Federal Register / Vol. 70, No. 219 / Tuesday, November 15, 2005 / Proposed Rules 69293 

the compliance times specified, unless the 

actions have already been done. 

Replacement of Fasteners 

(f) Within 5,500 flight hours after the 

effective date of this AD, replace, with screws 

and nut plate assemblies, the Camloc 

fasteners on the left and right sidewalls of the 

center pedestal, in accordance with the 

Accomplishment Instructions of Bombardier 

Service Bulletin 601R–31–030, Revision F, 

dated September 1, 2005. 

Actions Accomplished Previously 

(g) Replacing fasteners before the effective 

date of this AD in accordance with the 

Accomplishment Instructions of one of the 

issues of Bombardier Service Bulletin 601R–

31–030 identified in Table 1 of this AD is 

acceptable for compliance with the 

requirements of paragraph (f) of this AD. 

TABLE 1.—PREVIOUS SERVICE BULLETIN REVISIONS ACCEPTABLE FOR

COMPLIANCE

Issue of Bombardier 

service bulletin 

601R–31–030 

Date 

Original ........................... June 22, 2004. 

Revision A ...................... Oct. 6, 2004. 

Revision B ...................... Nov. 4, 2004. 

Revision C ...................... Dec. 15, 2004. 

Revision D ...................... June 16, 2005. 

Revision E ...................... July 7, 2005. 

Alternative Methods of Compliance 

(AMOCs) 

(h)(1) The Manager, New York Aircraft 

Certification Office, FAA, has the authority to 

approve AMOCs for this AD, if requested in 

accordance with the procedures found in 14 

CFR 39.19. 

(2) Before using any AMOC approved in 

accordance with § 39.19 on any airplane to 

which the AMOC applies, notify the 

appropriate principal inspector in the FAA 

Flight Standards Certificate Holding District 

Office. 

Related Information 

(i) Canadian airworthiness directive CF–

2004–23R1, dated July 18, 2005, also 

addresses the subject of this AD. 

Issued in Renton, Washington, on 

November 4, 2005. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 05–22590 Filed 11–14–05; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE INTERIOR 

National Indian Gaming Commission 

25 CFR Part 542 

RIN 3141–AA27 

Minimum Internal Control Standards 

AGENCY: National Indian Gaming 

Commission. 

ACTION: Proposed rule revisions. 

SUMMARY: In response to the inherent 

risks of gaming enterprises and the 

resulting need for effective internal 

controls in Tribal gaming operations, 

the National Indian Gaming 

Commission (Commission or NIGC) first 

developed Minimum Internal Control 

Standards (MICS) for Indian gaming in 

1999, which have subsequently been 

revised. The Commission recognized 

from the outset that periodic technical 

adjustments and revisions would be 

necessary in order to keep the MICS 

effective in protecting Tribal gaming 

assets and the interests of Tribal 

stakeholders and the gaming public. To 

that end, the following proposed rule 

revisions contain certain proposed 

corrections and revisions to the 

Commission’s existing MICS, which are 

necessary to clarify, improve, and 

update other existing MICS provisions. 

The purpose of these proposed MICS 

revisions is to address apparent 

shortcomings in the MICS and various 

changes in Tribal gaming technology 

and methods. 

DATES: Submit comments on or before 

December 30, 2005. After consideration 

of all received comments, the 

Commission will make whatever 

changes to the proposed revisions that 

it deems appropriate and then 

promulgate and publish the final 

revisions to the Commission’s MICS 

Rule, 25 CFR part 542. 

ADDRESSES: Mail comments to 

‘‘Comments Proposed MICS Rule 

Revisions, National Indian Gaming 

Commission, 1441 L Street NW., 

Washington, DC 20005, Attn: Acting 

General Counsel, Penny J. Coleman.’’

Comments may be transmitted by 

facsimile to (202) 632–7066. 

FOR FURTHER INFORMATION CONTACT: 

Vice-Chairman Nelson Westrin, (202) 

632–7003 (not a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

On January 5, 1999, the Commission 

first published its Minimum Internal 

Control Standards (MICS) as a Final 

Rule. As gaming Tribes and the 

Commission gained practical experience 

applying the MICS, it became apparent 

that some of the standards required 

clarification or modification to be 

effective, operate as the Commission 

had intended, and accommodate 

changes and advances in gaming 

technology and methods. 

Consequently, the Commission, 

working with an Advisory Committee 

composed of Commission and 

nominated Tribal representatives, 

published the new final revised MICS 

rule on June 27, 2002. Based on the 

practical experiences of the Commission 

and Tribes working with the newly 

revised MICS, it has once again become 

apparent that additional corrections, 

clarifications, and modifications are 

needed to ensure that the MICS 

continue to be effective and operate as 

the Commission intended. To identify 

which of the current MICS need 

correction, clarification or modification, 

the Commission initially solicited input 

and guidance from NIGC employees, 

who have extensive gaming regulatory 

expertise and experience and work 

closely with Tribal gaming regulators in 

monitoring the implementation, 

operation, and effect of the MICS in 

Tribal gaming operations. The resulting 

input from NIGC staff convinced the 

Commission that the MICS require 

continuing review and prompt revision 

on an ongoing basis to keep them 

effective and up-to-date. To address this 

need, the Commission decided to 

establish a Standing MICS Advisory 

Committee to assist it in both 

identifying and developing necessary 

MICS revisions on an ongoing basis. 

In recognition of its government-togovernment relationship with Tribes, 

and related commitment to meaningful 

Tribal consultation, the Commission 

asked gaming Tribes in January of 2004 

for nominations of Tribal 

representatives to serve on its Standing 

MICS Advisory Committee. From the 

twenty-seven (27) Tribal nominations 

that it received, the Commission 

selected nine (9) Tribal representatives 

in March 2004 to serve on the 

Committee. The Commission’s Tribal 

Committee member selections were 

based on several factors, including the 

regulatory experience and background 

of the individuals nominated; the size(s) 

of their affiliated Tribal gaming 

operation(s); the types of games played 

at their affiliated Tribal gaming 

operation(s); and the areas of the 

country in which their affiliated Tribal 

gaming operation(s) are located. The 

selection process was very difficult 

because numerous highly qualified 

Tribal representatives were nominated 

to serve on this important Committee. 

As expected, the benefit of including 

69294 Federal Register / Vol. 70, No. 219 / Tuesday, November 15, 2005 / Proposed Rules 

Tribal representatives on the 

Committee, who work daily with the 

MICS, has been invaluable. 

Tribal representatives selected to 

serve on the Commission’s Standing 

MICS Advisory Committee are: Tracy 

Burris, Gaming Commissioner, 

Chickasaw Nation Gaming Commission, 

Chickasaw Nation of Oklahoma; Jack 

Crawford, Chairman, Umatilla Gaming 

Commission, Confederated Tribes of the 

Umatilla Indian Reservation; Patrick 

Darden, Executive Director, Chitimacha 

Gaming Commission, Chitimacha Indian 

Tribe of Louisiana; Mark N. Fox, former 

Compliance Director, Four Bears Casino, 

Three Affiliated Tribes of the Fort 

Berthold Reservation; Sherrilyn Kie, 

Senior Internal Auditor, Pueblo of 

Laguna Gaming Authority, Pueblo of 

Laguna; Patrick Lambert, Executive 

Director, Eastern Band of Cherokee 

Gaming Commission, Eastern Band of 

Cherokee Indians; John Meskill, 

Director, Mohegan Tribal Gaming 

Commission, Mohegan Indian Tribe; 

Jerome Schultze, Executive Director, 

Morongo Gaming Agency, Morongo 

Band of Mission Indians; and Lorna 

Skenandore, Assistant Gaming Manager, 

Support Services, Oneida Bingo and 

Casino, formerly Gaming Compliance 

Manager, Oneida Gaming Commission, 

Oneida Tribe of Indians of Wisconsin. 

The Advisory Committee also includes 

the following Commission 

representatives: Philip N. Hogen, 

Chairman; Nelson Westrin, ViceChairman; Cloyce V. Choney, Associate 

Commissioner; Joe H. Smith, Acting 

Director of Audits; Ken Billingsley, 

Region III Director; Nicole Peveler, Field 

Auditor; Ron Ray, Field Investigator; 

and Katherine Zebell, Staff Attorney, 

Office of General Counsel. 

In the past, the MICS were 

comprehensively revised on a broad, 

wholesale basis. Such large-scale 

revisions proved to be difficult for 

Tribes to implement in a timely manner 

and unnecessarily disruptive to Tribal 

gaming operations. The purpose of the 

Commission’s Standing Committee is to 

conduct a continuing review of the 

operation and effectiveness of the 

existing MICS. The primary purpose of 

the review is to promptly identify and 

develop needed revisions of the MICS 

on a manageable, incremental basis, in 

order to keep the MICS practical and 

effective. By making more manageable 

incremental changes to the MICS on an 

ongoing basis, the Commission hopes to 

be more prompt in developing needed 

revisions, while, at the same time, 

avoiding larger-scale MICS revisions 

which take longer to implement and can 

be unnecessarily disruptive to Tribal 

gaming operations. 

In accordance with this approach, the 

Commission has developed the 

following set of proposed MICS rule 

revisions with the assistance of its 

Standing MICS Advisory Committee. In 

doing so, the Commission is carrying 

out its statutory mandate under the 

Indian Gaming Regulatory Act (Act or 

IGRA), 25 U.S.C. 2706(b)(10), to 

promulgate necessary and appropriate 

regulations to implement the provisions 

of the Act. In particular, the following 

proposed MICS rule revisions are 

intended to address Congress’ purpose 

and concerns, stated in Section 2702(2) 

of the Act, that it ‘‘provide a statutory 

basis for the regulation of gaming by an 

Indian tribe adequate to shield it from 

organized crime and other corrupting 

influences, to ensure the Indian tribe is 

the primary beneficiary of the gaming 

operation, and to ensure the gaming is 

conducted fairly and honestly by both 

the operator and the players.’’

The Commission, with the 

Committee’s assistance, identified three 

specific objectives for the following 

proposed MICS rule revisions: (1) To 

ensure that the MICS are reasonably 

comparable to the internal control 

standards of established gaming 

jurisdictions; (2) to ensure that the 

interests of the Tribal stakeholders are 

adequately safeguarded; and (3) to 

ensure that the interests of the gaming 

public are adequately protected. 

It should be noted that the NIGC’s 

authority to issue and enforce MICS for 

Class III gaming was recently challenged 

in Federal district court in Colorado 

River Indian Tribes v. NIGC (CRIT), Case 

No. 1:04–cv–00010–JDB. The case arose 

after the Colorado River Indian Tribes 

objected to an NIGC audit of its Class III 

gaming operation, which led to the 

audit’s discontinuation. The NIGC 

subsequently cited the Tribe for an 

access violation and imposed a fine. The 

Court ruled that the NIGC’s notice of 

violation and imposition of a civil fine 

were improper, finding that, under 

IGRA, the NIGC lacked the authority to 

issue or enforce MICS for Class III 

gaming. While the Court held that the 

NIGC could not penalize the Colorado 

River Indian Tribes for resisting the 

NIGC’s attempt to conduct an audit of 

its Class III gaming, it did not enjoin the 

NIGC from applying its MICS to other 

Class III operations, nor did the Court 

prohibit the NIGC from conducting 

audits to monitor compliance with those 

MICS. The CRIT decision applies only 

to the Colorado River Indian Tribes. A 

notice of appeal was recently filed in 

the case. 

In order to uphold the integrity of 

Indian gaming, it is important to 

maintain the continuity of the system of 

regulation that has been in place since 

1999. This system has helped ensure 

adequate regulation and facilitated 

growth and prosperity in the industry. 

Thus, with the exception of the gaming 

operations of the Colorado River Indian 

Tribes, the NIGC will continue to 

monitor Tribal compliance with the 

MICS with respect to Class II and III 

gaming, pending the results of our 

appeal in the CRIT case or further 

judicial or legislative direction. 

The Advisory Committee met on 

January 25, 2005, May 10, 2005, and 

September 26, 2005, to discuss the 

revisions set forth in the following 

proposed MICS rule revisions. The 

input received from the Committee 

Members has been invaluable to the 

Commission in its development of the 

following proposed MICS rule revisions. 

In accordance with the Commission’s 

established Government-to-Government 

Tribal Consultation Policy, the 

Commission provided a preliminary 

working draft of all of the proposed 

MICS rule revisions contained herein to 

gaming Tribes on August 26, 2005, for 

a thirty (30)-day informal review and 

comment period, before formulation of 

this proposed rule. In response to its 

requests for comments, the Commission 

received twenty two (22) comments 

from Commission and Tribal Advisory 

Committee members, individual Tribes, 

and other interested parties regarding 

the proposed revisions. A summary of 

these comments is presented below in 

the discussion of each proposed 

revision to which they relate. 

General Comments to Proposed MICS 

Revisions 

For reasons stated above in this 

preamble, the NIGC proposes to revise 

the following specific sections of its 

MICS rule, 25 CFR part 542. The 

following discussion includes the 

Commission’s responses to general 

comments concerning the MICS and is 

followed by a discussion regarding each 

of the specifically proposed revisions, 

along with previously submitted 

informal comments to the proposed 

revisions and the Commission’s 

responses to those comments. As noted 

above, prior commenters include 

Commission and Tribal Advisory 

Committee members, gaming Tribes, 

and others. 

Comments Questioning NIGC Authority 

To Promulgate MICS for Class III 

Gaming 

Many of the previous informal 

comments to the preliminary working 

draft of the MICS revisions pertained to 

the Commission’s authority to 

promulgate rules governing proposed 

Federal Register / Vol. 70, No. 219 / Tuesday, November 15, 2005 / Proposed Rules 69295 

the conduct of Class III gaming. 

Positions were expressed asserting that 

Congress intended the NIGC’s Class III 

gaming regulatory authority to be 

limited exclusively to the approval of 

Tribal gaming ordinances and 

management contracts. Similar 

comments were received concerning the 

first proposed MICS back in 1999. The 

Commission, at that time, determined in 

its publication of the original MICS in 

1999 that it possessed the statutory 

authority to promulgate Class III MICS. 

As stated in the preamble to those 

MICS: ‘‘The Commission believes that it 

does have the authority to promulgate 

this final rule. * * * [T]he 

Commission’s promulgation of the MICS 

is consistent with its responsibilities as 

the Federal regulator of Indian gaming.’’

64 FR 509. 

The current Commission reaffirms 

that determination. The IGRA, which 

established the regulatory structure for 

all classes of Indian gaming, expressly 

provides that the Commission shall 

promulgate such regulations as it deems 

appropriate to implement the provisions 

of (the Act).’’ 25 U.S.C. 2706(b)(10). 

Pursuant to this clearly stated statutory 

duty and authority under the Act, the 

Commission has determined that MICS 

are necessary and appropriate to 

implement and enforce the regulatory 

provisions of the Act governing the 

conduct of both Class II and Class III 

gaming and accomplish the purposes of 

the Act. 

The Commission believes that the 

importance of internal control systems 

in the casino operating environment 

cannot be overemphasized. While this is 

true of any industry, it is particularly 

true and relevant to the revenuegeneration processes of a gaming 

enterprise, which, because of the 

physical and technical aspects of the 

games and their operation, and the 

randomness of game outcomes, makes 

exacting internal controls mandatory. 

The internal control systems and 

standards are the primary management 

procedures used to protect the 

operational integrity of gambling games; 

account for and protect gaming assets 

and revenues; and assure the reliability 

of the financial statements for Class II 

and III gaming operations. 

Consequently, internal control systems 

are a vitally important part of properly 

regulated gaming. Internal control 

systems govern the gaming enterprise’s 

governing board, management, and 

other personnel who are responsible for 

providing reasonable assurances 

regarding the achievement of the 

enterprise’s objectives. These objectives 

typically include operational integrity, 

effectiveness and efficiency, reliable 

financial statement reporting, and 

compliance with applicable laws and 

regulations. 

The Commission believes that strict 

regulations, such as the MICS, are not 

only appropriate, but necessary, for it to 

fulfill its responsibilities under the 

IGRA to establish necessary baseline, or 

minimum, Federal standards for all 

Tribal gaming operations on Indian 

lands. 25 U.S.C. 2702(3). Although the 

Commission recognizes that many 

Tribes had sophisticated internal 

control standards in place prior to the 

Commission’s original promulgation of 

its MICS, many tribes did not. This 

absence of minimum Federal internal 

control standards in all Tribal casinos 

adversely affected the adequacy of 

Indian gaming regulation nationwide, 

and reasonably threatened gaming as a 

means of providing the expected Tribal 

benefits intended by IGRA. The 

Commission continues to strongly 

believe that promulgation and revision 

of these standards is necessary and 

appropriate to effectively implement the 

provisions of the IGRA, and, therefore, 

within the Commission’s clearly 

expressed statutory power and duty 

under Section 2706(b)(10) of the Act. 

Comments Recommending Voluntary 

Tribal Compliance With MICS 

Comments were also received 

suggesting that the NIGC should re-issue 

the MICS as a bulletin or guideline for 

Tribes to use voluntarily, at their 

discretion, in developing and 

implementing their own Tribal gaming 

ordinances and internal control 

standards. 

The Commission disagrees. The MICS 

are common in established gaming 

jurisdictions, and, to be effective in 

establishing a minimum baseline for the 

internal operating procedures of Tribal 

gaming enterprises, the rules must be 

concise, explicit, and uniform for all 

Tribal gaming operations to which they 

apply. Furthermore, to nurture and 

promote public confidence in the 

integrity and regulation of Indian 

gaming, and ensure its adequate 

regulation to protect Tribal gaming 

assets and the interests of Tribal 

stakeholders and the public, the 

Commission’s MICS regulations must be 

reasonably uniform in their 

implementation and application, and 

regularly monitored and enforced by 

Tribal regulators and the NIGC to ensure 

Tribal compliance. 

Proposed New, Revised, or Removed 

Definitions in Section 542.2 of the MICS 

The Commission has added or revised 

definitions of the following six terms in 

section 542.2 and has removed the 

following one term in § 542.2. A 

discussion of each new, revised, or 

removed definition follows in 

alphabetical order. 

‘‘Account Access Card’’ 

The Commission has revised the 

existing MICS definition of this term to 

more accurately define the applicability 

of the referenced term. Committee 

members recommended that the 

definition of ‘‘account access card’’ be 

revised to include the reference that 

account access cards are not smart 

cards. No comments were received 

concerning this proposed revision. 

‘‘Cash Equivalent’’ 

This is a new definition. Several 

Commission Committee members 

recommended that a definition of the 

term ‘‘cash equivalent’’ be added to the 

current MICS definitions. In 

conjunction with other proposed rule 

revisions to the MICS, which include 

the term and existing standards, the 

NIGC has determined that to ensure that 

the rules are clear and unambiguous, 

insertion of the definition in the MICS 

is worthwhile. 

Comment was received in previous 

revisions recommending that the 

definition be added. The Commission 

agreed with this suggestion and 

developed the definition. 

‘‘Counter Game’’ 

This is a new definition. Several 

Tribal and Commission Committee 

members recommended that a definition 

of the term ‘‘counter game’’ be added to 

the current MICS definitions. In 

conjunction with the proposal to add 

accounting standards to the MICS, 

which include the term, the NIGC has 

determined that to ensure that such 

revisions and existing rules are clear 

and unambiguous, insertion of the 

definition is worthwhile. No comments 

were received concerning this proposed 

revision. 

‘‘Common Intermediate Format’’ 

This is a new definition. Commission 

Committee members recommended that 

a definition of the term ‘‘common 

intermediate format’’ be added to the 

current MICS definitions. In 

conjunction with the proposed rule’s 

addition of digital surveillance 

standards to the MICS, which include 

the term, the NIGC has determined that 

to ensure that the revisions are clear and 

unambiguous, insertion of the definition 

is worthwhile. 

‘‘Digital Video Recording (DVR)’’ 

This is a new definition. Commission 

Committee members recommended that 

69296 Federal Register / Vol. 70, No. 219 / Tuesday, November 15, 2005 / Proposed Rules 

a definition of the term ‘‘digital video 

recording (DVR)’’ be added to the 

current MICS definitions. In 

conjunction with the proposed rule 

adding digital surveillance standards to 

the MICS, which include the term, the 

NIGC has determined that to ensure the 

revisions and existing rule are clear and 

unambiguous, insertion of the definition 

is worthwhile. No comments were 

received concerning this proposed 

revision. 

‘‘Network Video Recording (NVR)’’

This is a new definition. Commission 

Committee members recommended that 

a definition of the term ‘‘network video 

recording (NVR)’’ be added to the 

current MICS definitions. In 

conjunction with the proposed rule 

revisions adding digital surveillance 

standards to the MICS, which include 

the term, the NIGC has determined that 

to ensure that the revisions and existing 

rule are clear and unambiguous, 

insertion of the definition is 

worthwhile. One Commenter noted that 

although cameras can have IP addresses, 

most often it is the encoders that have 

IP addresses. It was recommended that 

the definition be changed to ‘‘utilizing 

individual IP addresses for each camera 

‘or encoder’ on a closed network 

system.’’ The Commission disagrees and 

considers the additional clarification to 

be unnecessary. 

‘‘Sufficient Clarity’’

This definition is removed. Several 

Tribal and Commission Committee 

members recommended that a definition 

of the term ‘‘sufficient clarity’’ be 

removed from the current MICS 

definitions. The term ‘‘sufficient clarity’’

is being replaced by a more 

comprehensive definition contained 

within the proposed revision to the 

surveillance section. No comments were 

received concerning this proposed 

revision. 

Proposed Addition to Sections 

542.7(g)(1) and 542.8(h)(1) Electronic 

Equipment 

The Commission proposes to revise 

the noted regulations to clarify the 

intent of the existing regulation. The 

amendment has been proposed to 

explicitly state that bingo electronic 

systems and pull tab electronic systems 

utilizing patron account access cards 

will be required to comply with the 

applicable standards contained within 

the MICS. No comments were received 

concerning this proposed revision. 

Proposed Addition and Revisions to 

Section 542.13(o)(4) Customer Account 

Generation Standards 

The Commission proposes to revise 

the noted regulation to clarify the intent 

of the existing regulation. The 

amendment has been proposed which 

will explicitly represent that the 

patron’s identification must be verified 

and the account must identify the 

patron’s name. The standard is 

consistent with the Bank Secrecy Act 

and other gaming jurisdictions, which 

also requires that such patron 

identification information be recorded 

and verified at the time of setting up the 

account. The revision to obtaining a 

new PIN is intended to clarify that the 

Gaming Machine Information Center is 

a clerk who has access to a customer file 

for changing the PIN. No comments 

were received concerning this proposed 

revision. 

Proposed Removal of Section 

542.16(f)(vi) Document Storage of 

Original Documents Until Audited 

The Commission proposes to remove 

the noted regulation since it is in 

conflict with the proposed addition of 

§ 542.19 on accounting standards, 

specifically the maintenance and 

preservation of books, records and 

documents. No comments were received 

concerning this proposed revision. 

Proposed Addition of Section 542.19 

What Are the Minimum Internal 

Control Standards for Accounting? 

The Commission proposes to add this 

new regulation to establish the basic 

required tenets for a casino accounting 

function. The proposed addition is 

common to established gaming 

jurisdictions. Furthermore, since the 

MICS were initially adopted, many 

questions have arisen regarding the 

relationship of Section 571.7 

Maintenance and preservation of papers 

and records to the MICS. The proposed 

addition is also intended to clarify and 

define the scope of the five (5)-year 

record retention requirement, as the 

requirement relates to casino records. 

One Commenter requested that ‘‘any 

other records specifically required to be 

maintained’’ under preparing general 

accounting records include more details 

as to the phrase ‘‘specifically required 

by whom.’’ The Commission disagrees, 

and considers the representation to be 

clear in that the language pertains to 

other records required by the MICS. 

Proposed Revisions to the Following 

Sections: 542.21(f)(12) (Tier A—Drop 

and Count) Gaming Machine Bill 

Acceptor Count Standards; 542.31(f)(12) 

(Tier B—Drop and Count) Gaming 

Machine Bill Acceptor Count Standards; 

542.41(f)(12) (Tier C—Drop and Count) 

Gaming Machine Bill Acceptor Count 

Standards. 

The referenced standards represent a 

duplicate control to an identical 

requirement contained within each of 

the respective section’s Gaming 

Machine Bill Acceptor Drop Standards, 

refer §§ 542.21(e)(4), 542.31(e)(5), and 

542.41(e)(5). Specifically, the standard 

requires the bill acceptor canisters to be 

posted with a number corresponding to 

that of the machine from which it was 

extracted. The subject control pertains 

to a drop function, as opposed to the 

count process. Therefore, the 

Commission is proposing to delete the 

above subsections. No comments were 

received pertaining to the proposed 

revision. 

Proposed Additions of: 542.23(i) 

Technical Standards for Surveillance 

Systems—Tier A; 542.33(j) Technical 

Standards for Surveillance Systems 

—Tier B; 542.43(k) Technical Standards 

for Surveillance Systems—Tier C. 

The Commission proposes to add the 

referenced regulations to the MICS for 

the analog surveillance standard 

governing sufficient clarity in order to 

make the frame rate more consistent 

with industry practice. The frame-rate 

change is deemed necessary for critical 

functions performed in the gaming 

areas. Furthermore, with the increasing 

utilization of digital surveillance 

systems, the Commission proposes to 

add the referenced regulation to the 

MICS. The objective is to ensure 

uniformity commensurate with the 

generally accepted digital surveillance 

standards of established gaming 

jurisdictions, and to ensure that such 

systems will facilitate compliance with 

other relevant sections of the MICS. 

After consultation with Tribal regulators 

and operators experienced with digital 

systems, state gaming regulatory 

authorities, private gaming operators 

and digital surveillance vendors, the 

proposed regulation was formulated. 

One Commenter suggested that the 

requirement of satisfying sufficient 

clarity for 30 FPS or 30 IPS be required 

for essential areas such as Table Games, 

Cage, Soft Count Room, Hard Count 

Room, etc. The Commission disagrees 

on adding this to the section on 

technical standards for surveillance 

systems. The MICS utilization of the 

term ‘‘sufficient clarity’’ is limited to 

specific functions within the gaming 

areas, which directly relate to the risk 

posed by the particular function. A 

general application of the 30 FPS or 30 

IPS to the gambling games would be 

difficult for the operator and the 

Federal Register / Vol. 70, No. 219 / Tuesday, November 15, 2005 / Proposed Rules 69297 

regulator to measure and confirm 

compliance. 

One Commenter suggested changing 

the wording of ‘‘real motion’’ to ‘‘liveaction’’ in the following way: ‘‘Any area 

covered by cameras activated by motion 

detection must record ‘live-action’ at the 

frame rate of 30 FPS.’’ The Commission 

agrees and has changed the term used. 

One Commenter suggested that the 

requirement under the digital systems 

for both audible and visual warning 

devices was too high of a standard, as 

well as cost prohibitive, and 

recommended it be changed to ‘‘of 

either an audible or visual warning 

device.’’ The Commission disagrees. 

Based on research performed, it has 

been determined that industry practice 

dictates that both methods of 

notification are needed. 

One Commenter suggested that the 

terms ‘‘viewable’’ and ‘‘view’’ be added 

to the digital systems section for 

satisfying sufficient clarity on producing 

a video record. The Commission agrees 

and has added these terms to the 

section. 

One Commenter suggested adding to 

the use of a network video recorder 

(NVR) system section that access to the 

network be limited to not only 

authorized personnel, but also be 

password protected. The Commission 

agrees and has added this to the use of 

an NVR system that requires access. 

Regulatory Matters 

Regulatory Flexibility Act 

The Commission certifies that the 

proposed revisions to the Minimum 

Internal Control Standards contained 

within this regulation will not have a 

significant economic impact on small 

entities, 5 U.S.C. 605(b). The factual 

basis for this certification is as follows: 

Of the 330 Indian gaming operations 

across the country, approximately 93 of 

the operations have gross revenues of 

less than $5 million. Of these, 

approximately 39 operations have gross 

revenues of under $1 million. Since the 

proposed revisions will not apply to 

gaming operations with gross revenues 

under $1 million, only 39 small 

operations may be affected. While this 

is a substantial number, the Commission 

believes that the proposed revisions will 

not have a significant economic impact 

on these operations for several reasons. 

Even before implementation of the 

original MICS, Tribes had internal 

controls because they are essential to 

gaming operations in order to protect 

assets. The costs involved in 

implementing these controls are part of 

the regular business costs incurred by a 

gaming operation. The Commission 

believes that many Indian gaming 

operation internal control standards are 

more stringent than those contained in 

these regulations. Further, these 

proposed rule revisions are technical 

and minor in nature. 

Under the proposed revisions, small 

gaming operations grossing under $1 

million are exempted from MICS 

compliance. Tier A facilities (those with 

gross revenues between $1 and $5 

million) are subject to the yearly 

requirement that independent certified 

public accountant testing occur. The 

purpose of this testing is to measure the 

gaming operation’s compliance with the 

Tribe’s internal control standards. The 

cost of compliance with this 

requirement for small gaming operations 

is estimated at between $3,000 and 

$5,000. The cost of this report is 

relatively minimal and does not create 

a significant economic effect on gaming 

operations. What little impact exists is 

further offset because other regulations 

require yearly independent financial 

audits that can be conducted at the same 

time. For these reasons, the Commission 

has concluded that the proposed rule 

revisions will not have a significant 

economic impact on those small entities 

subject to the rule. 

Small Business Regulatory Enforcement 

Fairness Act 

These following proposed revisions 

do not constitute a major rule under 5 

U.S.C. 804(2), the Small Business 

Regulatory Enforcement Fairness Act. 

The revisions will not have an annual 

effect on an economy of $100 million or 

more. The revisions also will not cause 

a major increase in costs or prices for 

consumers, individual industries, 

Federal, state or local government 

agencies or geographic regions, and do 

not have a significant adverse effect on 

competition, employment, investment, 

productivity, innovation, or the ability 

of U.S.-based enterprises to compete 

with foreign-based enterprises. 

Unfunded Mandates Reform Act 

The Commission is an independent 

regulatory agency, and, as such, is not 

subject to the Unfunded Mandates 

Reform Act. Even so, the Commission 

has determined that the proposed rule 

revisions do not impose an unfunded 

mandate on State, local, or Tribal 

governments, or on the private sector, of 

expenditures more than $100 million 

per year. Thus, this is not a ‘‘significant 

regulatory action’’ under the Unfunded 

Mandates Reform Act, 2 U.S.C. 1501 et 

seq. 

The Commission has, however, 

determined that the proposed rule 

revisions may have a unique effect on 

Tribal governments, as they apply 

exclusively to Tribal governments 

whenever they undertake the 

ownership, operation, regulation, or 

licensing of gaming facilities on Indian 

lands, as defined by IGRA. Thus, in 

accordance with Section 203 of the 

Unfunded Mandates Reform Act, the 

Commission undertook several actions 

to provide Tribal governments with 

adequate notice and opportunities for 

‘‘meaningful’’ consultation, input, 

sharing of information, advice and 

education regarding compliance. 

These actions included the formation 

of a Tribal Advisory Committee and the 

request for input from Tribal leaders. 

Section 204(b) of the Unfunded 

Mandates Reform Act exempts from the 

Federal Advisory Committee Act (5 

U.S.C. App.) meetings with Tribal 

elected officials (or their designees) for 

the purpose of exchanging views, 

information, and advice concerning the 

implementation of intergovernmental 

responsibilities or administration. In 

selecting Committee members, 

consideration was placed on the 

applicant’s experience in this area, as 

well as the size of the Tribe the nominee 

represented, the geographic location of 

the gaming operation, and the size and 

type of gaming conducted. The 

Commission attempted to assemble a 

Committee that incorporates diversity 

and is representative of Tribal gaming 

interests. The Commission will meet 

with the Advisory Committee to discuss 

the public comments that are received 

as a result of the publication of the 

following proposed MICS rule revisions, 

and will consider all Tribal and public 

comments and Committee 

recommendations before formulating 

the final rule revisions. The 

Commission also plans to continue its 

policy of providing necessary technical 

assistance, information, and support to 

enable Tribes to implement and comply 

with the MICS as revised. 

The Commission also provided the 

proposed revisions to Tribal leaders for 

comment prior to publication of this 

proposed rule and considered these 

comments in formulating the proposed 

rule. 69 FR 69857. 

Takings 

In accordance with Executive Order 

12630, the Commission has determined 

that the following proposed MICS rule 

revisions do not have significant takings 

implications. A takings implication 

assessment is not required. 

Civil Justice Reform 

In accordance with Executive Order 

12988, the Office of General Counsel has 

determined that the following proposed 

69298 Federal Register / Vol. 70, No. 219 / Tuesday, November 15, 2005 / Proposed Rules 

MICS rule revisions do not unduly 

burden the judicial system and meet the 

requirements of sections 3(a) and 3(b)(2) 

of the Order. 

Paperwork Reduction Act 

The following proposed MICS rule 

revisions require information collection 

under the Paperwork Reduction Act, 44 

U.S.C. 3501 et seq., as did the rule it 

revises. There is no change to the 

paperwork requirements created by 

these proposed revisions. The 

Commission’s OMBControl Number for 

this regulation is 3141–0009. 

National Environmental Policy Act 

The Commission has determined that 

the following proposed MICS rule 

revisions do 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.). 

List of Subjects in 25 CFR Part 542 

Accounting, Auditing, Gambling, 

Indian-lands, Indian-tribal government, 

Reporting and recordkeeping 

requirements. 

Accordingly, for all of the reasons set 

forth in the foregoing preamble, the 

National Indian Gaming Commission 

proposes to amend 25 CFR part 542 as 

follows: 

PART 542—MINIMUM INTERNAL 

CONTROL STANDARDS 

1. The authority citation for part 542 

continues to read as follows: 

Authority: 25 U.S.C. 2701 et seq. 

2. Amend § 542.2 to add, in 

alphabetical order, the definitions for 

‘‘Cash Equivalent,’’ ‘‘Counter Game,’’

‘‘Common Intermediate Format,’’

‘‘Digital Video Recording (DVR),’’

‘‘Network Video Recording (NVR),’’ by 

revising the definition for ‘‘Account 

Access Card’’ and by removing the 

definition for ‘‘Sufficient Clarity’’ to 

read as follows: 

§ 542.2 What are the definitions for this 

part? 

* * * * * 

Account access card means an 

instrument used to access customer 

accounts for wagering at a gaming 

machine. Account access cards are used 

in connection with a computerized 

account database. Account access cards 

are not smart cards. 

* * * * * 

Cash Equivalent means the monetary 

value that a gaming operation may 

assign to a document or anything else of 

representative value other than cash, 

tokens, or chips. A cash equivalent 

includes, but is not limited to, coupons, 

vouchers, wagering or payout slips and 

tickets, debit and credit card receipts, 

and other items to which a gaming 

operation has assigned an exchange 

value. 

* * * * * 

Common Intermediate Format (CIF) or 

Full Common Intermediate Format 

(FCIF) means a set of standard video 

formats used in DVR systems, defined 

by their resolution. The original CIF is 

also known as Full CIF (FCIF). 

* * * * * 

Counter Game means a game in which 

the gaming operation is a party to 

wagers and wherein the gaming 

operation documents all wagering 

activity. The term includes, but is not 

limited to, bingo, keno, and pari-mutuel 

race books. The term does not include 

table games, card games and gaming 

machines. 

* * * * * 

Digital video recording (DVR) system 

means a digital video surveillance 

system consisting of video cameras, 

monitors, recorders, video printers, 

computer hardware and software, 

switches, selectors, and other ancillary 

equipment used for casino surveillance. 

Size of gaming operation will dictate 

quantities of cameras, etc. 

* * * * * 

Network video recording (NVR) means 

a digital video surveillance system 

utilizing individual IP addresses for 

each camera on a closed network 

system. 

* * * * * 

3. Amend § 542.7 to add paragraph 

(g)(1)(iv) to read as follows: 

§ 542.7 What are the minimum internal 

control standards for bingo? 

* * * * * 

(g) Electronic equipment. 

(1) * * * 

* * * * * 

(iv) If the electronic equipment 

utilizes patron account access cards for 

activation of play, then § 542.13(o) (as 

applicable) shall apply. 

* * * * * 

4. Amend § 542.8 to add paragraph 

(h)(1)(iv) to read as follows: 

§ 542.8 What are the minimum internal 

control standards for pull tabs? 

* * * * * 

(h) Electronic equipment. 

(1) * * * 

* * * * * 

(iv) If the electronic equipment 

utilizes patron account access cards for 

activation of play, then § 542.13(o) (as 

applicable) shall apply. 

* * * * * 

5. Amend § 542.13 to redesignate 

paragraphs (o)(4)(ii) and (o)(4)(iii) as 

(o)(4)(iii) and (o)(4)(iv), add new 

paragraph (o)(4)(ii), and revise newly 

designated (o)(4)(iv) to read as follows: 

§ 542.13 What are the minimum internal 

control standards for gaming machines? 

* * * * * 

(o) * * * 

(4) * * * 

* * * * * 

(ii) For each customer file, an 

employee shall: 

(A) Record the customer’s name and 

current address; and 

(B) The date the account was opened. 

(C) At the time the initial deposit is 

made, account opened, or credit 

extended, the identity of the customer 

shall be verified by examination of a 

valid driver’s license or other reliable 

photographic identity credential. 

* * * * * 

(iv) After entering a specified number 

of incorrect PIN entries at the cage or 

player terminal, the customer shall be 

directed to proceed to a clerk to obtain 

a new PIN. If a customer forgets, 

misplaces or requests a change to their 

PIN, the customer shall proceed to a 

clerk for assistance. 

* * * * * 

§ 542.16 [Amended] 

6. Amend § 542.16 by removing 

paragraph (f)(1)(vi). 

7. Add § 542.19 to read as follows: 

§ 542.19 What are the minimum internal 

control standards for accounting? 

(a) Each gaming operation shall 

prepare accurate, complete, legible, and 

permanent records of all transactions 

pertaining to revenue and gaming 

activities. 

(b) Each gaming operation shall 

prepare general accounting records 

according to Generally Accepted 

Accounting Principles on a double entry 

system of accounting, maintaining 

detailed, supporting, subsidiary records, 

including, but not limited to: 

(1) Detailed records identifying 

revenues, expenses, assets, liabilities, 

and equity for each gaming operation; 

(2) Detailed records of all markers, 

IOU’s, returned checks, hold checks, or 

other similar credit instruments; 

(3) Individual and statistical game 

records to reflect statistical drop, 

statistical win, and the percentage of 

statistical win to statistical drop by each 

table game, and to reflect statistical 

drop, statistical win, and the percentage 

of statistical win to statistical drop for 

Federal Register / Vol. 70, No. 219 / Tuesday, November 15, 2005 / Proposed Rules 69299 

each type of table game, by shift, by day, 

cumulative month-to-date, and 

cumulative year-to-date, and individual 

and statistical game records reflecting 

similar information for all other games; 

(4) Gaming machine analysis reports 

which, by each machine, compare 

actual hold percentages to theoretical 

hold percentages; 

(5) The records required by § 542 and 

by the Tribal internal control standards; 

(6) Journal entries prepared by the 

gaming operation and by its 

independent accountants; and 

(7) Any other records specifically 

required to be maintained. 

(c) Each gaming operation shall 

establish administrative and accounting 

procedures for the purpose of 

determining effective control over a 

gaming operation’s fiscal affairs. The 

procedures shall be designed to 

reasonably ensure that: 

(1) Assets are safeguarded; 

(2) Financial records are accurate and 

reliable; 

(3) Transactions are performed only in 

accordance with management’s general 

and specific authorization; 

(4) Transactions are recorded 

adequately to permit proper reporting of 

gaming revenue and of fees and taxes, 

and to maintain accountability of assets; 

(5) Recorded accountability for assets 

is compared with actual assets at 

reasonable intervals, and appropriate 

action is taken with respect to any 

discrepancies; and 

(6) Functions, duties, and 

responsibilities are appropriately 

segregated in accordance with sound 

practices by competent, qualified 

personnel. 

(d) Gross gaming revenue 

computations. (1) For table games, gross 

revenue equals the closing table 

bankroll, plus credit slips for cash, 

chips, tokens or personal/payroll checks 

returned to the cage, plus drop, less 

opening table bankroll and fills to the 

table, and money transfers issued from 

the game through the use of a cashless 

wagering system. 

(2) For gaming machines, gross 

revenue equals drop, less fills, jackpot 

payouts and personal property awarded 

to patrons as gambling winnings. 

Additionally, the initial hopper load is 

not a fill and does not affect gross 

revenue. The difference between the 

initial hopper load and the total amount 

that is in the hopper at the end of the 

gaming operation’s fiscal year should be 

adjusted accordingly as an addition to 

or subtraction from the drop for the 

year. 

(3) For each counter game, gross 

revenue equals: 

(i) The money accepted by the gaming 

operation on events or games that occur 

during the month or will occur in 

subsequent months, less money paid out 

during the month to patrons on winning 

wagers (‘‘cash basis’’); or 

(ii) The money accepted by the 

gaming operation on events or games 

that occur during the month plus 

money, not previously included in gross 

revenue, that was accepted by the 

gaming operation in previous months on 

events or games occurring in the month, 

less money paid out during the month 

to patrons as winning wagers 

(‘‘modified accrual basis’’). 

(4) For each card game and any other 

game in which the gaming operation is 

not a party to a wager, gross revenue 

equals all money received by the 

operation as compensation for 

conducting the game. 

(i) A gaming operation shall not 

include either shill win or loss in gross 

revenue computations. 

(ii) In computing gross revenue for 

gaming machines, keno and bingo, the 

actual cost to the gaming operation of 

any personal property distributed as 

losses to patrons may be deducted from 

winnings (other than costs of travel, 

lodging, services, food, and beverages), 

if the gaming operation maintains 

detailed documents supporting the 

deduction. 

(e) Each gaming operation shall 

establish internal control systems 

sufficient to ensure that currency (other 

than tips or gratuities) received from a 

patron in the gaming area is promptly 

placed in a locked box in the table, or, 

in the case of a cashier, in the 

appropriate place in the cashier’s cage, 

or on those games which do not have a 

locked drop box or on card game tables, 

in an appropriate place on the table, in 

the cash register, or other approved 

repository. 

(f) If the gaming operation provides 

periodic payments to satisfy a payout 

resulting from a wager, the initial 

installment payment, when paid, and 

the actual cost of a payment plan that 

is funded by the gaming operation may 

be deducted from winnings. The gaming 

operation is required to obtain the 

approval of all payment plans from the 

Tribal gaming regulatory authority. For 

any funding method which merely 

guarantees the gaming operation’s 

performance, and under which the 

gaming operation makes payments out 

of cash flow (e.g. irrevocable letters of 

credits, surety bonds, or other similar 

methods), the gaming operation may 

only deduct such payments when paid 

to the patron. 

(g) For payouts by wide-area 

progressive gaming machine systems, a 

gaming operation may deduct from 

winnings only its pro rata share of a 

wide area gaming machine system 

payout. 

(h) Cash-out tickets issued at a gaming 

machine or gaming device shall be 

deducted from gross revenue as jackpot 

payouts in the month the tickets are 

issued by the gaming machine or 

gaming device. Tickets deducted from 

gross revenue that are not redeemed 

within a period not to exceed 180 days 

of issuance shall be included in gross 

revenue. An unredeemed ticket 

previously included in gross revenue 

may be deducted from gross revenue in 

the month redeemed. 

(i) A gaming operation may not 

deduct from gross revenues the unpaid 

balance of a credit instrument extended 

for purposes other than gaming. 

(j) A gaming operation may deduct 

from gross revenue the unpaid balance 

of a credit instrument if the gaming 

operation documents or otherwise keeps 

detailed records of compliance with the 

following requirements. Such records 

confirming compliance shall be made 

available to the Tribal gaming regulatory 

authority or the Commission upon 

request: 

(1) The gaming operation can 

document that the credit extended was 

for gaming purposes; 

(2) The gaming operation has 

established procedures and relevant 

criteria to evaluate a patron’s credit 

reputation or financial resources and to 

then determine that there is a reasonable 

basis for extending credit in the amount 

or sum placed at the patron’s disposal; 

(3) In the case of personal checks, the 

gaming operation has established 

procedures to examine documentation, 

normally acceptable as a means of 

identification when cashing checks, and 

has recorded a bank check guarantee 

card number or credit card number, or 

has satisfied paragraph (j)(2) of this 

section, as management may deem 

appropriate for the check-cashing 

authorization granted; 

(4) In the case of third party checks 

for which cash, chips, or tokens have 

been issued to the patron, or which 

were accepted in payment of another 

credit instrument, the gaming operation 

has established procedures to examine 

documentation, normally accepted as a 

means of identification when cashing 

checks, and has, for the check’s maker 

or drawer, satisfied paragraph (j)(2) of 

this section, as management may deem 

appropriate for the check-cashing 

authorization granted; 

(5) In the case of guaranteed drafts, 

procedures should be established to 

ensure compliance with the issuance 

69300 Federal Register / Vol. 70, No. 219 / Tuesday, November 15, 2005 / Proposed Rules 

and acceptance procedures prescribed 

by the issuer; 

(6) The gaming operation has 

established procedures to ensure that 

the credit extended is appropriately 

documented, not least of which would 

be the patron’s identification and 

signature attesting to the authenticity of 

the individual credit transactions. The 

authorizing signature shall be obtained 

at the time credit is extended. 

(7) The gaming operation has 

established procedures to effectively 

document its attempt to collect the full 

amount of the debt. Such 

documentation would include, but not 

be limited to, letters sent to the patron, 

logs of personal or telephone 

conversations, presentation of the credit 

instrument to the patron’s bank for 

collection, settlement agreements, or 

otherwise demonstrates that it has made 

a good faith attempt to collect the full 

amount of the debt. Such records 

documenting collection efforts shall be 

made available to the Tribal gaming 

regulatory authority or the Commission 

upon request. 

(k) Maintenance and preservation of 

books, records and documents. (1) All 

original books, records and documents 

pertaining to the conduct of wagering 

activities shall be retained by a gaming 

operation in accordance with the 

following schedule. A record that 

summarizes gaming transactions is 

sufficient, provided that all documents 

containing an original signature(s) 

attesting to the accuracy of a gaming 

related transaction are independently 

preserved. Original books, records or 

documents shall not include copies of 

originals, except for copies that contain 

original comments or notations on parts 

of multi-part forms. The following 

original books, records and documents 

shall be retained by a gaming operation 

for a minimum of five (5) years: 

(i) Casino cage documents; 

(ii) Documentation supporting the 

calculation of table game win; 

(iii) Documentation supporting the 

calculation of gaming machine win; 

(iv) Documentation supporting the 

calculation of revenue received from the 

games of keno, pari-mutuel, bingo, pulltabs, card games, and all other gaming 

activities offered by the gaming 

operation; 

(v) Table games statistical analysis 

reports; 

(vi) Gaming machine statistical 

analysis reports; 

(vii) Bingo, pull-tab, keno and parimutuel wagering statistical reports; 

(viii) Internal audit documentation 

and reports; 

(ix) Documentation supporting the 

write-off of gaming credit instruments 

and named credit instruments; 

(x) All other books, records and 

documents pertaining to the conduct of 

wagering activities that contain original 

signature(s) attesting to the accuracy of 

the gaming related transaction. 

(2) Unless otherwise specified in 

§ 542, all other books, records, and 

documents shall be retained until such 

time as the accounting records have 

been audited by the gaming operation’s 

independent Certified Public 

Accountants. 

(3) The above definition shall apply 

without regards to the medium through 

which the book, record or document is 

generated or maintained (paper, 

computer generated, magnetic media, 

etc.). 

8. Amend § 542.23 to redesignate 

paragraphs (i) through (r) as (j) through 

(s), add new paragraph (i), and revise 

newly redesignated paragraphs (m)(1) 

introductory text, (m)(2)(i), (o)(1) 

introductory text, and (o)(4) to read as 

follows: 

§ 542.23 What are the minimum internal 

control standards for surveillance for Tier A 

gaming operations? 

* * * * * 

(i) Technical Standards for 

Surveillance Systems. (1) Analog 

Systems: 

(i) To satisfy the sufficient clarity 

requirement of this section, continuous 

movement must be recorded at the 

frame rate of 30 FPS (frames per 

second); 

(ii) To satisfy the sufficient clarity 

requirement of this section, the 

resolution must be sufficient to produce 

a video record that is a complete, 

accurate and viewable representation of 

the activity being observed; and 

(iii) Any area covered by cameras 

activated by motion detection must 

record live-action at the frame rate of 30 

FPS. 

(2) Digital Systems (referred to as DVR 

System): 

(i) To satisfy the sufficient clarity 

requirement of this section, the DVR 

System must capture, record and view 

continuous movement at the minimum 

rate equivalent to 30 IPS (images per 

second); 

(ii) To satisfy the sufficient clarity 

requirement of this section, the 

resolution must be sufficient to produce 

a video record that is a complete and 

accurate representation of the activity 

being observed; 

(iii) The DVR System must have preand post-alarm activation at a minimum 

of five (5) seconds (before and after 

event) for those areas in which motionactivated cameras are allowed; 

(iv) Viewing and recording size of 

images will be at a minimum of CIF or 

FCIF for all inclusive areas of the DVR 

System; 

(v) An internal backup system must 

be included in the configuration to 

perform in the event that a hard drive 

failure will have negative impact on the 

system’s ability to record video images; 

(vi) The DVR System must have a 

failure notification function consisting, 

at a minimum, of both audible and 

visual warning devices when system 

failure could negatively impact the 

ability to record, play back, or store 

video images; 

(vii) If the Casino Operation chooses 

to utilize a network (also referred to as 

NVR System) for the interconnection of 

or playback from digital recording 

devices, access to this network must be 

limited to authorized personnel and be 

password or code protected in order to 

maintain integrity and data network 

security; 

(viii) If the Gaming Operation elects to 

utilize authentication/encryption code 

software, the software must be 

submitted to the Tribal Gaming 

Regulatory Authority (TGRA) for 

inspection and approval. 

* * * * * 

(m) Table games. (1) Operations with 

four (4) or more table games. Except as 

otherwise provided in paragraphs 

(m)(3), (m)(4), and (m)(5) of this section, 

the surveillance system of gaming 

operations, operating four (4) or more 

table games, shall provide at a minimum 

one (1) pan-tilt-zoom camera per two (2) 

tables and surveillance must be capable 

of taping: 

* * * * * 

(2) * * * 

(i) Comply with the requirements of 

paragraph (m)(1) of this section; or 

* * * * * 

(o) Gaming machines. (1) Except as 

otherwise provided in paragraphs (o)(2) 

and (o)(3) of this section, gaming 

machines offering a payout of more than 

$250,000 shall be recorded by a 

dedicated camera(s) to provide coverage 

of: 

* * * * * 

(4) Notwithstanding paragraph (o)(1) 

of this section, if the gaming machine is 

a multi-game machine, the Tribal 

gaming regulatory authority, or the 

gaming operation subject to the 

approval of the Tribal gaming regulatory 

authority, may develop and implement 

alternative procedures to verify payouts. 

* * * * * 

9. Amend § 542.33 to redesignate 

paragraphs (j) through (y) as (k) through 

(z), add a new paragraph (j), and revise 

newly redesignated paragraphs (p)(1) 

Federal Register / Vol. 70, No. 219 / Tuesday, November 15, 2005 / Proposed Rules 69301 

introductory text, (p)(2)(i), (r)(1) 

introductory text, and (r)(4) to read as 

follows: 

§ 542.33 What are the minimum internal 

control standards for surveillance for Tier B 

gaming operations? 

* * * * * 

(j) Technical Standards for 

Surveillance Systems. (1) Analog 

Systems: 

(i) To satisfy the sufficient clarity 

requirement of this section, continuous 

movement must be recorded at the 

frame rate of 30 FPS (frames per 

second); 

(ii) To satisfy the sufficient clarity 

requirement of this section, the 

resolution must be sufficient to produce 

a video record that is a complete and 

accurate representation of the activity 

being observed; and 

(iii) Any area covered by cameras 

activated by motion detection must 

record live-action at the frame rate of 30 

FPS. 

(2) Digital Systems (referred to as DVR 

System): 

(i) To satisfy the sufficient clarity 

requirement of this section, the DVR 

System must capture, record and view 

continuous movement at the minimum 

rate equivalent to 30 IPS (images per 

second); 

(ii) To satisfy the sufficient clarity 

requirement of this section, the 

resolution must be sufficient to produce 

a video record that is a complete, 

accurate and viewable representation of 

the activity being observed; 

(iii) The DVR System must have preand post-alarm activation at a minimum 

of five (5) seconds (before and after 

event) for those areas in which motionactivated cameras are allowed; 

(iv) Viewing and recording size of 

images will be at a minimum of CIF or 

FCIF for all inclusive areas of the DVR 

System; 

(v) An internal backup system must 

be included in the configuration to 

perform in the event that a hard drive 

failure will have a negative impact on 

the system’s ability to record video 

images; 

(vi) The DVR System must have a 

failure notification function consisting, 

at a minimum, of both audible and 

visual warning devices when system 

failure could negatively impact the 

ability to record, play back, or store 

video images; 

(vii) If the Casino Operation chooses 

to utilize a network (also referred to as 

NVR System) for the interconnection of 

or playback from digital recording 

devices, access to this network must be 

limited to authorized personnel and be 

password or code protected in order to 

maintain integrity and data network 

security; 

(viii) If the Gaming Operation elects to 

utilize authentication/encryption code 

software, the software must be 

submitted to the Tribal Gaming 

Regulatory Authority (TGRA) for 

inspection and approval. 

* * * * * 

(p) Table games. (1) Operations with 

four (4) or more table games. Except as 

otherwise provided in paragraphs (p)(3), 

(p)(4), and (p)(5) of this section, the 

surveillance system of gaming 

operations, operating four (4) or more 

table games, shall provide at a minimum 

one (1) pan-tilt-zoom camera per two (2) 

tables and surveillance must be capable 

of taping: 

* * * * * 

(2) * * * 

(i) Comply with the requirements of 

paragraph (p)(1) of this section; or 

* * * * * 

(r) Gaming machines. (1) Except as 

otherwise provided in paragraphs (r)(2) 

and (r)(3) of this section, gaming 

machines offering a payout of more than 

$250,000 shall be monitored and 

recorded by a dedicated camera(s) to 

provide coverage of: 

* * * * * 

(4) Notwithstanding paragraph (r)(1) 

of this section, if the gaming machine is 

a multi-game machine, the Tribal 

gaming regulatory authority, or the 

gaming operation subject to the 

approval of the Tribal gaming regulatory 

authority, may develop and implement 

alternative procedures to verify payouts. 

* * * * * 

10. Amend § 542.43 to redesignate 

paragraphs (k) through (z) as (l) through 

(aa), add a new paragraph (k), and revise 

newly redesignated paragraphs (q)(1) 

introductory text, (q)(2)(i), (s)(1) 

introductory text, and (s)(4) to read as 

follows: 

§ 542.43 What are the minimum internal 

control standards for surveillance for a Tier 

C gaming operation? 

* * * * * 

(k) Technical Standards for 

Surveillance Systems. (1) Analog 

Systems: 

(i) To satisfy the sufficient clarity 

requirement of this section, continuous 

movement must be recorded at the 

frame rate of 30 FPS (frames per 

second); 

(ii) To satisfy the sufficient clarity 

requirement of this section, the 

resolution must be sufficient to produce 

a video record that is a complete and 

accurate representation of the activity 

being observed; and 

(iii) Any area covered by cameras 

activated by motion detection must 

record live action at the frame rate of 30 

FPS. 

(2) Digital Systems (referred to as DVR 

System): 

(i) To satisfy the sufficient clarity 

requirement of this section, the DVR 

System must capture, record and view 

continuous movement at the minimum 

rate equivalent to 30 IPS (images per 

second); 

(ii) To satisfy the sufficient clarity 

requirement of this section, the 

resolution must be sufficient to produce 

a video record that is a complete, 

accurate and viewable representation of 

the activity being observed; 

(iii) The DVR System must have preand post-alarm activation at a minimum 

of five (5) seconds (before and after 

event) for those areas in which motionactivated cameras are allowed; 

(iv) Viewing and recording size of 

images will be at a minimum of CIF or 

FCIF for all inclusive areas of the DVR 

System; 

(v) An internal backup system must 

be included in the configuration to 

perform in the event that a hard drive 

failure will have negative impact on the 

system’s ability to record video images; 

(vi) The DVR System must have a 

failure notification function consisting, 

at a minimum, of both audible and 

visual warning devices when system 

failure could negatively impact the 

ability to record, play back, or store 

video images; 

(vii) If the Casino Operation chooses 

to utilize a network (also referred to as 

NVR System) for the interconnection of 

or playback from digital recording 

devices, access to this network must be 

limited to authorized personnel and be 

password or code protected in order to 

maintain integrity and data network 

security; 

(viii) If the Gaming Operation elects to 

utilize authentication/encryption code 

software, the software must be 

submitted to the Tribal Gaming 

Regulatory Authority (TGRA) for 

inspection and approval. 

* * * * * 

(q) Table games. (1) Operations with 

four (4) or more table games. Except as 

otherwise provided in paragraphs (q)(3), 

(q)(4), and (q)(5) of this section, the 

surveillance system of gaming 

operations, operating four (4) or more 

table games, shall provide at a minimum 

one (1) pan-tilt-zoom camera per two (2) 

tables and surveillance must be capable 

of taping: 

* * * * * 

(2) * * * 

(i) Comply with the requirements of 

paragraph (q)(1) of this section; or 

* * * * * 

69302 Federal Register / Vol. 70, No. 219 / Tuesday, November 15, 2005 / Proposed Rules 

(s) Gaming machines. 

(1) Except as otherwise provided in 

paragraphs (s)(2) and (s)(3) of this 

section, gaming machines offering a 

payout of more than $250,000 shall be 

monitored and recorded by a dedicated 

camera(s) to provide coverage of: 

* * * * * 

(4) Notwithstanding paragraph (s)(1) 

of this section, if the gaming machine is 

a multi-game machine, the Tribal 

gaming regulatory authority, or the 

gaming operation subject to the 

approval of the Tribal gaming regulatory 

authority, may develop and implement 

alternative procedures to verify payouts. 

* * * * * 

Signed in Washington, DC, this 1st day of 

November, 2005. 

Philip N. Hogen, 

Chairman. 

Nelson Westrin, 

Vice Chairman. 

Cloyce Choney, 

Commissioner. 

[FR Doc. 05–22506 Filed 11–14–05; 8:45 am] 

BILLING CODE 7565–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Parts 51 and 52 

[FRL–7997–4] 

RIN 2060–AK74 

Public Hearing and Extension of Public 

Comment Period for Proposed Rule To 

Implement the Fine Particle National 

Ambient Air Quality Standards 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Announcement of public 

hearing and extension of public 

comment period. 

SUMMARY: The EPA is announcing that 

a public hearing for the proposed rule 

to implement the fine particle national 

ambient air quality standards (NAAQS) 

will be held on November 30, 2005 in 

Washington, DC. The proposed rule was 

published in the Federal Register on 

November 1, 2005 (70 FR 65984) and is 

also available at http://www.epa.gov/ 

pmdesignations. The hearing will be at 

the Capitol Hilton Hotel in Washington, 

DC and will begin at 9 a.m. The EPA is 

also extending the public comment 

period for this proposed rule to January 

31, 2006. 

DATES: The public hearing will be held 

on November 30, 2005. The public 

comment period for this proposed rule 

is extended to January 31, 2006. Please 

refer to SUPPLEMENTARY INFORMATION for 

additional information on the hearing. 

ADDRESSES: The public hearing will be 

held at the Capitol Hilton Hotel, located 

at 1001 16th Street, NW., Washington, 

DC 20036, phone 202–393–1000. (The 

hotel is within walking distance of three 

Metro stations: The Farragut North, 

Farragut West, and McPherson Square 

stations.) Written comments on the 

proposed rule may also be submitted to 

EPA electronically, by mail, by 

facsimile, or through hand delivery/ 

courier. Please refer to the proposal for 

the addresses and detailed instructions. 

Documents relevant to this action are 

available for public inspection at the 

EPA Docket Center, located at 1301 

Constitution Avenue, NW., Room B102, 

Washington, DC between 8:30 a.m. and 

4:30 p.m., Monday through Friday, 

excluding legal holidays. A reasonable 

fee may be charged for copying. 

Documents are also available through 

EPA’s electronic Docket system at 

http://www.epa.gov/edocket. The EPA 

Web site for the rulemaking is http:// 

www.epa.gov/pmdesignations. 

FOR FURTHER INFORMATION CONTACT: If 

you would like to speak at the public 

hearing or have questions concerning 

the public hearing, please contact Joann 

Allman of EPA (see contact information 

under SUPPLEMENTARY INFORMATION). 

Questions concerning PM 2.5

implementation issues should be 

addressed to Richard Damberg, U.S. 

Environmental Protection Agency, 

Office of Air Quality Planning and 

Standards, Mail Code C504–02, 

Research Triangle Park, NC 27711, 

phone number (919) 541–5592 or by email at: damberg.rich@epa.gov. 

Questions concerning the new source 

review program revisions to address the 

PM 2.5 standards should be addressed to 

Raj Rao, U.S. Environmental Protection 

Agency, Office of Air Quality Planning 

and Standards, Mail Code C339–03, 

Research Triangle Park, NC 27711, 

phone number (919) 541–5344 or by email at: rao.raj@epa.gov. 

SUPPLEMENTARY INFORMATION: 

Public Hearing. The public hearing 

will provide interested parties the 

opportunity to present data, views, or 

arguments concerning the proposed 

rule. The EPA may ask clarifying 

questions during the oral presentations, 

but will not respond to the 

presentations at that time. Written 

statements and supporting information 

submitted during the comment period 

will be considered with the same weight 

as any oral comments and supporting 

information presented at the public 

hearing. Written comments must be 

postmarked by January 31, 2006. 

If you would like to present oral 

testimony at the hearing, please notify 

Joann Allman of the U.S. EPA, Office of 

Air Quality Planning and Standards, Air 

Quality Strategies and Standards 

Division, C539–02, Research Triangle 

Park, NC 27711, telephone (919) 541–

1815, e-mail allman.joann@epa.gov, by 

12 p.m. Eastern time on November 28, 

2005. She will provide you with a 

specific time to provide your comments. 

Oral testimony will be limited to 5 

minutes for each commenter. The EPA 

encourages commenters to provide EPA 

with a copy of their oral testimony 

electronically (via e-mail, computer 

disk, or CD) or in hard copy form. 

The public hearing will begin at 9 

a.m. and continue until 5 p.m., if 

necessary, depending on the number of 

speakers. The EPA may end the hearing 

early (no earlier than 2 p.m.) if all 

registered speakers have had an 

opportunity to speak. Persons wishing 

to present oral testimony that have not 

made arrangements in advance can 

register by 2 p.m. on the day of the 

hearing. We will provide equipment for 

commenters to show overhead slides or 

make computerized slide presentations 

if we receive special requests in 

advance. Commenters should notify 

Joann Allman if they will need specific 

equipment. The hearing schedule, 

including lists of speakers, will be 

posted on EPA’s Web site: http:// 

www.epa.gov/pmdesignations. Verbatim 

transcripts of the hearings and written 

statements will be included in the 

rulemaking docket. 

Extension of public comment period. 

The proposed rule was signed by the 

Administrator on September 8, 2005 

and published in the Federal Register 

on November 1, 2005. Since the 60-day 

public comment period would have 

concluded on December 31, 2005, EPA 

has decided to extend the comment 

period until January 31, 2006 in order 

to avoid the December holiday period 

and allow interested parties to have 

additional time to prepare their 

comments. 

How Can I Get Copies of This 

Document and Other Related 

Information? 

The EPA has established the official 

public docket for the Rule to Implement 

the Fine Particle National Ambient Air 

Quality Standards under Docket ID No. 

OAR–2003–0062. Also, the proposed 

rule was published in the Federal 

Register on November 1, 2005 and is 

available at http://www.epa.gov/ 

pmdesignations.