PROPOSED RULEMAKING
PENNSYLVANIA GAMING CONTROL BOARD
[58 PA. CODE CH. 481]
Diversity
[36 Pa.B. 5687]
[Saturday, September 9, 2006]The Pennsylvania Gaming Control Board (Board), under the general authority in 4 Pa.C.S. § 1202(b)(14) (relating to general and specific powers) and the specific authority in 4 Pa.C.S. §§ 1212 and 1325(b) and (c) (relating to diversity goals of board; and license or permit issuance), proposes to adopt Chapter 481 (relating to diversity) to read as set forth in Annex A.
Purpose of the Proposed Rulemaking
Under the authority granted to the Board under 4 Pa.C.S. § 1203 (relating to temporary regulations), the Board initially adopted temporary regulations in Chapter 481 at 35 Pa.B. 4045 (June 16, 2005). Under 4 Pa.C.S. Part II (relating to gaming), the temporary regulations expire on July 5, 2007.
The Board is proposing to replace the temporary regulations with the permanent regulations in this proposed rulemaking.
Explanation of Chapter 481
This chapter contains diversity participation and reporting provisions that apply to entities that are licensed or certified by the Board. These regulations encompass both contracting with and employment at the entities.
Amendments to the temporary regulations in this proposed rulemaking include a large number of editorial changes that improve the clarity of the language in the temporary regulations. In § 481.2 (relating to definitions), registered vendors has been deleted from the list of entities that are subject to the diversity participation and reporting requirements. Temporary § 481.3(a) (relating to diversity participation) has been deleted to eliminate duplication of efforts by the Board and the Department of General Services in posting a list of certified minority and women's business enterprises. In § 481.5 (relating to report of participation), subsection (b) has been added to require slot machine, manufacturer and supplier licensees to produce quarterly reports in addition to annual reports. Subsection (c) has been added to allow management companies to file a consolidated report with the slot machine licensee with whom they have a management contract to prevent a duplication of efforts on behalf of the licensed facility and the management company. Temporary § 481.4(c) (relating to establishment of diversity plan required) has been relocated to § 481.6 (relating to diversity audits).
Affected Parties
This proposed rulemaking imposes requirements on entities that are licensed or certified by the Board.
Fiscal Impact
Under 4 Pa.C.S. §§ 1401 and 1402 (relating to slot machine licensee deposits; and gross terminal revenue deductions), the costs and expenses of the Board, the Pennsylvania State Police, the Office of Attorney General and the Department of Revenue incurred in carrying out the responsibilities imposed by 4 Pa.C.S. Part II will be recovered from the slot machine licensees. Accordingly, the costs identified will be borne by the slot machine licensees, not the General Fund.
Commonwealth
This proposed rulemaking will have no significant fiscal impact on the Commonwealth.
Political Subdivisions
This proposed rulemaking will have no significant fiscal impact on political subdivisions of the Commonwealth.
Private Sector
Licensed or certified entities will experience some costs to comply with the diversity participation reporting requirements.
General Public
This proposed rulemaking will have no fiscal impact on the general public.
Paperwork Requirements
This proposed rulemaking does not impose new reporting or paperwork requirements on the affected parties under the Board's jurisdiction. This proposed rulemaking clarifies the type of information that should be contained in the report that is currently required to be submitted to the Board.
Effective Date
The proposed rulemaking will become effective upon final-form publication in the Pennsylvania Bulletin.
Public Comments
Interested persons are invited to submit written comments, suggestions or objections regarding the proposed rulemaking within 30 days after the date of publication in the Pennsylvania Bulletin to Paul Resch, Secretary, Pennsylvania Gaming Control Board, P. O. Box 69060, Harrisburg, PA 17106-9060, Attention: Public Comment on Regulation #125-47.
Contact Person
The contact persons for questions about this proposed rulemaking are Richard Sandusky, Director of Regulatory Review, (717) 214-8111, and Michelle Afragola, Deputy Director of Regulatory Review, (610) 943-1338.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on August 28, 2006, the Board submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Tourism and Recreational Development Committee and the Senate Committee on Rules and Executive Nominations. A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Board, the General Assembly and the Governor of comments, recommendations or objections raised.
THOMAS A. DECKER,
ChairpersonFiscal Note: 125-47. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD
Subpart G. MINORITY AND WOMEN'S BUSINESS ENTERPRISES
CHAPTER 481. DIVERSITY Sec.
481.1. Statement of purpose, policy and applicability. 481.2. Definitions. 481.3. Diversity participation. 481.4. Establishment of diversity plan required. 481.5. Report of participation. 481.6. Diversity audits. § 481.1. Statement of purpose, policy and applicability.
(a) This chapter establishes the procedures for promoting and ensuring that regulated entities foster participation and diversity in all aspects of their operations in this Commonwealth.
(b) It is the policy of the Board to promote and ensure that regulated entities conduct all aspects of their operations in a manner that assures diversity of opportunity as follows:
(1) In the ownership, participation and operation of regulated entities in this Commonwealth.
(2) Through the ownership, participation and operation of business enterprises associated with or utilized by regulated entities.
(3) Through the provision of goods and services utilized by regulated entities.
(c) It is further the policy of the Board to promote and ensure diversity in employment and contracting by each regulated entity and its contractors, subcontractors, assignees, lessees and agents.
§ 481.2. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Diversity plan--A plan that promotes and ensures diversity in ownership, participation and operation of regulated entities; and in employment and contracting by regulated entities.
Minority--The ethnic/racial categories identified in employer survey reports that are required by the United States Equal Opportunity Commission and the Office of Federal Contract Compliance Programs of the United States Department of Labor under section 709 of the Civil Rights Act of 1964 (42 U.S.C.A. § 2000(e)-8) or by subsequent amendments to that Federal act.
Participation plan--An obligation imposed by a regulated entity as part of its contract with a contractor that requires the contractor to utilize minority or women owned business enterprises.
Regulated entity--An applicant for or holder of the following:
(i) Slot machine license.
(ii) Manufacturer license.
(iii) Supplier license.
(iv) Vendor certification.
(v) Junket license.
(vi) Management company license.
§ 481.3. Diversity participation.
The list of the minority and women's business enterprises that are certified by the Bureau of Minority and Women's Business Enterprises of the Department of General Services under 62 Pa.C.S. Part I (relating to Commonwealth Procurement Code) may be used by a regulated entity to establish the eligibility of an enterprise as a minority or women's business enterprise for the purpose of promoting and ensuring minority and women's business participation.
§ 481.4. Establishment of diversity plan required.
(a) Each regulated entity shall include in its application for licensure or certification a diversity plan that establishes a separate goal of diversity in the ownership, participation and operation of, and employment at the regulated entity. The Board will determine whether the stated goals set forth in each diversity plan are reasonable and represent a good faith effort to assure that all persons are accorded equality of opportunity in contracting and employment by the regulated entity and its contractors, subcontractors, assignees, lessees and agents.
(b) A regulated entity may demonstrate achievement of its diversity goals through one or more of the following:
(1) Contracting or transacting directly with minority and women's business enterprises.
(2) Contracting with a nonminority business enterprise under terms and conditions that establish a participation plan.
§ 481.5. Report of participation.
(a) As part of an application to renew a license or certification, a regulated entity shall file a report with the Board concerning the performance of its diversity plan. The report must contain the following:
(1) Employment data, including information on the following:
(i) Minority and women representation in the regulated entity's workforce in all job classifications.
(ii) Salary information.
(iii) Recruitment and training information, including executive and managerial level recruitment and training.
(iv) Retention and outreach efforts.
(2) The total number and value of all contracts or transactions awarded by the regulated entity for goods and services.
(3) The total number and value of all contracts or transactions awarded by the regulated entity to minority and women's business enterprises.
(4) A list of each contract or transaction awarded by the regulated entity to a minority or women's business enterprise and the actual value of each contract or transaction.
(5) The total number and value of all contracts awarded that contain a participation plan.
(6) The total number and value of all subcontracts awarded to minority and women's business enterprises under contracts containing a participation plan.
(7) A list of each subcontract awarded to a minority or women's business enterprise under contracts containing a participation plan and the actual value of each subcontract.
(8) A comprehensive description of all efforts made by the regulated entity to monitor and enforce the participation plan.
(9) Information on minority and women investment, equity ownership, and other ownership or management opportunities initiated or promoted by the regulated entity.
(10) Other information requested in writing by the Board to ensure compliance with the act and this part.
(b) In addition to the reports required under subsection (a), slot machine licensees, manufacturer licensees and supplier licensees shall file updated versions of the reports required under subsection (a) quarterly.
(c) A licensed management company may file a consolidated report with the slot machine licensee with whom the management company has a management contract.
(d) The Board will use the reports required under subsections (a), (b) and (c) to monitor compliance with the act and this part. The Board may request the assistance of the Bureau of Minority and Women's Business Enterprises, of the Department of General Services, in the review of regulated entities' compliance with the requirements of the act and this part.
§ 481.6. Diversity audits.
Onsite audits may be performed on an annual basis or at the discretion of the Board to ensure compliance with this chapter.
[Pa.B. Doc. No. 06-1753. Filed for public inspection September 8, 2006, 9:00 a.m.]
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