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PA Bulletin, Doc. No. 03-666

RULES AND REGULATIONS

DEPARTMENT OF REVENUE

[61 PA. CODE CH. 815]

Daily Number and Big Four Game

[33 Pa.B. 1845]

   The Secretary of Revenue (Secretary), under the authority contained in section 303 of the State Lottery Law (72 P. S. § 3761-303), by this notice of final-omitted rulemaking amends §§ 815.45 and 815.235 (relating to time, place and manner of conducting drawings).

   Because of time constraints associated with the establishment, operation and administration of lottery games, the Department of Revenue (Department), under section 204 of the act of July 31, 1968 (P. L. 769, No. 240) (CDL) (45 P. S. § 1204) and the regulation thereunder, 1 Pa. Code § 7.4 (relating to omission of proposed rulemaking), finds that notice of proposed rulemaking is under the circumstances impracticable and, therefore, may be omitted.

   The Department's justification for utilizing the final-omitted rulemaking process is based upon the time constraints associated with the establishment, operation and administration of lottery games. The efficient and successful operation of the Lottery requires that the Lottery implement the latest innovations and trends in the lottery industry. The inability to adapt marketing strategies quickly may lead to a reduction in Lottery revenues. The necessity of the Lottery to react quickly to market forces has been recognized in the past as an appropriate justification for utilizing the proposed rulemaking omitted process as evidenced by the approval of these types of regulations in the past.

Purpose of the Final-Omitted Rulemaking

   The amendments to §§ 815.45 and 815.235 will allow the Department to employ emerging technologies to enhance a drawing methodology that has not changed since the introduction of the Daily Number game in 1977 and the Big Four game in 1980. At that time, bingo hall ping-pong ball drawing machines were considered the most familiar to players and could produce a reliable result. Since that time, technology and the players have changed dramatically. Lottery players are now routinely utilizing electronics to obtain money, pay for gas, purchase merchandise and pay bills. The Department is interested in exploring new drawing styles that can take advantage of this change in the marketplace.

   An example of an ''other selection methodology'' the Department could use is a random number generator. A random number generator is a secure manner to generate numeric results using a certified computer program loaded on a piece of computer equipment. Currently Delaware and Indiana are utilizing the random generator without negative impact. In addition, the Department successfully employed this technology with the online game Hearts and Diamonds which ran from 1994 to 1996.

Explanation of Regulatory Requirements

   Sections 815.45(c) and 815.235(c) are amended by adding language to allow the Department to select the Daily Number and Big Four Number with the aid of mechanical devices or any other selection methodology as authorized by the Secretary.

Fiscal Impact

   The Department has determined that the final-omitted rulemaking will have a one-time cost of approximately $100,000 to the Commonwealth.

Paperwork

   The final-omitted rulemaking will not generate additional paperwork for the public or the Commonwealth.

Effectiveness/Sunset Date

   The final-omitted rulemaking will become effective upon publication in the Pennsylvania Bulletin. The sections are scheduled for review within 5 years of final publication. No sunset date has been assigned.

Contact Person

   The contact person for an explanation of the final-omitted rulemaking is Anita M. Doucette, Office of Chief Counsel, Department of Revenue, Dept. 281061, Harrisburg, PA 17128-1061.

Regulatory Review

   Under section 5.1(c) of the Regulatory Review Act (71 P. S. § 745.5a(c)), on February 20, 2003, the Department submitted a copy of the final-omitted rulemaking to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Committee on Finance and the Senate Committee on Finance. On the same date, the final-omitted rulemaking was submitted to the Office of Attorney General for review and approval under the Commonwealth Attorneys Act (71 P. S. §§ 732-101--732-506).

   Under section 5.1(d) of the Regulatory Review Act, the final-omitted rulemaking was deemed approved by the Committees on March 26, 2003. IRRC met on March 27, 2003, and approved the final-omitted rulemaking under section 5.1(e) of the Regulatory Review Act (71 P. S. § 745.5a(e)).

Findings

   The Department finds that the regulations are necessary and appropriate for the administration and enforcement of the authorizing statute. Under section 204 of the CDL, the Department also finds that the proposed rulemaking procedures in sections 201 and 202 of the CDL (45 P. S. §§ 1201 and 1202) are impracticable because of the time constraints associated with the establishment, operation and administration of lottery games.

Order

   The Department, acting under the authorizing statute, orders that:

   (a)  The regulations of the Department, 61 Pa. Code Chapter 815, are amended by amending §§ 815.45 and 815.235 to read as set forth in Annex A.

   (b)  The Secretary shall submit this order and Annex A to the Office of General Counsel and Office of Attorney General for approval as to form and legality as required by law.

   (c)  The Secretary shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.

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

GREGORY C. FAJT,   
Secretary

   (Editor's Note:  For the text of the order of the Independent Regulatory Review Commision, relating to this document, see 33 Pa.B.         (April 12, 2003).)

   Fiscal Note:  15-422. (1) General Fund; (2) Implementing Year 2002-03 is $100,000; (3) 1st Succeeding Year 2003-04 is $0; 2nd Succeeding Year 2004-05 is $0; 3rd Succeeding Year 2005-06 is $0; 4th Succeeding Year 2006-07 is $0; 5th Succeeding Year 2007-08 is $0; (4) 2001-02 Program--$46,840,000; 2000-01 Program--$4,5235,000; 1999-00 Program--$44,115,000; (7) Lottery Administration--General Operations; (8) recommends adoption. These costs are included in the 2002-2003 budget.

Annex A

TITLE 61.  REVENUE

PART V.  STATE LOTTERIES

CHAPTER 815.  PLANS, GAMES AND DRAWINGS

Subchapter C.  DAILY NUMBER GAME

§ 815.45.  Time, place and manner of conducting drawings.

   (a)  Time of drawings. Daily Number game drawings will be held on a daily basis or as determined and publicly announced by the Secretary.

   (b)  Place of drawings. Each drawing shall be conducted in the central office of the Lottery, unless it directs that a drawing or a part thereof be conducted at some other location.

   (c)  Manner of conducting drawings. The objective of The Daily Number Game drawing is to select, at random, one three-digit number with the aid of mechanical devices or any other selection methodology as authorized by the Secretary. This one three-digit number will be used in determining Daily Number Game winners.

   (d)  Special drawings. The Secretary may designate and announce through available media special drawings to be held in addition to those previously scheduled. In that event, a ticket purchased for that day's drawing shall be valid for the special drawing held on the same date. A ticket purchased for that day's drawing shall also be eligible for the prizes as provided in this subchapter. Money for the prizes to be paid to winners of special drawings, under §  815.46 (relating to determination of prize winners), will be paid from funds authorized for the payment of prizes.

Subchapter K.  THE BIG FOUR GAME DRAWING

§ 815.235.  Time, place and manner of conducting drawings.

   (a)  Time of drawing. Big Four game drawings will be held on a daily basis or as determined and publicly announced by the Secretary.

   (b)  Place of drawings. A drawing will be conducted in the central office of the Lottery unless it directs that a drawing or a part thereof be conducted at some other location.

   (c)  Manner of conducting drawings. The objective of the Big Four game drawing is to select, at random, one four-digit number with the aid of mechanical devices or any other selection methodology as authorized by the Secretary. This one four-digit number will be used in determining Big Four game winners.

   (d)  Special drawings. The Secretary may designate and announce through available media special drawings to be held in addition to those previously scheduled. In this event, a ticket purchased for that day's drawing is valid for the special drawing held on the same date. A ticket purchased for that day's drawing is also eligible for the prizes as provided in this subchapter. Money for the prizes to be paid to winners of special drawings, under § 815.236 (relating to determination of prize winners), will be paid from funds authorized for the payment of prizes.

[Pa.B. Doc. No. 03-666. Filed for public inspection April 11, 2003, 9:00 a.m.]


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