Minimum Internal Control Standards, 63873-63875 [2013-23977]
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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
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*
*
*
*
(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
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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
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]]>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.
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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
