RULES AND REGULATIONS
PENNSYLVANIA GAMING CONTROL BOARD
[ 58 PA. CODE CHS. 521 AND 525 ]
Table Game General Provisions and Internal Controls
[40 Pa.B. 2539]
[Saturday, May 15, 2010]The Pennsylvania Gaming Control Board (Board), under its general authority in 4 Pa.C.S. § 1303A (relating to temporary table game regulations) enacted by the act of January 7, 2010 (Act 1) and the specific authority in 4 Pa.C.S. § 1325A (relating to table game accounting controls and audit protocols), adopts temporary regulations in Chapters 521 and 525 (relating to general provisions; and table game internal controls) to read as set forth in Annex A. The Board's temporary regulations will be added to Part VII (relating to Gaming Control Board) as part of Subpart K (relating to table games).
Purpose of the Temporary Rulemaking
This temporary rulemaking adds additional definitions, the procedures for submission of table game internal controls and specific provisions related to organization requirements, submission of the jobs compendium and staffing requirements for table games.
Explanation of Chapters 521 and 525
In Chapter 521, a definition of the term ''pit clerk'' has been added to § 521.1 (relating to definitions).
A new Chapter 525 is being added. In § 525.1, definitions of the terms ''count team'' and ''fill'' which are used in this chapter appear.
Section 525.2 (relating to internal controls) requires certificate holders to submit their initial internal controls to the Board for approval at least 45 days prior to the desired date of the commencement of table games. This chapter also sets forth the processes that will be used for the review of a certificate holder's initial set of table game internal controls and any subsequent amendments. These processes mirror the processes used for review of internal controls related to the operation of slot machines.
Section 525.3 (relating to gaming day) establishes the gaming day for table gaming as 6:00 a.m. to 5:59.59 a.m. which is the same as the gaming day for slot machine operations.
Section 525.4 (relating to certificate holder's organization requirements related to table games) supplements the organization requirements in § 465a.11 (relating to slot machine licensee's organization). It adds additional surveillance requirements related to the operation of table games, requires credit to come under the director of finance and requires a certificate holder to have a table games department or a gaming department which includes slot machine and table game operations.
Section 525.5 (relating to jobs compendium submission) requires a certificate holder to submit a jobs compendium which includes organization charts of each department or division and detailed job descriptions for each position. This information will be reviewed by the Board to ensure that there is a proper segregation of duties to protect the integrity of gaming and to verify that the proper licensing, permitting or registration requirements will be met. This section also sets forth the process to be used to amend the jobs compendium and requires that an updated jobs compendium be filed annually.
Section 525.6 (relating to personnel assigned to the operations and conduct of table games) sets forth minimum staffing requirements for the operation and supervision of table games. These requirements are similar to requirements used in other jurisdictions. To give certificate holders additional operating flexibility, this section permits the supervision of a greater number of table games per floorperson when electronic gaming tables (other than fully automated gaming tables) are being used and allows a certificate holder to file a request to use of a staffing plan that differs from what is required under this section.
Affected Parties
Table games certificate holders will be required to modify and expand their existing internal controls to meet the additional requirements in this rulemaking.
The Board will experience increased regulatory demands to review the new and revised internal controls related to table games that are submitted by the certificate holders.
Fiscal Impact
Commonwealth
The Board will have to review each certificate holder's initial table games internal control submissions and any subsequent amendments thereto. These reviews will be conducted by existing Bureau of Gaming Operations staff, so the Board does not project that it will incur any significant cost increases as a result of this rulemaking.
Political Subdivisions
This rulemaking will have no direct fiscal impact on political subdivisions of this Commonwealth. Eventually, host municipalities and counties will benefit from the local share funding that is mandated by Act 1.
Private Sector
This rulemaking will result in additional costs for slot machine licensees who elect to become certificate holders. More specifically, certificate holders will be required to revise and expand the scope of their internal controls to cover table games operations. These revisions could cost between $20,000 and $50,000 per certificate holder to prepare depending on the scope of the revisions and if the revisions are prepared internally or by consultants.
To meet the minimum staffing requirements in § 525.6, the Board does not anticipate that certificate holders will have to hire many, if any, additional employees. This is because the staffing requirements are similar to what other jurisdictions require and common industry standards. Additionally, certificate holders will have the opportunity to request the use of alternate staffing patterns to meet unique situations at their facilities.
General Public
This rulemaking will have no direct fiscal impact on the general public.
Paperwork Requirements
This rulemaking will require certificate holders to draft and submit to the Board for its approval revised internal controls, including the new jobs compendium. A certificate holder who wants to use staffing levels that differ from what is called for under § 525.6, will have to prepare a written Alternate Staffing Plan which provides the justification for the requested staffing levels.
Effective Date
This temporary rulemaking will become effective upon publication in the Pennsylvania Bulletin.
Public Comments
While this rulemaking will be effective upon publication, the Board is seeking comments from the public and affected parties as to how these temporary regulations might be improved. Interested persons are invited to submit written comments, suggestions or objections regarding this temporary rulemaking within 30 days after the date of publication in the Pennsylvania Bulletin to Richard Sandusky, Director of Regulatory Review, Pennsylvania Gaming Control Board, P. O. Box 69060, Harrisburg, PA 17106-9060, Attention: Public Comment on Regulation #125-117.
Contact Person
The contact person for questions about this rulemaking is Richard Sandusky, Director of Regulatory Review at (717) 214-8111.
Regulatory Review
Under 4 Pa.C.S. § 1303A, the Board is authorized to adopt temporary regulations which are not subject to the provisions of: sections 201—205 of the act of July 31, 1968 (P. L. 769, No. 240), referred to as the Commonwealth Documents Law; the Regulatory Review Act (71 P. S. §§ 745.1—745.12); and sections 204(b) and 301(10) of the Commonwealth Attorneys Act (71 P. S. §§ 732-204(b) and 732-301(10)). These temporary regulations expire 2 years after publication in the Pennsylvania Bulletin.
Findings
The Board finds that:
(1) Under 4 Pa.C.S. § 1303A, the temporary regulations are exempt from the requirements of the Regulatory Review Act, sections 201—205 of the Commonwealth Documents Law and sections 204(b) and 301(10) of the Commonwealth Attorneys Act.
(2) The adoption of the temporary regulations 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:
(1) The regulations of the Board, 58 Pa. Code Chapters 521 and 525, are amended by amending § 521.1 and adding §§ 525.1—525.6 to read as set forth in Annex A, with ellipses referring to the existing text of the regulations.
(2) The temporary regulations are effective May 15, 2010.
(3) The temporary regulations will be posted on the Board's web site and published in the Pennsylvania Bulletin.
(4) The temporary regulations shall be subject to amendment as deemed necessary by the Board.
(5) The Chairperson of the Board shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
GREGORY C. FAJT,
ChairpersonFiscal Note: 125-117. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD
Subpart K. TABLE GAMES
CHAPTER 521. GENERAL PROVISIONS § 521.1. Definitions.
The following words and terms, when used in this subpart, have the following meanings, unless the context clearly indicates otherwise:
* * * * * Pit clerk—An employee of a certificate holder whose primary function is to prepare documentation required for the operation of table games, including requests for fills, requests for credits, counter checks or other documents that evidence the exchange of gaming chips.
* * * * *
CHAPTER 525. TABLE GAME INTERNAL CONTROLS Sec.
525.1. Definitions. 525.2. Internal controls. 525.3. Gaming day. 525.4. Certificate holder's organization requirements related to table games. 525.5. Jobs compendium submission. 525.6. Personnel assigned to the operations and conduct of table games. § 525.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Count team—The employees of the certificate holder who are responsible for counting the contents of table game drop boxes.
Fill—The distribution of gaming chips, coins and plaques to a gaming table to replenish the table inventory.
§ 525.2. Internal controls.
(a) A certificate holder shall submit to the Board a written description of its table games initial internal control systems and audit protocols (collectively referred to as its table games internal controls) pertaining to the conduct of table games at least 45 days before table gaming operations are to commence. The written system of table games internal controls must demonstrate how the certificate holder will comply with this chapter and other internal control requirements in this subpart.
(b) The initial table games internal controls submission must be accompanied by:
(1) An attestation by the chief executive officer or other competent person with a direct reporting relationship to the chief executive officer attesting that the officer believes, in good faith, that the submitted table games internal controls conform to the requirements of the act and this subpart.
(2) An attestation by the chief financial officer or other competent person with a direct reporting relationship to the chief financial officer attesting that the officer believes, in good faith, that the submitted table games internal controls are designed to provide reasonable assurance that the financial reporting conforms to generally accepted accounting principles in the United States and complies with applicable laws and regulations, including the act and this subpart.
(c) The Board will review each table games initial submission made under subsection (a) and determine whether it conforms to the requirements of the act and this subpart and provides adequate and effective controls to ensure the integrity of the operation of table games at the licensed facility. If the Board determines that the submission is deficient in any area, the Board will provide a written notice of the deficiency to the certificate holder and allow the certificate holder to submit a revision to its initial submission. A certificate holder is prohibited from commencing table gaming operations until its system of table games internal controls is approved by the Board.
(d) If a certificate holder intends to make a change or amendment to its table games internal controls, it shall submit the change or amendment electronically to the Bureau of Gaming Operations using the Internal Controls Amendment Request Form posted on the Board's web site (www.pgcb.state.pa.us). A request for a change or amendment must include electronic copies of the attestations required under subsection (b)(1) and (2). The certificate holder may implement the change or amendment upon receipt of written notice of approval from the Board's Executive Director or on the 30th calendar day following the filing of a complete submission unless the certificate holder receives a notice under subsection (e) tolling the change or amendment or written notice of disapproval from the Board's Executive Director.
(e) If during the 30-day review period in subsection (d), the Bureau of Gaming Operations preliminarily determines that a procedure in a submission contains a substantial and material insufficiency likely to have a direct and materially adverse impact on the integrity of table game operations or the control of gross table game revenue, the Bureau of Gaming Operations, by written notice to the certificate holder, will:
(1) Specify the nature of the insufficiency and, when possible, an acceptable alternative procedure.
(2) Direct that the 30 calendar day review period in subsection (d) be tolled and that any internal controls at issue not be implemented until approved under subsection (g).
(f) Examples of submissions that may be determined to contain a substantial and material insufficiency likely to have a direct and materially adverse impact on the integrity of table games operations or the control of gross table game revenue may include the following:
(1) Submissions that fail to provide an audit trail sufficient to permit the review of table gaming operations or the reconstruction of gross table game revenue transactions.
(2) Submissions that fail to provide for the segregation of incompatible functions so that no employee is in a position both to commit an error or to perpetrate a fraud and to conceal the error or fraud in the normal course of the employee's duties.
(3) Submissions that do not include forms or other materials referenced in the submission or required by the act or this part that are essential elements of the internal controls.
(4) Submissions that would implement operations or accounting procedures not authorized by the act or this part.
(5) Submissions that are dependent upon the use of equipment or related devices or software not approved by the Board, unless the submissions are required as part of an authorized test of the equipment or related device or software.
(g) When a change or amendment has been tolled under subsection (e), the certificate holder may submit a revised change or amendment within 30 days of receipt of the written notice from the Bureau of Gaming Operations. The certificate holder may implement the revised change or amendment upon receipt of written notice of approval from the Board's Executive Director or on the 30th calendar day following the filing of the revision unless it receives written notice under subsection (e) tolling the change or amendment or written notice of disapproval from the Board's Executive Director.
(h) A current version of the table games internal controls of a certificate holder shall be maintained in or made available in electronic form through secure computer access to the accounting and surveillance departments of the certificate holder and the Board's onsite facilities required under § 465a.8 (relating to licensed facility). The certificate holder shall also maintain a copy, either in paper or electronic form, of any superseded table games internal control procedures for a minimum of 5 years. The original signed two attestations required under subsection (b)(1) and (2) shall also be maintained for a minimum of 5 years. Each page of the table games internal controls must indicate the date on which it was approved by the Board.
§ 525.3. Gaming day.
(a) The beginning and ending times of the gaming day for the purposes of determining gross table game revenue will be 6:00 a.m. to 5:59.59 a.m.
(b) Prior to commencing table gaming operations, each certificate holder shall submit to the Board, in writing, its hours of table gaming operations. A certificate holder may not commence table gaming operations until its hours of table gaming operations are approved by the Board's Executive Director.
(c) Any change in the hours of table gaming operations shall be submitted to the Board, in writing, and may not be implemented until approved by the Board's Executive Director.
§ 525.4. Certificate holder's organization requirements related to table games.
(a) In addition to the requirements in § 465a.11(b)(1) (relating to slot machine licensee's organization), the surveillance department shall be responsible for the following:
(1) The clandestine surveillance of the operation of, and gaming conducted at, table games.
(2) The clandestine surveillance of the operation of any satellite cage or Poker room cage.
(3) The clandestine surveillance of storage areas used for the storage of chips, plaques, cards, dice, Sic Bo shakers, Pai Gow tiles and other equipment used to conduct table games.
(4) The video recording of movements of table games drop boxes.
(5) The installation, maintenance and repair of the surveillance system equipment used by the surveillance department.
(6) The submission of a surveillance staffing plan as part of the certificate holder's internal controls prior to the commencement of table gaming operations, detailing minimum staffing and the manner in which the responsibilities in § 465a.11(b)(1) and this subsection shall be met.
(b) In addition to the requirements in § 465a.11(b)(6), the director of finance shall be responsible for all finance functions including, the control and supervision of the inventory of gaming chips, Poker room cage and the issuance of credit. The person responsible for the supervision and issuance of credit shall report directly to the director of finance.
(c) Except as provided in subsection (d), in addition to the departments required under § 465a.11(b), a certificate holder shall have a table games department supervised by a person located at the licensed facility, who functions, for regulatory purposes, as the director of table games. The director of table games shall be licensed as a key employee and shall be responsible for all table game functions including the inventory of table game equipment, dice and cards.
(d) In lieu of the departments required under § 465a.11(b)(4) and subsection (c), a certificate holder may elect to have a gaming department supervised by a person located at the licensed facility, who functions, for regulatory purposes, as the director of gaming. The director of gaming shall be licensed as a key employee and shall be responsible for the overall operation and conduct of gaming at slot machines and table games within the licensed facility. A slot machine licensee may also elect to have a director of table games and a director of slot operations who report to the director of gaming.
§ 525.5. Jobs compendium submission.
(a) Each certificate holder shall prepare and maintain a jobs compendium consistent with the requirements of this section detailing job descriptions and lines of authority for all personnel employed by the certificate holder. The jobs compendium shall be submitted to the Board for approval as part of the certificate holder's internal controls required under § 525.2 (relating to internal controls) at least 45 days prior to the commencement of operations of table games at the licensed facility. The Board will review the jobs compendium to determine whether the job descriptions and the organization charts contained therein conform to the licensing, permitting and registration requirements and chain-of-command and segregation of duties requirements of the act and the Board's regulations as part of the Board's review of the certificate holder's internal controls required under § 525.2.
(b) A jobs compendium must include the following sections:
(1) An alphabetical table of contents listing the position title, job code and department for each job description and the page number on which the corresponding job description may be found.
(2) An organization chart for each department and division, including all positions and illustrating by position title, direct and indirect lines of authority within the department or division. Each page of an organization chart shall specify the following:
(i) The date the organization chart was approved.
(ii) The effective date of the previously submitted organization chart that the revised organization chart supersedes.
(iii) A unique title or other identifying designation for that organization chart.
(3) Job descriptions of each employee position which accurately correspond to a position title listed in the organization charts and in the alphabetical table of contents. Each job description must be contained on a separate page, organized by departments or divisions, and include, at a minimum, the following:
(i) The job title and corresponding department.
(ii) Job duties and responsibilities.
(iii) Detailed descriptions of experience or educational requirements.
(iv) The type of license, permit or registration required under the act and the Board's regulations.
(v) The date of submission of each employee job description and the date of any prior job description it supersedes.
(vi) The page number of each organization chart on which the employee job title is included.
(vii) The access code that will be assigned to the employee job description for the access badge required under § 465a.12 (relating to access badges).
(c) Any proposed amendment to a previously approved jobs compendium, including any amendment to an organization chart, which involves the departments listed in §§ 456a.11(b) and 524.4 (relating to slot machine licensee's organization; and certificate holder's organization requirements related to table games) shall be submitted as an amendment to the slot machine licensee's internal controls in accordance with § 456a.2 (relating to internal controls and audit protocols). Amendments that are required to be submitted under this subsection may be implemented by the certificate holder prior to approval of the amendment, if:
(1) The amendment is immediately recorded in the copy of the jobs compendium maintained by the certificate holder on its premises.
(2) The amendment is submitted to the Bureau of Gaming Operations by the end of the business day on the date of implementation, including at a minimum, the proposed changes to the information required by subsection (b), including the corresponding revised job descriptions and organization charts, contained on pages which may be used to substitute for those sections of the jobs compendium previously approved by the Board.
(d) For departments that are not listed in § 456a.11(b) or § 524.4, unless otherwise directed by the Board, a certificate holder will not be required to submit amendments to its jobs compendium for approval. Instead, the certificate holder will be required to notify the Bureau of Licensing by the end of the business day on the date of implementation for newly created positions or changes to job descriptions and tables of organizations. The notification must include properly formatted job descriptions and organization charts for the affected departments. After the notification has been submitted, the Bureau of Licensing may require changes to the job descriptions and organization charts to ensure compliance with licensing, permitting or registration requirements.
(e) Notwithstanding other requirements of this section, each certificate holder shall submit a complete and up-to-date jobs compendium to the Bureau of Gaming Operations and the Bureau of Licensing 12 months after its receipt of authorization to commence table gaming operations and every 12 months thereafter.
(f) Each certificate holder shall maintain on its premises a complete, updated copy of its jobs compendium, in a written or electronic form, which shall be made available for review upon request of the Board, the Department or the Pennsylvania State Police.
(g) No provision of this section may be construed to limit a certificate holder's discretion in utilizing a particular job title for any position in its jobs compendium.
§ 525.6. Personnel assigned to the operations and conduct of table games.
(a) The following personnel shall be used to operate table games in a licensed facility:
(1) Pit clerks.
(2) Dealers.
(3) Stickpersons.
(4) Boxpersons.
(5) Floorpersons
(6) Pit managers.
(7) Poker shift managers.
(8) Assistant table games shift managers.
(9) Table games shift managers.
(b) Certificate holders shall maintain the following minimum levels of staffing whenever table games are being operated:
(1) One pit clerk.
(2) One dealer for any table game other than Craps or Baccarat.
(3) Two dealers for each Baccarat table.
(4) Three dealers for each Craps table, one of whom shall act as the stickperson.
(5) One boxperson for each craps table.
(c) Certificate holders shall provide a sufficient number of floorpersons to supervise the operation of table games in accordance with the standards in this subsection. A floorperson may not supervise more than the number of tables specified in one of the following paragraphs:
(1) Four tables comprised of any combination of banking table games excluding:
(i) Baccarat.
(ii) Midibaccarat, when using the dealing procedure permitted under § 543.9(c)(3) (relating to hands of player and banker; procedure for dealing initial two cards to each hand).
(iii) Craps.
(iv) Mini-Craps.
(v) Pai Gow.
(2) One Baccarat table.
(3) Two Midibaccarat tables using the dealing procedure permitted under § 543.9(c)(3).
(4) One Midibaccarat table using the dealing procedure permitted under § 543.9(c)(3) and one table of any other banking table game excluding Baccarat, Craps, Mini-Craps and Pai Gow.
(5) Three Craps tables.
(6) One Craps table and one table of any other banking table game excluding Baccarat, Midibaccarat, using the dealing procedure permitted under § 543.9(c)(3), Mini-Craps and Pai Gow.
(7) One Mini-Craps table, if only one dealer is assigned to the table.
(8) Two Mini-Craps tables, if the there is a dealer and a stickperson assigned to the tables.
(9) Two Pai Gow tables, if the tables are in a side-by-side configuration.
(10) One Pai Gow table and one table of any other banking table game excluding Baccarat, Midibaccarat, using the dealing procedure permitted under § 543.9(c)(3), Craps and Mini-Craps.
(11) Eight Poker tables.
(12) Ten Poker tables, if no floorperson assigned to Poker has any responsibilities for seating players.
(d) If the gaming tables being supervised by a floorperson are electronic gaming tables other than fully automated electronic gaming tables, the maximum number of gaming tables that the floorperson may supervise may be increased by 50%. For example, under subsection (c)(1) the floorperson would be allowed to supervise six banking gaming tables instead of four.
(e) Certificate holders shall provide a sufficient number of pit managers or assistant table games shift managers to supervise the operation of table games subject to the limitation that a pit manager or assistant table games shift manager may not directly supervise more than six floorpersons.
(f) Certificate holders shall provide a Poker shift manager to supervise all open Poker tables. If no more than three Poker tables are open, a floorperson is not required.
(g) Certificate holders shall provide a table games shift manager to supervise the operation of table games during every shift. An assistant table games shift manager may be designated to act as the table games shift manager in the table games shift manager's absence, but that assistant table games shift manager may not be counted toward the number of pit managers or assistant table games shift managers required under subsection (e).
(h) A certificate holder may request to use a staffing plan that differs from the minimum standards in this section by filing a written Alternate Minimum Staffing Plan with the Board's Executive Director. The Alternate Minimum Staffing Plan, at a minimum, must include:
(1) The pit number and configuration of any pit affected.
(2) The type, location and table number of any table affected.
(3) The standard staffing level required for the gaming table or tables by this section and the proposed alternative staffing.
(4) The days, shifts or times during which the alternative staffing would be in effect.
(5) A narrative explaining the rational for the proposed alternative staffing and how the alternative staffing will protect the integrity of gaming at the affected gaming tables.
(i) A certificate holder that has filed a request to use an Alternate Minimum Staffing Plan may not implement that plan until the certificate holder has received written approval from the Board's Executive Director.
(j) Nothing in this section may be construed to limit a certificate holder from utilizing personnel in addition to those described in this section nor may anything in this section be construed to limit the discretion of the Board to order the utilization of additional personnel in a licensed facility.
[Pa.B. Doc. No. 10-868. Filed for public inspection May 14, 2010, 9:00 a.m.]
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