PENNSYLVANIA GAMING CONTROL BOARD [ 58 PA. CODE CHS. 435a, 461a,
465a, 467a AND 501a ]Employee Credentials, Design Standards and Internal Controls [40 Pa.B. 2535]
[Saturday, May 15, 2010]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), (5), (9) and (11) and 1322 (relating to regulatory authority of board; and slot machine accounting controls and audits), amends Chapters 435a, 461a, 465a, 467a and 501a to read as set forth in Annex A.
Purpose of the Final-form Rulemaking
The final-form rulemaking amends the Board's requirements for the display of Board issued credentials, permits the use of nonfixed seating and makes a number of other changes related to internal controls which improve the clarity of the current requirements and make revisions which will simplify, improve the effectiveness of or add some additional flexibility to existing provisions.
Explanation of Amendments to Chapters 435a, 461a, 465a, 467a and 501a
Section 435a.6(c) (relating to Board credentials) has been amended to relax the existing requirement that all of a slot machine licensee's employees display their Board credentials when they are working in the licensed facility. Employees whose jobs require them to be on the gaming floor or in restricted areas will continue to be required to display their Board credentials, but employees who are not required to be on the gaming floor or in a restricted area will only have to carry their credential. This will allow employees who do not work in sensitive areas for whom the display of their credential might interfere with the performance of their jobs to just carry their credential. Also, to give slot machine licensees some addition flexibility, food and beverage employees working on the gaming floor will be allowed to just carry their Board credential if their employer issued access badge displays a unique employee identification number. This will insure that the surveillance department and the Board's casino compliance representatives will still have a means to visually verify the identity of these individuals.
Section 461a.7(s) (relating to slot machine minimum design standards) has been amended to give slot machine licensees the option of using fixed or nonfixed seating for slot machines. Currently, slot machine licensees must use fixed seating unless they file a petition asking for a waiver of the fixed seating requirement. Under this amendment, slot machine licensees will be allowed to use nonfixed seating if the slot machine licensee provides a 48-inch minimum aisle width and submits, to the Bureau of Gaming Operations, a certification from local building and fire safety officials or a certification from an architect registered in this Commonwealth that the use of nonfixed seating complies with all building and fire safety codes.
The provisions in § 461a.10(g), (i) and (o) (relating to automated gaming voucher and coupon redemption machines) regarding internal controls have been deleted and relocated to new § 465a.34 (relating to automated gaming voucher and coupon redemption machine accounting controls). Since Chapter 461a (relating to slot machine testing and control) deals mainly with equipment standards and Chapter 465a (relating to accounting and internal controls) contains internal control requirements, the internal control requirements regarding automated gaming voucher redemption machines, automated coupon redemption machines, bill breakers or some combination thereof are more appropriately placed in Chapter 465a. Similarly, § 461a.11 has been rescinded in its entirety and the provisions in § 461a.11 have been moved to § 465a.34.
Also in § 461a.10(t)(4)(iv) and (v), the word ''dispensed'' has been replaced with ''accepted.'' This correction reflects the fact that the gaming voucher, coupon and currency storage box contains the currency that has been inserted into the automated gaming voucher and coupon redemption machine, and has nothing to do with the currency that is dispensed by the automated gaming voucher and coupon redemption machine. Additionally, § 461a.10(t) (4)(vi), (viii) and (x) have been deleted. The information listed in these subparagraphs is captured by the software for the automated gaming voucher and coupon redemption machine and is found on the other reports. Therefore, there is no need for this information to also be provided as part of the gaming voucher, coupon and currency storage box report.
Section 461a.19(c) (relating to remote system access) has been amended to require that a slot machine licensee must establish and obtain Board approval of internal controls that will be used to protect the integrity of the slot machine licensee's computer systems and related data before the slot machine licensee may allow a licensed manufacturer's employee to have remote access to its computer systems when there is an emergency. Because it would be difficult for the slot machine licensee to monitor what the manufacturer's employee is doing in this situation, it is imperative that the slot machine licensee have adequate protocols in place to prevent any unauthorized access to systems that are unaffected by the emergency. Requiring that these protocols be included in a slot machine licensee's internal controls will provide a mechanism for the Board to make sure that adequate protections are in place.
In § 465a.9 (relating to surveillance system; surveillance department control; surveillance department restrictions) and § 465a.33 (relating to access to areas containing central computer control equipment), the information required to be recorded in the access log books for the surveillance room and the areas containing central computer control equipment has been amended so that these requirements are the same for both log books. Making these formats the same should make compliance easier for the slot machine licensees.
Section 465a.18(d)(2) (relating to transportation of slot cash storage boxes to and from bill validators; storage) is amended to make the key control requirements consistent with the key control requirements for slot cash storage boxes that are in bill validators. The existing key control requirements in subsection (d)(2) are unnecessarily more restrictive. The revised language will make the requirements in subsection (d)(2) the same as the requirements in subsection (c)(1)(ii).
In § 465a.33, a number of changes have been made to improve the clarity of this section and ensure that the operator of the central computer control system and the casino compliance representatives are notified whenever someone is going to enter the areas that contain the central computer control equipment. Also, as noted earlier, the log book requirements in this section and in § 465a.9 have been revised so that they are the same. This should make compliance easier for the slot machine licensees.
The citation in § 467a.1(a)(2)(iv) (relating to gaming floor plan) has been amended to read ''§ 467a.7(s).'' The subsections in § 461a.7 were previously amended but this citation was not changed as part of that amendment.
Section 501a.6(b) (relating to check cashing) has been amended to allow a slot machine licensee to cash checks for patrons that have been issued by the slot machine licensee. Currently, if a slot machine licensee issues a check to a patron, which frequently happens when the patron wins a large jackpot, the slot machine licensee can not cash that check for the patron later. However, the slot machine licensee may accept that check to establish a customer deposit, which the customer can then close and receive cash. This amendment will eliminate the need to open a customer deposit just to cash a check that the slot machine licensee has issued to the patron.
Comment and Response Summary
Notice of proposed rulemaking was published at 39 Pa.B. 6073 (October 17, 2009).
The Board received comments from Greenwood Gaming and Entertainment, Inc. (Greenwood) and Downs Racing, L.P. (Downs) during the public comment period. On December 16, 2009, the Independent Regulatory Review Commission (IRRC) also filed comments on the proposed rulemaking. These comments were reviewed by the Board and are discussed in detail as follows.
On § 435a.6, Greenwood and Downs both suggested that the exemption provided to food and beverage employees from the requirement that they display their Board credential be expanded to include other employees who have direct contact with patrons. Additionally, Downs objected to the requirement that food and beverage employees' access badge contain a unique identification number to take advantage of the exemption from displaying their Board credential.
Similarly, IRRC asked the Board: to explain how the Board determined which employees would be required to display their Board credentials; if it had considered additional exemptions; if the Board was aware of any instances where the display of credentials has jeopardized a slot machine licensee's employees safety or resulted in identity theft; and why is the alternative in § 435a.6(c)(2) needed.
Concerning the comments on expanding the scope of this provision and how the Board determined which employees should continue to be required to display their Board credential, what the Board has done with this amendment is to strike a balance between the requests of some slot machine licensees to eliminate the requirement for employees to display their Board credentials and the Board's overall mandate to protect the integrity of gaming. Requiring employees who are working in critical areas of a licensed facility to display their Board credentials gives the Board an effective means to quickly confirm the identity of individuals who are in a restricted area or on the gaming floor. Accordingly, the Board does not believe that it is appropriate to expand the proposed exemption for employees who work in these areas. For employees who are not working in these sensitive areas, the Board agrees that the need for immediate confirmation of whether or not the individual has the proper credential is less critical. Therefore, the Board agrees that carrying the Board credential, rather than wearing it, is appropriate.
On Down's concern about the expense associated with the alternative of having an access badge with a unique employee identification number, the Board would note that this is an option, not a requirement. If Down's is concerned about possible costs, it can simply continue to have its food and beverage employees display their Board credential. As to the need for the unique employee identification number, if the employees are not displaying the Board credential, an alternate means of identifying the employees must be provided. An employee identification number will allow the Board's casino compliance representatives and the slot machine licensee's surveillance department to quickly verify the employee's identity.
Finally, as to the concerns voiced that display of a Board credential could threaten the welfare or safety of employees, the Board is not aware of any instances where identity theft has occurred. Furthermore, while the Board is aware of various instances, through reports from the Board's casino compliance representatives and incident reports supplied by licensees, of patrons who have made unwanted advances or rude remarks and where patrons have made verbal threats, in none of these incidences has the display of the Board credential been a factor or created a greater threat to the employee's welfare.
For these reasons, the Board has not amended the regulation as suggested by the commentators. However, to clarify the purpose of the requirement for having a unique employee number on the employees access badge, the phrase ''and which can be read by the slot machine licensee's surveillance system'' has been added to § 435a.6(c)(2).
Greenwood offered a general comment on § 461a.19 suggesting that the Board rescind the technical standards in § 461b.5 (relating to remote computer access) or make them part of § 461a.19 so that they will go through the regulatory review process.
The Board has decided not to rescind § 461b.5 or add those provisions to § 461a.19. To give slot machine licensees some flexibility and in recognition of the rapid changes that can occur in computer systems, the Board believes that the more detailed technical requirements should remain in the technical standards. However, if Greenwood or another slot machine licensee believes that particular changes should be made to the technical standards, the Board encourages slot machine licensees to submit these changes to the Board for its review.
Greenwood and IRRC both asked the Board to clarify what the phrase ''environmental adjustments'' in § 465a.33(a)(5) meant.
The Board's intent behind using this phrase was to give slot machine licensees wide latitude to respond to emergencies, such as the failure of heating or air conditioning equipment, electrical failures or plumbing leaks. However, the Board agrees that using this term alone could make it hard for slot machine licensees to interpret. To provide further clarification, the Board is amending § 465a.33 (a)(5) by adding the phrase ''such as electrical, plumbing or HVAC malfunctions.''
Affected Parties
Slot machine licensees will benefit from the additional operating flexibility some of these amendments provide. Slot machine licensees who allow remote access to their computer systems will also be required to submit internal controls governing that access and will be required to notify the Board's casino compliance agents and the Department of Revenue's contractor whenever access is being provided to the areas housing the central computer control equipment.
Fiscal Impact
Commonwealth
The Board does not anticipate that there will be any significant costs or savings to the Board or any other Commonwealth agency as a result of this final-form rulemaking.
Political Subdivisions
This final-form rulemaking will have no fiscal impact on political subdivisions of this Commonwealth.
Private Sector
This final-form rulemaking may result in some small savings or additional costs to slot machine licensees. However, the Board does not expect that these savings or costs will be significant.
General Public
This final-form rulemaking will have no fiscal impact on the general public.
Paperwork Requirements
This final-form rulemaking will simplify the log book requirements and reduce the need for slot machine licensees to file petitions with the Board regarding the use of nonfixed seating or display of Board credentials. It will also make it easier for patrons to cash checks issued by a slot machine licensee as payment for jackpot winnings.
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 October 6, 2009, the Board submitted a copy of the proposed rulemaking, published at 39 Pa.B. 6073, 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 April 7, 2010. Under section 5.1(e) of the Regulatory Review Act, IRRC met on April 8, 2010, and approved the final-form rulemaking.
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.
(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 435a, 461a, 465a, 467a and 501a, are amended by rescinding § 461a.11 and amending §§ 461a.7, 461a.10, 461a.19, 465a.9, 465a.18, 465a.34, 467a.1 and 501a.6 to read as set forth at 39 Pa.B. 6073; and by amending §§ 435a.6 and 465a.33 to read as set forth in Annex A.
(b) The Chairperson of the Board shall certify this order, 39 Pa.B. 6073 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.
GREGORY C. FAJT,
Chairperson(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 40 Pa.B. 2094 (April 24, 2010).)
Fiscal Note: Fiscal Note 125-106 remains valid for the final adoption of the subject regulations.
Annex A TITLE 58. RECREATION PART VII. GAMING CONTROL BOARD Subpart B. LICENSING, PERMITTING, CERTIFICATION AND REGISTRATION CHAPTER 435a. EMPLOYEES § 435a.6. Board credentials.
(a) The following individuals shall obtain a Board credential:
(1) A principal whose duties are required to be performed at a licensed facility in excess of 12 days in a 12-month period.
(2) Key employees.
(3) Gaming employees.
(4) Nongaming employee registrants.
(5) State employees whose duties require the employee's presence at a licensed facility more frequently than once a month.
(b) The credential will contain the following information:
(1) The name, date of birth, sex, height, weight, hair color and eye color of the licensee, permittee or registrant.
(2) A photograph of the face of the individual to whom the credential has been issued which meets the standards of the Commonwealth Photograph Imaging Network.
(3) The inscription ''Pennsylvania Gaming Control Board.''
(4) The seal of the Commonwealth.
(5) A license, permit or registration number.
(6) The type of license, permit or registration.
(7) An expiration date.
(8) The signature of the employee.
(9) Other security features as determined by the Board.
(c) A State employee required to obtain a Board credential shall carry the Board credential on his person at all times while engaged in the performance of his duties on the premises of a licensed facility. An individual who is not a State employee, who is required to obtain a Board credential and whose duties do not require the individual to be on the gaming floor or in a restricted area, shall carry the Board credential on his person at all times while engaged in the performance of his duties on the premises of a licensed facility. An individual who is not a State employee, who is required to obtain a Board credential and whose duties require the individual to be on the gaming floor or in a restricted area, shall display the Board credential on his person at all times while engaged in the performance of his duties on the premises of a licensed facility. A food and beverage employee of a slot machine licensee who is required to obtain a Board credential and whose duties require the individual to be on the gaming floor may carry, instead of display, the employee's Board credential if:
(1) The employee displays the access badge required under § 465a.12 (relating to access badges).
(2) The access badge displays a unique identification number that has been assigned to that employee and which can be read by the slot machine licensee's surveillance system.
(d) Except as provided in § 435a.7 (relating to emergency credentials), slot machine and management company licensees are prohibited from allowing a principal who is required to obtain a credential, key employee, gaming employee or nongaming employee registrant to perform his duties on the premises of a licensed facility unless the employee has his Board credential.
(e) Notwithstanding subsection (a), the Board may, upon written request by a slot machine or management company licensee and upon a showing of good cause, exempt certain positions, titles or persons from the requirements of this section.
(f) An employee whose license, permit or registration has been suspended or revoked by the Board shall surrender the Board credential to the Board.
Subpart E. SLOT MACHINES AND
ASSOCIATED EQUIPMENTCHAPTER 465a. ACCOUNTING AND
INTERNAL CONTROLS§ 465a.33. Access to areas containing central computer control equipment.
A slot machine licensee shall develop and submit to the Board and the Department, as part of the submission required under § 465a.2 (relating to internal control systems and audit protocols), procedures for safeguarding and limiting access to the central control computer (CCC) equipment housed within the licensed facility. At a minimum, these procedures must include the following requirements:
(1) The area containing CCC equipment must:
(i) Be secured with a manual key lock system, the keys to which must be different from any other keys used in the licensed facility.
(ii) Have a door, that when opened, audibly signals the surveillance monitoring room.
(iii) Have adequate surveillance camera coverage to record all activity in the area.
(2) Access to the area containing the CCC system equipment may not be permitted unless prior arrangements have been made with the operator of the CCC system and the casino compliance representatives at the licensed facility.
(3) All keys which access the area containing CCC equipment shall be maintained by the slot machine licensee's security department. The keys may only be signed out by the director of security or the security shift manager to employees of the Department or the operator of the CCC system who are on the authorized access list. The authorized access list shall be obtained from the Department and made available to the casino compliance representatives at the licensed facility. A verbal notification shall be made to the surveillance monitoring room, the operator of the CCC system and the casino compliance representatives at the licensed facility prior to signing out the keys.
(4) The slot machine licensee shall maintain an access log for the area containing CCC equipment. The log shall be maintained in a book with bound numbered pages that cannot be readily removed and placed in close proximity to the CCC equipment. Casino compliance representatives at the licensed facility may review the log upon request. The log shall be stored and retained in accordance with § 465a.6 (relating to retention, storage and destruction of books, records and documents). The following information shall be recorded in a log:
(i) The date and time of each entry.
(ii) The entering person's name, Board-issued credential number and department or affiliation.
(iii) The reason for entering the area containing CCC equipment.
(iv) The name of the person authorizing the person's entry into the area containing CCC equipment.
(v) The date and time of exiting the area containing CCC equipment.
(5) Individuals who are not authorized to have access to the area containing CCC equipment may only be granted access for emergency situations requiring environmental adjustments, such as electrical, plumbing or HVAC malfunctions, with a security escort. When emergency access is granted, the slot machine licensee shall provide notice to the Department and the casino compliance representatives at the licensed facility prior to permitting entry to the area containing CCC equipment.
[Pa.B. Doc. No. 10-867. Filed for public inspection May 14, 2010, 9:00 a.m.]
