporary regulations of the Board, 58 Pa. Code Chapter 465, are amended by amending §§ 465.12 and 465.21 to read as set forth in Annex A, with ellipses referring to the existing text of the regulations.
(c) The amendments are effective March 27, 2007.
(d) The amendments to the temporary regulations shall be posted in their entirety on the Board's website and published in the Pennsylvania Bulletin.
(e) The Chairperson of the Board shall certify this order and deposit the amendments to the temporary regulations with the Bureau as required by law.
THOMAS A. DECKER,
ChairpersonFiscal Note: 125-68. No fiscal impact; (8) recommends adoption.
Annex A TITLE 58. RECREATION PART VII. GAMING CONTROL BOARD Subpart E. SLOT MACHINE TESTING, CERTIFICATION AND CONTROL CHAPTER 465. ACCOUNTING AND INTERNAL CONTROLS § 465.12. Slot machine licensee's organization.
(a) Slot machine licensees' systems of internal controls must, in accordance with section 1322 of the act (relating to slot machine accounting controls and audits) and § 465.3 (relating to internal control systems and audit protocols), include organization charts depicting appropriate segregation of functions and responsibilities and descriptions of the duties and responsibilities for each position shown on each organization chart. Slot machine licensees shall be permitted, except as otherwise provided in this section, to tailor organizational structures to meet the needs or policies of a particular management philosophy. The proposed organizational structure of each slot machine licensee shall be approved by the Board in the absence of a conflict between the organizational structure and the following criteria. The criteria are designed to maintain the integrity of the slot machine operation. A slot machine licensee's organization charts must provide for:
* * * * * (5) A chief executive officer. For the purposes of this section, a chief executive officer means the person located at the licensed facility who is ultimately responsible for the daily conduct of the slot machine licensee's gaming business regardless of the form of business association of the slot machine licensee or applicant or the particular title which that person or any other person holds. Each supervisor of a department required by subsection (b) shall report directly to the chief executive officer of the slot machine licensee regarding administrative matters and daily operations. The slot machine licensee's organization charts must designate which positions, in the absence of the chief executive officer, shall be designated as having responsibility for the daily conduct of the slot machine licensee's gaming business.
* * * * * (c) The supervisors of the surveillance and internal audit departments required by subsection (b) shall report directly to one of the following persons or entities regarding matters of policy, purpose, responsibility and authority. These persons or entities shall also control the hiring, termination and salary of each supervisor:
(1) The independent audit committee of the slot machine licensee's board of directors.
(2) The independent audit committee of the board of directors of any holding or intermediary company of the slot machine licensee which has authority to direct the operations of the slot machine licensee.
(3) The senior surveillance or internal audit executives of any holding or intermediate company included in paragraph (2) if the most senior executive in the reporting line reports directly to the independent audit committee of the board of directors of the holding or intermediary company.
(4) For slot machine licensees or holding companies which are not corporate entities, the noncorporate equivalent of any of the persons or entities listed in paragraphs (1)--(3).
* * * * * § 465.21. Personal check cashing.
* * * * * (b) Personal checks accepted under subsection (a) shall be presented by the patron directly to a slot cashier who shall:
* * * * * (5) For personal checks equaling or exceeding $500, verify the validity of the check directly with the commercial bank, savings bank, saving and loan association or credit union upon which it is drawn or obtain an authorization and guarantee of the check from a check verification and warranty service certified as a vendor with the Board. The slot machine licensee shall retain adequate documentation evidencing the check verification performed in connection with the acceptance of each personal check.
* * * * * [Pa.B. Doc. No. 07-742. Filed for public inspection April 27, 2007, 9:00 a.m.]
