Minimum Internal Control Standards, 63873-63875 [2013-23977]

Download as PDF Federal Register / Vol. 78, No. 207 / Friday, October 25, 2013 / Rules and Regulations DEPARTMENT OF THE INTERIOR National Indian Gaming Commission 25 CFR Part 543 RIN 3141–AA27 Minimum Internal Control Standards National Indian Gaming Commission, Interior. ACTION: Final rule. AGENCY: The National Indian Gaming Commission (NIGC) amends its minimum internal control standards for Class II gaming under the Indian Gaming Regulatory Act to add standards for kiosks. DATES: Effective November 25, 2013. FOR FURTHER INFORMATION CONTACT: National Indian Gaming Commission, 1441 L Street NW., Suite 9100 Washington, DC 20005. Telephone: 202–632–7009; email: reg.review@ nigc.gov. SUMMARY: SUPPLEMENTARY INFORMATION: I. Background emcdonald on DSK67QTVN1PROD with RULES The Indian Gaming Regulatory Act (IGRA or Act), Public Law 100–497, 25 U.S.C. 2701 et seq., was signed into law on October 17, 1988. The Act established the National Indian Gaming Commission (‘‘NIGC’’ or ‘‘Commission’’) and set out a comprehensive framework for the regulation of gaming on Indian lands. On January 5, 1999, the NIGC published a final rule in the Federal Register called Minimum Internal Control Standards. 64 FR 590. The rule added a new part to the Commission’s regulations establishing Minimum Internal Control Standards (MICS) to reduce the risk of loss because of customer or employee access to cash and cash equivalents within a casino. The rule contains standards and procedures that govern cash handling, documentation, game integrity, auditing, surveillance, and variances, as well as other areas. The Commission recognized from their inception that the MICS would require periodic review and updates to keep pace with technology and has substantively amended them numerous times, most recently on September 21, 2012. 77 FR 58708. II. Development of the Rule On September 21, 2012, the Commission concluded nearly two years of consultation and drafting with the publication of comprehensive amendments, additions, and updates to Part 543, the minimum internal control standards (MICS) for Class II gaming VerDate Mar<15>2010 15:42 Oct 24, 2013 Jkt 232001 operations. The regulations require tribes to establish controls and implement procedures at least as stringent as those described in this part to maintain the integrity of the gaming operation. One of the 2012 additions was the inclusion of standards for kiosks, devices capable of redeeming vouchers and/or wagering credits or initiating transfers from a patron deposit account. The regulation provided general standards for kiosks but, upon further review, additional standards are needed for the surveillance of kiosks and for the collection and count of their contents. The Commission published a proposed rule adding kiosk drop, count, fill, and surveillance standards to Part 543 on February 20, 2013 (78 FR 11793). The Commission received numerous comments and, after engaging in two tribal consultations and considering all public comments, has revised the rule. III. Review of Public Comments Many commenters expressed overarching concerns with the rule’s structure and scope, questioning whether the proposed rule truly contained minimum standards. The Commission agrees with the commenters, and has scaled back the rule to contain minimum internal controls for kiosks. To begin, commenters distinguished kiosks from player interfaces and card tables, explaining that kiosks operate on an imprest level, are maintained on the cage accountability, and do not present the same risks as the revenue generating centers. Therefore, they contend that it is excessive and inappropriate to apply the strict drop and count process to kiosks. The Commission agrees. Accordingly, references to the drop and count team have been replaced with more general terminology (i.e., authorized agents); a provision has been added to allow the count to take place ‘‘in a secure area, such as the cage or count room;’’ and many of the stringent count standards have been removed to account for those operations performing the kiosk count in the cage and to reflect lower level of risk presented by kiosks. By removing many of the count standards, the Commission has also resolved specific concerns about provisions that were contained in those standards, such as testing count equipment and assigning unique asset identification numbers. Commenters also suggested that the kiosk standards would be better placed in the Cage section. The Commission acknowledges that kiosks are maintained on the cage accountability and that some provisions may PO 00000 Frm 00051 Fmt 4700 Sfmt 4700 63873 reasonably be organized under the cage section, while others may overlap. Accordingly, where the Cage section contains fill and report standards, similar standards have been removed from the Drop and Count sections to avoid redundancy. The Commission declines, however, to relocate all kiosk standards to the Cage section because the process of removing the currency cassettes and financial instrument storage components is most similar to— though less stringent than—the drop and count process for player interfaces and card tables. By removing the report provisions, The Commission has also resolved commenters’ concerns regarding the automatic generation of the reports and any incidental viewing of them by those removing the currency cassettes and/or financial instrument storage components. Commenters also expressed concerns with definitions. Two comments suggested that the definition of kiosk should be limited only to the type of kiosks that dispense currency. It appears, however, that the commenters were referencing a definition of kiosk that has since been superseded by the publication of 25 CFR 543.2 on September 21, 2012 (77 FR 58708). The Commission believes that the current definition satisfies the commenters’ concerns by appropriately limiting the term to redemption kiosks. Additionally, commenters objected to defining currency cassettes as a ‘‘locked’’ compartment because not all cassettes are locked and it would be impracticable and cost prohibitive to have a lock installed on each cassette. The Commission agrees and has removed ‘‘locked’’ from the definition. Additionally, the Commission has replaced the controlled key standards for kiosks with a more general statement requiring controls to be established and procedures implemented to safeguard the keys for kiosks. Further, the Commission notes that § 543.18(d)(3) adequately protects the integrity of currency cassettes by requiring them to be secured with a lock or tamper resistant seal if not placed inside a kiosk. Commenters stated that requiring three agents to remove currency cassettes and financial instrument storage components from kiosks is excessive. The Commission agrees and has reduced the requirement to two agents. Commenters explained that requiring operations to test currency cassettes to verify the correct denomination in each cassette is not possible for many machines because they have multiple cassettes of the same denomination and E:\FR\FM\25OCR1.SGM 25OCR1 emcdonald on DSK67QTVN1PROD with RULES 63874 Federal Register / Vol. 78, No. 207 / Friday, October 25, 2013 / Rules and Regulations the machine must exhaust the first cassette before dispensing from the others. The Commission appreciates this explanation and has replaced the standard with a more general requirement for operations to establish controls and implement procedures to ensure that cassettes contain the correct denominations. One commenter requested clarification of ‘‘emergency’’ as it applies to authorized persons being permitted to access full kiosk currency cassettes and financial instrument storage components ‘‘in an emergency’’ for resolution of a problem. As the Commission has explained in previous preambles (See 77 FR 58708), the tribal gaming regulatory authorities and operation management are in the best position to define the term and the Commission declines to substitute its judgment. One commenter noted that coupons have cash value and must, rather than ‘‘may,’’ be recorded. The Commission chooses not to make this change, but intends to consider it in the next rulemaking session. Commenters suggested that Tier A facilities should be exempted from the requirement to notify surveillance before removing cassettes and components from kiosks because they are not required to have a staffed surveillance room. The Commission acknowledges this concern, notes that the discrepancy also appears in the drop and count standards for player interfaces and card games, and intends to address the issue comprehensively in the next rulemaking session. In the meantime, the Commission does not expect operations to make futile efforts to notify a nonexistent surveillance staff member. Finally, commenters expressed concern that the surveillance standard for kiosks may require more than one dedicated camera for each kiosk, presenting a considerable expense to operations. The Commission stresses that the cameras need only capture a general overview of each kiosk with sufficient clarity to identify the activity and the individuals performing it. This means, for example, that if a patron is redeeming a voucher, someone viewing the surveillance footage should be able to determine that the activity was a redemption. The camera is not required to capture the amount of the voucher or the denominations of currency being dispensed. The Commission declines to reduce the standard further. VerDate Mar<15>2010 15:42 Oct 24, 2013 Jkt 232001 OMB control number expires on October 31, 2015. Regulatory Matters Regulatory Flexibility Act The rule will not have a significant impact on a substantial number of small entities as defined under the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. Moreover, Indian Tribes are not considered to be small entities for the purposes of the Regulatory Flexibility Act. Text of the Final Rule Small Business Regulatory Enforcement Fairness Act ■ The rule is not a major rule under 5 U.S.C. 804(2), the Small Business Regulatory Enforcement Fairness Act. The rule does not have an effect on the economy of $100 million or more. The rule will not cause a major increase in costs or prices for consumers, individual industries, Federal, State, local government agencies or geographic regions, nor will the proposed rule have a significant adverse effect on competition, employment, investment, productivity, innovation, or the ability of the enterprises, to compete with foreign based enterprises. Authority: 25 U.S.C. 2702(2), 2706(b)(1–4), 2706(b)(10). Unfunded Mandate Reform Act The Commission, as an independent regulatory agency, is exempt from compliance with the Unfunded Mandates Reform Act, 2 U.S.C. 1502(1); 2 U.S.C. 658(1). Takings Civil Justice Reform In accordance with Executive Order 12988, the Commission has determined that the rule does not unduly burden the judicial system and meets the requirements of sections 3(a) and 3(b)(2) of the Order. National Environmental Policy Act The Commission has determined that the rule does not constitute a major federal action significantly affecting the quality of the human environment and that no detailed statement is required pursuant to the National Environmental Policy Act of 1969, 42 U.S.C. 4321, et seq. Paperwork Reduction Act The information collection requirements contained in this rule were previously approved by the Office of Management and Budget as required by 44 U.S.C. 3501, et seq., and assigned OMB Control Number 3141–0009. The Frm 00052 PART 543—MINIMUM INTERNAL CONTROL STANDARDS FOR CLASS II GAMING 1. The authority for Part 543 continues to read as follows: 2. Amend § 543.2 by adding a definition for currency cassette in alphabetical order to read as follows: ■ § 543.2 part? What are the definitions for this * * * * * Currency cassette. A compartment that contains a specified denomination of currency. Currency cassettes are inserted into kiosks, allowing them to dispense currency. * * * * * ■ 3. Amend § 543.17 by revising the section heading and paragraphs (h) and (i), and adding paragraphs (j) and (k) to read as follows: § 543.17 What are the minimum internal control standards for drop and count? * In accordance with Executive Order 12630, the Commission has determined that the rule does not have significant takings implications. A takings implication assessment is not required. PO 00000 For the reasons discussed in the preamble, the Commission amends 25 CFR part 543 as follows: Fmt 4700 Sfmt 4700 * * * * (h) Collecting currency cassettes and financial instrument storage components from kiosks. Controls must be established and procedures implemented to ensure that currency cassettes and financial instrument storage components are securely removed from kiosks. Such controls must include the following: (1) Surveillance must be notified prior to the financial instrument storage components or currency cassettes being accessed in a kiosk. (2) At least two agents must be involved in the collection of currency cassettes and/or financial instrument storage components from kiosks and at least one agent should be independent of kiosk accountability. (3) Currency cassettes and financial instrument storage components must be secured in a manner that restricts access to only authorized agents. (4) Redeemed vouchers and pulltabs (if applicable) collected from the kiosk must be secured and delivered to the appropriate department (cage or accounting) for reconciliation. (5) Controls must be established and procedures implemented to ensure that currency cassettes contain the correct E:\FR\FM\25OCR1.SGM 25OCR1 Federal Register / Vol. 78, No. 207 / Friday, October 25, 2013 / Rules and Regulations denominations and have been properly installed. (i) Kiosk count standards. (1) Access to stored full kiosk financial instrument storage components and currency cassettes must be restricted to: (i) Authorized agents; and (ii) In an emergency, authorized persons for the resolution of a problem. (2) The kiosk count must be performed in a secure area, such as the cage or count room. (3) If counts from various revenue centers and kiosks occur simultaneously in the count room, procedures must be in effect that prevent the commingling of funds from the kiosks with any revenue centers. (4) The kiosk financial instrument storage components and currency cassettes must be individually emptied and counted so as to prevent the commingling of funds between kiosks until the count of the kiosk contents has been recorded. (i) The count of must be recorded in ink or other permanent form of recordation. (ii) Coupons or other promotional items not included in gross revenue (if any) may be recorded on a supplemental document. All single-use coupons must be cancelled daily by an authorized agent to prevent improper recirculation. (5) Procedures must be implemented to ensure that any corrections to the count documentation are permanent, identifiable, and the original, corrected information remains legible. Corrections must be verified by two agents. (j) Controlled keys. Controls must be established and procedures implemented to safeguard the use, access, and security of keys for kiosks. (k) Variances. The operation must establish, as approved by the TGRA, the threshold level at which a variance must be reviewed to determine the cause. Any such review must be documented. 4. Amend § 543.21 by adding paragraph (c)(6) to read as follows: ■ § 543.21 What are the minimum internal control standards for surveillance? emcdonald on DSK67QTVN1PROD with RULES * * * * * (c) * * * (6) Kiosks: The surveillance system must monitor and record a general overview of activities occurring at each kiosk with sufficient clarity to identify the activity and the individuals performing it, including maintenance, drops or fills, and redemption of wagering vouchers or credits. * * * * * VerDate Mar<15>2010 15:42 Oct 24, 2013 Jkt 232001 Dated: September 24, 2013, Washington, DC. Tracie L. Stevens, Chairwoman. Daniel J. Little, Associate Commissioner. Jonodev O. Chaudhuri, Associate Commissioner. [FR Doc. 2013–23977 Filed 10–24–13; 8:45 am] BILLING CODE 7565–01–P DEPARTMENT OF JUSTICE Bureau of Prisons 28 CFR Part 524 [BOP–AB60–F] RIN 1120–AB60 Progress Reports Rules Revision Bureau of Prisons, Justice. Final rule. AGENCY: ACTION: In this document, the Bureau of Prisons (Bureau) removes from regulations and/or modifies two types of progress reports: transfer reports and triennial reports. DATES: This rule is effective on November 25, 2013. FOR FURTHER INFORMATION CONTACT: Sarah Qureshi, Office of General Counsel, Bureau of Prisons, phone (202) 307–2105. SUPPLEMENTARY INFORMATION: In this final rule, the Bureau removes from regulations and/or modifies two types of progress reports: Transfer reports and triennial reports. We published a proposed rule on this topic on September 15, 2011 (76 FR 57012). Section 524.41, entitled ‘‘Types of progress reports,’’ lists several types of progress reports prepared for nonBureau entities, such as for parole hearings, pre-release, final (prepared 90 days before an inmate’s release to a term of supervision), and for other reasons (such as upon court request or a clemency review). The previous regulations also identified two types of progress reports that were primarily intended for internal Bureau purposes: Those prepared when inmates transfer to community confinement or another institution, and those prepared triennially if not more frequently done for any other reason. Transfer Reports. The previous regulations defined ‘‘transfer report’’ as one prepared on an inmate recommended and/or approved for transfer to community confinement or to another institution and whose progress has not been summarized within the SUMMARY: PO 00000 Frm 00053 Fmt 4700 Sfmt 4700 63875 previous 180 days. The Bureau modifies this definition in the final rule to indicate that transfer reports will only be prepared on inmates transferring to community confinement or non-Bureau facilities. Current Bureau practice and advances in technology have obviated the need to prepare a specific paper report when an inmate is transferred between Bureau facilities. When an inmate is transferred, all pertinent information regarding the progress of an inmate being transferred has already been updated in the Bureau’s computer system, which staff may access at all Bureau facilities. It is, therefore, unnecessary for a separate and specific progress report to be prepared by staff at the transferring Bureau facility for staff at the receiving Bureau facility, when receiving facility staff can easily access this information themselves through the Bureau’s computer system. However, when an inmate is transferring to any non-Bureau facility, staff at that facility may not have access to the Bureau’s computer system. The proposed rule also contemplated removing the requirement to prepare transfer reports for inmates transferring to Bureau community confinement facilities. However, since publishing the proposed rule, it has come to the Bureau’s attention that some Bureau community confinement facilities do not yet have the capability to access the Bureau’s computer system. Therefore, because they do not have consistent access to the Bureau’s computer system, it would be necessary for Bureau staff to prepare a transfer report detailing an inmate’s progress for inmate transfers to both community confinement facilities and non-Bureau facilities. In an abundance of caution, therefore, we modify the proposed rule to indicate that transfer reports must continue to be prepared not only for inmate transfers to non-Bureau facilities, but for transfers to community confinement as well. Triennial Reports. In the final rule, the Bureau deletes triennial reports as a type of progress report. Previous regulations stated that a progress report would be prepared on each designated inmate at least once every 36 months if not previously generated for another reason. Before the development of the internal Bureau computer information network, triennial reports were a necessary tool used to provide staff with specific inmate information. As explained above, however, current Bureau practice and advances in technology have obviated the need to prepare a specific progress report every 36 months, because all information E:\FR\FM\25OCR1.SGM 25OCR1

Agencies

[Federal Register Volume 78, Number 207 (Friday, October 25, 2013)]
[Rules and Regulations]
[Pages 63873-63875]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-23977]



[[Page 63873]]

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DEPARTMENT OF THE INTERIOR

National Indian Gaming Commission

25 CFR Part 543

RIN 3141-AA27


Minimum Internal Control Standards

AGENCY: National Indian Gaming Commission, Interior.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The National Indian Gaming Commission (NIGC) amends its 
minimum internal control standards for Class II gaming under the Indian 
Gaming Regulatory Act to add standards for kiosks.

DATES: Effective November 25, 2013.

FOR FURTHER INFORMATION CONTACT: National Indian Gaming Commission, 
1441 L Street NW., Suite 9100 Washington, DC 20005. Telephone: 202-632-
7009; email: reg.review@nigc.gov.

SUPPLEMENTARY INFORMATION:

I. Background

    The Indian Gaming Regulatory Act (IGRA or Act), Public Law 100-497, 
25 U.S.C. 2701 et seq., was signed into law on October 17, 1988. The 
Act established the National Indian Gaming Commission (``NIGC'' or 
``Commission'') and set out a comprehensive framework for the 
regulation of gaming on Indian lands. On January 5, 1999, the NIGC 
published a final rule in the Federal Register called Minimum Internal 
Control Standards. 64 FR 590. The rule added a new part to the 
Commission's regulations establishing Minimum Internal Control 
Standards (MICS) to reduce the risk of loss because of customer or 
employee access to cash and cash equivalents within a casino. The rule 
contains standards and procedures that govern cash handling, 
documentation, game integrity, auditing, surveillance, and variances, 
as well as other areas.
    The Commission recognized from their inception that the MICS would 
require periodic review and updates to keep pace with technology and 
has substantively amended them numerous times, most recently on 
September 21, 2012. 77 FR 58708.

II. Development of the Rule

    On September 21, 2012, the Commission concluded nearly two years of 
consultation and drafting with the publication of comprehensive 
amendments, additions, and updates to Part 543, the minimum internal 
control standards (MICS) for Class II gaming operations. The 
regulations require tribes to establish controls and implement 
procedures at least as stringent as those described in this part to 
maintain the integrity of the gaming operation.
    One of the 2012 additions was the inclusion of standards for 
kiosks, devices capable of redeeming vouchers and/or wagering credits 
or initiating transfers from a patron deposit account. The regulation 
provided general standards for kiosks but, upon further review, 
additional standards are needed for the surveillance of kiosks and for 
the collection and count of their contents.
    The Commission published a proposed rule adding kiosk drop, count, 
fill, and surveillance standards to Part 543 on February 20, 2013 (78 
FR 11793). The Commission received numerous comments and, after 
engaging in two tribal consultations and considering all public 
comments, has revised the rule.

III. Review of Public Comments

    Many commenters expressed overarching concerns with the rule's 
structure and scope, questioning whether the proposed rule truly 
contained minimum standards. The Commission agrees with the commenters, 
and has scaled back the rule to contain minimum internal controls for 
kiosks. To begin, commenters distinguished kiosks from player 
interfaces and card tables, explaining that kiosks operate on an 
imprest level, are maintained on the cage accountability, and do not 
present the same risks as the revenue generating centers. Therefore, 
they contend that it is excessive and inappropriate to apply the strict 
drop and count process to kiosks. The Commission agrees. Accordingly, 
references to the drop and count team have been replaced with more 
general terminology (i.e., authorized agents); a provision has been 
added to allow the count to take place ``in a secure area, such as the 
cage or count room;'' and many of the stringent count standards have 
been removed to account for those operations performing the kiosk count 
in the cage and to reflect lower level of risk presented by kiosks. By 
removing many of the count standards, the Commission has also resolved 
specific concerns about provisions that were contained in those 
standards, such as testing count equipment and assigning unique asset 
identification numbers.
    Commenters also suggested that the kiosk standards would be better 
placed in the Cage section. The Commission acknowledges that kiosks are 
maintained on the cage accountability and that some provisions may 
reasonably be organized under the cage section, while others may 
overlap. Accordingly, where the Cage section contains fill and report 
standards, similar standards have been removed from the Drop and Count 
sections to avoid redundancy. The Commission declines, however, to 
relocate all kiosk standards to the Cage section because the process of 
removing the currency cassettes and financial instrument storage 
components is most similar to--though less stringent than--the drop and 
count process for player interfaces and card tables. By removing the 
report provisions, The Commission has also resolved commenters' 
concerns regarding the automatic generation of the reports and any 
incidental viewing of them by those removing the currency cassettes 
and/or financial instrument storage components.
    Commenters also expressed concerns with definitions. Two comments 
suggested that the definition of kiosk should be limited only to the 
type of kiosks that dispense currency. It appears, however, that the 
commenters were referencing a definition of kiosk that has since been 
superseded by the publication of 25 CFR 543.2 on September 21, 2012 (77 
FR 58708). The Commission believes that the current definition 
satisfies the commenters' concerns by appropriately limiting the term 
to redemption kiosks.
    Additionally, commenters objected to defining currency cassettes as 
a ``locked'' compartment because not all cassettes are locked and it 
would be impracticable and cost prohibitive to have a lock installed on 
each cassette. The Commission agrees and has removed ``locked'' from 
the definition. Additionally, the Commission has replaced the 
controlled key standards for kiosks with a more general statement 
requiring controls to be established and procedures implemented to 
safeguard the keys for kiosks. Further, the Commission notes that Sec.  
543.18(d)(3) adequately protects the integrity of currency cassettes by 
requiring them to be secured with a lock or tamper resistant seal if 
not placed inside a kiosk.
    Commenters stated that requiring three agents to remove currency 
cassettes and financial instrument storage components from kiosks is 
excessive. The Commission agrees and has reduced the requirement to two 
agents.
    Commenters explained that requiring operations to test currency 
cassettes to verify the correct denomination in each cassette is not 
possible for many machines because they have multiple cassettes of the 
same denomination and

[[Page 63874]]

the machine must exhaust the first cassette before dispensing from the 
others. The Commission appreciates this explanation and has replaced 
the standard with a more general requirement for operations to 
establish controls and implement procedures to ensure that cassettes 
contain the correct denominations.
    One commenter requested clarification of ``emergency'' as it 
applies to authorized persons being permitted to access full kiosk 
currency cassettes and financial instrument storage components ``in an 
emergency'' for resolution of a problem. As the Commission has 
explained in previous preambles (See 77 FR 58708), the tribal gaming 
regulatory authorities and operation management are in the best 
position to define the term and the Commission declines to substitute 
its judgment.
    One commenter noted that coupons have cash value and must, rather 
than ``may,'' be recorded. The Commission chooses not to make this 
change, but intends to consider it in the next rulemaking session.
    Commenters suggested that Tier A facilities should be exempted from 
the requirement to notify surveillance before removing cassettes and 
components from kiosks because they are not required to have a staffed 
surveillance room. The Commission acknowledges this concern, notes that 
the discrepancy also appears in the drop and count standards for player 
interfaces and card games, and intends to address the issue 
comprehensively in the next rulemaking session. In the meantime, the 
Commission does not expect operations to make futile efforts to notify 
a nonexistent surveillance staff member.
    Finally, commenters expressed concern that the surveillance 
standard for kiosks may require more than one dedicated camera for each 
kiosk, presenting a considerable expense to operations. The Commission 
stresses that the cameras need only capture a general overview of each 
kiosk with sufficient clarity to identify the activity and the 
individuals performing it. This means, for example, that if a patron is 
redeeming a voucher, someone viewing the surveillance footage should be 
able to determine that the activity was a redemption. The camera is not 
required to capture the amount of the voucher or the denominations of 
currency being dispensed. The Commission declines to reduce the 
standard further.

Regulatory Matters

Regulatory Flexibility Act

    The rule will not have a significant impact on a substantial number 
of small entities as defined under the Regulatory Flexibility Act, 5 
U.S.C. 601, et seq. Moreover, Indian Tribes are not considered to be 
small entities for the purposes of the Regulatory Flexibility Act.

Small Business Regulatory Enforcement Fairness Act

    The rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. The rule does not have an 
effect on the economy of $100 million or more. The rule will not cause 
a major increase in costs or prices for consumers, individual 
industries, Federal, State, local government agencies or geographic 
regions, nor will the proposed rule have a significant adverse effect 
on competition, employment, investment, productivity, innovation, or 
the ability of the enterprises, to compete with foreign based 
enterprises.

Unfunded Mandate Reform Act

    The Commission, as an independent regulatory agency, is exempt from 
compliance with the Unfunded Mandates Reform Act, 2 U.S.C. 1502(1); 2 
U.S.C. 658(1).

Takings

    In accordance with Executive Order 12630, the Commission has 
determined that the rule does not have significant takings 
implications. A takings implication assessment is not required.

Civil Justice Reform

    In accordance with Executive Order 12988, the Commission has 
determined that the rule does not unduly burden the judicial system and 
meets the requirements of sections 3(a) and 3(b)(2) of the Order.

National Environmental Policy Act

    The Commission has determined that the rule does not constitute a 
major federal action significantly affecting the quality of the human 
environment and that no detailed statement is required pursuant to the 
National Environmental Policy Act of 1969, 42 U.S.C. 4321, et seq.

Paperwork Reduction Act

    The information collection requirements contained in this rule were 
previously approved by the Office of Management and Budget as required 
by 44 U.S.C. 3501, et seq., and assigned OMB Control Number 3141-0009. 
The OMB control number expires on October 31, 2015.

Text of the Final Rule

    For the reasons discussed in the preamble, the Commission amends 25 
CFR part 543 as follows:

PART 543--MINIMUM INTERNAL CONTROL STANDARDS FOR CLASS II GAMING

0
1. The authority for Part 543 continues to read as follows:

    Authority:  25 U.S.C. 2702(2), 2706(b)(1-4), 2706(b)(10).


0
2. Amend Sec.  543.2 by adding a definition for currency cassette in 
alphabetical order to read as follows:


Sec.  543.2  What are the definitions for this part?

* * * * *
    Currency cassette. A compartment that contains a specified 
denomination of currency. Currency cassettes are inserted into kiosks, 
allowing them to dispense currency.
* * * * *

0
3. Amend Sec.  543.17 by revising the section heading and paragraphs 
(h) and (i), and adding paragraphs (j) and (k) to read as follows:


Sec.  543.17  What are the minimum internal control standards for drop 
and count?

* * * * *
    (h) Collecting currency cassettes and financial instrument storage 
components from kiosks. Controls must be established and procedures 
implemented to ensure that currency cassettes and financial instrument 
storage components are securely removed from kiosks. Such controls must 
include the following:
    (1) Surveillance must be notified prior to the financial instrument 
storage components or currency cassettes being accessed in a kiosk.
    (2) At least two agents must be involved in the collection of 
currency cassettes and/or financial instrument storage components from 
kiosks and at least one agent should be independent of kiosk 
accountability.
    (3) Currency cassettes and financial instrument storage components 
must be secured in a manner that restricts access to only authorized 
agents.
    (4) Redeemed vouchers and pulltabs (if applicable) collected from 
the kiosk must be secured and delivered to the appropriate department 
(cage or accounting) for reconciliation.
    (5) Controls must be established and procedures implemented to 
ensure that currency cassettes contain the correct

[[Page 63875]]

denominations and have been properly installed.
    (i) Kiosk count standards. (1) Access to stored full kiosk 
financial instrument storage components and currency cassettes must be 
restricted to:
    (i) Authorized agents; and
    (ii) In an emergency, authorized persons for the resolution of a 
problem.
    (2) The kiosk count must be performed in a secure area, such as the 
cage or count room.
    (3) If counts from various revenue centers and kiosks occur 
simultaneously in the count room, procedures must be in effect that 
prevent the commingling of funds from the kiosks with any revenue 
centers.
    (4) The kiosk financial instrument storage components and currency 
cassettes must be individually emptied and counted so as to prevent the 
commingling of funds between kiosks until the count of the kiosk 
contents has been recorded.
    (i) The count of must be recorded in ink or other permanent form of 
recordation.
    (ii) Coupons or other promotional items not included in gross 
revenue (if any) may be recorded on a supplemental document. All 
single-use coupons must be cancelled daily by an authorized agent to 
prevent improper recirculation.
    (5) Procedures must be implemented to ensure that any corrections 
to the count documentation are permanent, identifiable, and the 
original, corrected information remains legible. Corrections must be 
verified by two agents.
    (j) Controlled keys. Controls must be established and procedures 
implemented to safeguard the use, access, and security of keys for 
kiosks.
    (k) Variances. The operation must establish, as approved by the 
TGRA, the threshold level at which a variance must be reviewed to 
determine the cause. Any such review must be documented.

0
4. Amend Sec.  543.21 by adding paragraph (c)(6) to read as follows:


Sec.  543.21  What are the minimum internal control standards for 
surveillance?

* * * * *
    (c) * * *
    (6) Kiosks: The surveillance system must monitor and record a 
general overview of activities occurring at each kiosk with sufficient 
clarity to identify the activity and the individuals performing it, 
including maintenance, drops or fills, and redemption of wagering 
vouchers or credits.
* * * * *

    Dated: September 24, 2013, Washington, DC.
Tracie L. Stevens,
Chairwoman.
Daniel J. Little,
Associate Commissioner.
Jonodev O. Chaudhuri,
Associate Commissioner.
[FR Doc. 2013-23977 Filed 10-24-13; 8:45 am]
BILLING CODE 7565-01-P